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After recording almost 6 figure in sales within 4 months of running my first drop-shipping e-commerce store, I had to shut it down.
I was averaging 15-20 orders/day with a net profit ~25%. But, it all went down quite quickly.
The store had a good run, but with my lack of experience, I wasn’t able to maintain and scale it properly.
I started my first drop-shipping e-commerce store back in September 2020.
Seeing how my close friend was able to make it work, I decided to give it a try too.
I started my first drop-shipping e-commerce store back in September 2020.
Seeing how my close friend was able to make it work, I decided to give it a try too.
Now, I’m already running a second store and after about a month so far, I’ve already managed to get to 5 figure in sales with a net profit ~32% by using the lessons learned from my first store.
1. Don’t stay comfortable (for too long)
In the second month of running the first store, I was averaging 15- 20 sales/day with ~25% net profit. So naturally, I got comfortable. I’d say too comfortable.
In the second month of running the first store, I was averaging 15- 20 sales/day with ~25% net profit. So naturally, I got comfortable. I’d say too comfortable.
I stopped creating content, I stopped testing, I stopped writing ad copies, I stopped finding ways to create new videos + images. I was giving myself nonsense excuses. I feel like slapping my past self.
So, when the inevitable happened (ads performance no longer the same & not to mention my ads account was disabled 8 times in a row), I struggled & scrambled to try to get the same results.
Never stop creating + testing!
Never stop creating + testing!
2. Choosing the right product is CRUCIAL
I chose a product that was in the beauty niche, something I know NOTHING about.
I chose it because it was one of the top selling product at a marketplace and I really just wanted to start.
I chose a product that was in the beauty niche, something I know NOTHING about.
I chose it because it was one of the top selling product at a marketplace and I really just wanted to start.
Key point: I wanted to start. Which was good, it got me going. If not, I would still be stuck and not have an e-commerce store at all. That would’ve been worse.
Looking back at it though, I would strongly advise my past self to do product research extensively. Please.
Looking back at it though, I would strongly advise my past self to do product research extensively. Please.
At the very least, understand what you are selling so you craft the story + write copywriting that will resonate with your target market.
3. AOV, AOV, AOV
I created a one product store and it only had one variant.
Obviously, I didn’t have much leeway in terms of increasing the average order value (AOV).
I created a one product store and it only had one variant.
Obviously, I didn’t have much leeway in terms of increasing the average order value (AOV).
Seldom would people buy this particular product more than one. Unless it has different colours or if they “feel” like buying it for their significant other, family or friends.
I learned this the hard way. Without much option to increase the AOV, it was harder to scale.
If I increase my ads spend to try to scale up, I would have a higher risk of draining up the profit I made earlier. And that was exactly what happened, sadly.
If I increase my ads spend to try to scale up, I would have a higher risk of draining up the profit I made earlier. And that was exactly what happened, sadly.
I depended too much (or rather, hoped) on the increase in transaction compared to the increase of the average order value.
As I would find out, transaction numbers can fluctuate heavily. Especially considering the fact that I was using FB ads which is a volatile ad platform. Transaction was also affected by the time & day of the month (e.g. payday vs mid-month).
Now, I sell 2 products of the same category and both have color options.
I used an app to create tiered pricing. The product gets discounted as people choose to purchase 2 units or more. It helped increased my AOV by ~12%.
I used an app to create tiered pricing. The product gets discounted as people choose to purchase 2 units or more. It helped increased my AOV by ~12%.
4. FB Ads - Focus on ENGAGING ads creatives over tactics
There are a lot of FB ads courses you can join to learn and tactics that you can try.
There are a lot of FB ads courses you can join to learn and tactics that you can try.
But, after spending a significant amount of $$$ on ads, I found that you should be focusing more on creating engaging copywriting and thumb-stopping videos instead.
“Do i turn this ads off, is the ROAS acceptable, is the ad set not working, should I duplicate into CBO, do I need to create traffic ads and not conversion ads…. arghhh is FB ads broken?!” and on and on and on. It was a complete waste of time, at least for me.
At the end of the day, your FB ads should get your prospects to understand your message quickly and become interested enough to click and go to your website.
Your website should do the selling.
So, start focusing on the story, the message and the communication.
Your website should do the selling.
So, start focusing on the story, the message and the communication.
5. Create your own content
When I first started, I looked for product images and content online. All of them looked the same. I decided to purchase the product and take my own photos instead
It worked. I managed to somehow differentiate myself from the rest of the internet.
When I first started, I looked for product images and content online. All of them looked the same. I decided to purchase the product and take my own photos instead
It worked. I managed to somehow differentiate myself from the rest of the internet.
However, my main issue back then was that the product was a product that I don’t use. I don’t really want to record myself using it and I just don’t understand how the beauty business work.
So you can see how it was doomed since the beginning right? Even though it had a good run, I was never going to be able to be an advocate of this product.
So on my second store, I made it a point to choose a product that I love and understand. I could create my own content around it easily.
It worked and I encourage others to do the same as well. Differentiate yourself even if you are just starting out drop-shipping products.
It worked and I encourage others to do the same as well. Differentiate yourself even if you are just starting out drop-shipping products.
Conclusion
Those are some of the things that I learned so far in my short experience in the e-commerce business. I hope it is beneficial and that it would be of some help to those who are looking to start their e-commerce business.
Cheers.
Those are some of the things that I learned so far in my short experience in the e-commerce business. I hope it is beneficial and that it would be of some help to those who are looking to start their e-commerce business.
Cheers.
