£3 Million Revenue in 3 Years of Dropshipping - ask me any questions you'd like to know!

GeEcom

New Member
Apr 25, 2023
2
2
United Kingdom
Hey guys, It's my first post here. I've just signed up and I have a few spare hours to kill...

I started a successful UK-based dropshipping company with my business partner 3 years ago and we have just surpassed £3 million in revenue. We used to generate all of our customers from Facebook ads but now we are all-in on TikTok ads.

We've certainly learned a lot over the last few years so please ask me anything you'd like to know about the space or any questions you have about your own ecom businesses.

:)
 
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Gibson46

Free Member
  • Dec 14, 2020
    14
    8
    Hi GeEcom,

    I would greatly appreciate some help and advice to kickstart my new website. I previously had an e-commerce business that mainly sold on Amazon, eBay, and our website. The business went into liquidation in November, and I have decided to start again on my own without my partner, as he let me down in the last business. I have steered clear of dropshipping due to concerns about delivery times, reliance on dropshippers who may send poor quality products, and the potential for subpar customer service. I would love some advice regarding social media marketing, as I believe this is the best way for a start-up to generate sales.

    Thanks in advance.
     
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    GeEcom

    New Member
    Apr 25, 2023
    2
    2
    United Kingdom
    Hi GeEcom,

    I would greatly appreciate some help and advice to kickstart my new website. I previously had an e-commerce business that mainly sold on Amazon, eBay, and our website. The business went into liquidation in November, and I have decided to start again on my own without my partner, as he let me down in the last business. I have steered clear of dropshipping due to concerns about delivery times, reliance on dropshippers who may send poor quality products, and the potential for subpar customer service. I would love some advice regarding social media marketing, as I believe this is the best way for a start-up to generate sales.

    Thanks in advance.
    Hey Gibson46,
    Thanks for your message! Your concerns about the dropshipping model are totally understandable. Delivery times, product quality and customer service are neglected by many dropshippers which has given the model a bad reputation in recent years. It is certainly possible to dropship and avoid these problems successfully (i.e. build a relationship with a supplier close to your customers, order samples and hire a dedicated virtual customer service team), but if you are set on building your business with another model which you have prior experience with that makes a lot of sense.
    In terms of social media marketing, I would definitely recommend a large focus on Facebook, TikTok and Google ads and I'll give a brief breakdown of what to expect from each:

    Facebook:
    Facebook/Meta ads are like the original gold standard of social media ads. Despite this, they have become a lot more expensive and difficult to run profitably (unlike back in 2017 when they apparently were like a license to print money). Still, if you are able to test a wide selection of ad creatives and audience-targeting settings, you should be able to generate some useful data for your business and hopefully turn the ads profitable. Also, once established, Facebook ads take very little management (they can run successfully for months without any edits and remain profitable).
    The big downside of Facebook is their trigger-happy approach to banning and restricting accounts. They rely on an automated system to try and prevent scams and poor advertising. Unfortunately in practice, this means that almost every advertiser will have multiple horror stories of their entire ad account being banned for no fair or logical reason (which is what has happened to us dozens of times) and their advertiser support is terrible/ non-existent.

    TikTok:
    TikTok ads are like the new shiny toy that every marketing department wants to crack. There is an incredible amount of untapped advertising space on the platform which leads to lower advertising costs and an incentive for them to treat their advertisers well (great client support and resources). TikTok requires a lot more attention; you need to be constantly uploading new ad creatives, testing angles, audiences and ad setups which can be very time-intensive (several hours per day). Despite this, my team and I are all-in on TikTok as we are seeing amazing and profitable results across our stores. It has been so good that we have actually ditched Facebook because the banning and terrible client support just isn't worth our time any more and we are seeing a better return on TikTok.

    Google Ads:
    Google ads can be used in many different ways. For our business, we use them as a tool to sweep up any potential customers for our brands that have ventured over to Google Search. We split our campaigns into branded and non-branded keywords and run passive-style ad groups. Our branded keywords can easily catch a good handful of customers every day at ultra-low CPAs.

    Hope this info is useful to you and I'd be happy to help you with any social media ads you need! I'm looking to get to know more people in the entrepreneurial/business space so I hope to chat!
     
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    Gibson46

    Free Member
  • Dec 14, 2020
    14
    8
    Hey Gibson46,
    Thanks for your message! Your concerns about the dropshipping model are totally understandable. Delivery times, product quality and customer service are neglected by many dropshippers which has given the model a bad reputation in recent years. It is certainly possible to dropship and avoid these problems successfully (i.e. build a relationship with a supplier close to your customers, order samples and hire a dedicated virtual customer service team), but if you are set on building your business with another model which you have prior experience with that makes a lot of sense.
    In terms of social media marketing, I would definitely recommend a large focus on Facebook, TikTok and Google ads and I'll give a brief breakdown of what to expect from each:

    Facebook:
    Facebook/Meta ads are like the original gold standard of social media ads. Despite this, they have become a lot more expensive and difficult to run profitably (unlike back in 2017 when they apparently were like a license to print money). Still, if you are able to test a wide selection of ad creatives and audience-targeting settings, you should be able to generate some useful data for your business and hopefully turn the ads profitable. Also, once established, Facebook ads take very little management (they can run successfully for months without any edits and remain profitable).
    The big downside of Facebook is their trigger-happy approach to banning and restricting accounts. They rely on an automated system to try and prevent scams and poor advertising. Unfortunately in practice, this means that almost every advertiser will have multiple horror stories of their entire ad account being banned for no fair or logical reason (which is what has happened to us dozens of times) and their advertiser support is terrible/ non-existent.

    TikTok:
    TikTok ads are like the new shiny toy that every marketing department wants to crack. There is an incredible amount of untapped advertising space on the platform which leads to lower advertising costs and an incentive for them to treat their advertisers well (great client support and resources). TikTok requires a lot more attention; you need to be constantly uploading new ad creatives, testing angles, audiences and ad setups which can be very time-intensive (several hours per day). Despite this, my team and I are all-in on TikTok as we are seeing amazing and profitable results across our stores. It has been so good that we have actually ditched Facebook because the banning and terrible client support just isn't worth our time any more and we are seeing a better return on TikTok.

    Google Ads:
    Google ads can be used in many different ways. For our business, we use them as a tool to sweep up any potential customers for our brands that have ventured over to Google Search. We split our campaigns into branded and non-branded keywords and run passive-style ad groups. Our branded keywords can easily catch a good handful of customers every day at ultra-low CPAs.

    Hope this info is useful to you and I'd be happy to help you with any social media ads you need! I'm looking to get to know more people in the entrepreneurial/business space so I hope to chat!
    Hi GeEcom,

    I have already had my ad account restricted on Facebook and I am struggling to work out what the issue is. They just give me a link to an advertising policy page. Very frustrating. I am seriously thinking of giving up on Facebook and focusing on Instagram ads. I plan to look into TIkTok when I have fully got to grips with Instagram. That is very kind of you to offer to look over my ads. I will take you up on that offer. I did start with Google ads, but I wasn't getting anything from it. I have decided to target social media to try and give things a boost.
     
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    fisicx

    Moderator
    Sep 12, 2006
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    www.aerin.co.uk
    I’ve made about 3000 in three years. Almost the same except for a couple of zeros.
     
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    fisicx

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    JEREMY HAWKE

    Business Member
  • Business Listing
    Mar 4, 2008
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    www.jeremyhawkecourier.co.uk
    I am also very proud of what we have achieved here over 3 decades so I tell everybody about my business its a bloody good business
    You obviously have a NDA with your backers or suppliers or something as you are unable to tell us the name of the company and the amazing products that your company deals in shame that
     
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    Cutting through much of the above - I genuinely do hope that you have a successful, sustainable business model going

    BUT

    Turnover / revenue really is meaningless as a stand-alone statistic. Your accounts give the impression that you might be neglecting margins (again, limited information, so not conclusive).

    You can probably both give and gain insights from this forum, so enjoy the journey.
     
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    Welcome and well done.

    What was the profit on the £3m in revenue?
     
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    japancool

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  • Jul 11, 2013
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    @GeEcom, welcome to the forum.

    Forgive the grumpy old gits above, nurse hasn't been round with their medication yet.

    The reason you are receiving some scepticism, as I'm sure you're aware, is that from a business owner's point of view, turnover is vanity, profit is sanity, as they say. Dropshipping is known for having low margins, and we have many people come on here who have absolutely no idea about whether they are actually making any profit or not - not just dropshippers either.

    You mention a team, so you are clearly employing a number of people, and you're running TikTok advertising campaigns, so there are significant costs there.

    Like Mark, I hope your model is sustainable and successful - £3 million is an impressive figure to achieve, if your profit figures are healthy.

    I would always sound a note of caution in low-margin businesses though - you can find yourself vulnerable to a sudden downturn.

    Good luck.
     
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    I would always sound a note of caution in low-margin businesses though - you can find yourself vulnerable to a sudden downturn.
    This is a really good point.

    With sales in that amount, there should be a lot of knowledge on what sells and in what volumes. Taking that experience and applying that to actually selling your own products can significantly increase margins, although does come with additional risks.
     
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    Clinton

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    OP hasn't come back since posting this thread.
    He has come back with one follow up post. That is to his credit. But ...

    I reckon the OP was made as a marketing effort in the hope that people will Google "GeEcom" when they read the OP and see how successful this company is - "£3m turnover and huge success" - and maybe they'll explore the business services that site offers.

    But, you know what, I've saved you lot the effort and I Googled Geecom myself. I got to a website selling broadband and other comms services to small businesses. The company behind this website is Cornerstone Business Solutions and Services Ltd. It started about 3 years ago, which fits with the age claimed in the OP.

    Seeing the OP wanted us to investigate GeeCom, I did. I checked the above company out in Companies House. They have filed two sets of annual accounts. The first showed a balance sheet of £15K. The last one shows a negative balance sheet - minus £1.5K, so it would be reasonable to conclude that they probably lost money last year. So is this really a small company, advertising heavily and still losing money i.e. they are operating at below break even?

    With respect the turnover claimed in the OP, it could be true, it could be complete and utter bullsh*t, we have no way of knowing.

    Another reason this thread was started could be so that it appears in Google searches for Geecom. The expectation may be that anyone landing on this thread will read the OP, assume this is a strong, successful company and not bother reading the rest of the posts.

    But this is all guesswork. I could be completely wrong. I'm just a cynical old git who has not had his medication for the day.
     
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    japancool

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    But, you know what, I've saved you lot the effort and I Googled Geecom myself. I got to a website selling broadband and other comms services to small businesses. The company behind this website is Cornerstone Business Solutions and Services Ltd. It started about 3 years ago, which fits with the age claimed in the OP.

    The OP's company in his profile is GJN #ltd. though. I had a look at their filed accounts, and it's not dissimilar to the above. Not entirely what I'd expect from a £3 million turnover though.
     
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    antropy

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    I reckon the OP was made as a marketing effort in the hope that people will Google "GeEcom" when they read the OP and see how successful this company is - "£3m turnover and huge success" - and maybe they'll explore the business services that site offers.
    Yep, probably a forum spammer who hasn't made £3k let alone £3m.

    Paul.
     
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    JEREMY HAWKE

    Business Member
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    So 2021!

    The thing now (according to LinkedIn) is to post a photo of the new top-of-the range EV / Hybrid you've bought for your parents / partner

    Best to blank the number plates - HPI is available to all.
    I just do what the kids do when I'm in London I find a parked G Wagon take a few selfies and pretend its mine
     
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    antropy

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    Ozzy

    Founder of UKBF
    UKBF Staff
  • Feb 9, 2003
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    I just do what the kids do when I'm in London I find a parked G Wagon take a few selfies and pretend its mine
    Many years ago I was nominated for an award which was being held at The Gorsvenor in London, and my wife and I had never been anywhere so posh.
    So we jumped in our Vauxhall Corsa with baby puke and wrappers over the floor, and drove to the hotel in our posh frocks. We had booked a night in the hotel as a once in a lifetime experience, and booked parking in the hotel parking. We had no idea that it was valet parking, and when the valet asked for the car keys my wife panicked and started cleaning the car floor from children's old food, etc.

    When we came to collect our car the next day we say the garage filled with Bentley's, Ferrari's, Aston's, etc .... so we spent about 20 minutes taking pictures of each other posing with all the flash cars before getting back in our dirty beaten up Corsa to drive home back to Luton :)
     
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    @Ozzy Well at least you've cleaned the car since then!
     
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    Clinton

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    Many years ago I was nominated for an award which was being held at The Gorsvenor in London, and my wife and I had never been anywhere so posh.
    So we jumped in our Vauxhall Corsa with baby puke and wrappers over the floor, and drove to the hotel in our posh frocks. We had booked a night in the hotel as a once in a lifetime experience, and booked parking in the hotel parking. We had no idea that it was valet parking, and when the valet asked for the car keys my wife panicked and started cleaning the car floor from children's old food, etc.

    When we came to collect our car the next day we say the garage filled with Bentley's, Ferrari's, Aston's, etc .... so we spent about 20 minutes taking pictures of each other posing with all the flash cars before getting back in our dirty beaten up Corsa to drive home back to Luton :)

    Mods, I don't know who this Ozzy guy is, but this is off topic. There isn't even a Gorsvenor in London, he's probably making this all up.

    Can you please move this post? :)
     
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    Many years ago I was nominated for an award which was being held at The Gorsvenor in London, and my wife and I had never been anywhere so posh.
    So we jumped in our Vauxhall Corsa with baby puke and wrappers over the floor, and drove to the hotel in our posh frocks. We had booked a night in the hotel as a once in a lifetime experience, and booked parking in the hotel parking. We had no idea that it was valet parking, and when the valet asked for the car keys my wife panicked and started cleaning the car floor from children's old food, etc.

    When we came to collect our car the next day we say the garage filled with Bentley's, Ferrari's, Aston's, etc .... so we spent about 20 minutes taking pictures of each other posing with all the flash cars before getting back in our dirty beaten up Corsa to drive home back to Luton :)
    As clichéd as it sounds, 'old money' wouldn't think twice about rolling up in a battered old car - though it would probably be bigger, and baby puke would be substituted for straw and dog hair. (And possibly an undercurrent of dog puke)

    It amuses me now to turn up places in the wife's Transit van.
     
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    JEREMY HAWKE

    Business Member
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    I would go for a Model S ... or a 5l V8 Range Rover ?


    That's kind of genuinely sad because that generation have definitely had it tough in many ways ?

    Paul.

    No they don't at the ege of seven I was chased by a farmer with a shotgun
     
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