online business

Why dropshipping is not a sustainable business model

The classic e-commerce businesses you see these days on Youtube - Dropshipping, Fulfillment by Amazon and Affiliate Marketing - are levelling the playingfield for people to make money onlin. After going through a course almost anyone can be running their own successful online business within a few weeks. It is cheap to start up, you hold no inventory, and all can be successfully done from the comfort of your bed if that's what floats your boat.

At the beginning of 2017 I found a video titled ”making money through writing books for Amazon without being a writer”.

amazon_logo_RGB

This Youtuber paid a freelance writer to write him a book on a certain topic, listed the book on Amazon as an ebook, optimised the listing for certain tags and keywords in order to rank high for that subject, and made 6-figures just like that.

giphy

And he was not the only one. The more time I spent researching, the more structures I found of people making good money online, without any real special skill. They just executed. They were mostly between the ages 18-25, with no formal degree in business and marketing. All they did was follow courses from people who had done it before. And it worked.

There is a plethora of other businesses that can be duplicated verbatim, and made profitable. And its great! It is what made me want to get started in these businesses.

However! I think these businesses are not sustainable.

The reason why I think so many are succeeding now, is because there is a ”first-mover” advantage. The market participants have this advantage because even though it looks like everyone and their mother is starting an online business, there are not many people that have the balls to start retail arbitrage, dropshipping, Kindle publishing or fulfilment by Amazon. 

As a dropshipper you make a simple dropshipping store, create a ‘free + shipping’ ad with Canva, contact some low level influencers, pay them $50 to publish your ad to their followers, and voila, in a week you’ll be making $500-$1000. This is only possible because there is no huge competition within most niches. But it wont stay like that forever.

Over time, you’ll need to research proper marketing and sales techniques, create an actual brand that differentiates you from the rest and refine your plans to optimise your business. Refuse to do this, and you will eventually be outdone by people who do. To put it in the words of Gary Vaynerchuck, this is where you go from a ‘wantrepeneur’ to an ‘entrepeneur’.

giphy1

For me, getting involved in these business structures is a stepping stone to something bigger and greater. By doing the above-mentioned due diligence, I make sure to accelerate the path to financial freedom and learn proper business skills, which I can then put towards my ambitions of setting up multiple businesses. 

Use these businesses to create a mindset of abundance. Teach yourself that money can be made online, that putting in the work will get you results, that you don’t have to settle.

Dropshipping, Amazon FBA and other cookie cutter businesses are not sustainable. One little change from Amazon or Shopify could obliterate they way your course has taught you to do business. Will you have the capacity to shift and think like a true entrepeneur? Not if you don’t put in the work.

giphy2

Make sure to figure out along the way what your endgame is. Are you looking to make some pocket money next to your 9-5 job to go on vacation? Don’t stress about staying up till 2 in the morning to learn how to grow your Instagram page. Do you want to escape the rat race and live an exceptional life? Stop looking for shortcuts.

watch the video here

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s