What Makes the MOST MONEY? Amazon vs. Dropshipping with Aliexpress

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hey guys it’s me Sarah the video get into here house out it and in today’s video we’re going to be answering a super common question that we get asked a lot here it hops out hit which is bigger drop shipping with Aliexpress or private labeling and selling on the ends of FBA program now first off if you don’t know what these business moms are then I have some great videos that you can watch to learn about Alex first drop shipping I suggest you watch my free video how to drop ship with Aliexpress to learn about private labeling with Amazon FBA I suggest you watch my video pick the best items to private label on Amazon I’ll have a link to both of those videos in the description below so yes I am gonna answer which one of the models makes the most money but I’m also going to prepare them when it comes to other important points as well such as which is the cheapest for newbies to get started with and which one is the most peso so let’s jump straight into it [Music] which is the cheapest to get started to get started with drop shipping you’re going to need the following things one products to sell to an online store three money for advertising alright because of the fact that your drop shipping you don’t need to purchase any items in advance because you only purchase items that customers have already bought from you and usually you’ll be selling items that cost me some $10 to fulfill so you will need very little startup money now let’s move on deciding an online store when it comes to this you’ve got two options firstly you can start a Shopify store this is usually what I recommend to beginners because it’s super easy to use Shopify costs just $29 a month and they have a free app ability ups you automate the drop shipping process and I have a great video tutorial which teaches you how to create a Shopify store and I’ll have a link to that in the description below both cause of $29 a month is too expensive then you can start a woo connect store and I have a great tutorial but teaches you how to do this as well and again I’ll have a link to that in the description below and of course you will need one final thing money for advertising now just to be clear this is optional you could be using a free traffic methods by it’s young or building up a facebook fanpage but I suspect that most of my subscribers here plan to be using paid traffic and if you do that you’ll be running short one week ads for the products that you’re testing you’ve run the ad and see if it’s breaking even or making a small profit and if it is you scale up from there now yes this cost money but you can start with tiny ad budgets as low as three dollars a day this means it can cost as little as twenty one dollars to test the product and while you’re testing products you will make sales even from products that aren’t breaking even you can then take that money and reinvest it until you find a winning product you can do this gradually even if you don’t have that much money to get started that means then if you’ve got say a weekly budget or fifty dollars then you can test two to three products a week now let’s compare that to private labeling with Amazon FBA immediately you’re going to need to order stock and inventory and the chances are you’re probably going to need at least 200 units ideally you’ll be running any launch marketing campaign where you’ll be giving away products using coupon codes and also use some paid traffic to drive fast sales I’ve got a great video which goes into these launch marketing strategies it’s called how to launch your first Amazon FBA products and again I will have a link to that in the description below ultimately you can be looking at easily $1000 to get started with Amazon FBA so I think that we have a clear winner in this case and the winner is dress shopping right now drop shipping is on one point and private labeling is on zero candy ketchup which business model is the most passive okay when it comes to dropship in your grants need to do a lot of things to keep your business running firstly every day you’re going to need to check to see if you’ve made any sales next you’re gonna have to actually fulfill those sales with EPS like a bellow you can create you streamline the process but at the end of the day you’re still going to need to fulfill the sales and when I say fulfill us out I mean you’re going to need to order the item from the Aliexpress seller and then get it shipped to your customer you’re also gross need to be watching your email inbox and answering questions from customers because of the fact that you’ve got long shipping times from China you’re definitely going to be receiving quite a few emails repeat so you need to be staying on top of your customer support in addition you’re probably going to be running ads on Facebook so you need to be monitoring those and adding new ones as well now it’s once you’ve got an established store you can certainly hi of EA’s to help you with these tasks and to make it more passive and I have a free video about this how to hire a virtual assistant and again I’ll have a link to it in the description below but until then yes this is a hands-on business model now let’s turn to Amazon FBA once you find your product manufacture it ship it into the Amazon FBA warehouse and run your launch promotion there isn’t a lot more that you need to do the way for private labeling is upfront you do your research you manufacture your products you run your look for motion and from then on app it’s quite canceled why well this is for two reasons one Amazon handles fulfillment for you when it comes to drop shipping it’s up to you to watch for orders and in to fulfill the order for your customer going you sell using the FBA program ms1 takes care of all of that for you they store the items in Thea warehouse and when a customer orders it from them they go find it and then ship it out to them although you do nothing to Amazon handles the marketing for you if you read good Lords promotion then you should be sitting at the top of the Amazon search results but the keywords that you were targeting and everyday people will be coming to Amazon searching for your keywords fighting your item and then buying it all the while you don’t have to do anything the most important thing that you need to be doing as an Amazon FBA seller is watching your inventory levels and making sure that they are healthy but all that day-to-day hands-on stuff or you can the Amazon do that for you so again I think in this case here we have a clear winner and the winner is Amazon private labeling rattu is entered with an Absolut Vodka with Amazon private labeling knockin drop shipping to the floor it’s time for round three what makes the most money with drop shipping you can sell and taste a lot of products without having to wait to manufacture inventory and if you find any products it can earn you tens of thousands of dollars a month that means that if you get really efficient and build your v18 you can legitimately scale to over a million dollars in a single year now I myself have never personally scaled this big but I’ve had several friends and gifts on this channel who have shared any video collaborations how they did this my friend Aidan booth did this my friend Fred lamb did this and my friend Adrian Morrison did this plus with dropshipping you have the big advantage that people are coming to your personal store what this means is that you have power over what is happening to the customer since they are coming to a site that you control which means that you can add up sales to your products which greatly increases the amount of money that you make per order and you can have Facebook pixels to your website so that you can catch the customers for more retargeting on Facebook and of course you are collecting their email addresses for further remarketing now let’s turn around and look at private labeling with Amazon now obviously there’s a lot of money to be made but let’s be honest scaling is not going to be as fast you can’t immediately sell products you need to manufacture them private label them and then ship them into the Amazon warehouse Plus because you’re sending them to Emma’s on site and not your own you don’t have control over what items Amazon upsells them on because yes Amazon most certainly upsells the customer on more products but they get to choose what the products are and oftentimes they’re not going to be yours they’re going to be your competitors plus you have strict limitations over how you’re allowed to email your existing customers and obviously you don’t get to pixel them either so if you haven’t already guessed and the letter is just a thing Arizona the private labeling is down drop shipping has come back up and has taken the lead it’s now one can Amazon come back which business model has the least risk see here’s the theme of drop shipping the key is to taste different products with ads and see which ones connect and which ones don’t unfortunately most products work can eat you’re going to have to taste a lot of different products before you find winning ones the average that we’ve noticed in the industry is that you tend to taste about 20 products to find one winning item now this look at Amazon FBA if you’re doing that right you were not tasting lots of different products to find a winning item and see if you have access to a huge Bank of data so that you can immediately spot a winner using jungle scat you can see how many cells are being made similar items every month and you can see if I can list things that are poorly optimized are still making sales and with that data you can think of find an item that is making lots of sales even for competitors which have product listings that are poorly optimized you can improve it label manufacture it and they’ve optimized your product listing so that it’s better than the competition’s and so and if you plan your two-week Amazon Web strategy right then you are following a proven formula for rising to the top of the Amazon search engine results for the keywords that you are targeting and then you will make organic sales with private labeling there is no guesswork using data you pick your winning product and then using data you launch your product following a proven formula and then you make your money so if the sir mind I think be once again have a clear winner and then the winner is a little private later link Oh truck shipping got taking that cleanly vitamins on private labeling it’s now even – – who’s gonna win round five which is this for free traffic but longtime subscribers your house up did you know that I have a soft spot when it comes to free traffic why because usually when you’re getting free traffic you’re getting it from search engines and I personally love manipulating search engines so people like to spend their time scheming some people like to cook me I like to spend my time manipulating search engines so what is a search engine well the best example of a search engine is Google you go to Google you type in the name of an item that you’re looking for and then Google will give you a list of pages that it thinks this matches what you were searching for now if you want to use search engines to get free traffic to your Alex Bruce your shipping store you absolutely can and it’s something that I taught in my free video have a drop ship from Aliexpress with no static money in that video I highlight a store that’s currently successfully doing this world of Harry motive Harry has invested heavily into ranking this store for search terms and Google for example if you come to google and type in ron weasley magic wand if you scroll down you’ll find that this store is listed on the first page of results because the store is ranking for keywords like that it means that they are getting free sales from people coming to Google typing in advise them and in finding this store but here is the thing about ranking for keywords in google it is though it can take weeks even months but Google to move your website up for search results if the keywords that I’m go calm petition you’re going to need to speed your type or your money into something that is called backlinks optimizing your SEO metadata is just not enough explaining backlinks to my viewers here that don’t know what they are is far too complicated for this video but let me just say that they are a huge huge pain so even though you can get free traffic to and I’ve expressed drop shipping store it isn’t something that I would recommend now let’s compare this to private labeling on Amazon well honestly there is no comparison private labeling rocks when it comes to free traffic you see when you sell it Amazon you have access to another search engine and that is the search engine on Amazon’s site in fact on Amazon roughly 90% of sales come from organic traffic and just tips in sales come from the paid ads that you can purchase on Amazon site so if you are doing the private label business right then it’ll be built upon the idea of creating a product listing which sits at the top of the Amazon search results let’s say you did your research and you discover the dead for some reason there was a huge opportunity to some other minion water bottles on Amazon your goal would be to create your listing so that when people type other minion water bottle into the Amazon search engine your product appears on the first page of results and luckily unlike the Google search engine manipulating the Amazon search engine is really easy and really fast it’s something they talked about in my video they referenced earlier have a bunch of first product on Amazon and the winner it’s edible private label Oh Oh it’s a complete knockout drops your fingers down and Amazon private labeling is a here the score is now 32 can’t drop shipping pull it back which is best for pay traffic okay so the winner for this one is pretty obvious to be honest so I’m going to keep it short with our Express drop shipping you get to take full advantage of pay traffic you can test lots of products and find several winning items and importantly you could give us ads running up within days if you wanted to why well because you don’t have to wait a month to manufacture products and then ship them into the Amazon FBA warehouse now with Amazon that’s very different of course if you’ve got a successful product listing then it is a fantastic idea to run paid traffic to it but that’s it you’ve got one product and if you want to run more it then you’re going to need to have to go find a new product manufacture it ship it into the Amazon FBA warehouse and then you get to run ads for it so if you like with with paid ads and traffic then there is no contest and the winner is clearly drop shipping that’s it folks it looks like we have a tie who would guess it isn’t their right or wrong choice if you need to pick the right business model that suits you comment below and let me know which business model that you prefer thanks for watching this video if you liked it I appreciate you gave it a thumbs up and if you want more fun videos like this subscribe to us here at host out it and if you would like to start your own online store but you don’t know how that you should be sure to download our free ebook how to make $10,000 a month online with drop shipping you’ll find a link on how to download this incredible life-changing ebook in the video description below