Net $60k in 90 days | Case study of a home dec store

17:05
2022 Aug 09

 

EthereumBullrun lost $400 at the beginning of dropshipping. But he found the moon phase mirrors that brought him $60k net profit in 90 days. We can learn from his success and see if we can take some measures.

These are the moon phase mirrors.

He used 15-second video ads to market this product. And his ad strategy is to duplicate what worked and delete what didn’t. This method is all about the A/B test.

 

Whats A/B testing?

 

A/B test is a research methodology to find the preference of the audience. Two or more versions of a variable (ad campaign, ad creatives, etc.) are displayed simultaneously to different parts of a website visitor to determine which versions leave the most impact and drive business metrics.

 

Why should you consider A/B testing?

As a dropshipping seller, it may be the first time you step into the eCommerce world. In the beginning, you are more likely to lack enough knowledge and intuition to make critical decisions. A/B testing gives you a low-cost chance to test the water. For example, you can set the target countries in different ads to check which market is better for sales. It’s necessary to have reasons for your choice. So when the result comes out, it allows you to review your mind and take the next step accordingly.

 

Budget adjustment

EthereumBullrun also made adjustments to the budget. “Each Monday, I would increase my ad spend by 20% and duplicate my winningest ad set.”

 

If you don’t know how to practice scaling your business, increasing the ad budget is a viable way. And I can see there is compound interest in the performance.

 

But if your ad performance is getting worse, decrease the budget or try other bidding strategies. The market is changing faster than we think. You can’t just set the campaign running and neglect it. But as beginners, you are more likely to wait in front of the screen. This tendency is not advisable either. Give the pixel and algorithm some time to warm up.

 

How to check your ads

Before you invest in ads, set a goal for your money. Even if you know nothing about ROA, you can evaluate the performance by coming out how many sales it generates, or how much it costs for a purchase.

 

Before your ads make you profitable, the creatives are more important than the CPMs and CPCs. But they also show some hints. A high CPC may drop down after change to a less saturated market.

 

The frequency to check your ads maybe 2-3 times a day at set times. Your focus should be on the metrics and the changes.

 

Know your customers well

EthereumBullrun had a clear customer profile. They were 18-36 years old females who fancied themselves Wiccans.

 

Think about age, gender, and interests. Some products are better to be broad, while some need to keep narrow.

 

The lesson

As it's said, EthereumBullrun's ad account got banned because of DMCA infringement. DMCA refers to the Digital Millennium Copyright Act. It was passed in 1998 to amend U.S. copyright law to include and address issues associated with the internet and digital media.

 

Facebook bans are annoying and disappointing. Therefore, reading the policies and don’t infringe copyright is vital. There are many clips of a product on the internet, especially when dropship. So you need to be careful.

 

His banned ad account ended his business. This also warns us to separate the traffic resources to lower the risk. Even if your Facebook ads are performing well, prepare Tik Tok, Ins, or Google.

 

If your ads only convert well in a particular platform, in the long run, the other social media is still useful as a piece of branding. After you grow big, an agency account will be better.