I Had a $10 Million Dropshipping Biz — Do This & What to Run From
In 2016, I stumbled into dropshipping after tuning into an Amazon podcast featuring a fellow mom-turned-entrepreneur selling baby clothes. Picture this: amidst the chaos of cooking spaghetti for my four rambunctious kids, I found myself utterly engrossed in her story. She sounded just like me—time-strapped and cash-cramped, yet somehow pulling in a cool 10K monthly on Amazon selling baby bibs.
Just teach me your ways, I thought.
Fueled by inspiration (and a healthy dose of spaghetti sauce), I convinced my husband to invest our modest $2K savings into what I assured him would be our ticket to homeownership—wink, wink. Being the confident guy he is, he took the leap of faith.
As for me, I dove headfirst into the podcast's action steps, taking meticulous notes. When the speaker mentioned sourcing suppliers from India, I thought, "Why not?" and plunged into the wild world of international business transactions.
Playing the part of a seasoned American importer, I struck a deal with an Indian supplier for a batch of bandana bibs. Two months later, there they were—$2K worth of bibs delivered to my doorstep. Cue the fireworks—I was convinced we were about to hit the jackpot.
With my Amazon listing up and running, I waited for the sales to flood in. Spoiler alert: they didn't. Aside from a handful of pity purchases from friends and family, my grand venture was off to a sluggish start. I found myself wishing I had the podcast lady's hotline on speed dial.
At that moment, I realized I had no idea how to advertise, and, even worse, I didn’t have an advertising budget.
A few months later, after fumbling through blogs and endless YouTube videos, I came across a dropshipping for beginners course—a game-changer that introduced me to the concept of selling products without stocking inventory.
It sounded too good to be true, but I felt hopeful, like, this could be the missing link to my sales problem. I took the plunge once more and invested in the course.
Fast forward a few months to October 2016, and I had a full-fledged Shopify store brimming with dropshipped products. With a crash course in Facebook advertising under my belt, I celebrated my first bona fide sale. And then another. And another. By the year's end, I'd raked in over $250K, and the momentum was just getting started.
As the business grew, so did the challenges. But armed with a dedicated team and a willingness to adapt, we soared past the million-dollar mark within six months. By year-end, we'd surpassed $5M in sales—an exhilarating ride filled with highs, lows, and countless lessons learned.
That rollercoaster image above is a picture of my actual team preparing for our weekly meeting, kidding. But it could’ve been!
Now, in 2024, reflecting on the journey from humble beginnings to successful exit, I'm eager to share the insights and strategies that have shaped my dropshipping experience. While the company may have changed hands and the income statements tucked away, the lessons learned remain as relevant as ever.
So buckle up—it's time to dive into what I'd do differently this time around to build a thriving dropshipping business.
Here’s what I did make 10 million dollars dropshipping with one website:
- Started a Shopify store
2. Connected a (cheap) nice looking, paid theme
3. Used Oberlo, then Dropified to connect dropshipping products
4. Linked Aliexpress
5. FB ads
6. PO box for returns
7. Sold only Aliexpress clothing
8. Made a few blogs along the way
9. Email list began in year 2
10. Worked with affiliates
11. Travelled to China for better product sourcing
12. Hired 30 people to run the business
Here’s what I’d do if I were to dropship in 2024:
- Start a Shopify store
2. Buy a (cheap) but nice, clean theme
3. Source in other countries — do not use Aliexpress.
4. Diversify marketing channels (know your audience)
5. Start an email list early (even if you don’t know what to say!)
6. Blog! Write to your audience, get more people to your website.
7. Better comp plan for affiliates
8. Test ideas faster
9. Start a YT channel (you don’t have to be on camera)
10. Get a returns warehouse (3PL)
What are the best niches for dropshipping?
I may be one of the weird ones saying ‘follow your passion’ here but that’s fine with me! In a second I’ll share the best dropshipping niches, but I will say there’s power in your knowledge and if you have passion for something you have a leg up from somebody without. Consider that first when selecting a niche.
- Health and Wellness: Products such as supplements, fitness equipment, and yoga accessories are popular in this niche.
- Beauty and Skincare: Cosmetics, skincare products, and beauty tools are in high demand, especially with the rise of social media influencers promoting beauty trends.
- Fashion Accessories: Jewelry, watches, sunglasses, and handbags are trendy items that can be dropshipped to fashion-conscious consumers.
- Home Decor: Decorative items, wall art, and unique home accessories appeal to consumers looking to personalize their living spaces.
- Pet Supplies: With pet ownership on the rise, products like pet beds, toys, and grooming accessories are in demand among pet owners.
- Electronics and Gadgets: Tech gadgets, phone accessories, and smart home devices cater to consumers interested in the latest technology trends.
- Travel and Outdoor Gear: Luggage, camping equipment, and travel accessories are sought after by adventurers and outdoor enthusiasts.
- Baby and Kids Products: Baby clothes, toys, and nursery essentials are popular items for parents looking to purchase high-quality products for their children.
- Kitchen and Cooking Supplies: Kitchen gadgets, cookware, and baking tools appeal to cooking enthusiasts and home chefs.
- DIY and Craft Supplies: Craft materials, DIY kits, and hobby-related products cater to creative individuals looking for unique projects.
Would you Dropship From China?
I made millions drop shipping from China. But today in 2024, I would stay away from it or least be very selective. Here’s why:
- Lengthy shipping times — The shipping times are increasing annually, if you want faster shipping, you’ve gotta pay. A lot.
- Quality control issues — There are so many issues here, but with an influx of sellers on Aliexpress, some that are selling out of their apartments (true story, I went there) the quality control is SEVERELY lacking.
- Intense competition — with dropshipping, it’s hard to set yourself apart if you’re doing the same thing as everybody else.
- Complex customs and import regulations — until China and the USA can be better friends, this is likely to be a challenge.
- Tariffs and trade uncertainties — back to the friends thing! This was a problem for us in 2020 and hasn’t improved.
- Supply chain disruptions — covid was a disaster for a lot of businesses, but during that time, factories had shut down completely for undisclosed amounts of time. Can you say disaster?
- Prices Doubled — from the beginning of my business in 2016, to when I sold it in 2023, pricing had more than doubled for baby clothes from Aliexpress.
What are the best dropshipping websites?
When it comes to dropshipping, you need suppliers. We’ve experimented with a few dropshipping suppliers, and I’ll share those in a moment. The options available today are quite different from when we first started — they’ve definitely evolved! After doing some online research, here’s where I’d recommend starting if you’re looking to get into dropshipping now.
Here’s what I love about it and why CJ Dropshipping is a popular choice among drop shippers for a handful of reasons:
1. Wide Product Range
CJ Dropshipping offers a vast selection of products across various categories, allowing dropshippers to find unique items that cater to different niches and target markets.
2. Competitive Pricing
The platform provides competitive pricing on products, which helps dropshippers maintain good profit margins. This is crucial for pricing strategy and staying competitive in the market.
3. Efficient Order Fulfillment
CJ Dropshipping offers streamlined order fulfillment processes, including automated order processing and direct shipping to customers. This reduces the manual work for dropshippers and speeds up delivery times.
4. Quality Control
The company performs quality checks on products before shipping, reducing the risk of defective items reaching customers. This helps maintain a good reputation and customer satisfaction.
5. Custom Packaging and Branding
CJ Dropshipping allows for custom packaging and branding, enabling drop shippers to enhance their brand identity and provide a personalized unboxing experience for their customers. This would’ve made a huge difference for us!
6. Multiple Warehouses
With warehouses in various countries, including the USA, Europe, and China, CJ Dropshipping can offer faster shipping options and reduced shipping costs by dispatching products from the nearest warehouse to the customer. This is big!
7. Automated Integration
CJ Dropshipping integrates seamlessly with popular eCommerce platforms like Shopify, WooCommerce, and eBay. This automation simplifies inventory management, order processing, and tracking. If you use Shopify, you can add CJ dropshipping here.
8. Print on Demand Services
The platform also provides print-on-demand services, allowing drop shippers to offer custom-designed products such as apparel and accessories, expanding their product range. This is big, too!
9. Product Sourcing
CJ Dropshipping offers a product sourcing service where they find products that meet your specific requirements. This is particularly useful if you cannot find a desired product on their platform.
10. Professional Support
The company provides dedicated customer support and personal agents who assist with product sourcing, order issues, and any other concerns, ensuring a smoother dropshipping experience.
11. Detailed Product Information
CJ Dropshipping provides comprehensive product information, including high-quality images, descriptions, and prices, making it easier for dropshippers to list products on their own stores.
12. Bulk Purchasing
For dropshippers who want to buy in bulk, CJ Dropshipping offers discounts on bulk orders, providing additional savings and improving profit margins. This is great to have!
Learn more about CJ Dropshipping here.
2. Zendrop
If I were starting dropshipping in 2024, Zendrop would be another great option I’d consider. It ticks all the important boxes: quality products, reasonable shipping times, seamless Shopify integration, and great reviews.
Two features I particularly love about Zendrop are the ‘automated dropshipping’ option, which is a huge time saver if set up properly, and their ‘brand development’ option, where you can send custom thank you cards and coupons to enhance your brand.
There are a ton more features here, but all in all, I’d highly recommend using Zendrop for your dropshipping business.
We’ve used 3 different dropshipping apps for suppliers, orders and integration. They are:
- Oberlo — started great, didn’t evolve with the features we needed to scale our business.
- Dropified — moved here, loved it for a while then they jacked up their prices.
- DSERS — left off on this app. I was happy with it overall, but looking at the above options, DSERS fell behind. I wouldn’t use this anymore.
Some store owners prefer to handle things manually, managing suppliers, integrations, and orders themselves. While this approach involves a lot of work, it does offer some advantages.
However, we chose a simple, fast, and well-integrated method to move quickly and automate much of the process. If I were starting today, I’d still use this method with either of the first two options mentioned above.
How to Stand Out While Dropshipping:
Now that’s a great question! We made ourselves different by literally being different. Strange, right? We realized the baby niche was very ‘vanilla’, with cartooney print onesies and outdated pastel colors.
Instead, we made a ‘trendy baby line’ similar to the styles moms would wear, but for little ones. We also made our posts ‘funny’ or entertaining for moms, boring was out. Here are a few other ideas you can do to be different:
- Niche Specialization: Focus on a specific niche or subcategory within your industry. By catering to a targeted audience with unique needs, you can differentiate yourself from more generalist competitors.
- Quality Products: Prioritize sourcing high-quality products from reputable suppliers. Invest in product testing and vetting to ensure customer satisfaction and minimize returns. No China.
- Branding and Packaging: Develop a strong brand identity and packaging that reflects your brand’s values and resonates with your target audience. A memorable brand can help you establish credibility and build customer loyalty.
- Exceptional Customer Service: Provide exceptional customer service and support to differentiate yourself from competitors. Offer responsive communication like SMS, hassle-free returns, and personalized assistance. Customers love this!
- Value-added Services: Offer value-added services such as fast shipping options, customization options, or exclusive deals and promotions.
- Content Marketing: Create engaging and informative content to educate and entertain your audience. This can include blog posts, videos, tutorials, and user-generated content that showcases your products and expertise. Tip: include humor, people love to laugh, edutainment, share reels that make you pee in your pants…
- Unique Selling Proposition (USP): Identify and promote a unique selling proposition that sets your business apart from competitors. Whether it’s eco-friendly products, ethical sourcing practices, or innovative features, highlight what makes your brand unique.
- Social Proof and Reviews: Leverage social proof and customer reviews to build trust and credibility with potential buyers. Encourage satisfied customers to leave positive reviews and showcase them prominently on your website and marketing materials. Easy todo with an email list and good products!
- Partnerships and Collaborations: Explore partnerships and collaborations with complementary brands or influencers in your niche. Co-marketing efforts can help expand your reach and introduce your brand to new audiences.
- Continuous Improvement: Stay agile and adaptable by continuously monitoring market trends, customer feedback, and competitor activities. Keep testing and finding new product winners. Remember it’s always a journey, the work is never done.
That’s all for now folks! All in all, I’d still recommend dropshipping in 2024 with the right method and strategies. If you’re on the hunt for ways to make money fast in 2024, here’s your guide.
I’ve still got the dropshipping itch, although I’ve pivoted away from physical products and into digital for the time being. I’ll be sharing everything directly on Introverted Millionaire, follow my account if you’d like notifications.
Pop your questions below if you want me to answer anything, glad to help!
To your success,
Introverted Millionaire XO
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