Skip to content Skip to sidebar Skip to footer

Question and Answer About Business Dropshipping

Hey guys, what's up? Back with me again. Okay, recently, I've gotten so many questions about dropshipping. Because I've posted a lot of things in my social media about dropshipping.

 So, I received so many questions through my Facebook and my ask.fm about dropshipping. Lots of people asked there. Okay,  there are some questions that I'll just answer briefly.

Question and Answer About Business Dropshipping

"How is the prospect for dropshipping business in the future?"

A certain thing is, the number of people who go online is increasing. That's for sure. In Indonesia, 5 million of babies are born per year. Per one year. And there are also 5 million of Singapore citizens.

So can you imagine? There is a "new Singapore" every year in Indonesia. And this "new Singapore", they will grow up every year, they will mature.

They will go through their "alay" phase, and then they will also become adults. And when they become adults, and they have money, they will buy stuff online.

So if you ask me about its prospect in the future, it will surely hit big. But the rivalry will also be tighter. So... it's the same.

But this will be a chance. You can either take this as a threat or a chance. For me, I'll rather take that as a chance, because that's going to empower my brain, and yours too.

Okay, next. Is it reliable & stable?
For me... it's up and down. Always up and down. So, this world keeps evolving. If you are a merchant on a market, it means you buy wholesale, you sell them, and done. That's it.

Whenever something's changing a little like your market's going to be closed down, or whatever, you will just start panicking. In the digital world, it changes every day.

So in the conventional transactions, the change will probably happen in years, as small changes, like the economy's going bad, up and down.

The digital world changes every day. Facebook can change its algorithm every day. So, every time I teach a class, the material is always new, the design is new, the layout... and the Facebook setting is new.

So, the growth is very fast, "Is it reliable?"

That question can only be answered whether your skill is always up to date or not.

Okay, two years ago, Snapchat was really good, This year, Instagram is better. So, if you are like "I'm going to keep using Snapchat", you will barely have customers these days.

Only 50 people watch my snaps, but when I post in Instagram stories, I have one to two thousand viewers. It's really different. Even though the Instagram story was just released recently, right?

"Is it stable?" The answer is no. "Is it reliable?" Well whether it's reliable or not, it depends on how much income do you want.

Because it definitely is not stable, up and down, it comes down to how you... enough or not.

For example, let's say you work with 10 million per month as your income. 10 million, 10 million, for a year. Which is okay, if you got a job.

What if... you suddenly got 100 million, for that month. One month. But, for the next months, you'll get nothing.

This is actually very similar. It's just... a matter of accumulating all of your income to one month, and get all of it in advance, and you'll get nothing for the next months.

It's that okay? The first time it happened to me, I thought "Wow I got this much for this month, but next month I barely got anything".

It did happen, guys. And it will give you stress, if you're not used to it. After you're getting used to it, You will feel "Oh this is good", "My work for a year will be paid in my first month in advance," "and holiday for the rest of the year".

Which is really awesome, right? As long as you don't go on vacation & spend all of your money. You have 11 months to spend all of your money. If you work normally, in a year, you get 50 weeks for work and 2 weeks for holiday.

Which makes you more economical, right? But if you're on holiday for 11 months, you will spend more money. So it's totally up to you. Depends on what kind of lifestyle you're living. That's the answer to the "Is it reliable?".

Dropshipping is a part of affiliate marketing. Yesterday someone asked, "Is it the same as affiliate marketing?". The answer is yes. See, It's quite similar...

So, affiliate marketing is, we are providing others' products or services. That's affiliate marketing. And for dropshipping, you are offering someone else's physical product, so you don't own the product.

And then, "How much money do I need?" Well, every kind of business needs money, so don't expect to start one if you don't have any money. Man, you have to follow the steps, okay?

What is certain is, you need 3-5 million per month. What for? To put up ads on Facebook, to start your online shop, everything needs money.

Okay, if you open a stand in a mall, you'll need money for the rent, pay for the staff, et cetera. Which is, 3-5 million, is considered cheap.

Compared to, the regional minimum wage. The regional minimum wage is about... around 2-3 million. That's only for one staff, not counting anything else, like stocking the inventory, or unsold products, et cetera, which is going to be really pricey.

So, "how much money do you need?" let's say you have 10 million, or 20 million, or 30 million, or 50 million, which is good, you can start a business in this field.

But remember, you will have to keep spending more money, keep learning, to test your ads, that's really important in the dropshipping business.

At least you don't have to stock lots of stuff with expensive prices to start, and if your products can't sell, they will pile in the storage. That's dead money.

But that's not happening in this business, because you keep testing which gives a slightly better cash flow. Better, but you still need money to start the business.

The next question is what if the money that I have is not enough?

let's say I only have 3 million and I have spent that for ads, and I've spent all of them in less than a month. Let's say 2 weeks.

So what? The thing you can do is stop your ads, start saving money, then restart next month.

Okay? So, everything has its own way, so if you only can do it for 2 weeks, then just do it for 2 weeks, and then you have to wait again.

Or you can borrow money or partner up with friends who have more money. If you want to partner up with friends who have more money, you must have something that interests your friend so he wants to partner up, which is usually your skill.

So if you're skilled, and you know digital marketing, while your friend doesn't, your friend can lend you money, so you can run your business.

You can do it with an agreement, or up to you. You can do it with your friends, or with your parents. 

Read more: Business Development Mistakes To Avoid

Okay next is "What equipments do I need?" Certainly, you need a laptop, or a computer basically.

There's a question yesterday if I could just use a handphone, No, the answer is no. You can't, there are lots of limitations. Creating a shopify through handphone is really hard.

Really hard. I've never tried because I use my laptop. So a laptop is a must, okay?

And then "What if I can't speak English?" Well, some of my friends can't speak English but their business is international. So it doesn't matter, guys.

There are some things that you can do, first, if you're good at passive English, you just need to write. You don't need to talk, okay?

And then, if you do want to learn English, there are lots of English courses out there, right? You just need to register. Or to save your time, you can just hire an assistant who speaks English.

Anyway, I sell my products not just in countries that speak English, so open your mind, the market is not just in Indonesia and America. Our world has hundreds of countries.

So it's not just two, the US and Indonesia. Okay? I also do business in Italy, Germany, in France, those three countries are the countries that I have to translate to their language.

So French language in France, Italian in Italy, and German in German. I used onehourtranslation.com. I used that service and paid for abou, around... Maybe for only $9? To translate my ad from English to Italy.

That costed $9. So if I have 3 ads, it's probably around $27. Still quite cheap for entering a country. You don't need to do anything, just translate.

Which is really okay. It's up to you whether you want to translate or not. So there's a way. The next question is...

"Local vs International. Which is better?" For me personally, If I can do both, I'll do both. Don't miss another source of income. Such a waste. If you can do both, do both. But if I have to choose, local or international, I choose International.

Why? The next question answers this. "When will the Indonesian market become like America's?" It won't happen guys. It won't happen. Oh right, Indonesia is big.

Well, the number of credit card users at this day in Indonesia, is only around 15 million people. So if you say "Indonesia has 250 million citizens", true, the number of citizens is 250 million, but the people who use credit cards are only 15 millions. Or 17 millions tops, something like that.

"But they can pay without a credit card!" Yes, that's true. But it means you'll need lots of people to collect the money. So once they made the order, you have to call, you have to chat them through WA, BBM, Line, or whatever, to make them pay.

And it's annoying. It's unscalable. Well, you can, but you'll need lots of people. While in other countries, I work with my team from the Philippines, okay?

The order was through credit card In Indonesia, credit card has its pro and con.

So don't compare it to America where everyone uses a credit card. Only a few who doesn't. So they are used to credit cards or PayPal.

The culture here & there are very different. So how? You just need to do both. Don't choose. In Indonesia, run your business using the Indonesian way, In America, run your business using the American way.

One good thing in America is you don't need many teams to follow them up to pay. They know that they're paying with a credit card. Just like that.

But if they don't pay, we still have to make them pay, but there, they use technology. We use retargeting, et cetera.

In here, we can also use retargeting, but you still need to call them to ask them to pay, et cetera. That happens often in here. Social media is still big in here. So, that's my answer.

Last, my message for you guys, Okay, I ran out of questions.

Lastly, my message. This business, dropshipping, is fast cash for fast action takers. So make sure you're quick to take action, quick to learn, and hopefully you'll get great result in a short time. 

If you keep delaying, things that you've learned today, will be different in next year. So you have to keep learning. That's my message for you guys who want to learn about dropshipping.

Post a Comment for "Question and Answer About Business Dropshipping"