Josh made some good points in this thread.
It seems that every guru these days will tell you that you need to be “building brands” in order to be successful.
However is that really the truth?
Let’s hear what an 8 figure drop shipper that runs ZERO brands has to say about this…
Part 1: Brands
In my view building brands has one huge benefit over other types of eCom and that is future exit value.
When you choose to build a brand you are creating a lifelong bond between your customer and the product (if done correctly).
But this is where a lot of people go wrong, they don’t know the difference between “branding” and “building a brand”.
If having a cool logo, matching colour scheme, and logo on your packaging means it’s a brand then EVERYONE is a brand owner.
There are two main problems with brands and that is lack of cash and lack of diversification.
As we mentioned earlier the main goal is a future exit which means you should not be taking money out of the business because they want to see good business reserves.
The other problem is lack of diversification.
When you run a legitimate brand that should be your only sole focus which means if problems arise such as bans, processor issues, or supply chain issues then you have no other money coming in.
Now to end this on a light note branding is nice because once you have acquired your customers you can continue to sell them over and over without the need for additional advertising.
That is one aspect where dropshipping can never compare.
Part 2: Dropshipping
The main area where dropshipping comes out on top is cash flow.
The ability to run multiple stores in an automated system can be a very rewarding to your bank account.
However there are lots of problems as well.
Generally the customer experience is not as good therefore the likelihood of customers buying more than once is very low.
This means you are constantly in a state of acquiring new customers which is quite exhausting.
Another problem that often arises is more competition on the products you sell.
Most people dropship the same products so you are often fighting for small pieces of the pie (unless you do what I recommend which is untapped products.)
The final main problem has to do with frequent bans/disables from advertising platforms such as Facebook and TikTok.
With increased customer feedback surveys, if your shipping times or email response times are slow then you will not last.
Now that we talked about the negatives, my favorite part about dropshipping is FREEDOM.
It gives me the freedom to automate the operation and do what I want with the rest of my day and also gives me the freedom to use my cashflow however I want.
Part 3: What Are Your Goals?
If you’re reading this and you’re trying to decide which one is for you then you need to write down your goals.
If you’re someone that wants to go all in on one thing in hopes of a huge future exit then brands are for you.
If you’re someone that wants to use their current ecom profits to invest and/or live a good lifestyle in your current life then dropshipping is for you.
Obviously I am a bit biased but I tried to make this a fair comparison.
Part 4: Summary
You have the ability to make money in whichever way you want.
I do great with dropshipping but I have some friends that absolutely crush it with brands.
Pick one lane, stick to it, and grind your ass off.