Vol.1

The Giggle Economy: A Whistleblower’s Guide to Online Pitfalls and Digital Don’ts

In my venture into the world of online business, particularly through platforms like Shopify and the realm of dropshipping, I found myself enthralled by what seemed like a stroke of genius. It promised a world where upfront investment was negligible, and with just a bit of luck and the right Google searches, a realm of endless possibilities lay at my fingertips. Whether it was dropshipping designer clothes or niche products, it appeared there was a market for everything and everyone. At least, that’s what I initially believed.

As someone who prides themselves on being technologically savvy, with a knack for deep research, I was confident in my abilities to navigate this new venture. My background, hailing from Croatia but living in the USA, provided me with a unique perspective on the stark price differences for identical products across these regions. This disparity not only surprised me but also ignited a sense of frustration. How could a Chanel perfume, priced at $180 in the US, be over $200 in Croatia, where the standard of living and average income were significantly lower?

This injustice fueled my determination to make a difference. My plan was simple yet noble: offer products to my European homeland, especially places like Croatia, Bosnia and Serbia at fairer prices and slimmer margins. Even if it meant making just a dollar in profit after expenses, it was a dollar earned in the spirit of fairness and not greed. But as I would soon learn, my good intentions were about to collide with a harsh reality.

The Shopify Illusion

Shopify, a platform praised for its ease and potential, turned out to be a complex maze of hidden costs and deceptive promises. Every feature, from app integrations for cross-selling to essential tools like email marketing, came with a price tag. What initially seemed like minor expenses quickly accumulated, pulling me deeper into a financial quagmire. As I delved further, adding more features in the hope of enhancing my store, I realized the trap of the platform – it was designed to seduce you with possibilities, each at a cost.

The Dropshipping Deception

Dropshipping, lauded for its simplicity and low barrier to entry, revealed itself to be a labyrinth of challenges. The primary issue lies in the sourcing of products. The suppliers, who also catered to wholesalers, offered them significantly lower prices than they did to individual drop shippers like myself. This put me at a direct disadvantage, competing not just with other drop shippers but also with wholesalers who could afford to undercut my prices drastically.

I reached out to numerous companies whose products I used and trusted, only to find out I was stepping into a fiercely competitive arena. These suppliers, already established with sales, discounts, and free shipping offers, left me with razor-thin margins to work with. Despite my best calculations and willingness to settle for minimal profits, the reality was stark – making even a single dollar per product was a far-fetched dream in this saturated market.

The Harsh Truths Behind Marketing and Support

Marketing, a critical component for any business, was another domain riddled with false promises and inefficiencies. Platforms like TikTok, Facebook, and Google, while offering extensive marketing tools, were more of a financial sinkhole than effective marketing channels. My attempts at using these platforms for marketing my products yielded little to no results, contrary to the success stories often portrayed.

Customer support, especially on platforms like TikTok, was a labyrinth in itself. The lack of direct contact and the need to go through Shopify’s customer support, which I found woefully incompetent, resulted in hours of wasted time and effort. The same was true for Facebook – navigating their customer support felt like taking an online course with little to no practical outcome.

Conclusion

Looking back at my experience with online business and dropshipping, I’ve learned a lot, though it was full of challenges. If you’re like me and value being honest and transparent in your business, you should be careful with this path. In this industry, being open and honest can actually work against you. Sadly, I found that dishonesty often wins over honesty.

With Shopify, you might get excited about adding popular payment apps like Klarna, Afterpay, and Zip. You can install them alright, but there’s a tricky part – you have to apply to use these services. As a new store with no sales yet, you’re probably going to be turned down. I ran into this problem myself, and I plan to share more of these kinds of experiences as I recall them.