 What's going on guys and welcome to a new video. So in this one, I'm going to show you a drop shipping store turned real brand. It's quite a successful brand. It's three years old. It does approximately one million pounds in turnover every year with an estimated annual profit of in and around 200 grand. So if you ask me, then drop shipping is a brilliant business model. It's probably the best business model for any beginner. When you compare it to other business models out there, it's definitely one of the easiest. However, that's not to say that it doesn't come with its disadvantages. The biggest one in my mind is not delivery times because the biggest mistake or the biggest mis assumption that a lot of people make is when they hear drop shipping, they think AliExpress. However, there's so many other supplies out there. So delivery time shouldn't really be an issue today. The biggest disadvantage in my opinion is profit margins. When you are buying one unit at a time versus a thousand units at a time, it's always, always, always going to be a lot more expensive to do it one at a time. And this is where drop shipping will fall down and continue to fall down. So a better way to look at drop shipping is a way or a means to testing products, to validate the idea, validate the products can sell successfully and profitably. And if you can do it drop shipping, then progress into building a quote unquote real brand around the product. Start sourcing it in bulk, keeping the items in stock in your local country in a fulfillment warehouse or do it from your garage like I did when I first started. Because when you do this, the profit margin significantly increase. You can offer a better service to your customers and you have a lot more control over the quality of your product. So this week, the store I want to take a look at is called Snuggie. They're a UK based brand. They're currently for sale on flipper.com. If you're not aware of flipper.com, it's a brilliant, brilliant, brilliant resource for finding stores that are for sale. Now, the reason why this is so valuable if you're especially for product research is because you get to see everything behind a store. You get to see what their sales and turnover is. You get to see how they're marketing their products. You get to see what products they're selling. You get to see exactly what their store design looks like. So essentially you get to see all of the inner workings behind these proven and successful Shopify stores. And that's what we're gonna be doing today. So the store today, as I've mentioned, is called Snuggie to give you some background information. It is a verified listing. So all the numbers you're gonna see have been verified and therefore legitimate. It's a three year old business. It has a monthly profit of 16,000 pounds with a profit margin of in and around sort of 17%. What's quite impressive about these guys and with the sale of this business is their rough stock value on hand in their warehouse is 350,000 pounds, which has an approximate value they say here of one million pounds. And just to reiterate the difference between dropshipping the product you're about to see and sourcing it in bulk, I'm gonna show you exactly what you can source it for on AliExpress, one unit at a time. And then we're gonna take a look on Alibaba and see what the cost will be when we're buying, say, 500 or 1,000 units at a time. They say they've utilized influencer marketing predominantly on Facebook ads, Instagram, TikTok and SEO as well. So later on, we will be taking a look at what their Facebook ad creatives look like to generate the source of numbers. Before we take a look at this product and the store itself, then let's take a quick recap on what the last 12 months look like for this business. So we can see it's a pretty consistent seller all year round, even during the summer months, which is quite surprising. But what isn't surprising as we come or get closer into Q4, so September, October, November and December time, this is where sales explode and it's obviously gonna be their most profitable months. Something else worth showing you guys as well is they are currently on Amazon too. So their best months being in Q4 months, so October they did 46K, November 66, 131 and then their best month in December they did 66, 719. The advantage to being on Amazon as well is that the more kind of different platforms somebody encounters your brand, the more likely they are to kind of recognize you when your brand name is gonna stick in their mind. So when they are ready to pull the trigger and make that purchase, then you're gonna be the first people that do come to mind and therefore win the buy. Okay, so now that we've established we've got a pretty successful brand in our hands. Let's take a look at the Shopify store. This is their homepage. The first thing that kind of points out or screams out from this page for me at least is this Trustpilot score. Trustpilot is a review site for different businesses, not just e-commerce, can be literally anything and it's trusted, it's a household name. So by putting this at the forefront of your store and advertising the fact that you've got a good Trustpilot score, instantly it's gonna legitimize your business. The other things as well, which stick out to me, these key house-hard and recognized brands or companies like the BBC, CNN, ITV, Daily Mirror and OK Magazine. Again, it adds that kind of level of familiarity and legitimizes the business and the product. If you go through their product page then of exactly what the product is, I'm not gonna spend too much time. I'm just gonna kind of point out the sorts of things that you should be trying to replicate in your own businesses. If you ultimately wanna set yourself apart from the competition and position your brand at the top of its game better than everyone else. And this is what this store does a really great job of. So as we scroll through and we look at the images, you won't find these images on Aliexpress. You won't find them on any other e-commerce website because they're original content that have been designed and made specifically for this store. Little touches like this help keep all of the designs and imagery on brand too snuggy and it also helps separate it from any other competition. Whereas if you have the same imagery as every other drop shipping store selling the same product as you, you're just gonna blend in and you're gonna get the same results. And the harsh reality is with any drop shipping business is probably 90% maybe even higher. Don't make a single penny from drop shipping. They don't make any profit whatsoever. So if you're doing the same as everybody else then expect those same results. Unless you do things better then ultimately you're not gonna succeed. So definitely worth taking the time to create designs like this. Using softwares like Canva is super cheap. I believe Canva is 15 or 20 pounds per month. I can't remember what I pay. Hands down is probably one of the most valuable tools that I use. Another common theme for any successful e-commerce brand out there is their use of customer images or their use of UGC images or their use of models. So there's real people wearing the product in a professional background. So where most businesses might fall down or lack that quality and professionalism instead of having a model wearing the product it might just be a white background and the product line on the floor or just flat with no model with the simple dimensions whereas they've used pink in the lines. They've used the same fonts as they've used around the store and everything is just in keeping and on brand essentially which is what everybody in my opinion should be aiming for. Next I wanna give you an idea of how powerful it is to progress from drop shipping into creating a real brand and sourcing your products in bulk and how many logo printed and all that sort of thing. So they're selling this hoodie for 60 pounds even if you were drop shipping. So I've just done a simple search on AliExpress for oversized hoodie blanket. You can look for a decent quality one in and around maybe 15, 20 pounds tops. There's even some cheaper versions here but to be successful again then you wanna be selling a quality and premium product. What you do have to take into account though is that these guys can charge 60 quid for this product because of who they are and their level of branding and how professional and legitimate they are. If you're a brand new business drop shipping with zero followers and zero engagements and not many UGC contents then you won't get away with charging this premium price. Anyway back to profitability and the power of sourcing things in bulk. So if we take an average of on page here we're looking at about 15 pounds let's say if you go towards a top end premium quality product. If we head on to Alibaba the first supplier I found granted I didn't wanna spend too much time on this because you guys can do your own research but it still illustrates the point. You're looking at about five pounds per unit instead of 15 so straight away on your bottom line you could be making somewhere in and around sort of 10 pounds extra per sale. Next I wanna show you their Facebook page because again it's just a great example of what you should be doing if you wanna be successful at this. It's just person after person after person after person. By now pay later with Klana. Klana is something that everybody can use as long as you're a legitimate business. I recommend everybody get it installed on your Shopify store especially given the current climate that we're living in and if we just have a scroll through their content and see what kind of style they're posting we can see it's really professional. We can also see it's influencer or UGC based it's just real people testimonials quoted from Trustpilot. Everything that they post is has a clear goal of legitimizing the business and how good the product is. To finish the video off then to finish the video off then let's take a look at how they're able to generate such massive sales and such good profitability as well. So let's take a look at their ad creators which is one of the hardest things as a beginner to get your head around what a good ad creative is and what works essentially. So we can see this is Snuggie launched in January 2023 approximately 54 results. So we can see that they're testing lots of different creators lots of different ad copies to see what works and you don't need to use crazy high budgets to do this either in the beginning. Now obviously this is a really established brand you're not gonna go out there and start testing 50 different creatives straight away but start with five or start with 10 super low budgets put it out there to everyone see which one gets the bytes which one has the cheapest clicks or highest click through rate and then start to kind of narrow and focus your budget and put more money into what's working. So as we scroll through then this looks like UGC that's UGC UGC this if we play this is UGC too UGC as we can see there's always a face behind the brand it's never just random clips it's real people talking about the products or showing themselves wearing the products. The ad I wanna show you specifically is this one here and the reason being is because of this first line it's very relevant and current to the current times that we're living in. So let's open it up take a look at a bigger version of it. So heating costs be gone it's not just in the UK it's pretty much globally now the heating costs, electricity costs, gas costs are increasing significantly and more and more people are looking for ways to stay warm and this is exactly where this product comes in. So this is a product that I would say still has massive potential in the UK and will continue to have massive potential all the way up to and including Q4 later on. Let's take a look at this video ad creative then and see exactly what it is. UGC content is a very simple and kind of basic example of one. I'm not sure if you'll catch what she said but she basically said that if you wanna stay warm and cozy I think in the comfort of your own home then you need a snuggie. So she's quoting the brand's name which makes it original content and it also means that nobody can steal this and use it for their business either because she's mentioning the specific brand name. What she also does at the end there I'm not sure if you'll see the relevance of this is she shows a real life application for the product. Now if it was me I would probably show somebody getting on the sofa and scrolling through their phone or putting Netflix on or something like that but it just shows and puts into kind of real life terms as silly as it sounds how somebody would use this product. If people can see themselves using the products they're much more likely to then buy it. And so on that note then guys I'm gonna wrap the video up with seeing what a proven business looks like which includes the product, the store and the ad creatives. I hope I've given you some ideas to implement into your own business which will ultimately help you be more successful this year. If you want some help getting started and you're new to all of this and it's all just a bit overwhelming then I highly recommend you check out my free training. It's the top link in the video description down below. It will show you how to get your business launch and making sales in the next 21 days. As a reward for signing up you won't leave empty handed. It is 100% free. You'll get a copy of my PDF which contains 194 profitable product ideas just like this one for 2023. Thanks for watching guys. Don't forget to comment, like and subscribe. Any questions at all leave them down below and I will reply to every single one and I'll see you in the next video on Wednesday. Cheers.