Fred lam is a talented individual who is originally from Hong Kong and moved to Vancouver at a very young age. His success story seems like a Fairy-tale or something which you only see in movies. On his research on how to make money online, he came across the innovative area of e-commerce which was something of the alternative reality in that time.
Although the idea was very simple, it was something great since you did not have to keep an inventory which reduced the cost of managing it as well.
E-Commerce really teaches you something every time you look into it. I feel that an E-commerce website startup can eventually fail if it only focuses on the products which are in trend at that time. This is because the trend eventually fiddles out and you have to start back from scratch.
It is also to be noted that the prices of Facebook ads have been going sky-high while the competitiveness forces us to reduce the prices of the products.
This is not profitable for small businesses at all since there is no margin for creating a loss leader in the market. But Fred took a different course – Zero Up.
So What’s the Deal with his Great Ways?
The steps are pretty simple to start with-
First, you need to start an eCommerce website and acquire manufacturers, who are willing to sell the products directly to the customers through you so that you can save money on not managing an inventory.
Next, you need to get the customers living in through advertisements on YouTube as well as Facebook.
Once you start the business, it is not problematic if you break even at that point in time since you are trying to gain the trust of your potential customers.
And finally, to keep them sticking to you, he would offer them a coupon with a predetermined validity so that they are allowed in to buy something else as well.
There are many pros and cons of an E-Commerce dropshipping business.
You can efficiently and conveniently set up your store with proper training and can even gain insights from previously set up successful businesses. At the same time, you don’t have to talk to people to get basic ideas on how to start, there is no need to carry huge inventory as well which reduces the overall cost of your business.
This comes as a dire need in today’s competitive world since a high level of competition means you have to sell your products at cheaper prices and if you do not reduce the costs in different areas, you would not be able to develop our profitable business. You can also find manufacturers who would sell first hand to you easily, so you only need a laptop with an Internet connection to start your business and get it up and running.
You only need to sell out a few bucks for Facebook advertisements and you are golden!
There may be low-profit margins in some situations since advertisements right now cost a little bit more expensive. The profit margin has now reduced to 10 to 20% in today’s competitive market and doesn’t even start getting me talking about the returns of the Complaints that the customer may file since you would have to deal with them in the most satisfactory way to the customer as well.
There is also not a very high degree of quality control since there may be a situation where of foreign manufacturer directly ships you the product, and in some unfortunate situations, it may also send it directly to the customers.
So, the conclusion regarding Fred Lam Zero Up is that E-commerce is a tricky business. The main thing is, that a business can go down through expensive advertisements, which might reduce the profitability and eventually lead to a close down.
Through Zero Up, budding entrepreneurs are able to get proper training on how to start and go through the set up with the simple 5 steps.
Although a simple basic trick, it can do wonders for you and can be a stepping stone to your success.
But the fate of the business only lies in the fact that what role do the advertisements play in the business model. In case the expensive ads come into play, your business would move from a break-even point to a loss-making model.