How To Scale Shopify Store To 500K Monthly

Dropshipping businesses are great if you have sales and the know-how to scale Shopify Store to 500k Monthly and run a profitable dropshipping business with at least a 20-25% profit margin.

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

Together, this duo from Austria has had tremendous success with their store, growing it from a simple dropshipping store into a mega business with over $500,000 in monthly returns. 

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 products for pets gave them that breakthrough. Just three months into launching its pet store, it had grossed over $41,000 in monthly sales income. 

As of the sixth month, this 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 Scale You Up.

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

So before you even start getting so many orders, contact your suppliers to know if they can keep up with 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.

Though it was challenging to find a supplier who would provide everything they wanted, they finally did, and they launched the product.

This product’s progress previously saw it generate a tremendous amount of sales, all dependent 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 huge business with many daily orders.

Don’t Rely on Paypal As your gateway.

There has been a lot of progress, from finding a good supplier to deliver bulk orders to running aggressive ad campaigns. 

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

It was tough to cope during this period because half of all their sales were made through PayPal, so you can imagine how much they had held within 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 unnecessary change in the influx of money into any customer’s account, PayPal has to know if this is legal and get appropriate documentation. 

Though PayPal is a globally accepted platform, if you do well with it, you should be ready for doomsday. Prepare all your account 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 do not have a partner, consider hiring extra hands. 

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 understood that it wouldn’t be easy to manage these all by himself, as they now get over 200 tickets in one 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 one group for Facebook and Skype to enhance communication between the customer agents and the 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 respond to the many calls and emails you will receive over time. 

 As Alexander suggests, getting this team in place is better, and scaling afterward is 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 as they suggest that it converts 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 a lot of 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 just using these videos has immensely contributed to the growth of their business, even more than they could imagine. 

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 would introduce a feature that would change 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 would be a massive win for the platform and eCommerce entrepreneurs.

Conclusion

Notwithstanding how difficult it was to cope 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 you 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 your 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.

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