If you’ve thought about selling your drop shipping store, or on the other side of the coin, thought about buying an established drop shipping business, have you considered if it’s actually worth it?
With the influx of Shopify, Chinese drop shippers and Facebook Ad groups, thousands of entrepreneurs are starting their own drop shipping stores every week.
Those that get a successful ad running and make thousands or millions of dollars in sales have few intentions to sell their store, but those that struggle, get hit with Paypal limitations or eventually fail, try and flog their stores to make some quick cash.
You only have to take a look over at Flippa, a website that allows you to buy and sell websites. They’ve recently added a Shopify section and it’s clear few people are buying such sites.
Why is this bloke selling a site making $1015 in 2 days for $350? It’s obvious, without cash flow you can’t run ads, you can’t get paid and you can’t reinvest.
I mean, what are you actually buying when you buy a drop ship store? Effectively you’re buying his adset and supplier list, that’s it. You’re not getting any assets, nor any stock. But you will have to honor all previous sales, refund requests, chargebacks and even negative reviews online.
If the store wants to make any money after you pay the up front fee, you need to continue running those ads or your business is worthless.
But why would you buy a Shopify business?
You can do everything yourself. You can see what their best selling product is from the listing (or on their store), see what other products they’ve got, copy their template, choose a similar domain and add all those other features such as,
- Trust seals
- Payment methods
- Conversion tracking
- Optimization Apps.
And if you’re really smart you can even find their ads on Facebook and copy those too, so back to my question, is your drop ship store worthless to everyone but you?
I’d say, absolutely.
If you’ve read my other posts on reviews on marketers that create drop shipping courses such as Johnny FD, you’ll know of the claims they make to earn thousands flipping your drop ship store after a few months for 27x revenue.
Unfortunately it would seem that rarely happens, buyers want passive income now, subscription businesses where you market once and get paid 6 or 12 times or set and forget adsense, amazon associates or affiliate marketing sites.