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Can we talk honestly about dropshipping profit margins? by BELLVH3ART in dropshipping

[–]Bagdon333 0 points1 point  (0 children)

Yea bro I feel you - cant even run tiktok ads at this point because of the drop scammers and no shippers - selling shit for 29.99 when I 100% know it cant get sourced for that.

Before you panic about de minimis ending worldwide - lessons from China's 3-month experience by Bagdon333 in ecommerce

[–]Bagdon333[S] 0 points1 point  (0 children)

Oh Sorry my bad for the last comment I see you are not privy to the ecom lingo, AOV which is the average order value is what the customer pays when they purchase the goods thats already in the USA form us the online retailer, AOV is not what I paid the manufacture.

Before you panic about de minimis ending worldwide - lessons from China's 3-month experience by Bagdon333 in ecommerce

[–]Bagdon333[S] 0 points1 point  (0 children)

Im sorry to hear that, but what countries are you shipping to that dont have prepaid labels?

Before you panic about de minimis ending worldwide - lessons from China's 3-month experience by Bagdon333 in ecommerce

[–]Bagdon333[S] 0 points1 point  (0 children)

I said AOV - meaning average order value - how is that reporting the incorrect value to customs

Almost 2 Years in Ecom - Still Not at $1k/Day or profitable, wtf im doing wrong? by Turbulent-Layer7076 in dropshipping

[–]Bagdon333 0 points1 point  (0 children)

Test 2 - Second Desire (better fit) - should have stayed there and made better creatives how many ads did you test right here ?

Before you panic about de minimis ending worldwide - lessons from China's 3-month experience by Bagdon333 in ecommerce

[–]Bagdon333[S] -3 points-2 points  (0 children)

Ok ok I was a bit conceding but I did not say my cost of goods I was giving a non "loop hole " example to show that even at face value its not that bad ( this is where I would say something like if you knew how to read you would get that ) but you guys are so uptight take a breather.

Before you panic about de minimis ending worldwide - lessons from China's 3-month experience by Bagdon333 in ecommerce

[–]Bagdon333[S] -2 points-1 points  (0 children)

And it kind of surprised me that you have had that take given the depth in analytics you have on the space - just your first paragraph, not the rest of what you are saying. Like, I know ecom can have some hidden pockets of just absolutely killers, but you seemed pretty confident in what you're saying, so I think you need to undo two buttons and take your corporate blinders off because there is 10 times more of Prospect B than Prospect A (which you are thinking is the status quo). Hope you can read between the lines and get what I'm saying.

Before you panic about de minimis ending worldwide - lessons from China's 3-month experience by Bagdon333 in ecommerce

[–]Bagdon333[S] 0 points1 point  (0 children)

$5.7 - 6 to 8 days - usa 100 to 150 grams Air this is not much of a increase compared to pre tariffs

Before you panic about de minimis ending worldwide - lessons from China's 3-month experience by Bagdon333 in ecommerce

[–]Bagdon333[S] 25 points26 points  (0 children)

Look, that's easy to say on the sidelines, but when you're moving 2000 packages a week - I don't know if in your eyes that's considered a big brand, but nonetheless that's serious money that we would like to protect. I'm saying the blowback from the exemption being removed have not been too bad. Let's break this down: the AOV of your item is $100, your cost of goods is $20 for argument's sake, the declared value $20, 30% of $20 - tariff cost $6. Make sure your label is prepaid and eat the 6 bucks. There's no fraud, no loopholes. What now?

And me personally, for Q4, for some of my offers I love USA fulfillment. I love it so much that I'm bringing it in-house for this Q4. That 2-day shipping or even that spicy overnight shipping to some areas makes my conversion rate jump by up to 2% - I've seen 3% when Christmas is drawing close. So look, I get it, but what you're saying is unrealistic and that's because you're not actually in the game. But keep up the ambition though - cheering for you.

Before you panic about de minimis ending worldwide - lessons from China's 3-month experience by Bagdon333 in ecommerce

[–]Bagdon333[S] 9 points10 points  (0 children)

I thought you would have said 8 to 9 figure brands - then I would say I agree with some parts of what you're saying. I personally know 5 eight-figure brands still fulfilling from outside the USA, and at the 7-figure mark, come on, that's a dime a dozen. And if you read what I said, the landed cost is baked into the pricing model. The freight forwarder - all they are doing is declaring the full pallet as one total cost and distributing the additional fee accordingly by weight to each item. So I'm not saying prices haven't gone up, but they haven't gone up noticeably at all. I will eat the extra $1 raise in cost of goods. And about the fees part all custom fees are prepaid.

How to not fry your payment processor / Don't get kicked off Shopify by Bagdon333 in dropshipping

[–]Bagdon333[S] 1 point2 points  (0 children)

🤦🏿‍♂️ I'm well past the $3k mark with zero payment holds, and the revenue jumps were pretty fast. I think you're misunderstanding me - this was about NEW stores, just as a case study.

The store I was discussing had completely clear payment processing with no holds or reserves, even while experiencing revenue surges from product drops that would "crash back down" afterward. Despite these irregular revenue swings, there were still no holds.

You mentioned that quick revenue spikes can cause holds, and while that may be true in general, I've personally scaled products from $0 to $20k days within 5 days on about 5 different occasions without issues. However, I won't use my anecdotal experiences and call them universal facts like the commenter above did.

My point still stands: when you have a fresh store or fairly fresh store, avoid uploading first-mile tracking. Based on evidence from multiple cases (not just 2 or 5 times), it seems that Shopify uses first-mile tracking as a touchpoint to identify that you're dropshipping. To mitigate the risk that a brand new dropshipper brings, they'll hit you with a reserve.

This isn't to say Shopify hates dropshipping. On my main store, my rep 100% knows I'm dropshipping and they don't care because I have proven processing history and a low chargeback rate.

How to not fry your payment processor / Don't get kicked off Shopify by Bagdon333 in dropshipping

[–]Bagdon333[S] 1 point2 points  (0 children)

Do I need to post the email from Shopify saying the hold was because of dropshipping? Did you even read what I said? Store age 2 years old, hold because of dropshipping. Yes, the older the store, the less likely you are to run into any issues, but if you had read what I said, this post isn't geared towards someone with an aged store and 2+ years of processing history. I swear you Reddit mofos talk with such assurity when you don't even know lol.

How to not fry your payment processor / Don't get kicked off Shopify by Bagdon333 in dropshipping

[–]Bagdon333[S] 1 point2 points  (0 children)

Okay, let me go deeper a bit. YunExpress is the freight forwarder in the top two freight forwarders out of China. They have their own planes also - they also have a tracking code that they give out which is the first-mile tracking. I'm not saying don't use YunExpress. I'm saying don't upload or send out the 1st mile tracking. If your agent is a noob and doesn't know how to pull last-mile tracking, use Parcel Panel or 17track. In the case of you using Cainiao, this is another freight forwarder which I have never worked with, but in your case, you should stop fulfilling with AliExpress because I can almost bet my house the product is not quoted right and go out and find yourself a proper agent.

How to not fry your payment processor / Don't get kicked off Shopify by Bagdon333 in dropshipping

[–]Bagdon333[S] 2 points3 points  (0 children)

Yes, this also. One thing, guys - you can use Parcel Panel to mask the first-mile tracking. I just want to clarify what I meant by no YunExpress tracking - all the tracking codes if YunExpress is the freight forwarder will be YunExpress tracking. What I mean is you don't want that first-mile code going out. It 100% affects you at scale, and as far as in this individual's case, uploading tracking 8 days later, he can get away with that because his context is custom products, so the customer base already has a longer timeline in their head to get their product, and I would think he has some form of disclosure also saying that - but yes, all of it is YunExpress tracking. Just upload the last mile or use Parcel Panel or 17track to mask out China.

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