Shopify, Amazon & Drop Shipping


#1

Hello,
I recently bought a Shopify store through the Shopify exchange for not a lot of money ($800), but for the profit that it had in just 6 months it was a good deal. Without trying the prior owner was netting like $1,200 a month with plenty of room to scale. Of course I wouldn’t be able to quit my day job anytime soon on $1200 a month, but I thought it was a nice start for a store that was only five or six months old. I’ve added new products to it and it’s all done via drop shipping. I’ve been using Facebook ads only and I’m getting quite a few hits on the Facebook Page site shop store but hardly anyone ever clicks the “shop now” link for some reason. 267,000 people this week and only 12 people on average per day clicked on the shop now button and visited the actual site. Someone said to me you must be on Amazon in order to make Shopify really work. I just wanted to see if anybody else has had this issue or had any suggestions? I know my demographics must be good because I wouldn’t see that many people liking the FB store page. I’ve had five campaigns running in one week and not one sale. My products are not overpriced if anything they’re on the lower side. I cater mainly to a specific niche group as well, but it has products anyone can use.

Is it true that you need to be on Amazon to make this really work? I know it’s only been a little over a week, but I already feel discouraged and like giving up. I should also add here that I’ve been researching this and working on a plan for over six months now so I’d have half an idea of what I was doing. I think in order for Shopify to work with Amazon there’s a $49.95 fee per month which I have no problem paying if it works. I just wonder if private label is better than drop shipping because I could invest some money in that area, but also wonder if I’m giving up too easily on the Shopify piece. I don’t know I’m overwhelmed as well I guess!

Thanks for any help and by all means feel free to critique or tell me if I’m better off getting into Amazon private label.

Dan


#2

HI Dan,

I wouldn’t say that you MUST have an Amazon presence to be successful on Shopify. There are benefits, but I’m surprised that someone would say it’s necessary, especially for a dropship store. I typically don’t recommend running a dropship business through Amazon unless you’ve got good feeds directly from each of your suppliers that can keep inventory levels up to date in (relatively) real time.

Unfortunately, there’s not much I can do to help troubleshoot the issues you’re having with your store. If you’re getting a lot of people visiting your Facebook store, but only a small number of sales, you’ve got a conversion issue that needs to be addressed. However, I’m not familiar enough with Facebook stores to be able to help you figure that out.

One of the other issues with a dropship business is that you’re typically competing against other sellers with the EXACT same item, so it becomes all about price. I don’t know if that’s the issue that you’re having, but it’s a common problem. That’s one of the reasons why a private label business is more appealing - you’re able to differentiate your product from what else is already on the market.

I know I didn’t provide much help in solving your problem, but I hope this was at least helpful in other ways.


#3

Hi Dax, (cool name btw :slight_smile:

Thank you so much for the fast reply. You did help. I am going to look into private labeling, but keep the shopify store and try to figure out the conversion issue because that is what it definitely is.

Looking forward to reading up on everything here and again, super appreciate the comments! I saw your Startup Bros review article and it sounds like that may be the best way for me to start. Is it still half off using your code? Also, if you don’t mind one more question, what is the average costs for starting a Private Labeling business on Amazon or is it too broad to give a figure? I am sure the sky’s the limit ultimately on what you can start up for $ with. I’m just nervous about spending too much upfront I guess.

Have a great Christmas (or Happy whichever holiday you celebrate!)
Dan


#4

Thanks, I’m glad it was helpful.

There’s no minimum amount necessary to get started with private label (I’ve seen people get started with as little as a few hundred dollars), but the more you can start with, the easier it’ll be. I generally suggest people have at least $3,000 to invest in inventory as a reasonable budget.

The Startup Bros coupon should still work, but please let me know if you have any trouble.