CHATGPT AND I CHAT ABOUT DROPSHIPPING

CHATGPT AND I CHAT ABOUT DROPSHIPPING

Just one more perspective for newcomers.

I: Hey ChatGPT, I want to have an in-depth conversation with you. But let's answer everything briefly.

ChatGPT: Okay, what do you want to talk about?

I: Dropshipping Monetization Theme.

ChatGPT: Absolutely. What do you want to know about in dropshipping? How to get started, advertising strategy, or profit optimization?

I: Let's start with a simple question, how many people in the world do you think are making money from Dropshipping, and what percentage of them are successful?

ChatGPT: It is estimated that millions of people around the world are involved in dropshipping. However, only about 10-20% of them are actually successful and make steady profits.

I: What about the rest of us?

ChatGPT: The rest often face difficulties due to lack of experience, not doing thorough market research, ineffective marketing strategies, or choosing the wrong products.

I: OK, let's talk a little bit about those 10-20% of successful people, what do you think makes them successful?

ChatGPT: Factors that help them succeed include:

• Thorough market research: Understand market needs and trends.
• Choose quality products: Choose products with good potential and quality.
• Effective marketing strategy: Use effective advertising and SEO to reach customers.
• Good Customer Service: Timely and professional customer support.
• Effective cost management: Optimize operational and advertising costs.
• Continuously learn and adjust: Regularly update knowledge and change strategies according to market conditions.

I: What percentage of their success is luck?

ChatGPT: Luck can account for about 10-20% of their success. However, much of success comes from effort, knowledge, and the right strategy.

I: I think luck accounts for about 50%. (Sounds more adventurous!)

ChatGPT: That makes sense, too. Luck can play an important role in meeting the right trends, timings, and opportunities. However, it is also important to prepare well and be ready to seize opportunities when luck comes.

I: Let's come up with a more difficult question, do you think most successful people with Dropship use Free Traffic or Paid Traffic?

ChatGPT: The majority of people who are successful with dropshipping usually use Paid Traffic. Paid advertising helps them quickly reach the right audience, increasing conversion rates and profits. However, some people also combine free traffic from SEO, social media, and content marketing to optimize costs.

I: I like to say things below the % ratio because it's easy to visualize.

ChatGPT: Got it. According to estimates, about 70-80% of people who are successful with dropshipping use Paid Traffic. Meanwhile, 20-30% use Free Traffic or a combination of both.

I: What are the Paid Traffic platforms they use (don't forget the percentage)?

ChatGPT: The Paid Traffic platforms they often use include:

• Facebook Ads: 60%
• Google Ads: 20%
• Instagram Ads: 10%
• TikTok Ads: 5%
• Khác (Pinterest Ads, Snapchat Ads, v.v.): 5%

I: It seems that Facebook Ads is still the main thing. So how much does the advertising cost usually take, I mean, let's say they make $100, how much do they have to spend on advertising?

ChatGPT: Advertising costs typically account for about 30-50% of revenue. If they make $100, the cost of advertising can range from $30 to $50.

I: So their net profit is $50, or are there other expenses? (Dropshipping turns out not to be simple...)

ChatGPT: Yes, net profit is not just the rest after advertising expenses. There are other expenses such as:

• Product cost (import price): 30-40% of turnover.
• Shipping and order processing costs: 10-20% of turnover.
• Cost of software and tools (if any): 5-10% of revenue.
• Management and customer support costs: 5-10% of revenue.

So, the final net profit can be much lower, depending on the specific costs.

I: Still with the previous example, if they make 100 USD, how much will they actually profit?

ChatGPT: With 100 USD raised, the cost is usually allocated as follows:

• Advertising cost: 30-50 USD.
• Product cost: 30-40 USD.
• Shipping and handling cost: 10-20 USD.
• Other costs (software, support, etc.): 5-10 USD.

The total cost can be around 75-120 USD. So, if you make $100, the net profit can range from -$20 to $25, depending on the specific cost and how the cost is managed.

I: Is that a hole? (It seems that this model is not as easy to eat as I thought...)

ChatGPT: Yes, in this case, if the total cost is higher than the revenue, it can lead to a loss. It is important to optimize advertising costs, source better prices, and improve shipping processes to achieve positive profits.

I: Okay. Where are the majority of dropshippers in the world sourcing their goods from?

ChatGPT: The majority of dropshipping people source their goods from:

• AliExpress: 60%
• Alibaba: 15%
• Oberlo: 10%
• Printful/Printify (for print-on-demand products): 10%
• Others (local platforms and providers, etc.): 5%

I: What is the Most Popular Dropshipping Niche?

ChatGPT: The most popular niches in dropshipping include:

• Health and beauty products: 30%
• Electronic Accessories: 25%
• Household Appliances: 20%
• Fashion and accessories: 15%
• Sports and outdoor products: 10%

I: So what are the platforms to do Dropshop that the most people choose, I know each Shopify.

ChatGPT: In addition to Shopify, other popular platforms include:

• WooCommerce: 25%
• BigCommerce: 15%
• Wix: 10%
• Magento: 10%
• Squarespace: 5%

Shopify accounts for about 50-60% of the popular dropshipping platforms.

I: Assuming I'm a complete newbie, I want to educate myself about Dropship and implement it, what is my success rate?

ChatGPT: The newbie success rate in dropshipping is usually around 10-20%. Success depends on learning, implementing the right strategy, and managing effectively.

I: Should I build a store with multiple products in my chosen niche, or just build a store with a single product?

ChatGPT:

• A store with many niche products: Increase sales opportunities and test different products.
• One store with a single product: Focus on one product, easy branding and advertising.

The choice depends on your strategy and management capabilities.

I: Let's be a little more adventurous, let's say I'm a newbie.

ChatGPT: If you're a newbie, try starting with a store with a single product. This helps you: