Hacker News new | ask | show | jobs
by kitcar 4846 days ago
Out of curiosity, if drop shipping enabled you to quit your job in finance a few years back (http://ecommerce.shopify.com/guides/dropshipping/about-the-a... ) , why are you now 'giving away your secret sauce' by running a website dedicated to teach people how to setup "copycat" businesses?

Is it that the drop shipping business has gotten so competitive that there is more money in teaching people about it than the business itself, or were there other reasons?

4 comments

I'll have to let Andrew, my co-author, speak on why he left the corporate world to start his ecommerce blog.

But I can share why I decided to write this. I noticed that most, if not all of the information on drop shipping is bullshit. The topic is riddled with scammers looking to rip you off.

A few months ago I published a guest post about drop shipping on my company blog. It was written by my co-author. It was very well received... seemed there were people out there starving for good information on getting a drop shipping business up and running.

I bought every print and ebook on the subject, read most articles I found online on the topic, and quickly realized that we could probably write something way better. So we did. I hope! :P Anwyays, that's it... just published it today and can't wait to get feedback on how to improve it. Once we polish it up a bit, I plan on releasing an eBook so people can read it on their Kindles and what not. If you read it Kitcar, I hope you enjoy!

That's admirable, but what about the answer to his question? You're giving away your secret sauce and introducing more competition into the market and lowering the barrier to entry.
Mark's co-author, Andrew, here. I just published a really length reply above, so hopefully that answers your question. In a nutshell, just like in business the biggest secret sauce is hard work and consistency - it's not like we're giving away the keys to the treasury where they print money!

With that being said, there are a lot of nuances to picking a good niche (especially in drop shipping where the competition can be fierce and margins low) and to operating a drop shipping business (as it can get logistically complex). Those are some of the things we're trying to shed more light on in the guide.

Co-author here, and a totally valid question! I started my blog about eCommerce / drop shipping for a number of reasons:

1) To expand my professional network and opportunities

I just finished co-writing a book with Shopify on drop shipping, which is something I never would have had the opportunity to do without the blog. It's allowed me to build credibility and expand my network.

Additionally, the blog allows me to reach out to really interesting people when I otherwise wouldn't be able to. For example, I recently interviewed Gary Vaynerchuk - something I never would have been to do without leveraging eCommerceFuel.

2) To connect with other eCommerce entrepreneurs

I've had the chance to connect with hundreds of other eCommerce merchants and share strategies and tips. I eventually hope to build a really vibrant community for small eCommerce merchants (as I think that's lacking online), and this is helping me accomplish that.

3) To eventually diversify my income stream with something new

Like all entrepreneurs, I think the desire to try new things is strong - especially after you've been doing the same thing for a while. I saw the blog as a way to create another income source that leveraged the experience I have.

While one of my eventual goals is to make money from the blog, my first priority is to keep the content extremely high quality, genuine, authentic and USEFUL. I wanted to give away a ton of useful information before I asked for anything in return.

Take the eBook on my site, for example. I spent 2 weeks solid writing it and I give it away for free. If you download it and don't think it's one of the better free resources you've come across online just let me know and I'll send you $20 via PayPal for wasting your time. :-)

4) To dispel the the idea of "easy money" online

You asked why I'm teaching people to setup "copycat" business, and I'd argue I'm doing nothing of the sort. 80% of success with any kind of business involves the execution and strategy - and not picking the perfect niche or having some "secret" sauce.

If Alexis Ohanian released a killer guide to programming in Python that doesn't mean someone is going to be able to create a Reddit copycat... ...at least one that will successfully compete with them. Also, just because someone is sharing their knowledge and/or tactics doesn't mean that their original project is no longer viable. It simply means they're interested in sharing their experience.

If building a profitable drop shipping business was an easy 48-hour project, I'd be less likely to share so publicly - you're right! But just like any business, it takes a lot of hard work. The knowledge is important, but the legwork is really what makes it difficult to implement.

I completely understand your skepticism as the online business space is full of scams. But hopefully if you invest a few minutes reading our guide, and my blog (http://www.eCommerceFuel.com) you'll realize we're committed to publishing quality, useful content and not trying to rip people off.

Let me know if you have any questions - happy to answer them.

This is a great answer. I think it is important to note that all of the information you have provided is already available on the web, so you aren't really revealing super secret information. You have provided a very well written and properly structured guide for information which could have been gathered anyways. I went down the dropshipping information wormhole recently it was a super annoying process. You're guide has definitely helped provide a strong structure the information I gathered.

Thanks!

Thanks! You're right - most of the information is publicly available, and we just consolidated it into one spot. Some aspects are a bit harder to find publicly - like some of the tricker aspects of managing the logistics of operating a drop shipping business - but still not impossible to find. You just have to dig a bit deeper, or talk to someone with experience.
And... you touched a point which new people to dropshipping will hardly read somewhere else: that you take responsibility and accountability for your suppliers' mistakes. This happens all the time. I did some dropshipping in the past with suppliers in China. I can tell you it wasn't for those with faint hearts. Having customers calling/emailing you 10^2345 times a day to complain about the product they had received wrong, while it's not your fault, sucks big time. Back to the point, I'm glad you have made a note about this aspect in your website.
Hey Andrew, I didn't know you were on HN. I've been following your blog for a while now and I can vouch for you (for as much as that counts) to the community that you a) are very successful at what you do and b) are very helpful to others in the community.

This guy loves to share and I think it helps him succeed by knowing that he has to share what he's doing. It's a confidence-success loop.

And you're right about 'copycat' - just because you know the process doesn't mean you have the same niche or drive. That's like saying teaching MBAs is teaching a bunch of copycat to all run the same businesses.

Wow, thanks watershawl - really appreciate the vote of confidence. And thanks for reading as well!

The more you share what you're doing, the more it will ultimately end up coming back to help you out. Just look at Nathan Barry: his transparency has undoubtedly helped - not hurt - his blog, sales and reputation. I think it's a great model, and am trying to do something similar.

Great guide! Just one question, have you ever thought of setting something like a drop-shipping B2B service? There are a lot of services that are going into that direction (right at the core, that's why wholesellers make living with companies) and collaboration plattforms out there, but I think combining that with some dropshipping services would offer a great opportunity.
I appreciate you taking the time to write out such a thoughtful answer - thanks!
You're very welcome! I'd be wondering the the same kind of thing if I were you. :-)
I don't think drop shipping is really something where there are a small set of secrets an in crowd are operating on that anyone can come along and easily replicate. So I don't think more information is really going to effect current players that much.

Without reading the guide I would assume it doesn't tell you exactly which product you should sell and guarantees that you will be able to do a deal for someone to supply you that product. That is a large part of it, not really bigger though than any startup doing a key deal with another company.

From there you face many of the same challenges as any tech startup. Functioning and easy to use technology, effective and positive ROI marketing and great customer support.

Andrew Youderian's the real deal. I've been reading his blog for a while, here's his story:

http://www.ecommercefuel.com/my-corporate-escape-story/

http://www.pocketchanged.com/2012/08/14/online-business-secr...

Thanks sayemm!