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How I Generated Over $1,000,000 In just 2 Months This Year Dropshipping With Shopify

Discussion in 'General Entrepreneur Discussion' started by Beast Of Ecom, May 23, 2018.

  1. Beast Of Ecom
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    Hey guys,

    Ok so before I start going into how I was able to generate over $1M in just 2 months this year and the complete steps I took, I just want to clear that I have been doing dropshipping and Facebook ads for close to 2 years now. No this wasn’t an overnight success, nor was this a 1 hit wonder, but hopefully after reading all of this you will be able to understand the whole process a bit better if you are doing dropshipping right now or been looking at starting.

    Dropshipping gets a lot of flame for some reason however it has been the closest thing to Fastlane I have ever experienced and it has honestly changed my life.

    The feedback I have had from sharing this has helped a ton of people and I know there are a few hustlers in here doing dropshipping or learning FB ads or have Ecom brands that I know this will help out.

    Scroll to the end for verified proof as I know anyone can claim anything these days.

    Ok lets get on with it..

    At this time (Feb, March) FB was incredibly rocky with the whole Cambridge Analytica, end of month media budget dumping, CPMs did rocket quite a bit. Profit was just shy of 20% but would usually be higher.

    Firstly let me teach those who may not be familiar with some of the acronyms I’ve used in this post. I will be making the assumption that you have basic Facebook advertising knowledge so please do forgive me. This will be more of a practical post rather than talking about my backstory etc.

    • FB = Facebook
    • WC - Website Conversion Advert
    • VC = View Content
    • ATC = Add to Cart
    • WW = Worldwide
    • US = United States
    • IC = Initiate Checkout
    • Pur = Purchase
    • MB = Manual Bid
    • CPM = Cost Per Milli People Reached
    • ROAS = Return On Ad Spend
    • CPP = Cost Per Purchase
    • LLA = Lookalike Audiences

    There are 3 things that determine the success of any product you launch when it comes to drop shipping. It’s easily said, yet much harder to execute. Getting these 3 things aligned is the key to scaling a campaign to the crazy numbers you may see around on the internet. The formula is:

    Right Product + Right Audience + Right Offer x The Right Scale = BANK

    Ok now you have that lets jump into this case study, I’ll go through each section and explain what and how I did it:

    The Right Product

    Many people look to Aliexpress to dropship products from, which I still do to this day. You can still find great products on Aliexpress to dropship that can still make you a lot of money. The problem is that it is very saturated due to every man and their dog fishing from the same pool of products. The best selling items on Aliexpress generally have been rinsed by another marketer.

    The product in this case study hadn’t hit Aliexpress properly yet, it was actually my supplier who suggested the product to me. I had done some research and found it was doing well on Amazon by various vendors, yet only 2-3 Aliexpress suppliers were selling it.

    This was my first green light to give it a test. If you find something that is doing well somewhere yet hardly on Aliexpress I would advise digging deeper as you may be on to a golden winner. I like to check websites such as Amazon best sellers, Ebay, Wish, Shutupandtakemymoney, also viral videos of products found on FB then do a cross reference to see whats on Aliexpress with the sales volumes and sellers there.

    The Right Audience

    I will go into the actual detailed FB ad strategy I done for this later in The Right Scale section but it’s important to touch on this part.

    You can have the best product in the world at a ridiculously great price BUT if you can’t put it in front of those who its designed for then you won’t make a penny. A lot of people make this mistake. They assume who would be a good fit for the product and limit to showing it to a certain age group or certain gender particularly when it comes to general products. REMEMBER

    Data is KING and the numbers don’t lie

    I always like to go as broad as possible while still being IN or RELATED to the niche. For example, lets say I am selling a kitchen gadget that helps slice vegetables. My audiences would look like this:

    • 25-65 - (Kitchen)
    • 25-65 - (Veganism)
    • 25-65 - (Cooking)
    • 25-65 - (Recipes)
    • 25-65 - (Cooking Brands)
    • 25-65 - (Cookbook)
    You get the point, but basically I am trying to go broad as possible but still be as related as possible to my target audience. Some of these audiences sizes are 2-10 million but that is needed if you want to scale to the $10,000, $20,000, $30,000 days. I like to stick to 1 interest per adset if possible, however if the audience is small I will stack them together.

    The Right Offer

    This part can be easy to get wrong but it’s important to TEST.. Why?

    You could have the same product, same targeting but each advert have a different offer and every single one of them would convert different with that audience. Most people assume that free shipping is always best let me tell you it’s NOT.

    The first thing people see is the price, the lower the price the more likely people add to cart, at that point they have made a decision to buy so adding shipping at the checkout (if a reasonable amount) can convert just as well, even better sometimes, than a free shipping product. PLUS if they abandon cart at that point when checking out your retargeting sequence can catch them.

    Some example offers:

    $19.99 + FREE Shipping or $16.99 + $2.99 shipping or $15.99 + $4.99 Shipping

    I initially set the price for this product too low, YES I was getting great conversions and that helps FB and your pixel find more targeted buyers due to the amount of data it’s receiving.

    It initially was a FREE shipping offer.. but I tested adding shipping which didn’t hurt conversions at all. After a while of seeing this new pricing strategy hold stable and the engagement or purchases not slowing down at all I increased the base price slightly once again which held well.

    The Right Scale

    Scaling is an art when it comes to FB, some people can do it well and other struggle. There are MANY ways to scale a campaign in practice, some ways will work for some people and others just won’t work for you.

    Let me explain the two basic different ways to scale and then how I done it for this particular campaign.

    The two main ways to scale is VERTICAL and HORIZONTAL.

    VERTICAL is simply adding more budget to an adset. If I do this I add approx 20-30% to the budget of an adset bringing in a great ROAS (3 and above is great) every 2-3 days or if the stats look very healthy I’ll straight double it.

    Another way to scale vertically is duplicating your good performing adsets to a higher budget and leaving your original one as is. You can do this by duplicating it to another auto bid adset or duplicating it to a MB adset for really power scaling (Do not do MB if you don’t know how to, you can lose a lot of money if not managed correctly).

    HORIZONTAL scaling is adding more interests/using different audiences to expand. The BEST way to do this is by using LLA. (Lookalike audiences is where FB creates an audience for you who are more likely to take a certain action based on your pixel data). You can create LLAs off everyone who VC, ATC, IC, Pur & everyone who watched your video to really expand.

    Ok so what did I do?

    As mentioned in the The Right Audience section I went as broad, yet related as I could. I ALWAYS use WC ads with the Pur objective, reason being I want FB to send me BUYERS not tire kickers. The advert itself was a video.

    I like to split the US away from WW in a single adset due to the CPM in the US being kinda high. I also always excluding countries that provide bad traffic E.G India, Pakistan, Peru, Indonesia, etc

    My testing adsets looked like this:

    • 25-65 - (Interest 1) - USA
    • 25-65 - (Interest 1) - EX USA
    • 25-65 - (Interest 2) - USA
    • 25-65 - (Interest 2) - EX USA
    • 25-65 - (Interest 3) - USA
    • 25-65 - (Interest 3) - EX USA
    • 25-65 - (Interest 4) - USA
    • 25-65 - (Interest 4) - EX USA
    I always test 2 creatives too in every Adset. After 48 hours you will quickly see which adset if performing the best.. I saw that one creative was doing much better than the other so I shut off the bad one and kept the winner going across all adsets.

    After 2-3 days CPPs were sub $5 and ROAS 3-5 across most adsets.. When you see these kind of indicators you are on to a winner so it was time to push it and see how it responded. I then increased the budgets by doubling most of them to see how it responded.

    After 2-3 days ROAS and purchases stayed great I knew this was a golden winner. When you know something is a golden winner I try to scale as fast as possible as the hyenas will copy, rip off and steal your whole advert once they see its working so be the lion and get the share, leave the scraps to them!

    I duplicated my winning adsets to MB adsets with a budget of $1000 each. I set the MAX bid at approx 3 times the amount of my current auto bid adsets CPPs. For example the CPPs on the auto bids were like $5 so my MAX bid on the MB asset were $15. I keep the auto bid adsets still running.

    Once doing this it was time to add in more interests to test and scale to LLAs.

    When I scaled to LLAs I like to test US and EEA first and always go with either everyone who viewed 95% of the video or VC as my starting point. I always split up the percentages 1,1-2, 2-3, right up to 10%.

    Again I tested these all on auto bid to see how they perform and took the winners to MB asset again with $1000 each adset.

    It was then a case of simply rinsing and repeating this process with ATC, IC, Pur LLAs and shutting off the losers and keeping the winners.

    To scale further I always like to then breakdown the best performing countries, ages, genders and placements and also do a NO targeting adset which targets the whole world on FB and let the pixel pick out buyers.

    Of course the longer the campaign goes on the lower your ROAS will be, there will be a lot of rips off, more competition and your margins will die out. But as long as you got your Lions share is all good.

    Retargeting

    For ALL of your campaigns you need to retarget. It will be your most highest ROAS campaigns. Here are the ones I ALWAYS do:

    • Everyone who VC but did not ATC
    • Everyone who ATC but did not Pur
    • Everyone who IC but did not Pur
    • Everyone who Pur
    • Everyone who viewed 95% of video
    You want to target these like crazy with offers to buy. My favourites are: Stock is running low, 5% off discount, 10% discount, FREE shipping.

    I hope this has helped anyone who is doing Shopify drop shipping or looking to get into it. Or maybe you have a brand and ecom store and want to jump into using FB ads to propell your business.

    Here is a video of my refreshing my Shopify screen to verify that this is not some fake B.S:
    View: https://youtu.be/q3v2eDvNYKo


    There is also a video of me actually explaining this whole thing

    Ask me any questions you may have and I will answer as many as I can!

    Peace !
     
    pashka, westwinds222, Smuggo and 29 others like this.
  2. Evil_Jester
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    Evil_Jester Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

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    I saw you posted this on reddit recently. The biggest question I have is how much money were you spending on facebook ads per week? I believe facebook limits the amount you can spend, right? And what are you expecting in return for sharing this information? You will get a lot of skeptics if you don't answer that question.
     
  3. Patrickg
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    Patrickg Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

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    I agree. I'd also be curious how much profit did you make? That would be my ultimate question.
     
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  4. Midas
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    @Beast Of Ecom Thank you for the thread. I just launched an ecomm brand a couple of weeks ago. My store currently only has 5 products available which is not a good look. I'm considering dropshipping to pad my store a bit. Of course the shipping time is the main concern. Do you just disclose in the description that shipping might take 2-3 weeks?

    My store is off to a very slow start and I don't know if I should be focusing on product marketing or content marketing. I'm currently testing FB ads, getting visits but no sales. Any input would be greatly appreciated.

    Thanks
     
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  5. Rickchise23
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    Rickchise23 @clickpickRick I've Read UNSCRIPTED Speedway Pass

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    Curious about net profit. As MJ says we can all sell $100 bills for $20. Not saying that’s your gimmick but when I see, “How I sold $1million dollars, despite the rest of your post, the only other thing I want to know is- “You sold a million to make how much?”
     
  6. Xavier X
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    Except I read it wrong, but I believe he states his profit margin in this paragraph.

     
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  7. eekern
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    eekern BOBA Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

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    Would love to know how much your left with after all cost.

    Also, how much margins do you have to spare before the ROAS is not worth it ?

    I have a strong feeling that many dropshippers are happy with going in zero just to brag about some numbers and earn their real money on memberships, shopify affiliate etc..

    But still, I respect your hustle and great work !
     
    Last edited: May 24, 2018
  8. AllanB
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    Dropshipping is one of the best business... for facebook, aliexpress, shopify and amazon.
    If @Beast Of Ecom made 20% profit, this means that these companies pocketed the 80%!
    How amazing to see that all successful dropshipping entrepreneurs need to sell courses.
    I really don't understand this dropshipping hype.
     
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  9. Beast Of Ecom
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    FB will limit the amount you spend however you can request a higher limit when you start to scale. I hit 2 limits one: at $8k per day and another at $10k per day. I eventually got it lifted to $20k per day but never spent that much. On average was spending $10-15k per day

    This is the thing, people seem to think that me sharing this info means I need something in return or that this 'secret' should be safe guarded and copying it means you will generate the same. TRUTH is, it very much comes down to the product and I consider myself good at picking products. Scaling is an art.. this is just one way I launched and scaled this campaign. Doing the exact same may not work for you, so me putting this info out there does NOT mean you will do the same. This is merely to show those that dropshipping can be done on a large scale and this can be a framework to help some people out if they are stuck scaling a product.

    If this helps one person reading this with there campaign then job done. I am forever learning myself
     
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  10. Beast Of Ecom
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    All stated in the post :)
     
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  11. Beast Of Ecom
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    Yes you HAVE to do this if you are dropshipping. Me personally, I put it on the product pages, confirmation emails, shipping emails, Shipping policy page and FAQs. I now have agents in China who can store and ship my orders within 24 hours so its quicker than Aliexpress were your payment need to be verified plus then that dispatch time that the vendor takes

    You can try building an Instagram up if your store is niche. It all depends on what financial resources you have to use
     
  12. Dunkafelics
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    @Beast Of Ecom

    Thanks for the post - dropshipping is definitely something I've been learning about and it seems to be an excellent gateway for starting a business with the long-term intention of building your own product.

    As you stated - one of the issues I can foresee is that it does violate the "Barrier to Entry" of the CENTS philosophy. I just completed a course on dropshipping and the main method of product selection was through AliExpress.

    I get it, it's easy but I am doing research to determine if there are other suppliers outside of AliExpress that can help me get away from the red ocean as they say.

    Thanks for sharing.
     
  13. LifestyleGem
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    Love this! I bookmarked this post so I can keep coming back and picking out the gold.

    2 Questions
    1) Did you find free traffic to be effective at all? Or should someone just skip straight to paid?
    2) What are the biggest mistakes you've made when scaling?
     
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    The revenue quoting does get tiresome. I get that $1M is a nice round number, but no one cares about revenue and "I generated" is misleading; everyone just cares about the profits. It should be "How I make $100k profit a month".

    Nevertheless, well done.
     
  15. exclusives88
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    @Beast Of Ecom Thank you for posting. I sent you a PM.

    I've been using fb ads for a few months and I target 3 audiences (interests in relaxation techniques, interests in yoga, interested in healthy living). Most of them will range from $15 - 70 CPP. Would this indicate that these are not the right target audience or that my ad just suck and I need to give them a better offer? In order for me to break even, I need a $15 CPP at a minimum.

    Yesterday, I made a video showing the benefits of my product. So far, I've spent $32 with 8 clicks and 1,500 impressions. From my understanding, these are bad stats. I'm not sure if it's the audience, offer, or both?

    I was going to do a wholesale deal with one of my competitor. He does 100 units a day all via facebook. He does a lot of facebook ads so I know that there is a demand for it.
     
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  16. 458
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    458 Platinum Contributor Read Millionaire Fastlane Speedway Pass

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    ok but what is your email so i can send you 19.95 to duplicate?
     
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  17. Greg R
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    How much will you spend on an ad campaign before you decide to drop it?
     
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    Can you describe the process for creating the FB video?

    How do the hyenas know what to copy?
     
    Last edited: May 25, 2018
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  19. jcvlds
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    This. Very interested to learn about this. How are you and other folks spying into what others are advertising and selling effectively so they swoop in and compete?

    I wouldn’t want to do this approach myself, as I am not in the game of copying others and then watching margins zip down.. Looking to learn more so from the perspective of finding a way to defend my brand and products. By knowing how people mimic others I could maybe learn how to defend myself better.




    Sent from my iPhone using Tapatalk
     
  20. Nmm540
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    Thanks for the post my dude. I have a few other questions.
    1. How to you know when a product is a dud?
    2. Do you have your domain name with the product in the name? Such as www.happydogs.com when you sell dog treats and do you subsequently buy a new domain everytime you try a new product? I just tried my last attempt at dropshipping and my product was in the domain name. Im thinking that I name it something kinda more broad and not so pinpointed on the product kinda like amazon or waylands did. That way I can just throw in new products and test them and if they dont sell I just pull them out.
    3. Do you just go for one product that sells well or do you go for multiple products?
     
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  21. Unlimited92
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    I haven't seen your video so I can't judge the content but people don't really care about how awesome your product is per say.

    All they care about is how it can solve a problem they have, make them feel better or fulfill another fundamental need which they experience, so you must make them experience the need, preferably using visualization.

    In order for them to be interested in your product you must make them feel that they need it, then once they're hooked on the feeling that they need it you may feel free to include some stats on how awesome your product is and how to acquire it (show much much they're saving, how much faster your service is, how much better your product is than your competitors are providing or how awesome your product is) but targeting human emotion is the golden rule of advertising.
     
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    So I haven't read all of this thread but I see people asking if they should start drop shipping in their own stores. I am no expert but personally I don't see why anyone would buy from a new ecommerce store, the exact things they could buy from amazon, AND have 2 week longer shipping time.
    If you're drop shipping, it's probably items that are widely available for wholesale. Which means it's more than likely already being sold on places like amazon, ebay, etc.

    Maybe my thinking is wrong on this??
     
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    Well done, Harry.
     
  24. Saf H
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    Thanks for sharing your experiences. Do you have any concerns about FB recent crackdown on bad user experiences and negative feedback esp from AE dropshipping type models?
     
  25. Sanj Modha
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    Only $347 in the rep bank for this post?

    Tough crowd.
     
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