Watch the video, or read the Blog Post below.
Are you planning to start a dropshipping business this 2020? Or do you already have one, but it isn't performing quite as well as you think it would? Well, lucky you; this just might be the blog post you've been looking for all these years!
Welcome to Part 1/4 of the Fix a Failing Dropshipping Store mini video series, where I go through some of the most important elements of building and successfully running an online dropshipping store. As quickly as 4 days, you can easily become an expert in this niche and start selling right away.
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In this post, we are going to go over my ad accounts, what I've been experimenting on over the last few weeks, and what else is happening inside my own personal store so you can avoid potential mistakes in running your own store.
How to Fix a Failing Dropshipping Store
First, let me tell you why I want to do this for you. I was spending a lot of money on my ads, and even though I wanted to, I just felt like all my promotions weren't enough to actually give me the amount of profit that I really need. I wanted to launch a lot of ads for my products, but this won't be possible when I'm not even hitting my return on ad spend goals. This problem is personally happening to me, and while the memory is still fresh, I wanted to document these into short videos for you to witness them firsthand.
For your information, this also happens to a lot of dropshippers worldwide. And with me already opening up to a lot of people through my private Facebook group, my YouTube channel, and all my other social channels, somewhere along the line, I realized that in one way or another, teaching has already become my passion. I wanted to help other people correct their mistakes and provide tips and tricks for more effective and efficient business operations.
I want to pass on my knowledge and experience to you, regardless of your level of experience. So, without further ado, let's move on to how you can fix your failing dropshipping store.
All About Profitable Ads
Here is a summary of my ad account for the month of January. I spent $19,000 and made 35.5k, with a ROAS of 1.81.
Over here is the same ad account, for the month of February. Here I spent over $42,000 and made almost 90k, with a ROAS of 2.09.
At March I managed to reduce my ROAS to 2.00 because we weren't able to launch as many ads as before.
By April my ROAS went up to 2.94; I spent almost $5,000 and made almost 14k. This was also the time when the global crisis involving COVID-19 happened and most business took a great hit. But did that stop me from doing business? Of course not! During this time I decided to launch a brand new niche store to make up for the empty space:
Just to summarize: I spent money on ads, made money out of them, managed shipping -- basically, I went on to manage both stores, shifting between the two and strategizing for the best profitability... but I still wanted to push things a little further.
Towards the end of May, I turned all ads off and decided to turn things completely around with a new strategy: different price points, different up sells and down sells, etc. (we will cover this in another video/post). But the bottom line is that with this new strategy, I was able to make money as much as before, although I was still spending a little too much on ads, and it just seems as though my ads weren't as profitable as I expected it to be. It really didn't make sense for me to just throw away some good money and not see any improvements.
And that is why I cut my losses -- I turned my ads off, kept my retargeting on, look at your data and just keep on doing your research. Of course, these have been covered and compiled into other short videos/posts, so be sure to be on the lookout for them.
Another thing that I did was I offered a monthly subscription box, wherein a customer pays for and receives a certain product every month until he or she decides to opt out of it. I also did an experiment wherein I offered a free product a month after they pay for an upfront fee; you can see the results in another video/post. Overall, the key here is continuous and effective communication between you, your customer service agent, and your supplier.
When I did these, you would NOT believe how much more I've earned!
Now, let me tell you something. Once you're in this business for quite a long time, you WILL get tired of the sense of repetitiveness it brings. It will wear you out mentally and definitely emotionally, and you will lose your motivation and energy. We will cover this in another series, but I want to tell you now that one way to prevent this from happening is to never lose sight of your original goal when you first started a business, and that is to make money to cover your expenses. Once you're over that, that is the time when you can finally relax.
Let's Wrap It Up!
You have just been introduced to the How to Fix Your Failing Dropshipping Store mini video series. I do hope that you got a bit of an idea about where we are headed towards this.
By now you should have a picture on your head showing what you are potentially doing wrong (or not doing at all) with your business. Keep on writing down notes, as we will cover everything you need to know in order to successfully run your dropshipping store, especially in 2020!
Before we end this post, I would like to invite you to my monthly membership group, The Pirate Club, where you can get everything you would need to build a successful online store. By joining in and becoming a pirate yourself, you gain access to the following:
- The Pirate Academy;
- The Pirate Product App;
- The Pirate Community; and loads more!
Intrigued? The Pirate Club is now open with an early-bird pricing plan, so be sure to grab this super affordable deal before it expires!
If you have any more questions about anything regarding this video, feel free to personally contact me via the Contact Form HERE. You can also leave your comments and feedback below, and our team over at WagePirate will definitely get back to you with a response. For more reviews, news and updates, don't forget to subscribe to my YouTube channel!