If you are someone who wishes to start an online business and you are on a shoestring budget, the dropshipping model seems to be the way to go. There is no question about it. It is low-risk and affordable. It is a very popular business model among new entrepreneurs because all you need is some creative ideas and good digital marketing rather than loads of cash in hand.
The way it works is that a manufacturer or third-party supplier will supply the goods you're selling and fulfil the orders you've forwarded from your customers. This will save you money because you won't have to hire someone to handle your orders or rent a warehouse to store your products.
As such, dropshipping stores are springing up all over the world now as their popularity grows, particularly among millennials. Every day, the battle for categories like jewellery, fashion, fitness, and electronics, you name it, becomes more intense. One person who is extremely familiar with such a business is Jacky Chou.
The story of Jacky Chou
Jacky is a first-generation Asian-Canadian and an ambitious digital marketer. When this young entrepreneur was studying at the University of British Columbia in Vancouver, he created an online store during his studies to escape the dullness of his electrical engineering degree.
He used the dropshipping business concept to sell men's clothes and watches. This actually provided him with a low-cost, low-risk option to run his business by allowing him to sell things online without having to keep any inventory. He quickly went from negative 3k to 250k a month at 30-40% margins.
This, to Jacky, was only the start. He, then, moved to Berlin to seek an internship in marketing and later worked as the head of growth at EyeEm and as a traffic acquisition manager at Kontakt.io.
He then decided to go one step further and start his own business. Jacky teamed up with Albert Liu after becoming friends in Berlin. He knew Albert had worked with Facebook advertising before, and he needed another business partner to bounce ideas off him. He later founded Indexsy and Far & Away.
How to follow the steps of Jacky Chou
When it comes to replicating Jacky’s success, it all boils down to one simple fact. You'll have to put in some effort and money.
He was able to gain a head start on learning how to advertise to an audience online because of his history in digital marketing. However, with so many tools and resources at your disposal, even a complete beginner can quickly understand the fundamentals of marketing.
Spending time learning about Facebook advertising will pay off in the long run. It’s also important that you learn what all the technical phrases mean before getting into dropshipping. You shouldn't be throwing money at it until you know what you're doing.
Furthermore, setting aside enough money for a solid startup budget, according to Jacky, is crucial. Many people are hesitant to spend money at first. He also advises that you should not put money into investments that you can't afford to lose. You can then look at things from a fresh perspective once you've reached that point.