Is dropshipping ethical

The cool thing is that we tested and implemented all the results ourselves, 100.00% ethically and correctly.



2 Introduction In this case study, I would like to share with you my cannon-safe strategy for dropshipping. All the methods we are currently using are razor-sharp and still work today! The cool thing is that we tested and implemented all the results ourselves, 100.00% ethically and correctly. You will learn how it all began, what the first results looked like and how we ultimately catapulted the entire business upwards. By the way, my name is Kevin Helfenstein, currently 22 years old and has been active in online marketing in the field of e-commerce for several years. I've always wanted to do my own thing and enjoy my life in freedom. When I discovered the dropshipping business for myself a few years ago, I immediately knew it was it! My dropshipping business is now completely automated and we have a team that is only responsible for the shops. In dropshipping, there are 4 extremely important components that everyone must go through. In the overview, these are the following points: - Product & niche search - Manufacturer search - Shop structure - Facebook, Instagram & Google advertising

3 1. PRODUCT & NICHE SEARCH How do I find the right niche and, above all, the winning product? By far the biggest hurdle we have to overcome - the product. But why do most people make it such a big obstacle? In the end, it is very easy to find a product or a suitable niche in the area of ​​dropshipping. And do you know why? Because you can test many products in dropshipping without throwing a lot of money out of the window! Where do we look for products or niches? The answer should be on the tongue of anyone who has ever dealt with the dropshipping business model. Alibaba and Aliexpress are our biggest go-to places for physical products that we want to buy cheap and sell high. Basically: There are no products that are not available on Aliexpress! Everything that hovers in your head can be found there. (Alternatively, you can of course also work with a European provider, e.g. via When searching for a product, we proceed as follows: We choose a category (on Aliexpress) that comes to mind. After we have clicked on the category, we get different sub-categories again. There are also different sub-categories for these sub-categories. My recommendation is crystal clear to open each category in a new tab and then delve into the portal or lose it. P a g e 3

4 A little trick is to use the Newest and Orders tabs on the product pages. Then we can wonderfully sort all products according to order requirements and novelties. Now that we've picked out various products that we like, we should definitely keep these in mind. The next step is to see what similar products are available or what other products can the supplier supply us? To do this, we scroll down to the very bottom of a product page and look at the other products. Now we have selected a few products. The next step is not a must, but an option to check whether this product has been successfully promoted on Facebook before. To do this, we log into our Facebook account, go to the search above and enter our product once in German and English. Because we will get different results. P a g e 4

5 Then click on Posts above and check the box next to public. If we now scroll a little, we will see different displays of the products. We can use this as a guide, what might other shops look like, can I get inspiration? Or how many comments and likes the ad has to evaluate how well the ad did. As you can see, we opted for this case study and at that time also for our first shop for the niche dog blankets. P a g e 5

6 2. DEALER SEARCH Does it make sense to work with your own dealer or with tools like Oberlo? A topic that is always in demand is the dealer search. Why should I look for a dealer when there are Oberlo and other tools that can do it for me? Roughly an overview of the advantages of having your own dealer: - Better prices - Faster shipping routes - Better communication - You can respond more intensively to customer inquiries because you can ask the dealer and are in direct contact with him - Automated work with the dealer - Making several contacts So we can see at a glance that it is much easier and, above all, more profitable if you work with your own dealer, whom we look for in advance. Nevertheless, I don't want to leave Oberlo outside. At Oberlo we have the option of implementing a large number of products directly in our shop and also processing them there when an order is received. Advantages of Oberlo: - Variety of products P a g e 6

7 - No dealer necessary - Implement products directly in the shop Disadvantages Oberlo: - Bad prices - Title and description always have to be revised - Images should always be edited - Monthly costs - No full automation possible Let's answer the question of how we can now find our dealer. To be honest, it's the simplest thing there is! Finding a dealer should be the smallest hurdle. All we have to do is write to the shop of the product (s) that we have chosen. By the way, we can also look at the entire shop of this dealer and of course sell all the products that he also offers. We generally recommend writing to several dealers / shops. Because every product that we find on Aliexpress is at least implemented by different retailers. Because we write to several, the response rate is higher and of course we can directly compare the prices and shipping routes and ultimately choose the best. Please note that many Chinese traders will not answer you the first time. P a g e 7

8 Not even the second or third time. Many dealers only occasionally respond with ok. That's their way and they don't mean it badly. You can filter out a really good dealer by the fact that he answers you in detail and explicitly answers your questions. It is also advisable to ask for the WeChat ID (Chinese WhatsApp). When we've looked around the shop, we definitely look at the shop's feedback. After writing to several dealers (15), we got a good result from a dealer that we also decided on. This dealer gave us all the contact details straight away, responded to our request and gave us a detailed answer. Further price negotiations and order processing took place via Skype. P a g e 8

9 We found a dealer within 24 hours. What we should definitely always keep in mind is the time difference between China and Germany. The Chinese are 6-8 hours earlier than us, which means for us to get up earlier. 3. SHOP STRUCTURE What does a good converting shop look like? Now we've got the basics out of the way. We have our product and we have our dealer. All that remains to be done is to put everything into practice. So let's build a Shopify shop: * Click here to test your Shopify shop for 14 days for free * As a little inspiration: We started the niche in February 2018 (the shop is still very profitable in 2019) and have the following Being able to achieve results: First of all, we should be clear in which country we want to sell in the first place. Because our shop should look accordingly. As an example, an American shop looks completely different from a German shop. It is common for Americans to see flashy colors, large fonts, and a lot of spam. Furthermore, there are also things such as RIGHT NOW TO ONLY 2 PRODUCTS IN STOCK very trendy. In addition, there is a lot of emphasis on pop-ups, spin-the-wheel apps, etc. In Germany, Austria and Switzerland (DACH region) experience shows that it does not convert well or that it simply looks dubious. The German customer is just rather conservative and classically old. That's why it's very simple with shops in the DACH region: serious, simple and plain. Don't install unnecessary apps like Spin the Wheel, Newsletter Sign In or the like. P a g e 9

10 The topic selection was relatively easy. We decided to use Shopify's free debut theme. By the way, we still use the theme to this day. We generally recommend the free themes from Shopify. The themes are completely sufficient and provide a lot of added value. Even if you are not a programmer, you can find a lot of hints on the net how you can design something yourself or you can have it created by a freelancer for little money (e.g. via Fiverr or UpWork). Our theme recommendations are: Supply, Brooklyn & Debut (Attention: For fashion, please use other themes such as Simple) The shop design is now important. At that time, we decided on two colors that reflected a good contrast, also matched the human eye well in terms of color and had a certain recognition value. Building the shop cost us a lot of time as we were complete beginners. Fortunately, based on our experience, we could set up the same shop in less than 4 hours today. A quick tip on the side: A blue add to shopping cart button gives the customer the feeling of buying something of higher quality. Dark blue also creates trust in the customer. Our split tests have shown us this: approx. 1% higher conversion rate AND we were able to demand higher sales prices from the customer (dark blue also stands for high quality premium quality). P a g e 10

11 What was important for us: Pagespeed. We wanted a quick and clear homepage. The customer shouldn't have to wait forever in the S-Bahn for the shop to load. Therefore, we have edited all of the pictures we selected to a size of 1000x1000px with a maximum size of 120kbits. We kept the home page simple, not completely bombed. In order to build up a certain trust level, we have written a detailed FAQ and About Us. For the finishing touches, we added Trust logos such as 100% secure payment, free shipping, etc. The product description was also very important to us, because we wanted to convince our customers to buy from us. So we built in three questions: - Why? - How? - What? We answered these three questions to our customers. - Why are we selling the product, what is special about it? - How do I use the product, what do I have to consider? - What can the product do, what does it bring me and what added value do I get? Add a video and our shop was ready. Elegant, unique, simple, well structured and a damn good descriptive text. P a g e 11

12 Here is an example of a relatively good product description. What is still missing here would be a video in the product description (not possible for every product). But this description would definitely get 8/10 points. 4. ADVERTISING STRATEGY Let us now come to one of the points that for many is probably the biggest construction site: Facebook advertising. Or direct traffic to the shop, which CONVERTs and generates sales for you! Briefly in advance: It depends about 40% on the product / shop, 40% on your advertisement and 20% on your target group, which you target, whether the customer buys from you or not. Last year, with the store in the dog niche, we SPEND 28 advertising costs ONLY ON FACEBOOK. That's just the time period gets even more blatant. Our current advertising budget is in the very high 6-digit range. So you know that we are p a g e 12

13 know what we're doing here. You can see a screenshot of some advertising accounts here: I have also attached a screenshot of the Google AdWords account. Yes, we also run Google Ads. The budget here is a little lower, but it is even more targeted traffic, which has a very good conversion rate. So: 1. Facebook Ads, if this works, switch to Google Ads. Alternatively, there are of course Pinterest ads, Instagram ads, Tinder ads (yes;)), Snapchat ads, etc. But that would go beyond the scope here, so I would only like to deal with the Facebook advertising in this part. Here is the screenshot from the Google AdWords account: P a g e 13

14 With the help of Facebook advertising you can achieve faster results and above all find a so-called winning product. I have also created a 3-part divider for this. Here you get to the 3-part part (just click on the link): How to find profitable Shopify products with Facebook ads Part 1/3 Of course, we have a personal account manager on Facebook & Google, with whom we hold regular meetings for more To develop strategies for the respective shops AND to increase sales / profit. Furthermore, we are regularly invited to Dublin (headquarters of Google & Facebook) to discuss the procedures in person. However, all of this is only marginal. What did our first steps look like in February 2018 when we launched the dog niche shop? Of course, we started, as I recommend, with Facebook advertising. Google only joined in around June 2018. We started with a so-called PPE campaign (see also the video above). PPE stands for contribution interactions. First of all, we wanted to test which target group would respond best to which video. This is important in order to be able to go into scaling later with the correct video. Many think that this is just throwing money out the window, but it is an essential factor for future success! In this case we created 3 PPE campaigns and let them run for 3 days. We then took the best of these 3 campaigns (which ad received the best relevance rating, the most comments, shares, likes, etc.) and applied it to the ATC (Add To Cart) or PUR (Purchase) event ) optimized. To explain this approach explicitly here would, as I said, go beyond the scope. So please take a close look at the video (link above). P a g e 14

15 Of course, you can also view the analytics of your ads in the backend of the Business Facebook ad manager. We e.g. found that the age group and our target audience was predominantly women. We have targeted these accordingly and have achieved a cost per result purchase value of approx. 2.74. This value is very, very strong and depends on your niche and your margin. To do this, please make sure to calculate your target ROAS (RETURN ON AD SPEND). I could of course write a lot more text here. However, the whole thing wouldn't really help you. I would like to briefly show you a few good advertisements so that you can get a rough idea of ​​how good advertisements have to be structured: P a g e 15

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17 At the beginning it is always important to briefly explain the benefits of the product. Then a trigger such as Scarcity or Discount 70% Off Today ONLY, Free Shipping, Only 5 Left. Then definitely the link to the product / shop! Video ads tend to convert better than image ads. People want to be entertained on Facebook, and a video is usually better entertaining than a picture. In addition, Facebook evaluates a video ad better than a picture ad and you receive correspondingly lower click prices and are more often played out to the user by Facebook. Because Facebook also strives to provide the customer with a benefit: Customer Happy = Facebook Happy = You Happy; This is the GAME! Another important factor: In the respective advertisement, a comment with the link to the product Order here> HERE YOUR SHOPLINK. Why are we doing this The user sees the advertisement e.g. in the NewsFeed on the mobile phone, but overlooks the link above in the description and looks at the comments of the other users (SocialProof) and looks in vain for the link to the shop. But if you have now set a comment with the link to the product / shop, the user will find the link because it is always at the top and can hardly be overlooked. In addition, if available, you should write some customer pictures (e.g. of the watch as it is worn) in the comments. This increases the social proof, the customer sees directly what the product looks like in real life and the probability that a purchase will be made is massively increased! So you can see that my team and I know how to advertise on Facebook or Google in order to be profitable. We can simply turn the euro we invest into 3, 4 or 5. So imagine if you put 100 in Facebook advertising and generated 300 sales with it. After deducting all costs (including Facebook advertising, taxes, product costs, transaction costs, fixed costs, etc.) you would still have 75 over (that would be a realistic margin of 25%). This would be your NET EARNINGS. But now imagine that you would not only put 100 in Facebook ads, but or even you know what I'm getting at. And this is exactly how the game works in, NET PROFIT in, NET PROFIT in, NET PROFIT P a g e 17

18 We're living proof that it WORKS. Take a look at our ad spend from some of our shops again above.Now you know that it works 100% (and you probably now also know how much money we've already made with it). Everyone always talks about sales. However, sales are not the decisive factor. The key factor is PROFIT. So what remains after deducting all costs (advertising costs, product costs, transaction costs, software / tools, taxes, fixed costs, etc.). And that's exactly where we are absolute specialists. So if you now want to know how to build your own, automated dropshipping business, then you should definitely have a free strategy talk with me! [Click here] There I will explain step by step how to implement everything that I have written here in this short and concise case study. So if you are really hungry and don't feel like doing your 9 to 5 job anymore, or just want to achieve more in life, then you can secure your free strategy talk here. It doesn't matter whether you are a complete beginner or already have experience in dropshipping. I take you 100% to the next level! I am definitely looking forward to getting to know you personally in our free strategy talk. * click * If you want to exchange ideas with like-minded people in advance, I strongly recommend joining the FREE OFFICIAL GROUP on Facebook. Just click here: OFFICIAL GROUP So, see you! Yours, Kevin Helfenstein P a g e 18

19 HASTE BOCK? You have probably read the case study by now and are HUNGRY for more! Do you want to earn money with your store now? You have all the information you need to start your own dropshipping business. But what you absolutely should do - if you haven't already done so: Secure your free strategy talk with me. You can simply click here :-) I'm looking forward to getting to know you. KEVIN HELFENSTEIN Kevin Helfenstein