Robert Nikic: Why I Walked Away From Dropshipping

Transcript

We used to do dropshipping. It is not the way to make money or build a long, sustainable business, in any circumstance or any case. But it's still being pushed every single day, which is crazy. There are a few winners, and they're winners because they built the business the right way. They built relationships with suppliers that are credible. They've vetted the products. They've seen the warehouse. They've done QA on the products. They've actually tested the products themselves. Maybe they even created the product themselves, with some R&D on the other side of the world. They put actual effort into building a business. And then, sure, it's dropshipping, because they're fulfilling from the other side of the world. But they took those extra steps. Now it makes it seem like dropshipping is a business that can make multimillionaires, which it is not, in my opinion. The same core values of business apply in every single business, in every single case. You can't just ship products from China that you've never seen, never touched, never vetted. And at the end of the day, guess who pays the price? You do. Chargebacks come back, processors start blacklisting you, and you end up on a terminated merchant list. No more selling for the next five years. So that wasn't a business model.