What I Learned from my Latest Business Ventures — Part Dos
I started 3 experiments in the last 3 months. 3 businesses that I thought would generate me revenue and sustain my lifestyle through passive income. I will share with you in the order of least revenue to the most revenue and the lessons that I’ve learned along the way in a 3-part essay.
E-Bay Drop shipping Business — Part Two
In Part 1, I’ve shared with you about my failed venture in gift card reselling and why I decided not to pursue it. In this essay, I’ll share with you why I made a moral decision not to profit on my hottest selling item. And the experiment that I did to test the popularity of this item.
This experiment involved more moving parts, so there was a lot more research and learning that went with it. Here are the tools that I’ve learned to us along the way:
- Udemy.com ( learn from others’ mistakes)
- E-bay Seller Account
- Google Trends and Keyword Planner
- Facebook Ads
- Title Optimizer for Ebay Listings
Essentially, the idea of drop shipping is fairly simple. You take an item that’s already being sold on the market(source) and mark it up then, resell it in a marketplace like E-bay or Amazon(two of the most popular platforms). To give you an example:
I would take a product from Amazon and then list it on Ebay. I had Amazon Prime so that me a leg-up on the competition. If the item was 10 bucks, I’d mark it up to 15 bucks. After all of the fees, I’d get about 30% in net. Which is not bad for a few minutes of work, theoretically.
The problem is that when you have millions of products out there, how do you pick which ones that you want to list in a restricted quantity? When you start out as a new seller on Ebay, you get to list 20 items. So, as you can see, the math is not in your favor. This is where Google Trends and Keyword Planner come in handy. After spending a few hours playing and learning the tools, I decided to test a product for fun with Facebook Ads. It was a product that I am not proud of, but I kept getting buyers.
I don’t feel comfortable disclosing it so openly on the internet.
Anyway, I decided to not resell this hot item because of moral decisions. From this experiment, I’ve made a few hundred dollars. Of course, no where close to a life-sustaining passive income lifestyle.
In retrospect, it’s the investment in myself that motivated me. It was the curiosity to do something unconventional. I often wonder about the happiness of others. I look at my parents as my inspirations to what not to do. I encourage you to start looking around and see if what you want is truly what you want.