Are you looking for a review of Dropshipping University? Is eCom Tom a scam?
I have a passion to help people avoid scams, so I have reviewed hundreds of this kind of money-making programs.
To help you decide if Dropshipping University is suitable for you, I’ve done thorough research about it in the past week. So I can tell you everything you need to know before you make a decision.
As a disclaimer, I’m not affiliated with eCom Tom, which means I’m not paid to write this review for him. So you can trust my words are unbiased.
At the end of this review, I’ll also tell you a much better alternative that has helped me quit my job and make a 4-5 figure monthly passive income.
Here’s what I’ll cover in this Dropshipping University review.
Who is eCom Tom (Tom Cormier)?
eCom Tom’s real name is Tom Cormier. He is very active on YouTube. At the time of writing, he has around 28.6K subscribers.
I have watched his videos on YouTube and only got some basic information. I didn’t find any inspiring content. It’s normal as the channel is just to promote eCom Tom’s courses.
eCom Tom likes showing how much he makes with dropshipping. However, most of the time, the figure he shows doesn’t include the cost such as advertising.
In reality, his net profit should be much smaller because the profit margin of dropshipping is generally low.
What is Dropshipping University?
Dropshipping University is created by eCom Tom. There are two courses. One is for eBay; another one is for Amazon.
Personally, I don’t think eBay is the right choice for dropshipping nowadays. Most people go for Shopify instead.
Anyway, let me tell you what exactly these courses teach you.
The eBay course is quite basic. I cannot see any special information inside this course. There are 14 modules and 67 videos only.
You will learn the basic process of dropshipping eBay.
Module 1-2: Introduction to Manual eBay Dropshipping
This module is just the introduction to what you need to do with dropshipping on eBay. For example, eCom Tom will talk about how to comply with the rules on eBay.
Module 3-4: Sourcing Highly Profitable Items
This model is about researching profitable products to sell. You will also learn how to find a good supplier for your products.
Module 5-6: Listing and Inventory Management
This module is about listing your product on eBay. You will learn how to write product descriptions and optimise the title and photos for higher conversion.
Moreover, eCom Tom will talk about inventory management so that you can make sure you have enough stock.
However, eCom Tom does not cover running ads to drive traffic. Simply listing your products on Ebay is not going to get customers.
Modules 7-8: Processing Sales and Customer Service
This module is about taking payments and providing customer service.
The customer rating on eBay has a huge impact on your sales, so you have to learn how to make your customer satisfied.
Modules 9-10: Feedback and Organization
This module is about getting positive feedback from your customers to build a reputation on eBay.
Module 11-12: Maximizing Margins and Tax Exemption
This module is about maximizing the profit margin. eCom Tom will advise you to use cashback credit cards. Also, you will learn how to reduce taxation.
Module 13-14: Advanced Topics
This module is about using some sales techniques to increase sales.
eCom Tom’s Amazon course is not exactly about dropshipping. It is Amazon FBA, which requires you to send your products to the Amazon Fulfillment center.
Amazon will then help you ship the products and receive returns.
This course has 14 modules and you have to spend around 15 hours to finish it.
15 hours of content is quite short, so you cannot expect to learn everything about Amazon FBA in this course.
You will learn the basics which include the following:
- How to find products and good suppliers
- How to list your products on Amazon
- How to process sales
- How to get positive feedback from customers
- How to avoid being suspended by Amazon
Dropshipping University Pricing
Dropshipping University is not cheap. The eBay course is $479 and the Amazon course is $697.
I think the courses are overpriced. Most of the information can be found for free elsewhere.
There are also cheaper but better alternatives on the market.
Problems of Dropshipping That eCom Tom Doesn’t Tell You
I did dropshipping years ago, so I can tell you dropshipping has become increasingly difficult.
Here are a few points about why I would not recommend dropshipping:
1. Financial Risk
Your dropshipping store won’t sell ANYTHING if you don’t ADVERTISE. But the marketing costs from social media marketing such as Facebook ads will eat away your PROFITS.
You might need weeks or even months to just break even, before showing any profit.
In another word, it is a huge FINANCIAL RISK to start dropshipping.
2. Facebook ads are Pricey and Difficult
After observing most dropshippers’ results, at best, the total Facebook ad cost will account for at least 30% of your total sales.
But Facebook ads seldom stay effective for too long. After your targeted audience is exhausted, you will see a much lower conversion rate. This might force you to increase the marketing budget.
According to Forbes, Facebook saw an increase in Ad costs of 90% year-on-year.
Worse still, the learning curve of Facebook ads is quite steep because Facebook changes its algorithm all the time. You have to invest a lot of time and money in learning and testing Facebook Ads.
If you run Facebook ads without any experience, your ad account will be easily banned for violating their strict policies.
Many dropshippers fail to cover their Facebook ad cost and result in a net loss.
3. Customer Support
Even though you don’t have to manage inventory and logistics, you do have to spend a lot of time communicating with suppliers and dealing with customer service.
If your customer has any issues with the product, you have to wait for your supplier to help you. If your supplier is not helpful, you have to bear the loss yourself.
Therefore, many dropshipping stores have poor customer review and have no returning customers. That’s why it’s not easy to build a sustainable dropshipping brand.
In the worst case, you would expect a lot of credit card chargebacks, which risk getting your payment gateway shut down.
4. A lot of work on product research
For your store to keep making money, you always have to look for a new winning product by testing products with Facebook ads.
In dropshipping, most products reach their peak in 1-2 months or even weeks. This is because many competitors will start selling the exact same product once it becomes popular.
Therefore, you need to keep finding new replacements to keep generating profits.
Most people who succeed in dropshipping are doing it full-time because it requires dedication, consistency, hard work and a lot of patience.
In fact, managing Facebook ads alone can take up your whole day.
Is Dropshipping University a Scam?
I cannot say Dropshipping University is a scam. At least, there is no evidence to prove this. It is not like pyramid schemes or ponzi schemes.
However, I wouldn’t recommend Dropshipping University. The reason is that the course is very generic and short. You can learn most of the information for free on YouTube.
Also, it’s very difficult to make a lot of money with Amazon nowadays. The profit margin is very small because of intense competition on the marketplace.
Moreover, to start such a business, you need at least $5000 to $10,000 to get started. It can be very risky if you are a newbie. Many beginners wasted a lot of money on buying products and running ads and do not make a penny.
Therefore, I don’t recommend Dropshipping University.
Instead, I have a much better recommendation for you. This better alternative is much easier but more profitable than dropshipping. It’s legit and sustainable. You can literally make money while sleeping.
If you are interested, let me tell you more in the next section.
Is There Any Better Alternative To Dropshipping University?
If you are new to online business, you may ask if there is a better business model that doesn’t need Facebook ads and can do it as a side-hustle.
Yes, I would suggest you get started with affiliate marketing. It is far easier and less time consuming as you don’t even need to handle customer service.
In affiliate marketing, you can run your business almost with zero cost. Most importantly, you don’t need to invest in creating and developing any products.
But How Much Can You Earn in Affiliate Marketing?
A 21-year old student from my #1 recommended training platform of affiliate marketing was able to earn $7,395 in just 1 week, which means he made more than $1k a day…all while using free traffic methods and affiliate marketing.
Wealthy Affiliate has existed for more than 10 years and there are many success stories over the years.
To give you more examples, here are some of the other inspiring success stories of Wealthy Affiliate members.
Where to Join Wealthy Affiliate?
Wealthy Affiliate has a very simple pricing scheme. It has free and premium membership.
If you want to feel about Wealthy Affiliate, you can sign up for the starter membership here (no credit card required). You can select to be a free member with no time limit.
And as a starter member, you can get instant access to the community, live chat, over 500 training modules, 2 classrooms, networking, commenting, 1 free website, access to the keyword tool.
You can enjoy all these values without paying a penny.
So I strongly recommend you to register a free account and see it yourself.