This is the rundown of what you’ll learn inside eCom Hacks by Jared Goetz.
IMO Jared is an awesome mentor on the dropshipping business model, real down to earth, straight to the point, love his teaching style.
As someone that’s done the whole drop shipping business model, I’ll give you a birds-eye view of just how this business model works. The pros & cons.
How does it compare to other types of online businesses?
The drop shipping business requires that you generate traffic using Facebook ads.
After spending thousands of dollars on Facebook ads myself, I’ll give you my explanation on why I purposely choose to focus building my online business on free traffic instead, which is why my local lead generation business is still my #1 recommendation and my primary source of income.
Its the same reason why I started this blog and why writing content on this blog or producing content on youtube is my priority, its the first thing I do every morning. Its also why many eCom guys go into selling courses and they often times will begin producing tons of free youtube content because free traffic allows you to build true hands-free, residual income.
How does the eCom Business Model Work?
Product research – you must first find a physical product that’s converting well with Facebook ads, a product with big enough profit margin where you can scale with ads and still be profitable. A great way to find products is to look at what some of the competitors are currently selling.
Find a drop shipper / manufacturer – once you find the product, hop on aliexpress and find a supplier from China that’s carrying the same product, negotiate the best price you can get
Build a Shopify store
Create Facebook Ads – Jared’s using a lot of retargeting ads to get the cheapest customer acquisition cost as possible and then once your store is generating sales, everyday you take the total sales data and you’ll email the info over to the supplier, they’ll invoice you, pay for the products with the money that you made from your customer, and the supplier will ship the products to your customers
Track your daily sales & ad spend to make sure you’re being profitable everyday (Some days you might get some sales but not make any profit, you have to adjust ads or create new ads accordingly)
If you’re consistently being profitable, then you can finally begin increasing your ad budget and start scaling the business up
Customer service is majorly important as you scale and begin getting more and more inquiries, at this stage you’ll need to hire a virtual assistant to help with the workload.
Run the ads as long as you’re being profitable
I was able to make some good money with this drop shipping model but eventually, my product went out of style so you have to make sure you’re not spending your entire profit on things. Make sure to build some working capital so that you can start other businesses if or when your product might stop producing profits.
Some of Jared’s Top eCom Tips
if an ad on Facebook is getting tons of engagement & likes within a few days, then it’s a strong indicator that product is a winner and most likely you can duplicate that success, just find another supplier on Aliexpress that’s manufacturing the same product
Making sure that the product has big enough margin so that you can spend money on ads and scale, as you scale your ad, the cost of customer acquisition goes up
Jared likes to go with broad targetting with Facebook ads, and use objectives that are cheapest such as reach or engagement campaign. Which are usually cheaper than a conversion campaign, then you retarget people based on their actions. If they watched the whole video or added product to cart, etc def retarget those people, if they have not converted already.
Some of the Challenges Jared Has Faced with E-Commerce
When you scale big, he underestimated how much extra work will be required to deal 100,000 customers
Not doing good enough job vetting the suppliers, one of his supplier started sending out fake tracking numbers and no product, now he had $450,000 worth of chargebacks/refunds he had to deal with, not to mention thousands of unhappy customer emails.