Thinking of starting a dropshipping business in 2020? Here's what you should know first...
In this episode of The eCommerce Lifestyle Podcast, I'm going to be sharing with you five things you need to know before you start dropshipping in 2020.
And this isn't just an episode for those getting started on their first store. This episode is very much relevant to anyone dropshipping currently, or planning to dropship in 2020.
In this episode, I'll be covering the things you should consider before you start dropshipping in 2020. That includes:
- Facebook Ads
- Google Ads
- Shopify Content
- Store Valuations
If you'll be dropshipping in 2020, this is an episode you can't afford to miss!
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Hey, what's up everybody, Anton Kraly here from eCommercelifestyle.com and welcome to another episode of the podcast. Today we're going to be talking about five things you need to know before you start a dropshipping in 2020.
So perfect episode for the new year. And yes, this will be relevant even if you've been in business already. This isn't only if you're getting started, but really for anybody that's planning to do business on the Drop Ship model in 2020.
So the five things that I want to hit on here are Facebook ads, Google ads, Shopify content, and then valuations. So let's start at the top right. Facebook ads for dropshipping in 2020. Do they work? Do they not? Should you do them?
The short answer is yes, of course they work if you do them right. I've done a bunch of different episodes this past year on Facebook ads, so I'll link to them below this episode if you want to check them out for kind of like a mini Facebook ads training.
And if you want my full Facebook ads training, of course that's in my program, The Drop Ship Blueprint, I'll link that up below as well. But the main thing with Facebook ads in 2020 is to make sure, and I know that should sound obvious, right, but it doesn't.
Make sure that you are being as honest and as ethical as possible in your advertisements, specifically with e-commerce, that means with lead times as well.
Now, you may or may not have noticed this on Facebook recently, but if you start to engage with eCommerce stores Facebook pages, what Facebook will do is show you this, I don't even know what to call it, like this little module or unit in your Facebook feed as you're scrolling through.
And it might say something like, "Hey Anton, do you remember purchasing from nike.com." And then it would say yes or no, and if you click no, it just goes away.
And if you click yes, it would say, do you like, how would you like to rate your transaction with them? Right? And in that section you can literally rate the store, and it's a prompt that Facebook is giving you automatically. It's not because in that scenario Nike is doing it.
It's not because I'm doing it with my stores because I want to. It's because Facebook is doing it automatically to make sure that the businesses that are advertising on their platform are actually giving customers a great experience.
And what that means to me like giving customers a great experience is giving them what you're promising them and actually running a legit business. And the reason that Facebook started to really crack down and start to put this thing in front of people is because so many people were running these shady businesses specifically with dropshipping.
Usually from China with really long lead times and they weren't responding to Facebook messages from customers, weren't responding to emails, time was going on and customers started to look at Facebook as a place they couldn't trust, because they were seeing all these scams pop up.
So does that mean that all eCommerce stores now are screwed and you can't advertise on Facebook? No. It means give honest lead times. If you use the Drop Ship Lifestyle model, that's typically within a week, right max. So be honest with that.
If people message your business, answer them and give them a good experience. And if you do that, your Facebook ad account will not get banned in 2020, you're not going to see your costs skyrocket and your return on ad spends dip.
Instead, you can just use it and you know what, you can do better than most people because most people are running what I would call banner stores or even like fly by night shady businesses. Run your business like a real business. Use Facebook ads. You will just be fine in 2020.
Now, second point I wanted to cover in this video and in this podcast is Google ads. So Google ads still love them, still spend a ton of money with them, still get amazing return on ad spends with them.
But one thing that I've noticed more and more, especially in Q4 of 2019 is that when we're setting up new ad campaigns, they are really trying to push everything to be automated. And they call it smart campaigns. They do things like automated bids and target CPAs.
Basically what they're trying to do is have it so you set up your ad campaigns and give them as much control as possible and they're almost trying to hide some of the manual controls, and you could find them. They're not there, but they're not like in front of your face. Instead they try to guide you through these smart campaign setups that they want you to use.
And listen, don't use them. Okay. At least at this point, don't use them, because we use smart campaigns. We use campaigns that we control manually and specifically on Google the smart ones have nowhere near the return on ad spend that we're getting from the ones that we manage manually.
Now that does not mean that you can't take advantage of some of the automations and the AI within Google, you definitely can, but those campaigns, especially when you're brand new. Where it's like, start a smart campaign and click like two or three buttons and you're all set up.
Don't do it that way. That is not how it's going to work. If you want to see the different automations that we do use and how we leverage the technology that Google provides us with and you're part of Drop Ship Lifestyle, definitely check out my Google ads training in module six, where you could see how to kind of get the best of both worlds, right?
The manual with the automation, but regardless of that, don't just make a new account, a new campaign and let Google have complete control from day one, because you will lose money or at the very least, you'll be losing out on a lot of return on ad spend that you could have if you maintain more control over your account.
Okay. Third thing I want to talk about in this podcast is Shopify going into 2020. And the reason I want to talk about this is because at this point, Shopify, they're the clear leader in the eCommerce space as far as platforms go. They've been growing like crazy year over year.
They're making their product better and better, but I still get questions all the time of, "Should I use Shopify? Can I use WooCommerce? Should I use click funnels?"
And listen, we use WordPress for certain sites. We use click funnels for plenty of them. I don't know. See back there, I have two awards to show you I use click funnels too.
But when it comes to eCommerce and dropshipping, specifically with the Drop Ship Lifestyle model, where you're building a real brand, a real store, where you're an authorized retailer for legitimate brands and you're going to have a whole product catalog and you're going to provide a whole experience for your customer, Shopify is still the winner, hands down.
I do not see that changing anytime soon. You know you never know, if it does, I'll tell you. But if you're going to build a real business dropshipping in 2020, Shopify hands down should be the platform you use.
It's the easiest to use. It's the most up to date. Their support is second to none and they literally make it better without you even asking them.
It just gets better and better every single year, because they have such an amazing team and such amazing leadership. So Shopify, keep using it. Everything else, don't worry about until you have a multi seven figure store on Shopify.
Now, fourth thing is content and your content strategy. This is big. I recently just did a podcast. You might have heard it. The last one about, if eCommerce is saturated and what the future of eCommerce looks like, and content is a big thing that's going to make sure if you're one of the stores that I talked about in the last podcast that continues to grow for decades, content's going to be one of the big things that helps you get there. Because as this continues to grow, people aren't just... Think of it this way, right?
Things aren't only going to get easier in the sense that you can just have more keywords being bid on and get more and more sales. Of course, that's part of it, but the main thing that's going to help more stores rise higher is their content strategy.
This is something that typically doesn't have an instant return on ad spend, but it does come back to you pretty quick if you do it the right way and if you leverage it through social media and through your email marketing. But my advice to everybody that's dropshipping in 2020 is put some of your budget into quality content that lives on your website.
This could be blog posts, buying guides, videos, a podcast, whatever you decide is best for you, start creating it now if you haven't yet, double down on it if you're doing it already and the work that you put into content when you're dropshipping in 2020 is going to help solidify you as one of those stores that continues to rise and rise as things do get more competitive. So definitely take advantage of this if you have not been doing so yet.
Now, final thing I want to talk about in this podcast is valuations. And this is more so for newer people that are just getting started, and businesses specifically dropshipping stores are selling for higher valuations than ever.
Again, if you're using the Drop Ship Lifestyle model, if you're doing what we do, not if you're just selling some crap from China or trying to do an arbitrage thing, but if you're building a real brand, the valuations are going up. Meaning you could sell your store for more money if you want to. So more than ever, it's important that when you build your business as it grows, you're actually building it as a business.
Now, that could be an LLC, that could be an S Corp. Make sure though, once you know this is for you and once you know you're all in on this, make sure you have a business set up. Make sure your business account is separate than your personal.
Make sure all your books and all your finances and everything is accounted for. Because if you ever do want to sell in one year or five years or 10 years, it doesn't matter, you'll be able to get the most amount of money, which again they're going up if you have your books and everything accounted for. If it's not all jumbled in with your personal expenses and your other three businesses. So focus on that guys.
Those are my main tips for dropshipping in 2020. Definitely, if you need to hear this again, go back, listen, one more time. Do this before you get big into dropshipping in 2020, and I promise you you will have an amazing year. So thank you everybody, appreciate you and I'll talk to you in the next episode of the eCommerce Lifestyle Podcast. See you.