LetusDropShip.com Page 1An Introduction to Let Us Drop Shipwith Jerry GanPodcast Transcription
LetusDropShip.com Page 2Joe Dager: Welcome to the LetusDropShip podcast. I am Joe Dager the host of the podcast, andwith me today is Jerry Gan, the founder and owner of LetusDropShip. Jerry is an innovativeweb marketing executive with rich experience in techniques setting up web stores andmarketing products throughout the world. Jerry, would you introduce yourself and tell us aboutyour background?Jerry Gan: I started in e-commerce six years ago. Most of the business is based in China, and we have operationsin the United States, in England, Germany, France and Australia. We have warehouses inall these countries. In this business, we buy products from the manufacturer, most ofthem in China, and we do all the quality control, shipment and distribute the productsthrough online eBay, Amazon, our own web store and sell to consumers directly. I startedwith $10,000 in the beginning and right now we have about $3,000,000 a month inrevenue.A year ago, we were looking to extend our business, to grow the business. Onealternative was to buy a huge amount of inventory and that takes a lot of money. So, westarted looking to suppliers to provide drop shipping as a service. We looked into them,we tried, and we failed. It didnt work, because it was just too difficult to find productsthat you can sell with margins and reliable shipping. The companies were just not working for us. So, we decidedto start our own drop shipping company with the services we needed.
LetusDropShip.com Page 3Joe: That led into your latest venture which is LetusDropShip. Jerry was the need for a drop ship companybased only on your experience? Did you talk to others that related the same or different experiences aboutdrop ship companies?Jerry: It was from our experience, and we also talked to people in the same industry, e commerce, as we are. Theythink drop shipping is a great model, but not being done well. They also had other problems. For example, one ofthe problems we have discussed trying to find a good drop shipping company. The major problem is if you do finda good product, and because they are drop shipping for to every retailer and no one is carrying inventory, they areable to cut the price to whatever cost they care to. For example, somebody will invest to sell a product on eBay,and they dont care about making a profit with that product. They want to build their feedback on eBay. Theyeven sell the product at a loss. For people who want to make a profit on this product, it doesnt work for thembecause the retail price is so low. It is sometimes even lower than the job shipping price.Suppliers, like manufacturers in China, they like that idea also, but they hesitate to work with drop shippingcompanies. Once they bring a product into a drop shipping platform, they have the same problem with the priceissue. The manufacturers dont make money if their retailers only care about volume and how much they can sell.Theres no way anyone can make money if you cannot maintain a retail price.Joe: What is different about LetusDropShip when it comes to pricing?Jerry: One of our major differences is that we only work with manufacturers who have control over the brand interms of price structure, distribution structure and the brand strategy. Other drop shippers may work with
LetusDropShip.com Page 4distributors so that they can carry a lot of different products. They may have a huge selection of products, butthey dont have any control or interest in the brand in terms of protecting the brands image or price structure.We set up relatively complicated mechanism to be able to control the price. We actually have legal consultants,legal advisers on board to help with dealing with price issues around controlling retail price to help themanufacturer to be able to control the price.Joe: Is that price-fixing?Jerry: It is called vertical price-fixing, which is legitimate. It is not like two retailers getting together and saying,“We want to fix the price”. That is illegal. This is manufacturers saying, “I want the retail price to be a hundreddollars instead of eighty-dollars.” Whoever wants to be a reseller for my products has to follow that guideline, andit is totally legitimate because many companies have done that. I actually did the research myself and found aSupreme Court ruling in 2005 or 2006 about a similar case. It actually increases the marketing competition interms of allowing the manufacturer to compete with service, and with product quality and with more value to theconsumer. In that sense, it is legitimate and also brings value to the consumer.Joe: If I’m selling on eBay or Amazon, I will not be underpriced?Jerry: We do everything that we can so that price structures are maintained. There could be minor cases thatsomebody is not following the rule. With our new platform, we are bringing out a function for resellers to reportthe case, and we will take care of that, but that rarely happens right now.
LetusDropShip.com Page 5Joe: The advantage is that Im going to be able to have a set price, can I charge above that?Jerry: You can sell above the MAP price (Minimum Advertising Price), but the MAP price is the minimum price youcan have.Joe: When you talked about shipping earlier, you mentioned the different venues that you have. Do you justdrop ship from one location or several locations?Jerry: We have six warehouses all over the world. One in United States, which covers US and Canada, we can dosome international shipping, but its not recommended because its more expensive. You can take advantage ofour global distribution with local warehouses in England (London), France and Germany. The Germany and Francewarehouses cover all of Europe to include Eastern Europe, Western Europe and Russia. We have a warehouse inAustralia which covers Australia and New Zealand. Our warehouse in China can ship regular service to any locationand may be cheaper shipping than from another warehouse.Joe: If I am a retailer, I will be able to see exactly where its being shipped from and when?Jerry: Yes, exactly. You actually have the option before you even start selling the product. You can log in and seewhere the product is located and how much inventory we have and an estimation of how long that inventory willlast and what kind of shipping options you have. When you have an order, you can place the order and specifywhich warehouse you want to ship from and what shipping method you want to use.
LetusDropShip.com Page 6Joe: We discuss selling on Amazon, eBay and other online platforms. Is there an advantage for an offline orbrick and mortar retailer to use LetusDropShip?Jerry: We know drop shipping is great for e-commerce. I have been told before from the other drop shippers thatdrop shipping has been widely used for traditional retail stores. For our service, we allow the retailer to ordersamples with no minimum order requirement. This way a retailer can display in their stores and can determinefrom there how much you want to order in the future, or you can opt for your customers to have the products tobe shipped directly to their house. You dont have to worry about when people bought from your store and thendoing a search to find the product selling less on Amazon because with us you have the same price. You just donthave to worry about that problem.Joe: So, there is consistent pricing between an offline store and online?Jerry: Yes, but they have the option to sell for a higher price offline if they want to because they can add extravalue to be able to deliver right away and provide very personal service.Joe: Drop shipping sounds good on paper. What are the draw backs working with a drop shipping company?What should I know before starting?Jerry: I actually have done research previously trying to find a good drop shipper. A drawback is some dropshippers charge you a high monthly fee. You should be aware of that. Sometimes, they make money just bycharging the fee. They charge a fee so they can bring value to the retailer. Its not bad, but you have to be awareto research about whether the product can help you to make a profit. I have drop shippers who provided a drop
LetusDropShip.com Page 7shipping price higher than the retail price on Amazon. That has happened a lot of times. You really want to do theresearch and make sure you can make a profit. Another drawback is if you are a retailer who is solely competingwith price, drop shipping might not be the best option for you. The drop shipper may be giving you a wholesaleprice, but all the other members are getting the same price as well or roughly the same price. So, you dont get aprice advantage over the other retailer. If you are somebody who is solely competing with price then the bestoption to do is to try to buy a wholesale in large quantities and try to find your initial market that the otherretailers dont have access to the vendor.If you have somebody good at marketing the product, and you have the resources with a customer database, youhave good service, and you stand out as a brand; drop shipping could be a great expansion for your existing line ofinventory.Joe: What type of training do you offer?Jerry: Another difference that we are trying to make with our platform is incorporating training. Its not simplytraining, its actually step by step guide that incorporate tutorials, video tutorials but also analyzing your activitiesby doing business online and give personalized recommendations. We have talked to a lot of our customers, andthey are all very excited about that. That is going to be another advantage for our members to start no matterwhat status you are, e-commerce or retail. We are working on something that can help you move to the next level.We are continuously learning about e-commerce and retail ourselves, and we want to share our experience byhelping each member, even if they are just starting on eBay or Amazon. When most start an e-commerce business,they think that eBay is the best option, but in reality, Amazon is actually a better option. A lot of our users don’t
LetusDropShip.com Page 8know that so what we do is give that information to them and share our experience with them and help them togrow the business.Joe: Is there any requirements to start with you?Jerry: Theres no requirement right now, and its going to be free until the end of the year. After that, we are likelyto charge $30 per month membership fee, and the reason is we dont want regular consumers to come and buythings for a wholesale price. We cant provide consumer service. We are business to business, and that is ourfocus.Joe: Where and how does someone find out more information?Jerry: You could go to our website and sign of it as a member and write now it is free, and there is no obligationand follow us on Facebook, and we are giving more information and updates. Our website is letusdropship.comJoe: I would like to thank you Jerry.Jerry: Thank you. Have a good day.Letusdropship.com was founded as a solution to creating a comprehensive, yet truly profitable and easy to usedrop shipping service. We sincerely hope that we will become your drop shipping partner.
LetusDropShip.com Page 9Why use Letusdropship.com?Protected Price PolicyNo more over competition! We maintain a bottom price for each product so your profit margin is always protected.Limited number of sellersThe number of sellers for each product on each marketplace is limited to protect a good sell-through rate for you.Seller TrainingYou will be given guidance on your products and how to jump start and promote your sales.Global MarketGo worldwide with our warehouses in the United States, United Kingdom, Germany, France, Australia and Hong Kong.Risk FreeEliminate your inventory risks, with no minimum order quantities simply order what you want! Your only concern is tosell!Free 1 Month Trial. Guaranteed Profit in 6 Months Or Your Money Back!START YOUR FREE TRIAL NOW