Making An Unprofitable Dropshipping Store Profitable | Trouble Shooting Your Dropshipping Strategy




This video covers the issue most new (Shopify) Dropshippers face: they cannot make their Dropshipping business profitable. I am going to show you all strategies that you can use in order to solve this issue. Some of my strategies will take lots of time to set them up but they are necessary to become a professional (Shopify) Dropshipper and turn your business to the next level.

1. When Is My Dropshipping Store Unprofitable?

  1. Calculate your profit margin for every sale
  2. Calculate your average CPA (=cost per acquisition)
  3. If CPA > Profit, your Dropshipping store is unprofitable

2. The 4 Components Of (Profitable) Dropshipping

2.1 Product

  • Your product has a new feature or it solves a problem that no other product does
  • Your product is impressive and has a “wow effect”
  • Your product leads to an impulsive purchase decision
  • Your product is proven to sell, i.e. that other Dropshippers are profitably selling it

2.2 Creative

  • Creative = picture/ video that is used for advertisement on social media
  • Test 4 or more different creatives and analyse which one is most appealing to your audience
  • The first 1-2 seconds (“scroll stopper”) are the most important ones
  • Use professional video editing tools, e.g. Animoto or Blender
  • Spy on the ads of your competitors (using Facebook Ads library or other paid tools)
  • Goals:
    • High CTR (click-through-rate): 2%+
    • High engagement (likes, comments, shares)
    • High watch time: 30%+
  • Benefits:
    • Lower CPM (=cost per 1,000 people reached)
    • Lower CPC (=cost per click)

2.3 Ad Strategy

  • Make use of Facebook Pixel
  • Be aware that the Facebook algorithm needs data to properly optimise
  • 50+ conversions/ 7 days for each ad set are recommended
  • Make use of…
    • Look-A-Like Audiences
    • Retargeting
    • CBO (=campaign budget optimisation)
    • Breakdowns
  • Goal: only deliver your ads to the people who are most likely to purchase from you

2.4 Online Store/ Landing Page

3. Find Out How People Perceive Your Marketing Strategy

  • Try to find out how people perceive your product, creative, landing page
  • Your perception ≠ your potential customer´s perception
  • Goals
    • Answer all questions people might have before purchasing from you
    • Find reasons that hinder people from buying
    • Handle objections

3.1 Surveys

  • Ask online store visitors questions that help you to improve your strategy
  • Wait for at least 10 responses and try to find patterns
  • Interesting survey questions:
    • “What would be the main reason not to purchase from us?”
    • “What don´t you like about …?”
    • “What do you like most about our product?”

3.2 DM People On Instagram

  • Requirement: run your ads from your Instagram page

  • DM everyone who liked or commented your ad video

3.3 Analyse Screen Recordings And Heatmaps Of Your Landing Page

  • Screen recordings show how a customer interacted (clicking, scrolling etc.) with your page and what they saw
  • Heatmaps summarise all screen recordings
  • Number #1 tool: Hotjar

4. Discuss Your Strategy With Dropshipping Experts

  • You will likely overlook something
  • You can exchange knowledge and experience
  • Two persons will always see more than one
  • You can ask for advice

4.1 Find Dropshipping Experts In Facebook Groups

  • Be kind and respectful so that people want to cooperate with you
  • Give & take
  • Think before you ask

-> Join my Shopify Dropshipping Facebook group by clicking here

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