What happens when we get orders? As exciting as it is, we still have to process EVERY SINGLE order manually.
This means that we still have to place the order with our supplier - Oberlo does NOT automatically place orders for us. As far as I know, there is no App, Plugin or Tool that does this for us - sorry.
When a customer places an order through our Shopify store, they are paying the product cost, plus the markup of the product, AND the shipping.
When we place an order with our supplier, we’re only paying for the original cost PLUS the shipping.
Our profit will thus be what's left, after taking into consideration our Advertising Costs and Other Costs (such as Oberlo, Shopify, Domain hosting costs etc.) as well.
Profit = Selling Price - Cost of the Product - Shipping
Unfortunately as a dropshipper, you will have to deal with returns and refunds.
Luckily it doesn't happen often - it all depends on the quality of your supplier though.
- Your budget
- Monthly Shopify account fee = $29
- Test products ordered = $?
- Shopify Domain fee = $14
- Media purchased for ads (Tools like Canva = $12) = $?
- Facebook ad spend = $???
- Oberlo Pro App = $29.90
- Other Shopify Apps = $???
So let's use a conservative figure and suppose we have a Shopify App budget of only $50 and we don't use ANY paid for tools such as Canva, and we spend a miserly $750 per month on FB Ads. This brings our monthly expenses to $872.90...
We need to sell a LOT of products before we show a profit...
In the previous lessons, Jessica showed us that only her FB Ad spend came to over a thousand dollars, and she only ended up making a hundred. And this is a PRO we're talking about, who only had a few sales after 6 weeks...
And to be brutally honest, I thought she was onto a genuine winning product. I expected the reusable coffee pods to be a running success, and see how that turned out...
I hope you're seeing the warning signs about dropshipping...
Anyway, this video is more about keeping track of your expenses/budget and what to do once you need more detailed information (visit the Oberlo website and look under the Menu Resources tab.) It's not about scaling...
Highlights of this module includes:
Setup of your shipping in video 1
- Jessica explains the entire process without making it seem overtly complicated.
Handling Returns and Refunds in video 2
- As dropshippers, we are bound to get queries for returns and refunds - it's inevitable. It's part of being in the retail trade.
- Jessica offers useful tips on how to handle these queries and how to claim for a refund from our suppliers.
I do however, feel the Oberlo 101 course falls short on recommending specific Shopify Apps to help boost your marketing and conversion efforts.
OVERALL IMPRESSION OF MODULE 5: SCALE YOUR BUSINESS
Oberlo has a different take on the meaning "Scale your business". To other dropshipping "gurus", it means outsourcing.
It's refreshing to see a different take on the term and it's one that makes sense for the first time, beginner dropshipper.
Outsourcing is not something that should be considered until you are making hundreds of dollars a day in profit.
Yes, hiring a Virtual Assistant from the Philippines sounds like a great idea. Especially since you can hand-off the more mundane and menial tasks to someone else.
Just remember: you still have to pay for that VA...
This module is actually not very aptly named.
When I think of scaling my business, I think of expansion - and it's only something you do once you start seeing results, the money starts flowing in and you start to get a little overwhelmed.
In this module, Oberlo 101 doesn't quite reach the heights of their previous module - the course highlight, section 4. In fact, this last module falls quite a bit short in terms of actionable content.
Module 5 (they call it Category 5), is thin on content when compared to the rest of the course, and although there are useful tips and highlights, they pale a bit in comparison to the rest of the course and other dropshipping courses.
I would especially have liked seeing more Shopify Apps in action.
Perhaps because Oberlo is itself a Shopify App, they don't want to or cannot recommend other apps, even if these apps offer a completely different service.
Either way, info on additional apps to improve marketing, conversions and productivity, is something that every new dropshipper desperately needs.
It's a pity it was omitted...
What now, you may ask?
Can I recommend my number one online business?
Have a read by clicking the link below. It might just change your mind about the different online business models out there...