Dropshipping businesses are great if you have sales and the know-how to scale a Shopify store to $500,000 per month, ensuring a profitable dropshipping business with a profit margin of at least 20-25%.

Like many other friends, Alexander and Andreas had just keyed into this financial hub called Dropshipping.

Together, this duo from Austria has achieved tremendous success with their store, transforming it from a simple dropshipping operation into a thriving business with over $500,000 in monthly revenue. 

The walkthrough wasn’t easy for them. It involved a lot of trial and error, late nights, and busy days to ensure they gave the store a boost that would change their lives.

Finally, after some store failures, their dreams came true; their pet products gave them the breakthrough they needed. Just three months into launching its pet store, it had grossed over $41,000 in monthly sales income. 

By the sixth month, the business had already scaled to six figures. Perhaps they had overcome the stress of growing their business and focused on scaling up. 

Get a Supplier that can help Scale A Shopify Store.

It is crucial to research your suppliers’ delivery capabilities before selecting them. You wouldn’t want to be left high and dry like this pair—something they had paid so dearly for. 

Before you receive numerous orders, contact your suppliers to determine if they can fulfill bulk orders. It was hard for Andreas to source a supplier to deliver custom orders to their clients. 

They didn’t know that the new product they were working on could go viral.

Although it was challenging to find a supplier who could provide everything they wanted, they eventually did, and they launched the product.

This product’s progress previously resulted in a tremendous amount of sales, all of which depended on the supplier’s ability to deliver bulk orders at any given time.

So, the focal point is to get a supplier who can confidently supply your customers even when you scale up your business—a company you can trust to deliver when you grow to be a massive business with many daily orders.

Avoid relying on PayPal as your primary payment gateway.

There has been significant progress, from finding a reliable supplier to deliver bulk orders to running targeted ad campaigns. 

Andreas and Alexander said they could run ads up to $7,000 daily. With so much money going in and out of their PayPal account, it became suspicious, and the account, along with all the money inside, was frozen so PayPal could verify the authenticity of the funds. 

It was tough to cope during this period because half of their sales were made through PayPal, so you can imagine how much they had held back during this time.

Finally, they got all the necessary documents ready and sent them over; once received, PayPal lifted the barrier, and they received their funds. 

As though that wasn’t enough, the account was blocked up to four times on different occasions. 

Reasons PayPal blocks customers’ accounts

Because PayPal is responsible for any fraudulent action taken against its customers, if there is an unauthorized change in the influx of money into any customer’s account, PayPal must verify if this is legitimate and obtain the necessary documentation. 

Although PayPal is a globally accepted platform, if you do well with it, you should be prepared for the unexpected. Prepare all your accounts and business documents to provide them when necessary.

Build a team of determined persons.

Starting and managing a Dropshipping business is no different from building a mega physical business empire. You need people to help you fix many things. If you don’t have a partner, consider hiring extra help. 

At first, Alexander managed most of this pair’s customer service activities and ticketing. It was tedious and caused many sleepless nights.

Over time, he realized that managing all these tasks by himself would be challenging, as they now receive over 200 tickets in a single day. 

Currently, they have employed a customer service ticket system, with at least three agents managing their ticketing process. 

This move is to prepare for the scaling-up process. They had to set up a group on Facebook and Skype to enhance communication between customer agents and suppliers. With them just acting as supervisors, should there be extra questions?

So, they still advise setting up a team before you start scaling up to help you cope with the windy days.

When you scale without a functional customer service team, you will not be able to respond to the numerous calls and emails you will receive over time. 

 As Alexander suggests, establishing this team is better, and scaling it afterward is even better.

Video Advertising is the best for your Sales Funnel.

Some people think it might not be that effective, and the duo recommends video ads, suggesting that they convert the best for them through the sales funnel.

Presently, Businesses have adopted the video ads trend. This is not just for eCommerce businesses; video advertisement is a brain booster.

You need to tailor very catchy content to give your audience a convincing idea of your needs. 

Though they spent more time creating and advertising in various forms, video ads proved far more effective than the other ad campaigns. 

You can embed numerous calls to action in your videos that will help you convert. 

You can also apply these ads to your cold traffic targeting; the only difference is that you must review the information in the copy, add a few things to the price, and encourage users to take any action you deem fit. 

As Alexander and Andreas suggest, it is better to use original and personalized information to create your winning ad videos than to choose supplier-made videos. 

The result of using these videos has contributed immensely to the growth of their business, even more than they could have imagined. 

However, trying the option of video ads today might be the turning point for your eCommerce store as a beginner. 

Try Using Campaign Budget Optimization

According to Facebook, it will introduce a feature that changes how advertisers manage their ad campaigns.

September 2019 would be the birth of a great feature,” Campaign Budget Optimization (CBO).

 It helps you carefully manage your ads and concentrate your campaigns on the audience that converts the most to sales. This ensures that you get the best value for your ad budget.

Alexander and Andreas suggest that it would be a massive win for the platform and eCommerce entrepreneurs.

Conclusion

Despite the difficulty in coping with the stress, this amazing pair persevered until they reached a $500,000 monthly sales income. 

Five figures are enormous for a start, but what is fascinating is the duration they achieved this milestone. However, if they can do business with dropshipping, you can do more. 

Alexander thinks their story can inspire all intending and new drop shippers to believe that all things are possible because their lives have changed for the better with dropshipping.

Now that you know how to scale a Shopify store to $500k Monthly, it’s time to set it up.

Did you learn something new about scaling Shopify stores today? Please leave a comment below and share.

Start Shopify For Only

Try Shopify free for 3 days, no credit card is required. By entering your email, you agree to receive marketing emails from Shopify.