Dropshipping Lesson 1: Understanding The Fundamentals

Dropshipping Lesson 1: Understanding The Fundamentals

Physical product sales (dropshipping). Your success will be determined if you can buy traffic at a profit. Live and die by this.

Channels To Occupy For Traffic (Generating visibility for a physical product store)

  • SEO, PPC, Comparison Engines, Email, SM
  • Make sure you have images for every product (and ownership). If you are using your manufacturer’s product image, make sure to watermark it and make it larger, it will outrank theirs.
  • Ensure you have video for each section AND homepage. Video is very easy to rank for because so few people are doing it.
  • PPC (Image ads and text ads, retargeting etc.)
  • Amazon listing for all products.
  • Check out what the above the fold looks like for a product. It’s usually text ads and image ads, Google shopping, one or two organic results, then everything else below the fold
  • Blog and editorial content

How To Increase Sitewise Conversion

Home page – Section Page – Product Page – Shopping Cart – Sale

You need to be tracking the flow from each of these sections. Then you can tweak this and better understand it. Goal flow is a very important concept to understand.

A lot of revenue comes from people who use the search box. 2% of visitors use the search box and it results in 10% of sales. Think about having the search bar floating with the user down the screen. Takeaway: have a very prominent search box in the header. Prominent eCommerce stores also are using two search boxes. Look at the big dogs like Zappos etc. 

Adding a double header model resulted in a doubling of conversion rate for one eCommerce store. Check out 30:26 of the video. 

More Sitewide Conversion Boosters

  • Favicon / Social Buttons
  • Video
  • FAQs / Educational Content
  • Randomly Displayed Testimonials
  • Footer: Trust, Search, opt-in, security, GTY’s, links
  • Incentivized time constraints – go to conversionsondemand.com (popup appears after visitors view certain number of pages and offers 5% off if users purchase within 5 minutes)
  • 15% boost in conversions if you offer live chat (use livechat.com). Conversions might even increase by 25 – 30%.
  • Make a video telling the users why they should buy from you

Statistics About Video On eCommerce Sites

  • Shoppers who view video are 174% more likely to purchase
  • 40% report that videos increase their likelihood of buying
  • 1 in 2 are less likely to leave after viewing a product video
  • Online video production witll soon acocunt for more than 1/3 of online advertising spending
  • 3/5 will spend at least 2 minutes watching a product video
  • 52% say watching makes them more confiednt in their buying decisions
  • Product videos watched 60% of the time


The video doesn’t even have to be that good. Just show the product. Describe it, what it does etc.

After the customer takes an action, acknowledge it and say thank you. Then ask them to do something else, as they will be much more likely to do it. How is this practical? After someone buys, ask them why they bought, what we can do to improve the website. You want to be engaging your market at every point, as much as you can. Then you will start selling higher multiples, average value of customers will increase.

Unique Selling Propositions And Offers

  • Tell the customer what differentiates you – is it free shipping, better education, special package bundles, unique products, customer service?
  • Display your offers – sales, coupons etc
  • Create a Why buy from us page

Homepage Conversion Boosters

  • Create super rich homepages (content everywhere – videos, testimonials, FAQs – a really long page with everything they need to know).

Don’t paginate anything on your product pages, it’s either infinite scroll or have everything load. No one goes to the second page.

Always have cross-sells when the customer is on the product page.

Social Proof: allow people to take photos of the product and upload to your website.

List Features & BENEFITS.

Get an immediate 15% boost in conversions by adding a little photo under the add to cart button that says something along the lines of “we have the best prices” or “free shipping” etc. Put the unique selling propositions in an image format below the add to cart button.

On everyone of the product pages put shipping information and FAQs tabs. Make it prominent enough.

Ensure there is congruency across shopping cart and check out. What I mean by this is that some websites have a check out or shopping cart layout that is in a completely different style or format to the rest of their website. This is an absolute conversion killer! Do not make this mistake!

Shopping Cart: Use a progress bar. Have a proceed bar at the top AND bottom of the shopping cart page.

Don’t have a coupon section on your check out. People will go to Google and try find a coupon to apply to your store then abandon purchasing the product.

25% of people who get to the shopping cart and then abandon it can be recovered by sending an abandoned cart email ). Then give them a coupon for a discount in the email 10% to 15%.

Social selling – share this on Facebook and get free shipping or get a 10% discount etc. can be done by using  curebit.com or packageinsert.com and increases conversion.

Use coupons with orders. Send them to your dropshipping supplier and ask them to put one in. Say something like: here’s a coupon for your next purchase. Here’s one for your friend too. 

bigcommerce.com/apps – useful resource, but I do not yet know why.

Part 3: Increase Repeats – Build A Lifelong Community


At 1:05:00 he runs through it really quickly, but he speaks about a great strategy to start with Google AdWords to discover the best selling products, then to focus SEO campaigns targeted at those products. Then upload videos for each of the products, upload the products to pinterest.




Crate&Barrel is a great site to replicate. They are always split testing and optimising their site. 


Some of the best Quora answers I’ve seen regarding eCommerce:

  • https://www.quora.com/If-you-had-to-pick-2-methods-of-achieving-a-net-worth-of-5-million-dollars-in-7-years-from-scratch-what-would-they-be
  • https://www.quora.com/I-have-5000-to-start-an-amazon-business-should-I-start-with-dropshipping-or-with-Amazon-fulfilment-or-do-you-have-a-better-suggestion
  • https://justanotherfounder.quora.com/We-Made-1-000-000-in-3-Months-and-This-is-What-I-Learned

I’ve learnt all of this courtesy of – https://www.youtube.com/watch?v=SZhP66RShZU


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