![Drop Shipping Questions Answered: Products, Facebook Ads, Shipping, and Taxes [LNIM144]](https://www.latenightim.com/wp-content/uploads/2017/06/transcript-144.jpg)
Hook
After explaining the drop shipping model in Episode 143, the questions poured in. How do I pick products? How many do I need? What about those two-to-three week shipping times from China? Do I need an LLC? In this episode, I answer every common drop shipping question from listeners including product selection, Facebook advertising, shipping logistics, sales tax, and getting started paperwork.
What You Will Learn
- How to select a profitable drop shipping niche and products using three specific criteria
- How to set up and budget for Facebook advertising for a drop shipping store
- Why long shipping times from China are not the dealbreaker you think they are
Episode Summary
Choosing Products to Promote
Three criteria for your first drop shipping store:
- Can you source the products? Browse AliExpress. Are there plenty of options at prices that allow you to roughly double them for retail while covering ads and shipping?
- Are you at least mildly interested? Domain knowledge helps, but interest is what keeps you going through the learning curve. Pick something you will not quit on.
- Are similar products successfully advertised on Facebook? Join Facebook groups in your niche. Like related pages. Ads will start appearing. Products with hundreds of likes and shares on sponsored posts are proven winners you can model.
How Many Products? You only need one product to start. But expect to test 10-30 products before finding profitable winners. Leave unsuccessful products on your store — they provide browsing inventory. Aim for 20-40 products over time as your store matures.
Facebook Advertising Basics: Create a Facebook Business account (free). Install the Facebook pixel on your Shopify site. Create ads with compelling product images and copy. Start with $3-5 per day per product. Within a week of reaching about 1,000 people, you can assess profitability.
Shipping from China: ePacket shipping takes 10-20 days. This is not a problem because you are doing interruptive marketing of impulse-buy items that are not time-sensitive. Set expectations upfront on your website, order confirmation, and shipping notification. Provide USPS tracking numbers. No one has complained about shipping times in my store.
Sales Tax: If you have a nexus in a US state, charge sales tax there. Shopify handles collection automatically. Consult a tax professional for your specific situation.
Getting Started Paperwork: You do not need UPC codes, supplier disclosures, or an LLC to start. You can operate as a sole proprietor. AliExpress and Shopify are happy to work with individuals.
Key Takeaways
- Start with three product criteria: sourceable, interesting to you, and proven on Facebook.
- You need one product to start, not a full store. Test cheaply and scale what works.
- Shipping time is not a dealbreaker. Set expectations and use tracking numbers.
- The barrier to entry is remarkably low. Free AliExpress account, Shopify free trial, and $3-5/day in Facebook ads.
What Has Changed Since This Episode
- Shipping times have improved. Many AliExpress sellers now offer warehouses in the US and Europe with 3-7 day shipping.
- Facebook ad costs have increased. Budget $5-10/day for meaningful testing in 2026. The principles remain the same.
- Sales tax rules have changed. The 2018 Wayfair Supreme Court decision means online sellers may owe sales tax in states where they have no physical presence. Use automated tax tools.
- TikTok Shop and Instagram Shopping. New platforms for product discovery have emerged beyond Facebook.
Resources
Related Episodes
Take Action
Open AliExpress and browse one niche you are interested in. Find three products priced under $10 that you could sell for $20-30. Then search Facebook for groups in that niche and see if similar products are being advertised. If yes, you have a viable starting point. Subscribe on Apple Podcasts or Spotify.
