 Okay, in this video, I want to explain to you. Okay, if you are still dropshipping, if you are like not doing numbers now Okay, do this instead. Okay, do this instead. Okay, so let me go to the whiteboard explain to you what to do And like it probably like four or five steps very very simple, but stop stop whatever you're doing. Okay Think along them. Okay, just want to tell you that first. Okay, so let's start. Okay, if you're still dropshipping for example Okay, dropshipping is okay. Like it's it's just a business model, you know, a lot of people do it So it's fine. What I'm saying is that transition to becoming a more a legit business and so that Branded e-com is going to be your future. Okay, stop with the completely 1000% dropshipping types Okay, so okay, if you are starting e-com like complete noob, right like complete complete noob, okay You okay start with your your dropshipping first. Okay, go ahead. Do your dropshipping. Okay, do it for like three weeks or so Okay, so what the purpose of these three weeks, right? Let me just tell you The aim of what you're trying to do here when you run ads and stuff, right? You want to go and get sales Okay, you want to prove that your business is a business that you actually can make money in this in this product right here, right? So your purpose here is cash flow. Okay, you are trying to produce cash on demand Okay, so you're proving out the concept the unit economics Okay, everything makes sense if I sell one thing do I actually produce enough revenue to maximize sorry to produce a profit Okay, am I providing enough value to the marketplace such that after advertising after transaction fees and stuff I'm still making money. Okay, so that is the the concept of what you're trying to really do here when you're dropshipping Okay, and why I say three weeks, right is because I want you to like run sales up to the point where okay It's consistent enough, right? It's consistent enough such that you're comfortable with actually going to a branded e-commerce model Okay, that's number one and number two as well. You're able to actually produce cash to buy your stock Okay, so what you're going to do afterwards is going to be KPEX Intensive which means capital expenditure in accounting terms is basically just means you're just pulling out money up front Which means there's a risk to you involved Okay, and so you're putting cash in you want to produce enough positive cash flow. Okay positive cash flow here Okay, such that you're able to fund the next stage of your journey. Okay, so what is your next stage? Okay, so for you imagine you start your dropshipping you've done it for three weeks. Okay, you've produced like imagine Okay, best case scenario right for example, $20,000 in sales. Okay, you popped off Okay, and then after product cost everything right you have spent 17k. Okay, so you made a measly 3k Okay, that is a fantastic sign. You know why because it just means that the model is correct Okay, it just means that this is it's works. Okay, you have sales. Yes. Okay, you have cash flow. Yes unit economics your profit Yes, okay, so imagine you take this 3k right here Okay, what you want to do you transition and you go to your supplier whoever it is in China or the US or whatever it is Right. Okay, you go and tell them. Okay. Hi, Mr. Supplier I want to buy a hundred a hundred units of this product right here Okay, and if you know anything about inventory suppliers and stuff like that There's something called lead time. Okay, lead time basically means that it takes a certain amount of time for people to actually Produce a product for example. Okay, so for example They may say you may take 30 days to produce 35 days or whatever it is. Okay, and this is basically lead time right here Okay, there's something called MOQ as well so MOQ is basically called minimum order quantity and people especially wholesalers Okay, let me just this term right here. Okay wholesalers. They want you to buy in bulk Okay, the reason why is because it's it's more worthwhile to do business with you when you're paying them like thousands of dollars instead of just Like paying like $40 for example. Okay, so that is what the the reason of MOQ is right? So that's why you buy a hundred first Okay, so this is your first essentially your not risk, but your first real investment in your business purely because you are Purchasing stock. Okay, so you're buying stock and the reason why you want to buy stock as well It's because your cost your cost per unit price is going to go down Okay, which means that your overall net margins of your entire company is going to improve over time Which means that you're gonna make more money over time basically. Okay, so your MOQ you're gonna order for example, Mr. Supplier I want a hundred units of product a right. So you give me this MOQ. I'm gonna ship this to the warehouse For example, I'm gonna ship this to the warehouse and then I'm gonna do something about it I'm gonna sell it Okay, so because you already have proven these three things here your sales cash flow and unit economics, right? By doing this actually you're reducing the actual like cause of good. So your cogs, right? And you're increasing that profitability Okay, so after this three weeks you want to sell this hundred and then once you imagine you're selling around like 70 or 80 Right, and then you only have like a very little in stock in your warehouse For example, right then you go into the next stage of business. Okay, Mr. Supplier I want to order 300. Okay, and so as you can see right, you're not trying to You're taking the the biggest pussy move of all time basically You're being very very conservative, but you're being smart about your investment and cash flow Okay, the reason why is because when you buy 100 at one time when you buy 300 at one time, right? Imagine the cost per unit price for example is at $4. Okay, and people are gonna ask you to pay up front Okay, so if you are very tight on cash flow for example This is gonna take you at least $1,200 in at like cash down down payment. Basically. Okay So that is why you progressively in a sense you progressively scale up your stock Okay, this gives you more time to basically produce for example more influencer content, right more video content Right and also improve your marketing at the same time and also help you do email marketing Okay, so can you see here how by taking it slow, right? You're able to slowly build your business, right? You're able to start from scratch at a very very low spend very very low risk to you You start job shipping. Okay, you go to tree model You progressively scale up your moq and over time, right? You're going to order more quantity and more quantity at the same time Okay, so after this I would I would generally say after this you're quite comfortable with the e-commerce model and stuff Right, but imagine after 500 you said, okay, we are all comfortable. Everybody knows how this game runs Okay, let's go to the next level once again. Okay, so what is the next level after you go 500? Okay, you go and fight you go in Ask your supply for 500 once again by what you want to do is do custom. Okay custom packaging for example And then you do custom logos Okay, so this will require obviously additional stuff as well purely because the supplier is doing something custom for you So that they maybe even have like a mole in the factory or they need to like, you know Produce your stamp for example and this stuff cost additional money, right additional boxes and stuff that that looks very very good basically Okay, and so after this right you should be able to have like very very good business purely because you have Basically build out your entire sales channel right here, right? Okay. We have sales coming in Okay, so we have not a lot of financial stress Okay, we have additional content that we have built over for example This is month number one. Let me say this is my number one. This is my number two This is my number three. Okay, imagine this is one zero, right? So in a matter of three months, you're built an e-commerce model that has proven sales, right? Unique economics, okay You have progressively scaled up so that you're not obviously at risk all the time You are making investment based on the cash flow that you're producing so you do not lose money over time And then also at the same time you're building real brand equity Okay And so when you build brand equity like this when you progressively push yourself and challenge yourself to become a real e-commerce business owner, right? You not only like build a real business Okay, people are going to start coming back to your store. Okay, and that's what people don't talk about Okay, it's retention. Okay retention is basically when people buy from you one time and then they're like, okay There was a good experience that I have with these people. Let me buy from them another time Okay, and that is where most of the money is being made. Okay, that is where most of the profit is being made Okay, so that is why let me just say, okay If you have never done this before obviously it's gonna be challenging But what I'm saying is month zero to month one for example. Okay, I want you to focus on growth Okay, revenue Okay, proving out the model once you come in this space here, obviously then you worry about lifetime value Okay, LTV lifetime value as well as you worry about how this is retention Yeah, retention is here as well as like refund stuff like this Okay So the reason why you should worry about this stuff here, right? It's because you know for a fact the product here that your custom stuff right here Should be your best products whatsoever. Okay at the start, right? Your products may have product quality and stuff like that obviously try to minimize that as much as possible But where once you start getting into volume once you start getting into custom stuff You really need to protect your brand equity such that your lifetime value is a protected over time as well Okay, so hopefully this gives you a good skeleton or outline of what you should be doing But basically if you're asking, okay, if I'm still dropshipping now, what what should I do next? This is what you should do next. Okay, if you've never even started e-com This is what you should do. Okay, if you're already branded e-com guy, right? And you're here Okay, then I want you to book a call. Okay. Yeah, okay, so How do I say this? This is the progression of what e-commerce looks like. Okay e-commerce shouldn't be Dropship till you die that makes no sense whatsoever. Okay So this is the model and not only this is the model. This is the future everything here, right? It's like dropship is going to die like there's no way it's going to be sustainable anymore Okay, so it's best you better transition quickly if you're still doing this But what once you understand how to do this, right? Like everything becomes Increasingly easier as well. Okay, Ken. That's pretty much it from me. I know it's around 10 minutes Okay, so if you have any questions feel free to put them down in the description or the comment section below I will reply. Okay, and if you need help with your advertising and stuff Uh, I will put some links in the description and uh, if you're interested you can book a call with us as well Okay. Yep. That's pretty much it from me. Uh, and hopefully you enjoyed the video. Um, I will see you in the next one