Question about a certain business model

I feel like I see this scenario often enough that I have to ask if it is easy enough to do or what the major barriers might be.

Example: I find a product on alibaba. Doesn't matter if if it's being sold on Amazon en masse, at other other online retailers, etc.

Something like a fancy travel mug, and I call it Mug Boss (just made that up).

I set up a website (presumably with Shopify) specifically dedicated to that single product and maybe one related product.

With a good looking website, catchy name, and attractive ads/marketing I can sell this thing at a huge margin compared to its Alibaba price, and a relatively huge margin compared to the same product being listed 10x over on Amazon under various different names.

I recently got an ad on Instagram for a product that is selling on this person's website for $50, where you can get that exact product on aliexpress for $1.22 per piece. The same product is also found all over the internet at varied pricing, mostly $10-20, but because of the good looking ad and website, and the huge margin, I imagine that whoever set this up is doing quite well but maybe I'm out to lunch

Does this require ordering in bulk and keeping stock yourself or has drop shipping reached a point where people are no longer waiting a long time(6 months directly from China) to get their items?

I must be missing something here because this seems like it would be very easy to set up with potentially pretty low overhead (cost of running ads, ordering in bulk if drop shipping doesn't work)

Forgive my ignorance, I am new here and have not looked into ecommerce since the FBA/Drop shipping boom a few years ago.

submitted by /u/Brnadon
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