Why You Need to Move Away From Walmart and Amazon FBA in 2021

The fact is that as of 2021, Amazon FBA and Walmart are officially dead for ecommerce dropshippers. If you’re currently a seller on Amazon or Walmart or you’re toying with the idea of using either as your sales platform, we recommend you move away from them and build your own sales infrastructure. The reason for this is revealed in a recent report from The Wall Street Journal, in which they detail how it’s actually often cheaper for Amazon and Walmart retailers to issue full refunds of products and let customers hold onto or donate them. This revelation can make both of these businesses detrimental to your dropshipping business in several ways. Read more about the state of business for dropshippers using Walmart and Amazon FBA in 2021.

What The Wall Street Journal Findings Mean for Your Business

The article in question discussed how retailers Amazon and Walmart, potentially followed by others in the future, are no longer requiring customers to return unwanted items. Those items technically belong to the retailers (as opposed to individual sellers). So those companies have the authority to give customers permission to keep unwanted items along with a full refund. Amazon and Walmart reason that it’s simply cheaper for them to let customers hold onto those items. But that can be harmful to business owners by tempting people to game the system. Customers who aren’t honest can hang onto items they’ve purchased while requesting a refund. This essentially allows them to get free products at the seller’s expense.

The article shows once again how ecommerce giants like Walmart and Amazon are really in control of sellers’ products and don’t truly have sellers’ best interests at heart. However, this isn’t really news at all. Many people may be familiar with the fact that, for several years now, Amazon has allowed customers to keep products rather than return them. This a long-held practice of theirs. The WSJ article simply helped raise even more awareness of this issue.

Losing Money From Unreturned Products on Amazon FBA in 2021

Screen grab of Peter Pru discussing the Wall Street Journal article about Amazon FBA in 2021

The problem with enabling customers to keep unwanted products — which in some cases may not actually be unwanted at all — is that this hurts sellers who could otherwise resell those products. And it’s worse than an inability to resell returned products. Sellers are also hit with fees that cause them to lose even more money when customers choose to get a refund without returning their items. These problems further emphasize how harmful those big retailers can be. They can be great for occasionally free traffic and sales, but you should avoid building your business through them.

Walmart and Amazon, along with other big names in the industry, may seem like a haven for sellers. They can use the platforms to push products and generate lots of sales. But it’s important to keep in mind that they’re only looking out for themselves. In short, the products sold through those channels don’t belong to the seller; they belong to those platforms. That means that Amazon and Walmart can do what they want with them. You forfeit control over your own inventory.

Do you want to make a profit and retain control over your products and business in general? Then make sure that your primary source of sales is your website. Setting up a sales funnel and developing a successful website that you actually own will ensure you don’t suffer from another retailer’s attempts to cut corners.

A Recent Surge in Returns for Sales on Walmart and Amazon FBA in 2021

Screen grab of Peter Pru discussing changes in consumer behavior during COVID-19

Another recent article on PYMNTS.com talked more about the rise in product returns experienced with retailers (including Walmart, Amazon, and Target) throughout 2020. The new decision to allow customers to keep unwanted items was officially made as a result of an increase in returns that took place in 2020, with ecommerce packages seeing a 70% increase in returns compared to 2019. 

Due to the pandemic and the subsequent inability to take items to physical stores, returning items became more challenging for consumers. The rise in ecommerce as more people turned to online shopping during lockdowns also led to more returns. Generally, online orders tend to lead to more returns than in-store purchases. Why? This is largely due to the hassle of having to return to the store after buying an item in person. Also, people may be disappointed or receive something different from what they expect when ordering a product online because they can’t see or try the product in person before purchasing.

Unfortunately, while Amazon and Walmart’s decision to let customers keep products they no longer want may be convenient for both consumers and those retailers, it’s a considerable loss for sellers.

Build Your Own Business Without Relying on Walmart or Amazon FBA in 2021

The best way to avoid the potential costs and headaches associated with product refunds and unreturned items is to stay away from companies like Amazon and Walmart. You don’t necessarily need to avoid them entirely. They can be beneficial in generating traffic for you and boosting sales. But they shouldn’t be your primary platforms.

Instead, build your own website and control the traffic to it. Develop a sales funnel that moves people along through the buyer’s journey toward a sale and upsell. Once you’ve built a solid foundation for your business and you’re able to sustain it, then you can consider branching out to outside retail platforms like Amazon FBA in 2021. The more control you have at the start, the more likely you are to succeed and grow. Then you don’t have to worry about what corporations are doing that may hurt smaller businesses. 

Start with your own website and your own platform that attracts short- and long-term customers. Then you can leverage the power of larger companies to supplement your core efforts. The less you rely on a company like Amazon, the less likely they will be to negatively impact your business in a way that matters. You’ll always have that main source of sales to keep you safely afloat.

Consult With the Ecommerce Empire Builder Experts

Dropshipper thinking about how to strengthen their ecommerce business

Do you want to learn how to build a winning online business and succeed without Amazon, Walmart, or other retailers? If so, reserve your seat at our free ecommerce masterclass. We’ll show you how you can sell best-selling products online and create a full-time income using reliable ecommerce funnels to grow your business. For frequent tips and insights, visit my YouTube channel, too. Tagged : / / / /

How to Build Wealth Online: Gain Financial Security in 2021

Welcome back, Empire Builders! Have you ever seen someone in a Lamborghini and expensive outfit on a dream vacation they didn’t pay for and wondered, “How do I get that life?” Today, we’re talking about financial literacy and how to build wealth online with your business, no matter your current situation. In recent years, I’ve built a net worth of nearly eight figures, and now, I’m ready to teach you the same strategies.

No one teaches us financial tactics like these, and you can’t find them on Google. These completely unheard-of financial secrets can help create your dream lifestyle. Today I’ll go over the basics of these strategies and invite you to a four-week course where you’ll learn it all in detail. Let’s get started.  

A quick disclaimer: I’m not a financial advisor. I can only share what tactics and resources have worked for me personally. For financial advice, seek a licensed professional. This information is for entertainment purposes only.

1. Start With a Wealth-Building Triangle

I developed a wealth-building triangle system to help ensure that my money goes to the right places. It’s not enough to know how to earn money online — you need to know how to build wealth online from those earnings. Here are the basics.  

Security

Screen grab of Peter Pru discussing the advantages of life insurance

The triangle’s base is my security section. That’s money I can access whenever I need it. It’s broken into two parts. The first is my 911 fund. Instead of saving six months of expenses for emergencies, I save half that much because I also have other options.

The second is a unique type of insurance called a whole term life insurance policy that’s uniquely structured to allow monthly additions at an annual guaranteed 4% interest rate, compounding annually, plus dividends.

Best of all, when you add $5,000, some goes to the premium, but the rest can be withdrawn for use or investment. You don’t have to repay it, and even after the withdrawal, you’ll keep earning interest on the whole $5,000 — completely tax-free!

Savings

The mid-section also has two parts. The personal half contains money for everyday expenses and personal spending. The retirement half is incredibly extensive and diverse. The right advisor can help you realize the possibilities. There are fully tax-deductible 401(k) plans for business owners and ways for employees to contribute the maximum to their work 401(k). There are SEP IRAs and so many other ways to build real wealth. These are amazing tactics with huge benefits for your financial health.   

Growth

The triangle’s peak is for long-term, hands-off investments, which are a bit riskier but have much higher potential returns. This includes things like cryptocurrency, real estate, and high-yield stocks that pay out monthly or quarterly dividends regardless of stock performance. There are nearly endless investment options to choose from.

The great thing about the wealth-building triangle is — successful business owner or 9-5 worker barely scraping by — you can use this system to create generational wealth to pass down to your descendants regardless of your stock ROI. Why? Because the life insurance policy is the most important part.

2. How to Build Wealth Online Through Credit Cards and Points

Entrepreneur putting a business dinner on her credit card

The second topic is credit cards and points. Many of the fancy meals, clothes, and vacations you see influencers, celebrities, and businesspeople indulging in are free. Because of how they use credit cards and earn points, they don’t have to pay for things like that. People see all my gold and platinum cards and wonder why I need ten cards. It’s all about the points.

If you’re using a debit card or checking account to pay for things, you’re missing out. When you use a qualified credit card, you earn points on all these things. Even if you work full time and have the money to pay outright, paying with a quality card and earning points is like getting free money, which is a very rare opportunity.

There are different strategies for this, with assorted cards earning diverse kinds of points that can be redeemed for different rewards. You just have to leverage them correctly. Some are best for business and others for personal rewards. You can even set your business up to earn enough points to pay off your personal credit card bills.

3. How to Build Wealth Online With Business Structure and Tax Strategies

Screen grab of Peter Pru discussing business structures

Finally, we’ll go over how to set up your business and file your taxes to gain the most benefit. If you don’t have a business, you’re missing out. Even if you have a job, you could set it up so that your employer hires your LLC. This allows you to rack up expenses. Remember, don’t be wasteful. Around 90% of your income should be going into the triangle so it can grow.

That brings me to my four-week course on finances. The strategies you learn will help you get more for less. Once you have your business structured correctly, the configuration will work for you by:

  • Saving money
  • Generating expenses and assets
  • Earning you points to spend on whatever you want

Most importantly, you’ll be getting my expert contacts, so you don’t have to guess at anything. The experts will take care of it.

Final Thoughts About How to Build Wealth Online

I’m so glad to be sharing this because I wish someone had told me sooner. When I first started my business, I didn’t have an LLC, just myself, and I ended up with a terrifying $50,000 tax bill because of it. I’m hoping to save you the trouble.

Most people can’t generate real wealth because without understanding these unique systems, it’s nearly impossible to do unless you have a ton of money. These finance secrets are how the richest people get and stay that way. Luckily, you don’t need a million dollars to learn it. This course is super affordable on any budget, and I’m telling you, nothing could be more worth paying for.

Feel free to watch the video on this for more detail and subscribe to my YouTube channel for frequent tips and strategies. If you’re ready to build wealth, develop high-level financial literacy, and gain the financial independence to live the life of your dreams, then sign up for the four-week course today.

This system will work even if you’re struggling to make ends meet at your 9-5. However, if you’re ready to become your own boss and create even more long-lasting, sustainable, and even generational wealth faster, sign up for my masterclass. There you’ll learn how to build wealth online and see the step-by-step process I used to build multiple six and seven-figure ecommerce businesses without ever touching a single product. Also, you’ll get my $100k funnel template FREE just for showing up. Start building your empire today! Tagged : / / / /

How to Build Long-Term Wealth With Dropshipping

Empire builders, you know that you’re already dedicated to achieving success with your dropshipping business. But what comes next after the money rolls in? Yes, it’s fantastic to make ten grand a month, but what’s much better is making ten grand a month for years and years on end. It’s the difference between having money with dropshipping and having wealth with dropshipping. 

One is a temporary state, while the other is a solid financial foundation that lasts for the long term and can even become generational wealth. For many of you, achieving this kind of enduring wealth from your dropshipping business is the goal. If it isn’t already, then it absolutely should be. Let’s talk about how it’s possible to use dropshipping as the stepping stone to creating long-term wealth for you and your family.   

Build Wealth With Dropshipping by Thinking Long-Term  

I’m always preaching about the importance of thinking about your business in terms of the broader picture, including years down the line. If you want to build wealth, and I know you do, then having that long-term perspective is essential. For many of you, dropshipping is going to be your very first entry point into making money online. But what you do after you start earning from dropshipping is incredibly important. 

This is the advice I wish someone had given me 10 to 12 years ago when I was getting started with my online businesses — before I ever made my first dollar. 

What I’ve learned over the years about building wealth with dropshipping or any other business is that it’s not how much you make. It’s how much you actually keep within your businesses that matters. That means using your profits to reinvest and create a more solid foundation.

A lot of people that start out in dropshipping are not setting up their business properly, and they don’t know what to do with the money they make. They get excited and rack up a ton of expenses. Buying nice clothes and fancy things feels good in the moment, but it definitely doesn’t create wealth. Before spending on luxuries, think about the long term. Only spend money that you really don’t need and won’t even bat an eye at. If making that expense is going to affect the decisions you make in your business, such as not being able to invest in something that can help you grow, then just forget about it.  

Getting Your Money Right

Screen grab of Peter Pru explaining the importance of an LLC business structure

Making sure your business is structured properly is one of the most significant things that’s going to set you apart from everybody else. This is one of those nuggets I really wish I could have told myself 12 years ago because I would have saved millions of dollars. 

When I got started, I made all the expenses for my business with my personal credit and debit cards. Naturally, the profits that came in went straight to my personal bank account. I had no idea that I needed to be separating the spheres of my business and my personal finances. Most of you are probably making these same mistakes I made and, trust me: this is killing you. If you don’t have the money from your business flowing properly, you are wasting so much money and paying so much extra in taxes that it’s not even funny. 

You won’t build any wealth until you get your money right. 

How to Think About Taxes and Finances

The problem with running your business this way is you’ll get hit with a massive tax bill at the end of the year. You’re taking a salary from your business and then paying for your ads, your team members, your business trips, miscellaneous expenses, etc., from your own personal accounts. Every dollar you pay yourself as salary comes with income tax. So you’re essentially getting double-taxed for all business expenses. You’re paying the income tax and then also paying the actual taxes on the product.

Trust me, that’s not how you build wealth. You need to get your money right by creating something that legally separates you from your business. Something that makes it so that every business expense becomes a tax write-off instead of a tax liability. That “something” is called an LLC

A Quick Overview of Setting up LLCs

There are many types of business structures out there, including S-Corp and C-Corp. Typically, you want to set up your dropshipping business as an S-Corp. But it depends on your unique situation, and I am NOT giving legal advice. If you want professional guidance for how to get your money right, I definitely recommend scheduling a call with the team at PCS. They worked with me to help me set up my businesses and opened my eyes to strategies that I never knew about. They’re great people, and they’re helping me save millions of dollars, so that’s why I can enthusiastically recommend them to anyone. If you’re still using your personal accounts to do business, it’s time for a new strategy. 

Once you have an LLC, many doors will open up for you. That’s why it’s a crucial step in the direction of building wealth. All your business expenses will now be made by the legal entity occupied by your business. You can think of it as a person that’s separate from you because, legally speaking, that’s what your LLC is. Now your business can pay for courses, pay your marketing expenses, and pay for services. It’s all completely separate from the personal income in your salary.

There’s a huge variety of things that can be considered a business expense, which means there are massive tax benefits just for being a business owner. And this is only the beginning.  

Build Your Empire and Long-Term Wealth With Dropshipping

Screen grab of Peter Pru emphasizing the importance of reinvesting revenue into the business

I’m going to let you in on a little secret. You will never get wealthy by paying yourself more from your business. Wealth comes from growing your businesses and creating more value. It’s as simple as that. You need to focus on building an empire and investing back into it as much as you can. Jeff Bezos, for example, doesn’t pay himself a huge salary even though he’s the richest man in the world. He doesn’t need to because he controls Amazon and puts his focus on growing Amazon.

When you own things personally, that just sets you for liability. Try to own as little as possible. Instead, create an empire and control it all. If you want to build wealth with dropshipping, you can’t just have one business, either. Having only one business means you’re not optimizing what you have well enough or profitably enough. 

The Value of Multiple LLCs

If you set up your dropshipping business as an LLC and you’re making money, that’s absolutely fantastic. But let’s say you have another business idea, and you start another dropshipping store. That’s even better. Now you open up a second LLC, and the new business can be completely separate from the first one. Why do you want to do that? Because if your original LLC gets sued, you’re legally protected. They can’t come after you personally, and they can’t go after any other LLCs you have. Remember, each LLC is its own entity.

This is where it starts getting interesting and where it becomes possible to build long-term wealth. Because remember, you don’t want to pay a lot of income tax. Don’t pay yourself a salary that’s the most you can possibly afford to pay yourself. Instead, nurture your empire at every opportunity. For example, the way that my business is structured is that I have multiple LLCs. I pay myself a salary from only one of them. 

In the case of another LLC, I’m able to take those profits and reinvest them back into wealth-building projects like real estate. In legal terms, this investment would be considered a loan from one company to another. That means I create a third LLC that owns rental property, generates a cash flow, and pays back my other LLC for the initial investment.

I also have an LLC dedicated to affiliate marketing, which is a fantastic side project for generating extra money. Any dropshipper will benefit from going to Clickbank, finding some relevant niche products that are for sale there, and then promoting them to your customers with affiliate links. 

These are just a few examples of what’s possible when you want to create wealth from your dropshipping income.

The Impact of Multiple LLCs

Doing business this way means that you can minimize income taxes, maximize tax deductions for business expenses, and stay focused on reinvesting in your empire. Beyond my modest salary, I don’t want that money for myself. I want it to be circulating amongst my businesses, helping me to grow and creating a solid foundation of wealth.

Why Delayed Gratification Is Crucial for Wealth With Dropshipping

Ecommerce business owner setting up an LLC

Personally, my lifestyle doesn’t get crazier with the more money I have. But that doesn’t mean I don’t reward myself for milestones. It’s all about finding a balance and staying focused on your broader goals. Be honest with yourself about what you can really afford and where your priorities should be. For example, I like nice watches. Maybe for you, it’s something else. If you can utilize these extravagant purchases to motivate yourself to get to the next level, and the next level, then that’s great.

But make your consumption as mindful as possible. That’s how you create wealth with dropshipping: by delaying a little bit of gratification in service of your long-term goals. You should definitely enjoy your success but never at the expense of growing your businesses. Get your money right and get yourself set up. Make sure that when the moment comes that you want to spend ten grand on something you really enjoy, it’s because you can genuinely afford it — in short, because you’ve earned it. 

If you want to learn much more about building wealth with dropshipping and a high performing ecommerce business, you’ve come to the right place. To get practical advice on creating a full-time income online, reserve your free seat at our sales funnel masterclass. You can also subscribe to our YouTube channel for regular tips and insights. Tagged : / / / /

How to Protect Payment Gateways for Your Dropshipping Business

Empire builders, you already know that there is a lot to learn when it comes to starting your own ecommerce business. One of the things I had to learn the hard way was the importance of having multiple payment gateways available for a dropshipping business. Many dropshippers, myself included, have gotten their Stripe or PayPal accounts shut down and have been left with no way to accept payments from customers. Through trial and error, I have picked up some tips for how to protect payment gateways. Read on to learn how to avoid getting your payment accounts suspended, as well as what to do should you ever find yourself in this situation. 

Backup Plans Are Key in Business, Especially to Protect Payment Gateways 

If you’re new to dropshipping, I’m not here to scare you. What I am here to do is to prepare you for the hiccups that happen in business. 

Starting your own dropshipping business comes with some risk. One risk is having your PayPal or Stripe account shutdown. This has happened to tons of dropshippers before you, all for various reasons. These things happen. However, expecting these hiccups isn’t quite enough. You also need to make a plan of action on handling these situations before they actually arise. You can’t just close up shop when things don’t go your way. Running a successful dropshipping business will require you to develop creative solutions to make things work over time. You always want a backup plan in place. 

When I started out dropshipping, I wish someone would have told me the importance of having a backup plan to protect payment gateways when it came to accepting payments from customers. When I first started using Stripe, I thought I would never get shut down or banned. I played by the rules and had no worries. But if you think something could never happen to you, think again. 

One too many chargeback or refunds, and then poof, there goes your account. Just imagine that you’re finally making $100,000 a month, and then your payment processing account gets shut down. You never set up a backup account, so you’re instantly losing thousands of dollars for your business. This would be devastating. Don’t let this happen to your business. Always have backup plans in place to protect payment gateways for your payment processing. 

Every Dropshipper Needs a Stripe and a PayPal Account 

Screen grab of discussing the benefits of Stripe

Even though we’ve all heard the horror stories of Stripe and PayPal accounts being shut down or suspended, I still recommend that every dropshipper have a Stripe and PayPal account set up for their business. Stripe is simply the best payment processor for any dropshipper to get started with. At Ecommerce Empire Builders, we use Stripe for every funnel we set up. While any Stripe account can get suspended, the platform still provides many perks. 

The Benefits of Stripe

Stripe is incredibly easy to set up, and you can start accepting payments from customers in just a few minutes. When I first got started in ecommerce, setting up a payment processor was not this easy. You used to have to go through large amounts of paperwork and legal work to simply get your ecommerce store off the ground. When Stripe came into the picture, the ecommerce world was made a lot simpler. 

However, Stripe will always have its brand and its best interest in mind. So when your account starts getting too high of a refund or chargeback rate, your account will be shut down. If you play by the rules, your account will most likely remain secure. However, things come up even when you play by their rules. So having a second payment processor setup is key. 

The Benefits of PayPal

After you have your Stripe account setup, go ahead and make a PayPal account as your first backup method. Stripe and PayPal are simply the best payment gateways for any beginner in the dropshipping industry to get started with. Both platforms are incredibly simple and quick to set up. Just like Stripe, PayPal has rules you must adhere to. When your dispute percentages reach a high rate, your PayPal account will most likely have a hold placed on it. 

When this occurs, you’re going to want to have another payment processor readily available to your business. This is when knowing about alternative merchant accounts becomes important.

Great Alternative Merchant Accounts for Dropshippers 

Screen grab of discussing the benefits of Easy Pay Direct

While you could simply bypass Stripe and PayPal and go straight to the alternative merchant accounts, that wouldn’t be my first suggestion. Both Stripe and PayPal are extremely user-friendly and quick to set up. They allow every new dropshipper to start accepting payments almost instantly. For these reasons, I would always set up a Stripe and PayPal account and then look into setting up alternative merchant accounts. The two alternative payment gateways that I have found success with are Easy Pay Direct and Gateway Funnel Pros

Easy Pay Direct

Easy Pay Direct is a great alternative payment gateway for established dropshippers who want more options to protect payment gateways for their businesses. Think of a payment gateway as a dashboard. Within this dashboard, there are a number of different merchant accounts available for you to use. Essentially, when you sign up with Easy Pay Direct or any other payment gateway, they can help you open multiple merchant accounts that will allow you to accept payment from customers. So, if one account gets shut down, you can easily and efficiently open another one without slowing down your sales. 

Keep in mind that with Easy Pay Direct, you will need to be making a decent amount of money with your business and have some sales history before they approve your account. But once your business is built up and you’re generating a fair amount of income, having merchant accounts through Easy Pay Direct is a must. 

Gateway Funnel Pros

For those of you just starting out but who still wanting to set up alternative merchant accounts, Gateway Funnel Pros is the way to go. Gateway Funnel Pros will work with new dropshippers and will help with setting up an NMI account. Just like any payment gateway, Gateway Funnel Pros will be able to help you set up multiple merchant accounts for your business under a single gateway. 

Regardless of which route you choose, I can’t stress to you enough the importance of having multiple backup plans in place to protect payment gateways for your overall business. 

Consult With the Pros 

dropshipper setting up accounts to protect payment gateways for his business

I hope this information will help you in efficiently setting up payment methods and backup plans for your dropshipping business. If you feel like you need a little more guidance in setting up your own profitable ecommerce business, feel free to reach out to us today. At Ecommerce Empire Builders, we can help you build, launch, and scale your own profitable dropshipping business. To get the ball rolling, sign up for access to our exclusive free webinar today. Be sure to check our YouTube channel for even more free resources and insights into the dropshipping and sales funnel industries. Remember, your empire starts now! Tagged : / / / /