Let us Drop Ship Introduction

LetusDropShip.com Page 1
An Introduction to Let Us Drop Ship
with Jerry Gan
Podcast Transcription

Joe Dager: Welcome to the LetusDropShip podcast. I am Joe Dager the host of the podcast, and
with me today is Jerry Gan, the founder and owner of LetusDropShip. Jerry is an innovative
web marketing executive with rich experience in techniques setting up web stores and
marketing products throughout the world. Jerry, would you introduce yourself and tell us about
your background?
Jerry Gan: I started in e-commerce six years ago. Most of the business is based in China, and we have operations
in the United States, in England, Germany, France and Australia. We have warehouses in
all these countries. In this business, we buy products from the manufacturer, most of
them in China, and we do all the quality control, shipment and distribute the products
through online eBay, Amazon, our own web store and sell to consumers directly. I started
with $10,000 in the beginning and right now we have about $3,000,000 a month in
revenue.
A year ago, we were looking to extend our business, to grow the business. One
alternative was to buy a huge amount of inventory and that takes a lot of money. So, we
started looking to suppliers to provide drop shipping as a service. We looked into them,
we tried, and we failed. It didn't work, because it was just too difficult to find products
that you can sell with margins and reliable shipping. The companies were just not working for us. So, we decided
to start our own drop shipping company with the services we needed.

Joe: That led into your latest venture which is LetusDropShip. Jerry was the need for a drop ship company
based only on your experience? Did you talk to others that related the same or different experiences about
drop ship companies?
Jerry: It was from our experience, and we also talked to people in the same industry, e commerce, as we are. They
think drop shipping is a great model, but not being done well. They also had other problems. For example, one of
the problems we have discussed trying to find a good drop shipping company. The major problem is if you do find
a good product, and because they are drop shipping for to every retailer and no one is carrying inventory, they are
able to cut the price to whatever cost they care to. For example, somebody will invest to sell a product on eBay,
and they don't care about making a profit with that product. They want to build their feedback on eBay. They
even sell the product at a loss. For people who want to make a profit on this product, it doesn't work for them
because 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 shipping
companies. Once they bring a product into a drop shipping platform, they have the same problem with the price
issue. The manufacturers don't make money if their retailers only care about volume and how much they can sell.
There's 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 in
terms of price structure, distribution structure and the brand strategy. Other drop shippers may work with

distributors so that they can carry a lot of different products. They may have a huge selection of products, but
they don't have any control or interest in the brand in terms of protecting the brand's 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 the
manufacturer 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 hundred
dollars instead of eighty-dollars.” Whoever wants to be a reseller for my products has to follow that guideline, and
it is totally legitimate because many companies have done that. I actually did the research myself and found a
Supreme Court ruling in 2005 or 2006 about a similar case. It actually increases the marketing competition in
terms of allowing the manufacturer to compete with service, and with product quality and with more value to the
consumer. 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 that
somebody is not following the rule. With our new platform, we are bringing out a function for resellers to report
the case, and we will take care of that, but that rarely happens right now.

Joe: The advantage is that I'm 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 you
can have.
Joe: When you talked about shipping earlier, you mentioned the different venues that you have. Do you just
drop 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 do
some international shipping, but it's not recommended because it's more expensive. You can take advantage of
our global distribution with local warehouses in England (London), France and Germany. The Germany and France
warehouses cover all of Europe to include Eastern Europe, Western Europe and Russia. We have a warehouse in
Australia which covers Australia and New Zealand. Our warehouse in China can ship regular service to any location
and may be cheaper shipping than from another warehouse.
Joe: If I am a retailer, I will be able to see exactly where it's 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 see
where the product is located and how much inventory we have and an estimation of how long that inventory will
last and what kind of shipping options you have. When you have an order, you can place the order and specify
which warehouse you want to ship from and what shipping method you want to use.

Joe: We discuss selling on Amazon, eBay and other online platforms. Is there an advantage for an offline or
brick 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 that
drop shipping has been widely used for traditional retail stores. For our service, we allow the retailer to order
samples with no minimum order requirement. This way a retailer can display in their stores and can determine
from there how much you want to order in the future, or you can opt for your customers to have the products to
be shipped directly to their house. You don't have to worry about when people bought from your store and then
doing a search to find the product selling less on Amazon because with us you have the same price. You just don't
have 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 extra
value 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 drop
shippers charge you a high monthly fee. You should be aware of that. Sometimes, they make money just by
charging the fee. They charge a fee so they can bring value to the retailer. It's not bad, but you have to be aware
to research about whether the product can help you to make a profit. I have drop shippers who provided a drop

shipping price higher than the retail price on Amazon. That has happened a lot of times. You really want to do the
research and make sure you can make a profit. Another drawback is if you are a retailer who is solely competing
with price, drop shipping might not be the best option for you. The drop shipper may be giving you a wholesale
price, but all the other members are getting the same price as well or roughly the same price. So, you don't get a
price advantage over the other retailer. If you are somebody who is solely competing with price then the best
option to do is to try to buy a wholesale in large quantities and try to find your initial market that the other
retailers don't have access to the vendor.
If you have somebody good at marketing the product, and you have the resources with a customer database, you
have good service, and you stand out as a brand; drop shipping could be a great expansion for your existing line of
inventory.
Joe: What type of training do you offer?
Jerry: Another difference that we are trying to make with our platform is incorporating training. It's not simply
training, it's actually step by step guide that incorporate tutorials, video tutorials but also analyzing your activities
by doing business online and give personalized recommendations. We have talked to a lot of our customers, and
they are all very excited about that. That is going to be another advantage for our members to start no matter
what 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 by
helping 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

know that so what we do is give that information to them and share our experience with them and help them to
grow the business.
Joe: Is there any requirements to start with you?
Jerry: There's no requirement right now, and it's going to be free until the end of the year. After that, we are likely
to charge $30 per month membership fee, and the reason is we don't want regular consumers to come and buy
things for a wholesale price. We can't provide consumer service. We are business to business, and that is our
focus.
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 obligation
and follow us on Facebook, and we are giving more information and updates. Our website is letusdropship.com
Joe: 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 use
drop shipping service. We sincerely hope that we will become your drop shipping partner.

Why use Letusdropship.com?
Protected Price Policy
No more over competition! We maintain a bottom price for each product so your profit margin is always protected.
Limited number of sellers
The number of sellers for each product on each marketplace is limited to protect a good sell-through rate for you.
Seller Training
You will be given guidance on your products and how to jump start and promote your sales.
Global Market
Go worldwide with our warehouses in the United States, United Kingdom, Germany, France, Australia and Hong Kong.
Risk Free
Eliminate your inventory risks, with no minimum order quantities simply order what you want! Your only concern is to
sell!
Free 1 Month Trial. Guaranteed Profit in 6 Months Or Your Money Back!
START YOUR FREE TRIAL NOW

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