WEBVTT 00:00.170 --> 00:05.660 Welcome to a brand new section where we're now going to start talking about the second key foundation 00:05.660 --> 00:08.660 to success, which of course is products. 00:08.660 --> 00:14.150 And of course, we want to make sure that those products that we're putting in our store are in demand. 00:14.150 --> 00:16.310 In other words, they are going to sell. 00:16.310 --> 00:23.960 And if you cast your mind back several lectures now and more specifically lectures 15 to 20, I show 00:23.960 --> 00:30.890 you some very simple but very powerful techniques to find a highly profitable market and choose in-demand 00:30.890 --> 00:32.510 products within that market. 00:32.510 --> 00:38.570 And then having added them to your site, I give you three fantastic tips to make sure that your products 00:38.570 --> 00:39.770 really will sell. 00:39.770 --> 00:44.840 So if you are in any doubt about how that works, I really would encourage you to go back to lectures 00:44.840 --> 00:47.000 15 to 20 for a reminder. 00:47.000 --> 00:53.060 Okay, so given that we know already how to select products that are in demand, the next key point 00:53.060 --> 00:57.470 is to make sure that we are getting those products from reliable suppliers. 00:57.470 --> 00:59.690 And so what is a reliable supplier? 00:59.690 --> 01:04.190 Well, there are many ways to measure this, but for me there are two key points. 01:04.190 --> 01:09.380 The first one being that once we've ordered a product, we want to be certain that the supplier can 01:09.380 --> 01:13.400 deliver that product within the delivery time that they have specified. 01:13.400 --> 01:18.980 And secondly, and this is really important, if we start to sell a huge number of those products on 01:18.980 --> 01:23.630 our website, we want to be 100% sure that our supplier can keep up. 01:23.630 --> 01:25.970 In other words, they won't run out of stock. 01:25.970 --> 01:29.630 Now, you might think, well, those two things are really obvious and they are. 01:29.630 --> 01:35.720 But the reality is, amongst the literally millions of suppliers that are out there, many of them simply 01:35.720 --> 01:38.330 cannot fulfill those two basic requirements. 01:38.330 --> 01:43.700 So how can we make sure we avoid the bad suppliers and only work with the reliable ones? 01:43.700 --> 01:46.970 Well, once again, that's where Shopify Apps comes in. 01:46.970 --> 01:50.690 And of course, we've been looking a lot at dropshipping now. 01:50.690 --> 01:57.230 I introduced you to dropshipping not only because it's completely free, but also because it's a fantastic 01:57.230 --> 01:59.930 resource for finding reliable suppliers. 01:59.930 --> 02:05.240 And the reason for that is not just from my own personal experience, from working with CJ for many 02:05.240 --> 02:10.970 years and therefore having a huge amount of confidence in what they're able to do, but also, and this 02:10.970 --> 02:17.120 is really important, their business model literally means they only want to work with the best and 02:17.120 --> 02:18.740 most reliable suppliers. 02:18.740 --> 02:20.180 So let me explain. 02:20.180 --> 02:22.760 Now, first of all, a small confession. 02:22.760 --> 02:26.570 I know I just said that CJ dropshipping is completely free. 02:26.570 --> 02:29.840 And don't get me wrong, you're never going to have to pay for the service. 02:29.840 --> 02:33.920 But of course they're a business and they need to make money in order to exist. 02:33.920 --> 02:35.510 So how do they do that? 02:35.510 --> 02:41.900 Well, what they do is they go looking for great suppliers and then having found great products before 02:41.900 --> 02:47.840 they actually add those products directly on CJ dropshipping, they will slightly mark up the price. 02:47.840 --> 02:52.940 So let's say for example, they find a product with the supplier for $3.50. 02:52.970 --> 02:56.420 They might put that same product on CJ for $4. 02:56.420 --> 03:00.140 In other words, in this example their profit would be $0.50. 03:00.380 --> 03:07.940 Now it's crucial to understand that they are only going to make that 50 cent profit if the product sells. 03:07.940 --> 03:10.370 If it doesn't sell, they will make nothing. 03:10.370 --> 03:16.340 And so to make sure that it does sell, clearly they are incentivized to work with reliable suppliers 03:16.340 --> 03:18.470 that are providing great products. 03:18.530 --> 03:22.880 In other words, their requirements are exactly aligned with ours. 03:22.880 --> 03:26.720 Or to put it another way, if we make money, they make money. 03:26.720 --> 03:32.420 So with that in mind, let's think about my two key requirements, which were that first of all, we 03:32.420 --> 03:37.220 only want to work with suppliers that can deliver the products in the time that they have specified. 03:37.220 --> 03:42.590 And secondly, if and when our product starts selling like crazy on our store, we want to make sure 03:42.590 --> 03:44.210 that that supplier can keep up. 03:44.210 --> 03:50.480 And so if you think about those demands in the context of the dropshipping business model, if for some 03:50.480 --> 03:56.720 reason a supplier ended up on CJ and was unable to fulfill those requirements, the negative feedback 03:56.720 --> 04:01.430 and the complaints that would occur would mean that that supplier would very quickly be removed from 04:01.430 --> 04:07.220 the site, which means that over time, and I hope you can see this, only the excellent, reliable 04:07.220 --> 04:12.560 suppliers will remain on CJ, and that means that you can rest assured that you are working with the 04:12.560 --> 04:13.130 best. 04:13.160 --> 04:18.740 Now, if for some reason you're still not convinced, let me show you this from another angle. 04:18.740 --> 04:22.370 And that is that CJ has warehouses all over the world. 04:22.370 --> 04:27.920 If I come up here to warehouses and hover over it, you can see that they have them in the US, Germany, 04:27.920 --> 04:31.970 Australia, Canada, Britain, France, Italy and China. 04:31.970 --> 04:37.820 Now, you can probably imagine that running a group of warehouses like that is not cheap, and therefore 04:37.820 --> 04:42.890 they are highly incentivized to make money, which means that the products that they're going to put 04:42.890 --> 04:47.300 into these warehouses, from the suppliers that they choose have to sell. 04:47.300 --> 04:49.550 It really is as simple as that. 04:49.550 --> 04:56.450 And so hopefully now you can really appreciate why CJ dropshipping is a great source of reliable suppliers. 04:56.450 --> 04:59.840 Now, with all that said, CJ dropshipping isn't the only show. 04:59.960 --> 05:00.620 In town. 05:00.620 --> 05:07.070 There are many other sources, many other apps, in fact, that will also allow us to find fantastic 05:07.070 --> 05:07.940 suppliers. 05:07.940 --> 05:11.240 So let's start having a look at those in the next lecture.