eCommerce Lifestyle

The Secret To Building a Profitable Drop Ship Store


Episode 328

Podcast Description

Anton shares the #1 secret for building a profitable drop ship store.

Many beginners think the biggest secret is picking the right niche, being really good at paid ads, or just getting lucky…

All of these things are important…

But they’re not the biggest secret.


This is how you build a dropshipping business that provides real value to your customers and to your bank account.

But happy customers alone will not lead to you having a profitable drop ship store.

Instead, you want to “zoom out” and use “happy customers” as a part of your decision-making framework.  From there, what you need to do will become clear.

In today’s episode, Anton shares how this applies to product selection, shipping, and support.

If you liked today’s show, please subscribe on iTunes to The eCommerce Lifestyle Podcast! The podcast is also available on all major podcast players including, Stitcher and Spotify.

What's up, guys? Anton Kraly here from And in this video, I want to share the number one secret for building a profitable drop ship store. Now, what I think would be kind of fun before I share this is if you pause the video, and I'll give you about five seconds, and write down what you think it is in the comments. So what is the biggest secret to building a profitable drop ship store? Pause it and I'll be right back.

Based on conversations I've had with many other drop shippers or people wanting to get into drop shipping, I'm assuming some of the comments below say things like product selection, things like traffic, things like market that wants to buy and even things like luck. And I'll tell you those are all important. So if you guessed one of those, don't delete it, don't feel bad. You are technically right in the fact that they matter when it comes to building a profitable drop ship store, but they are not the biggest secret. The biggest secret to building a drop shipping store is to make sure your primary focus is always having happy customers. And you might be thinking, "Okay, Anton, that sounds fine, but how is that going to help me make money drop shipping?" And the truth is by itself it's not. But if you zoom out and you use making sure you have happy customers as the biggest input in your decision making framework, you will build a profitable drop shipping store.

And let me give you some examples of how I think about this and how I would encourage you to think about this as well. So when it comes to product selection, like I'm sure some people guessed, when you're thinking about having happy customers as the end goal, you're going to do things like only sell quality products from legitimate brands. On top of that, you're also only going to advertise products and market them as described. So actually advertising things for what they are and not selling something and trying to talk it up either through your copy in your ads or on your page as something that people might feel deceived when they get. Now on top of that, if you really want to care about your customers and make sure they are happy, you are going to be offering fair pricing. Now on top of that, you're going to be making sure you're helping your customers through your product pages make informed buying decisions.

And when all these things are true, they're all things that go into product selection. But remember, they're all things that lead to having a happy customer. Now let's continue this thought and think about how having happy customers informs other decisions that we have to make in our drop shipping businesses. The next would be when it comes to shipping a huge input and a huge factor on how our customers feel about our companies. So obviously if we want happy customers, we are going to make sure products ship fast and get delivered fast. So we're probably not going to do things like drop ship from China. And we're probably not going to do things like sell products that are out of stock and not mention that on the store. Now on top of that, we're going to make sure we always have tracking numbers for our customers. And if we want them to be as happy as possible, even happier, we're going to make sure those tracking numbers get automatically sent to them and they automatically get updates as the product gets closer to their home or business.

Maybe we do that through an app like AfterShip. That is a great app that works with Shopify. Now on top of that, we're going to make sure if our customers ever do want to return anything, that could be one of the biggest nightmares. One of the biggest complaints you see online, we're going to make sure we work with domestic suppliers who accept returns. So if Mr. Customer down here wants to return his item, it can go straight back to the supplier's warehouse and all can be right with the world. So continuing this even further to show you how this all works and comes together when we make decisions for our stores, and again, how I think you should for yours. When it comes to support, we're going to want to do things like answer questions before the customers even have them.

So answer questions in advance. We're going to do this by having on our product pages, things like Q&As where we can even ask questions that we know our customers have or might have and proactively answer them. So the future customer can be like, "Wow, I'm pleasantly surprised. I had a question and the answer's already there." Now on top of that, we're going to do things like make sure we guide our customers to the right product. So guide to product. Again, instead of just trying to sell them whatever makes us the most money, we're going to do it in a way so that this customer gets the right thing for them, so they have a great buying experience and so that we build a profitable drop shipping business that lasts over time. Now, these are just a few high level things that we do when it comes to making sure all of our decisions will have our customers end up being happy.

But I also want to show how this translates into having a more profitable business, a more profitable drop ship store. So for example, if we are selling only high quality products to our customers, well, guess what? That means we are going to have less returns because customers are going to like what they have. They're not going to ask for as many returns. They're not going to file chargebacks and the profit will remain ours. On top of that if we ship fast, we're going to have less customer service to deal with. Especially if we're proactively sending these tracking numbers, we're not going to people emailing us saying, Hey, where is my order? Because we're being proactive. Again, it's making us more money. We don't need to be at the computer as often to deal with customer service. We don't need our team to be responding to emails as often because we have less emails coming in.

Now on top of that, things like support, answering questions before they get asked, that will really help with losing potential opportunity. The people that visit your store, maybe that don't feel like they have an answer to their question and they leave to go somewhere else and find it. Everything we do, no matter where it falls into the buying funnel or the buyer's journey, it is all designed to lead to having a happy customer because when we have happy customers and when we make decisions based on making our customers happy, we build a more profitable business. This is true with any type of business you'll most likely build in your lifetime, but it is definitely true when it comes to drop shipping. And just to show you how true this is, some of my stores that I built back in 2007 and 2008 are still around and still growing today. And it's not because we just picked a great product. Again, it's not because we just have great traffic.

Again, those things are true, but that will only get you so far. If you get too caught up in that, you will not have a profitable business because everything needs to work together and where you want it all to lead to all of your decisions, again, are having that customer be happy so that your business will make more money. They will leave good reviews for you. They'll tell their friends about you. They'll come back for more and your business can be around in two years, in five years, in 20 years, that is the name of the game. We want to build wealth over time drop shipping, not find something that takes off really quick and then try to figure out what we're doing six months for now.

So guys, as always, I hope you got value from this one. If you did, you know what to do. Leave it alike. If you're not subscribed yet, click that button. I post two new episodes every single week right here and you'll get notified if you click that subscribe button and hit that little bell so YouTube will let you know about it. So as always, thank you. I appreciate you. And I'll talk to you in the next one.