Today we are joined by Mark Peterson, founder of Ecom Blueprint and a thriving e-commerce…
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 amazing 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.
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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, their dreams came true after some store failures; their products for pets gave 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.
Researching your suppliers’ delivery strength before choosing them is very important. You wouldn’t want to be lifted 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 get a supplier with all they wanted, they finally did. And they launched the product.
The progress of this product 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 that 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.
With a lot of progress ranging from finding a good supplier that could deliver on bulk orders to running aggressive ads 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 was frozen together with all the money inside. This was so Paypal would make sure the whole money was genuine.
It was very hard 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 meted out to their customers, this means that 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, you should be ready for doomsday if you do well with it. 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 a lot of things. You should consider hiring extra hands if you do not have a partner.
At first, Alexander managed most of this pair’s customer service activities and ticketing. It was tedious, causing 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.
So presently, they have employed the services of 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 end up not responding to tons of calls and emails you would be getting over time.
As Alexander suggests, getting this team in place is better, and scaling afterward is better.
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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 on 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, using original and personalized information to create your winning ad videos is better than choosing 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 is so you can get the best value for your ad budget.
Alexander and Andreas suggest that would be a massive win for the platform and eCommerce entrepreneurs.
Notwithstanding how hard it was to cope with the stress, this amazing pair pulled through until they reached a $500,000 monthly sales income.
Five figures are huge 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 dropshippers that all things are possible because their lives have changed for the better with dropshipping.
Now that you know how to scale Shopify store to $500k Monthly, its time to set up your Shopify store.
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