How to Grow a Drop Shipping Business to $8 Million in Revenue in 3 Years

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you know you face all sorts of failures you face catalog failures you pricing failures you know you’ll price the line and what you think is good and you’ll look back and realize that you lost money on you know a thousand of the products that you sold you lost on shipping shipping is extremely complicated it’s one of the most important factors of e-commerce it’s you know could be you’re spending more on shipping than the actual item that you’re selling you know there’s a lot of factors that go into pricing its pricing is extremely difficult you know customer service the way you treat customers you want people to come back and buy from you and a lot of times when you’re starting up and you don’t have a lot of money and you’re selling product you’re gonna fight with your customers oh you bought it it’s your fault I’m not gonna take it back and you realize that’s not the way to build a business it’s not the way to build a customer base you have to take a loss you have to understand that you’re gonna take returns back and you’re gonna take a loss on those orders it’s part of business orders are gonna get lost by FedEx and UPS you could blame it on them and have a customer fight with them or you can service your customer like Amazon does like Zappos does there’s a reason why people go back to them because so we’ve been through a lot of failures and some things work great some things don’t I think they you don’t know until you try you can’t be afraid of trying so so from everything you share – they’re really picking the right parts to sell setting up the right pricing and then positioning the sale is ultimately what differentiates like a successful e-commerce platform on the front side versus a an on successfulness absolutely I think that’s you know definitely a good mix customer service is always a part of it and we were talking about before our CRM system so you know we sell a lot on eBay and Amazon we have been for a while and you get a lot of messages from customers those messages are housed within eBay and Amazon so we were using a CRM system called Zendesk for our direct messages for our website and then you know all of our customer service agents would have to have an ebay screen open and Amazon screen open and Sears screen opens for all those other messages coming in and if you have multiple agents there might be people answering the same messages because they can’t see other people’s screens and they’re not refreshing all the time so it’s kind of a cluster of customer service going so we said right this is crazy we went out there and looked for a solution that would tie everything into one so we can have all these these selling platforms tied into one and selling classes on which you like Zenda nothing existed so we said hey screw it we’ll build it ourselves and we did we built it it’s called channel reply and we never planned on selling it we just built because we needed it Zendesk then approached us and said I you guys have something special here we have you know close to 150,000 or more customers using our platform but everybody keeps asking about eBay and Amazon can you offer what you guys use is service to our customers essentially as a species we said yes sure why not so we’re in the process now we’re still in beta we’ve got a good amount of customers you know running on the beta right now and we’re about to release a fully automated solution that will tie in all marketplace messages into one in Zendesk will offer that as a solution for four customers you know kind of a business built within a business out of necessity so you know you run into other things as you’re in e-commerce you know we use a lot of other people’s apps that we pay for which I’m sure were created the same way someone said you know what this doesn’t exist out there and it should so let’s build it that’s how things come about so looking back now and kind of looking forward would you get back into this business yeah yeah I think so I think that you need to just like anything else work really hard you can be do a lot of research you know nothing comes easy I don’t think I’ve talked to anybody who’s been successful or an entrepreneur that said you know what that was really easy and it worked great the first time you know it’s been three years I mean we have failures every day don’t work and we have things that work great and I think that it’ll be that way with any industry I think ecommerce is a unique industry it’s it’s growing online sales is growing you know everybody keeps talking about mobile sales mobile sales are growing so you need to adapt and kind of go with what the market is doing you