The Dirty Truth about Dropshipping Gurus Won't Tell You

The Dirty Truth about Dropshipping Gurus Won't Tell You

In this video we’re going to cover the dirty about dropshipping that no guru wants to tell you.

Most people making videos on dropshipping try to make it seem like a get rich quick scheme and intentionally leave out the hard or time consuming parts of the business.




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Typically, this is because their incentive isn’t to level 100% with you…it’s to make it seem as easy as possible so they can sell you their course or their service.

And I’m not opposed to selling courses, I do. There’s nothing wrong with packaging information up and selling it as an accelerated path to achievable results.

But it’s also important to always to look a step deeper.

When you’re looking for mentors, quality information, and who to actually listen to in a world where everyone seems to be an “expert”….ask yourself 2 different questions.

Has this person really achieved the results I want in this particular endeavor? And what is this person’s underlying incentive for telling me what they’re telling me?

Answering both of those questions will give you a better idea of who to take advice from.

Don’t get me wrong, dropshipping is phenomenal. It’s best business business model I’ve ever come across…which is why I pivoted my entire eCommerce business to dropshipping last in 2021.

But there are certainly some challenges you might face along the way. So let’s break down the benefits and drawbacks of dropshipping so you can better understand what it’ll take to succeed.

Dropshipping gets a bad rep for being a get rich quick scheme b/c it can sound way too easy when you’re introduced to it.

You don’t need a warehouse to store inventory.
You don’t need to make large purchase orders in bulk ahead of time before ever selling a product.
You don’t need to ship or fulfill any orders yourself.
You don’t need much money to start at all.
And you have location freedom b/c you can run a dropshipping business anywhere in the world.

While all these things make it sound easy, that’s not always the case entirely.

For all of these reasons, it’s an extremely low barrier to entry. B/c anyone with a computer anywhere in the world can start a dropshipping business.

Therefore, the level of competition can be super high…and profit margins can evaporate fast…even on the hottest of products ….(and on entire marketplaces as a whole).

And despite what the latest YouTube dropshipping trend might have you believe, dropshipping is nothing new.

Companies have been doing this for ages in the retail space. The internet just makes it more accessible for people like us to join the game.

Ultimately, dropshipping is simply a method of order fulfillment.

And another drawback of the business model is that typically your profit margins are lower than other eCommerce businesses….

….due to the fact that you’re leveraging other people’s inventory, logistics, and online traffic [whether organically on a website for a fee (like facebook marketplace, amazon, or ebay for example….or paying for that traffic using ads (like shopify for example)].

And that cost of traffic can be EXPENSIVE. Trust me. Which is why I don’t recommend shopify dropshipping to beginners (or really anyone honestly).

Since this is the most popular form of dropshipping, I wanted to break it down for you.

If you’re running ads on popular ad platforms (like tiktok, facebook, or google) in order to buy traffic to your product listings on shop, it’s EXTREMELY difficult to stay profitable consistently.

And while the reward for finding a profitable product and campaign that successfully drives sales is very high.

That reward can be short lived since often other competitors will flood into the market and drive your ad costs up relatively fast once they realize it’s working for someone else.

Not to mention, it can cost you hundreds (sometimes thousands of dollars) to realistically test a product and even find out if it’s profitable or not…

Meaning you could waste thousands of dollars just testing products (with no promise of ever finding a winner….just a hope).

Most dropshipping videos would have you believe you can test products for as little as $20….or $50…and then shut off the campaign off if it’s not working.