Most people who claim to have a successful Shopify store (e-commerce business) are not ready to share their secrets with others. Just a handful of these people are willing to be vulnerable, and share all they know about starting an e-commerce business.
This is another lesson from Gary Lim on how to build a successful Shopify store. In this article, he explained the strategy he used in scaling his sales from $500 per day to $5000 per day while maintaining a forty percent margins in less than three weeks.
If you’re into e-commerce, this strategy may help you.
1. Validate your winning product
I run it on website conversion purchase at $15 per day. After three days, if your returns on ad spend (ROAS) is greater than four, congratulations, you’re ready to scale.
As a bonus point, if the cost per click is under one dollars and your cost per mille in dollars (CPM) is under 35 dollars, it will be safer to scale.
Don’t scale a product after only one sale. Eight out of 10 times, your one sale is a dud sale and you’ll never get a sale ever again. Or you just spend too much money getting your next sale, so be careful.
Bonus: Don’t ever get attached to the product.
2. Scaling up
It’s okay to be selfish with your money when testing but you must not be afraid to spend if you want to go big.
Create lookalike audiences at 95 percent video views. After 5000 video views. Run 1,2,3 and 1 to 3 percent look alike audiences separately. One or two of them will work well.
I duplicate into $5 per cost per purchase (CPP) and set it to run at 12 am. I let it run for two to three more days.
If the returns on ads spend is greater than $3, congratulations. Duplicate and double the budget. Apply this to your look alike audiences too. Rinse at repeat but keep your profitability in check every 12 hours.
If your adset starts tanking for more than 3 days, kill it and run it on a lifetime budget. Sometimes it works.
3. Safety precaution before scaling (very important)
Call PayPal and let them know that there will be more transactions going in your account.This will also help you long term.
Contact multiple suppliers and talk to them on their preferred messaging platform. I use WeChat. Some of them don’t have your best interest at heart. Make sure you have more than one supplier.
Contact Facebook via messenger support and let them know you’re going to spend a lot more money with them. If not, they may just stop delivering all your ad sets and do a manual review on your account.
Hire a virtual assistant (VA) ASAP through Upwork unless you have nothing better to do and don’t mind spending two to three hours a day fulfilling orders like me.
Make sure you have enough cash flow to fulfill orders because bulk of your money will be spent on ads and cost of goods sold (COGS).
4. Sip corona on the beach and enjoy it while it last
Just kidding. Be prepared for every worst case scenario you could possibly think of because shit may just go down the roof.
Scaling hard and fast will be very stressful. There are way too many things to take note of and there is no right and wrong in this game. At the end of the day, the only metric that matters is profitability.
These are some of the things I wished someone told me when I got started as an entrepreneur.
Going from wanting to make $1,000 per month at the start of the year to getting frustrated if I didn’t make the same amount in a day has taught me some big life lessons.
1. Your life can change very quickly if you make a commitment and devote 110 percent into changing it.
2. There is no “destination” only a lifelong journey. The moment you get what you want, you automatically start setting higher standards for yourself and everything becomes a norm. You have to enjoy the process otherwise there’s no meaning to it.
3. The struggle is a very beautiful place to be in.
These are the things I wish someone have told me when I got started. Loving the process is key. Numbers, results, and everything else is just a facade.
That’s all you need to know about building a successful Shopify store or any business. Don’t forget to share this with your friends. And if you’d like to share your income ideas, join the Facebook group to share your story.