Nate Schmidt Profile picture
Nov 10, 2018 11 tweets 2 min read
The Evergreen E-Commerce Q&A Thread For Broke Beginners Who Want To Start Their Own E-Commerce Business But Don't Know Where To Start:

(Will be adding to it as more questions come in)
"How do I source products and find manufacturers?"

You don't. There's a Chinese wholesale website called aliexpress.com. You find products on there, list them on your Shopify store using an app called Oberlo, and then the supplier ships products direct to your customers
"Will customers experience long wait times, high shipping costs, or foreign packaging?"

Wait times depend, ideally you want to sell products from suppliers with warehouses in the US (sort by "ships from US" on Ali)

High shipping costs, no

Foreign packaging, yes
"How do I market and spend money on ads?"

The easiest and best way right now in my opinion is Facebook ads

Learn the basics via Google, YouTube, courses, etc. and the rest as you go

@StartSellingSSS has a great free FB ads guide on his website as well
"How much money does it take to start?"

It depends

Some people it takes $100

Some people it takes $2,000

Ideally you want to start with $1,000+, but no less than $500
"Is making an LLC/incorporating necessary for dropshipping?"

*This is NOT legal advice*

But at first, no

You can worry about incorporating and paying taxes once you're actually making money

For now, focus on getting to the point where you even have to worry about it
"How do I process payments?"

Shopify does it for you via Stripe and PayPal

You don't necessarily even need PayPal, Shopify payments will process payments and send them straight to your bank account with or without it
"How do I research and choose products?"

Too much for one tweet, but what I recommend is finding something that's already selling and targeting it to a more specific group of people (not your FB ads targeting, just your marketing in general)

Make them feel like it's "for" them
"Where can I find examples of good ads?"

Can't guarantee they'll be good but just search Facebook for "Get Yours Now" and other similar calls-to-action

Then you can click on their FB pages and click on the "Info and Ads" tab to see their all ads
"How do you find reliable US-based manufacturers?"

You don't

At least not at first

Don't worry about finding reliable suppliers when you're first starting, just focus on making sales and then you can refine from there
"What's the best way to deal with returns/refunds/complaints/etc?"

Just refund them

Not worth getting chargebacks and risking Shopify/PayPal holding your payments

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More from @SCHM7DT

Jul 12, 2021
The secret to success in e-commerce?

ADVANTAGE

i.e. Doing 1 or 2 key things BETTER than everyone else

There’s a ton of ways to do this

Let’s break down some examples ↓
OFFER

One of the simplest advantages is just having a better offer

Lower price, more value, better deal, etc. than competitors

If ppl are used to paying $50 for 1 and you can offer $40 for 2?

Hard to lose
NICHE MARKET

Getting extremely specific in who you sell to is a huge advantage because it removes 90% of your competition

A lot of companies sell phone cases


But how many sell extremely durable phone cases for day laborers who put their phone through hell everyday?
Read 7 tweets
Jul 7, 2021
PROFIT MARGINS IN E-COMMERCE

Margins are incredibly important in ecom and very few fully understand them

Here’s everything you need to know about e-commerce profit margins

THREAD
There’s 2 types of margins. Gross margin and net margin

Gross margin = margin on the product alone

Net margin = margin on everything (i.e. total profit)
The calculations

Gross margin = (Sale price - product cost) / sale price

Net margin = (Revenue - expenses) / revenue
Read 15 tweets
Jun 29, 2021
Coming up with STRONG marketing angles

This is one of the most important yet least understood skills in all of e-commerce…

Here’s how it works

THREAD
Marketing angle = the overarching theme behind your ad

The big idea, the pull, the sex appeal, the #1 reason someone should pay attention and buy your product
For example a while back P90X came up with the marketing angle “muscle confusion”


There’s no science behind it but it sounds sexy, it was new and exciting at the time, and it directly led to millions in revenue
Read 14 tweets
Jun 23, 2021
How I found my first $1,000,000+ e-commerce product

This is a simple formula anyone can follow

THREAD
Some of you might know my first big winner was Apple Watch straps

Not your typical "winning product"

But in 2018 it went on to generate me over $1.5M in sales

Here's how I found it ↓
It's a cold winter night, I'm working my pizza delivery job about to start closing the store

I walk up to the front and notice my co-worker just got a new Apple Watch

It caught my eye because he had a cool band for it that I'd never seen before
Read 16 tweets
Jun 17, 2021
THREAD: How to VALIDATE ideas

Before you start a business you need to figure out if your idea is actually good or not

This is the first and most crucial step in any business

Here’s how to do it ↓
Validating ideas = determining if anyone actually wants what you’re trying to sell (before spending months building out the entire business)

Think of it as a demand test
The goal is to get the most basic bare bones version of your idea in front of people who might want or need it…

In the LEAST amount of time, and while spending the LEAST amount of money…

So you can see if anyone is actually willing to buy it
Read 14 tweets
Jun 14, 2021
It’s not perfect, but following this weird “points” system is about the closest you can get to guaranteeing your success in business

How to make your success INEVITABLE

THREAD
People think success is a mystery. It’s not. Simply put success is the result of consistent effort compounded over time

This is (in my opinion) the single most important concept to understand if you want succeed in business
Because of this, our #1 priority should be putting in consistent effort on a daily basis over a long period of time

This is easier said than done however

So to make it easier, we gamify it

Here’s how it works
Read 15 tweets

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