Dropshipping is a HORRIBLE Business & You Shouldn't Do It

Dropshipping is a HORRIBLE Business & You Shouldn't Do It

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This short little clip from the richest man in the world, founder and CEO of Amazon, Jeff Bezos, emcompasses every reason why dropshipping wonโ€™t last

Dropshipping was one of the latestโ€ฆ weโ€™ll call it โ€œbusiness out of a boxโ€ schemes that has been around for a few years now

This is where internet marketers claim that if you buy their course, theyโ€™ll teach you how with very little effort, you can make money, quit your job, buy a lambo, without much effort

There are many forms of it: ebay dropshipping, amazon dropshipping, print on demand, etc.

The whole premise is that you can find these so-called โ€œwinning productsโ€ from wholesale distributors, usually from China with Aliexpress

You find the winning product
You get traffic to your website via paid ads on Facebook and Instagram
People buy
You pocket the difference – aka retail arbitrage

So why wonโ€™t dropshipping last?

When you get paid at a job, you made money because you provided value to your employer in the form of your labor.

And in every other business itโ€™s the exact same – you make money from customers when you provide enough value to them

The more value, the more money you make

So money is really just a storehouse of value

In Jeffโ€™s own words, customers that buy products online only care about these three things: low prices, big selection, fast delivery

And since thatโ€™s literally all Amazon focuses on, thatโ€™s probably why Jeff is the richest man in the world

Yet, what are the only things people and online gurus focus with dropshipping?
How I can do the least amount of work
How can I make enough money to quit my job and fire my boss

And there lies the problem – the entire idea and business model of dropshipping completely neglects what every customer wants

You provide next to ZERO value to customers

How are people making money from dropshipping then?

First movers
Low margins
Fake numbers and fake gurus

Even if you can make a profitable dropship business, is that the best long term business model to get into?

So why so many dropshipping gurus? Selling online courses

Is there any case where dropshipping is viable?

There are other ways to provide value

Provide luxury
Find an underserved niche
Have a personal brand



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25 Thoughts to “Dropshipping is a HORRIBLE Business & You Shouldn't Do It”

  1. what do you guys think of dropshipping?

  2. Ok how do you only have 25k subs… your videos are all top notch, interesting, and insanely well produced…

  3. Good video. I'd like to throw in my 2 cents to the comments. The video would be properly named if 'Aliexpress Dropshipping" is a horrible business…'
    Because the model can go further into the future successfully but it requires more capital to invest because the longterm vision for this model is BRANDED DROPSHIPPING.
    I left my dropshipping business earning 7 figures/year and a 6 figure income because I did not feel morally right doing business in this way.
    Not only the business owner will go through a lot of shit with pissed off customers but overall in the entire model you lack control. Which is why branded dropshipping you can be more in favor of providing the customer value with the product you sell. You know your shipping times, how your product looks, your inventory, all that.

    The reason why I was able to scale my business through the roof is because we incorporated this simple tip 'branding' with unlabeled products. I didn't have labeled products, just a branded store brand idea which made it look so real and 'authentic'. Money was amazing, but this is what I mean that deeper inside I did not feel right which is why I left it. Not only this is the major con, but FB is cracking down on businesses like this and you have a high chance of getting your ad account ban. This is a major concern for the youngsters who only master 1 source of revenue. Then boom, someone cuts the plug on it. There is more to it, for ex. like the industry people you meet that I've networked with. They all boast of their success, but in the end we're all doing the same thing: fucking over the customer, lying, and for some who really want to go deeper into this industry – selling a course. This is the majority, but do not get me wrong, there are individuals who genuinely try to practice ethical business. The few.

    In the end for this "Aliexpress dropshipping' industry or 'dropshipping from china' there is one common theme: The short term and not the long term. Which is a poor decision, and the ones who quickly transition to the longterm view will succeed by far the big names in the industry to date. I met Jake, he's cool and got a longterm view. People like this is who to follow.

    But a last comment – You can make a lot of money dropshipping the standard way everyone knows of. But the only way you will actually be able to make a money without going out the way of making a course is generating $10k+/day with decent margins. Otherwise you just have an upgraded part-time job salary with the slim margins in this game (Aliexpress + Shopify). Flexin' a $1000/day result is like getting a $100 tip from a table because you work at a restaurant (if your margins are ~<=10%). But please do not thing that is just the margin of it all, its an industry average. Yes, it is possible for even higher margins, but that goes into how your strategize your business.

    Hope my insight will help someone reading. I have accumulated quite some experience during my time.

  4. Honestly, your channel dishes out some real sense, but I think visually it ain't much. I'm not saying it's bad, but that it's mostly placebo. I'm not a podcast guy, but I always only listen to your videos.
    Great stuff keep it going

  5. "Why is this ad you're about to see probably about dropship–"

    – Hello guys….

    Me : Holy Shi- ๐Ÿคฏ

  6. Just watched all your videos. Good to read your mind. Would love to connect.

  7. Was hoping for dropshipping to jumpstart my entrepreneurship & my funds as I have other ways of investing. After watching this video Iโ€™m having second thoughts ๐Ÿ˜ญ. What are you guysโ€™ thoughts?

  8. To be successful in DS built a brand ๐Ÿ˜Œ

  9. This video is so wrong on so many levels lmao

  10. More content against dropshipping = less competition

    Shameless plug, if you want to see any journey in dropshipping I have a series on my progress over 18 months so far.

    If you have read or know the concept of "the dip" you wild understand why I am not quitting.

    Good insight though for newbies, you have to really want it to be successful.

  11. Jake your videos are really informative and well researched. Please keep making these dude!

  12. If you believe dropshipping is dead, your right, if you believe it's a good business your right to. It's all about the captain, not the boat

  13. Just watched this video, and I'm quitting drop shipping. Thanks for opening my eyes. Subscribed…

  14. Thank you for posting this to keep out competitors๐Ÿ™๐Ÿ™

  15. Jake Tran…. Ruining get rich quick schemes since 2019

  16. Great work! Can you make a video on how you make videos?

  17. 1) Amazon makes little to no profit from e-commerce. Most of their profit comes from Amazon Web Services.
    2) Any product that is dropshipped on Amazon will likely no success because of the fees, plus Amazon has strict rules when it comes to dropshipping. So you make less profit by dropshipping on Amazon.
    3) Yes is true Dropshipping has low profit margins. Is still a nice easy way to creat a little extra income.

    4) People who buy these items buy them on impulse so the value or experience doesn't really matter, tho it would be nice if you could lower shipping times or add a vast amount of products to your store.
    5) I don't think dropshipping is a good idea for a long term business model, but certainly is a great and easy way to start. Get the feeling of how to run a business so the things you move on to next you are more ready to fixed the mistakes you make on dropshipping…

  18. At first I really wanted to dislike your video but I heard the entire thing and I think its brilliant. Because Iโ€™m running a drop shipping store and everything is going smoothly. Toward the end of your video is where the hammer hits the head because Iโ€™m focusing on building a brand. and frankly as much as I care for sales I do also care for the customers and I need them to get a legitimate product.

  19. I got a ad of a man saying "dropshipping is horrible why are you using dropshipping, a lot of YouTubers are doing, stop doing it." on this video.

  20. Like you said I think it is possible in certain scenarios. I don't think it works long term in a traditional sense. However, those individuals that take the time to think outside of the box as far as marketing can win. Searching for local suppliers with faster shipping instead of the ways everyone else is doing it through aliexpress is also a win for the seller and the consumer. There are so many local wholesalers that will drop ship with your brand it's about finding the right supplier that can accommodate the demands. Marketing isn't limited to social media ads and influencers, you have flyers, billboards, word of mouth, etc there are countless ways to expand your brand. A model like this can work if an individual is ready to transform their profit into something else even Bezos started out just selling books and turned a profit because he reinvested into his business. I think these businesses fail because ppl want to make money over night instead of providing a viable service or product that will leave the customers coming back.

  21. * Why Drop shipping is not DEAD: (COMMODITY MARKET vs NICHE MARKET)

    This maybe Amazon Business Model:

    Low Prices

    Big Selection

    Fast Delivery

    However, this is sounds like a commodity market to me. Many large business have been reduced to a commodity, they all compete on price. There's nothing special about them.

    Maybe you forgot about 1 or 2 things;

    PEOPLE ARE IRRATIONAL – Tell them a better story and you can win them over. The same reason why people queue to buy iphones ( Branding)

    NICHE MARKET – We all have special needs, interests, etc. People will pay anything to get those needs satisfied. shipping is not DEAD.

  22. But don't you close for the infamous Kevin David tho?

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