The Dropshipping Collapse Has Begun — Here's What Replaces It

[00:02] exposed it. If you feel like you're fighting a losing battle, then you're actually right. But you're not losing against saturation or bad luck. You're losing to the clones. The issue isn't just using the same prompts. Everyone's

[00:15] [music] using the same AI tools to build their stores and find products. So, when everyone looks identical, the only way to win is on price. And that's actually a race to the bottom. And the only thing you can do is lose. But the top 1%

[00:30] aren't [music] competing, they're evolving. So, in this video, I'm showing you the post AI dropshipping business model that works. And to help you guys with that, I've created a free Myro board that will [music] be left in the

[00:44] pin comment and in the description below once we hit the like goal. And the like once we hit the like goal. And the like goal is only 500 likes. So guys, as you comprehensive Myro board and you can see the extreme comprehensive in-depth guide

[00:59] that I'm giving you on this Myro board for completely free once we hit the like goal. And remember guys, this is going to help you instead of racing to the if you guys want to get access to this, don't forget to smash the like button.

[01:12] And there's no one else on YouTube giving you guys this much value for completely free. Now, before I go over how to avoid racing to the bottom, let me explain why AI is a serious problem for drop shipping in 2026 if you do it

[01:27] like I'm about to explain. Problem number one is AI made everyone identical. Everyone uses the same tools. So, for example, same product research tools like sell the trend, ecom hunt, and all of the other big names. Then the

[01:40] next thing is everyone's using the same LLMs with the same prompts like Open AI and chat GBT. And they're using that for things like descriptions, product issue you got with AI is everyone's using the same databases. Now they're

[01:54] getting leaked with AI data and it's easy to access them, which means everyone is selling the same products. So you got to think of it like this. Same product descriptions with chat GBT formatting. Same store layouts because

[02:06] strategies because the AI is telling you how to do it. This means when everyone looks identicals, customers buy based on price, which equals the race to the bottom because essentially the price war can only go on till the person is

[02:20] willing to sell it the cheapest. So you're basically racing a price war to the very bottom. You start at $39.99 and then who can ever get to the cheapest? and that's not what you want, which means no profit margin, which is an

[02:32] an example. Month one, you find a trending product. Month two, 500 other stores launch that same product as you. Month number three, everyone drops their prices to compete. And month number four, no one makes money. Now, here's an

[02:45] example of people selling the same product. Now, this is the crazy part. This product right here is a new drop shipping product in the space. So, it's a new product. Not many people know about, but still we have identical AI

[02:59] store. You can see it here, guys. And then if we go to the other store, ripped each other off. And you can see another person is selling the same product. So, this is a real concern as this is a new drop shipping product. You

[03:14] can see how AI's made it so easy now to make yourself identical as other drop shipping stores, especially when it's a brand new product. Now, problem number brand new product. Now, problem number two is saturation acceleration. Now, in

[03:26] the 2010s when I started drop shipping, it took 2 to four weeks and it cost $500 to $2,000 investment and basic skills to make money with drop shipping. So, essentially, the barrier to entry was a lot lower. Now, in the 2020s era with

[03:41] AI, it takes 2 to eight hours to get started, and you need 0 to $300 investment. And essentially, you need zero skills because you're just relying on AI's brain power to do it all for you. And the third and final massive

[03:54] issue with AI drop shipping is the trust collapse. Consumers defense mechanisms. Primary 81% now check multiple reviews, source before purchase. Secondary, 73%

[04:06] look for video proof or real usage. The next thing is 68% verify social media you have an Instagram page. Is it verified? how long's it been around for. And all these social media platforms now tell you how long these pages have been

[04:21] made by and where were they created from. So it's very hard now to hide. The next thing is 62% search for your brand name and then put scam after or legit. So they go on Google, type in your brand name. Is it a scam? Is it legit? And see

[04:34] what they can find on Google. And the next thing is results. Average four to seven verification steps before purchasing up from 1.2 in the 2020. So trust indicators keep going up. So essentially, if you don't have a star

[04:48] rating around about 4.7, it's very hard for you to sell your products. So remember, customers seek real customer photos and videos, not professional social media presence with engagement, founder transparency, consistent

[05:02] branding across touch points, physical address or location verification, live chat with real humans, fast shipping with proof of inventory, and return customers and repeat testimonials. So essentially, customers seek to see all

[05:15] of this before purchasing. So let me show you guys some examples of the bad AI ads. So these are ads that I would say look terrible with AI. grays are already popping back up. Stop wasting your money at the salon. This

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[05:55] over that sounds terrible on this. It sounds like the first gen of AI confident. The script just seems a bit off. And it sounds like that whole script was made with AI and no human even reviewed it before they made it.

[06:09] And that's usually the biggest issue with AI and drop shippers. They don't reason why I'm showing you these examples is to see if you can watch this and be honest with yourself and say, "Am I participating in this AI BS?" If you

[06:22] are, then you need to progress forward, which is what I'm about to teach you. But I got to expose the bad AI first to see if you guys are on the wrong path. >> Final warriors are leaving the forge and they're not coming back. The Forge

[06:35] Legion's original collection. Like bro, like bro, this AI actor in the bottom, his lip syncing isn't even accurate. He's like 5 seconds delayed. >> Doesn't just come from diabetes or age. It often comes from the shoes you wear

[06:47] every single day. Tight sneakers and flats soles don't support your foot structure. They compress your nerves, limit circulation, and make the burning, tingling, and numbness worse over time. That's why most comfortable shoes fail

[06:59] people with neuropathy. They're designed for style, not for real support. Confo Feet is different. These shoes are built 30% wider than standard shoes. >> Now, I'm not saying this is the best or the best AI video ad, but it's way

[07:11] better than the other two that I just showed you. And this is acceptable in the AI economy of drop shipping. Now, I've actually made some savage AI video ads on this channel, and the last video I made on AI using Cling 2.6 with the

[07:24] rose teddy bear. I'll make a quick preview on the screen. That was a really good ad that I made with AI, and it looks very realistic. And those are just some examples of ones that are acceptable verse not acceptable. And

[07:37] you're just basically killing the industry by pouring lots of AI BS creatives into the space. So now I've explained the three key problems with AI drop shipping and how they're sabotaging the economy of drop shipping. Now let me

[07:50] explain to you guys how you can do it correctly. These are the ones that seem helpful at first, but actually they're setting you up to fail. Why? because everyone else is using them the exact same way, which means you end up looking

[08:02] And when you look identical customers based on the lowest prices, and that is a race to the bottom because of price wars. Now, essentially what I'm saying, guys, is all of these new AI tools that keep popping up, and my inbox is flooded

[08:17] with AI sponsorship collaborations from these random AI companies that just keep coming out of thin air. And what it's doing is it's destroying the industry because you've got all of these BS AI companies that offering services that

[08:30] it's different if these AI tools are actually making really good highquality things, whether it be page builders, whether it be AI avatars, but most of them are just scams. And the unfortunate thing is beginners get tricked by them

[08:44] end, but on the back end it is absolutely terrible. Now, the next thing that I want to do that is essential for you guys is compare a beginner drop shipper using AI and the big flaws with it versus a pro drop shipper using AI.

[08:58] So, you can see the difference in how a pro uses AI versus a beginner. And the reason why the pros are able to leverage AI and make crazy money with AI drop shipping versus the beginners are just racing with each other to the bottom.

[09:12] And it is so important that you pay attention because if you can distinguish very clear, then you will pivot from being a beginner AI drop shipper to a professional. Now, although AI is

[09:24] for beginners, there is one drop shipping AI tool that is crushing it right now. And that tool is Omnisend. Drop shipping and e-commerce brands using email marketing generate an extra 20 to 40% in revenue every single year.

[09:40] And one of the main reasons why beginners and pros don't use email marketing is because they think it's hard to set up. And the funny thing is Omnisend with their new AI tools have made it extremely easy for you to

[09:52] integrate email marketing. So as soon as you've downloaded the Omnisend app using my link in the pin comment and in the description below, you're going to see automations that you can choose from. Abandoned carts, welcome flows, AB

[10:05] flows that all of these brands generating huge revenue are all using and Omniscent have already generated them for you. All you have to simply do is edit the content in the automation and you can even use Omnisense's AI to

[10:20] edit the content in terms of writing the emails and then you can just save them and start using them. And the best part is Omnisend if you're a beginner give you up to 250 email recipients for free

[10:32] download the Omnisend app and you sign up and you start using Omnisend, if you don't have more than 250 email recipients, it costs you nothing. Remember, email marketing has remained the most powerful organic way to promote

[10:46] your brand once you started to get visitors. And the biggest brands are all moving over to Omnisend. So make sure you guys join in because Omnisend is the best platform for email marketing and AI emails and SMS. And with that being

[10:59] for Omniscent in the pin comment and in the description below. So, let's get back into why AI is killing drop shipping. So, let's go over the beginner drop shippers using AI. The first biggest problem is all the beginners are

[11:11] using the same AI tools as each other. And you might be wondering what are those AI tools that all the beginners are using and they're usually the basic LLM. So, for example, chat GBT, it's an LLM, large language model. Then you've

[11:24] got Claude, then you got things like Abacus AI. Then you might have things like Gemini. So these are your basic LLM language models. So everyone asks the same question. Everyone gets the same answers and that's the issue. Now the

[11:37] thing is these LLMs aren't bad. They're not terrible things to use, but it's the way people are using them. And the issue is the way people prompt these LLMs is completely wrong. Everyone's asking the same question or prompts to these LLMs.

[11:52] Write me a product description. Find me a winning product. create me a Shopify description for my product. They literally write the most basic prompts literally write the most basic prompts into the LLM and give it zero context or

[12:05] explanation on who their audience is, what they're trying to sell, how they can compete with their audience. Give them examples of their competitors. Try and work out first what the differences are and then explain them and then say

[12:17] how can I find a gap in the market. The prompt for beginners with these LLMs are so bad. quality is so low with beginners and prompting these LLMs is actually embarrassing. Some of the prompts that I've seen people send to these are just

[12:32] example. Step one, the beginner will go to chat GBT. Step two, prompt, find me store. Now, I've literally taken that prompt from somebody that joined the mentoring program and showed us how he was using his Open AI account. So, I

[12:47] yourselves now whilst you're watching this video. If you're using AI like this, you need to stop right now because you're only giving yourself a bigger steep hill to fall from when it comes to racing to the bottom. Now, let me show

[13:02] you guys how pro drop shippers are using AI. Number one, they're not using the basic LLM. They're using things like aentic AI agents, things like Genspock. Now, Genspock's my favorite agent tool, and I've not seen anyone else in the

[13:15] YouTube space mention it. I'm not paid or sponsored by Genspock, although I wish I was. I am not. A lot of the times a basic LLMs, it might fool you into thinking it knows what it's doing. And if you actually counterargue and say,

[13:27] straight away agree with you. And that is the big problem. The biggest problem with LLMs right now, guys, is it will give you a sense of false illusion. It will essentially agree with you no matter what you say to keep you happy.

[13:41] And most beginners fall for it. Then you've got things like customer service chat bots. So, for example, I use Tidio. It's an automatic AI chatbot that replies to all my customers like order shipments, coupon codes, and it is so

[13:55] Arcads is because it has all the most powerful models built in one. And it has its own unique models built into it to create the most powerful realistic looking AI video ads without running them locally on your computer. And the

[14:09] truth is, most people don't have the experience or knowledge to run this all locally on their computers. Even I can't do it myself. Then we use things like Omnisend to do our email marketing with AI. So you can essentially see all the

[14:22] tools that we're using for AI versus what the beginner does which is just rely on one of these basic LLMs. So here's a very good overview comparison. The critical differences beginners is creates things customers see. Everyone

[14:35] looks identical. No differentiate no differences price competition only one-time sales and no follow-ups. They believe all the money is made on the Then you've got the pros. They use

[14:48] like GenSpark for deep research and unique positioning. Arcads for rapid video testing with real UGC's, Omnis for automated customer life cycle management, and other AI tools for operational efficiency. So there is a

[15:03] massive difference between the top one and the bottom one. And I want you guys watching this video. Which side are you on? Are you on the pro side or the beginner side? And be very honest and brutal. So what beginners are still

[15:16] doing in 2026, they go to AliExpress to source their products. And the crazy thing is beginners still do that. Cheap quality products, slow shipping times, no private customization, and slow communication. Versus what beginners

[15:30] should be doing in 2026 is using a private supplier. Now, a private supplier allows you to have high quality products inspected before they get sent out, faster shipping times, daily communication, and custom packaging.

[15:42] supplier, and I've been in drop shipping since 2017, you'd have to do massive volume and earn your respect with suppliers, or you would have to pay a huge monthly subscription. Now, that all changes right now because Team Drop is

[15:56] the first private supplier to allow you to use them for completely free and get if you were to do huge volumes of drop shipping or pay huge monthly subscriptions. So, you can get products to your customers within 3 days, 5 days,

[16:11] to spend on the shipping. And you're also getting access to agents that check the products before they get them in their warehouses. Make sure you sign up description and in the pin comment. It's completely free. No credit card, no

[16:25] debit card, just an email address and that's all you need to do. And again, there's no monthly subscriptions, no hidden costs. You just pay for the remember, you don't buy the products till you got an order on your website.

[16:38] So, it's completely riskfree. Now, by using my link in the description to sign up, you're going to get the best benefits out of Team Drop. So, that's and it also helps support this channel by using my affiliate links. Now, you

[16:51] can see here Team Drop's got over 1 million users. They do about 100 million in sales annually. The most important part is look at how big their warehouse space is, guys. This is what matters. The bigger the warehouse space, the

[17:04] keep in stock, which means faster to process the orders and wait days to wait for it to come from the lines. They've got over a 100 shipping

[17:16] lines when most basic suppliers have around about 3 to five. And you can see here, Team Drop can help you with product sourcing, auto fulfill, global warehousing, local fulfillment, POD, closed drop shipping, and other stuff.

[17:29] The most important stats for me guys is 98.5% of orders are delivered on 98.5% of orders are delivered on schedule, 99.2% arrive damage free, 12% faster average transit time. You can modify shipping details up to 24 hours

[17:43] before departure, which is crucial. So, just these stats alone is a big win for me. Now, I want to cover another massive bottleneck when it comes to AI dropshipping. And this is usually the biggest one. AI video ads are killing

[17:57] more beginner drop shippers than ever. And the reason why is because in 2026, customers can spot your AI video ads very fast if they don't look good or

[18:09] you've used the basic models. So what changed in 2025 to 2026? AI video generations went mainstream. You've got Sora, you got Runaway, you got Google V3, you got Cling. Millions of drop shippers started using AI generated ads

[18:24] last year in 2025. Customers got fooled with fake AI content to start with and then they realized it was fake. Now, everyone can recognize AI generated videos in less than two seconds. So, this is how the trust collapsed. In

[18:38] 2023, AI video ads were new. People didn't recognize them. In 2024, some people started noticing something feels off. In 2025, AI became a household knowledge. Everyone knows what it is. And in 2026, customers instantly

[18:54] recognize and reject AI generated content or ads. Now, the solution to this is by using high-end models that are hard to recognize when they're found on your phone. Now, I want you to think very carefully to when you're either on

[19:09] Tik Tok or Facebook and you get either hit with an organic video or an ad that is AI generated and you're sat there for around about 5 to 10 seconds saying to yourself, is that generated with AI? It's it's so hard to understand is this

[19:22] video AI. If your ad is that kind of quality, then you've made a good ad. If Tok or let's say Instagram and you get hit with an ad and you're like straight away, this is AI. Get it off my screen, then you don't want to see it. So, your

[19:37] ads need to be that good that people are questioning for the whole 10 seconds or 15 seconds, is this AI or not? And the truth is, you can get video ads that good these days if you're using the right tools and softwares. And like I

[19:50] said to you guys before, I'm using Arads AI to do this myself. By the way, they're not like those other synthetically made AI avatars that you those are fake. The lip syncing's off, the skin tones are off, they look super

[20:03] cartoony. There is none of that. Like I said, Arcads are using the industry-leading models for AI. And they don't just use them, they train them. They have their own training models that essentially make them the most realistic

[20:15] as possible when it comes to skin tones, lip syncing, and human motion. The way they are using their emotions and hand gestures. And I'm going to be honest with you guys, you can get better results doing it locally on your own

[20:28] locally on your own computer, you need a very good PC that has an expensive graphics card. And you need to be really good with computers and understanding off, let me give you guys the complete beginner road map to transition from a

[20:42] losing drop shipper using AI to a pro drop shipper winning with AI because I do believe AI is an amazing tool and if it's used correctly, you can multiply that the opposite way round. If you're

[20:56] multiply yourself losing a lot faster. So, step one, find a product using Winning Hunter. Winning Hunter is the OG of finding winning products. When I say OG, they're using the methods that have

[21:09] worked since the start of drop shipping, which is using an ad spy tool to find products. Now, they're not using any fancy AI, although they have AI using what works. They're using products that are being run on Facebook. There's

[21:22] engagement. They have lots of ads being run. It shows you that information. You know, it's a proven product. Step two, check how many ads your competitors are running based on Winning Hunter telling you that and the ad spend. Step three,

[21:35] use AI to find untapped marketing angles for your product. Send them the link to Hunter that's actively running, spending money on ads. You can see that. You can Send them the link to the Facebook ad library. Send them the link to the

[21:49] website and say, "How can I sell the same product but find a unique gap? Use Genpock." It will figure all of that out for you. Step four, check if anyone else is running those same angles on Facebook. to the angles that the AI has

[22:02] recommended. See if you can find any other brand running those same angles. If you can't, then guess what? You found a winning new angle. Step five, build your store using AI and change the copy using GenSpark. Now, there's a massive

[22:16] allowed you guys to use, which is called Sidekick Section. So, you can literally take a print screen of any Shopify store and get it to regenerate it using AI. allows you to do that. Now, by using that and the power of GenSpark to create

[22:30] your website in terms of the description, the angles, and the audience, and the emotion, you can combine that with the prompt that I give you in that custom GBT. You're going to make some really powerful sections that

[22:42] don't seem like everyone else's website. Because it's not about just making the sections that look amazing, it's about what it says and how it feels when somebody reads it. And step six, use leading industry tools for making video

[22:54] ads. Now, the one I would recommend is Arcer Ads AI. If you can run them a powerful machine and you've got the knowledge, then that's a great alternative as well. Number seven, launch your Facebook ads with your

[23:06] winning hooks, your winning audiences, marketing angles that Genpock found Winning Hunter. That's essentially what I'm doing, guys, and it is working still succeed with drop shipping 10 years later from 2016 to 2026 is by

[23:24] using this exact blueprint. Don't forget to destroy the like button so we can hit this crazy Marro board that I've made for you for completely