How I Scaled a Drop Shipping Store to 7 Figures

Niche: Jewellery
Advertising Budget: $2-3k per day
Geographical Location: Global campaigns with majority of spend in USA
Price Point: $30-40

AIM: Scale sales to multiple 7 figures per year while increasing brand awareness to ensure longevity in the business by promoting a range of different products across 3 select niches.

STRATEGY: Lead with video ads to interest and LLA audiences, retarget based on engagement. Streamline the website to allow for ease of ordering while focusing heavily on dynamic retargeting at various stages in the funnel.

How We Grew Sales to 7 Figure$

Initial Review
Having reviewed the website and sales funnel we quickly implemented changes which instantly improved ROAS including;

Shortening The Sales Funnel
Previously there was a 3-stage sales funnel in place to sell a $30-40-dollar product which we considered unnecessary for more of an impulse purchase. Lead conversion ads were designed to convert on the first view with remaining sales picked up with dynamic retargeting ads.

Optimising The Website
Analysed complete customer journey from viewing an ad, visiting the website, right through to completing a purchase. Looked at website load time, bounce rate, how the website rendered on mobile right through to the upsell strategy pre and post purchase.

Social Proof
Looking at the top performing ads, it quickly became evident there was a strong correlation between social proof and sales. Ads which resonated with the target audience had really strong engagement and interaction which built social proof and in-turn consumer confidence in the product, resulting in improved and more consistent ROAS.

Testing Products
The process for testing and launching new products involved initially running ads through PPE campaigns to build social proof while also testing audiences to measure how key KPI’s performed i.e. cost per click, landing page views, click through rate, add to cart cost etc. Successful products and audiences were then launched based on how they performed in testing.

Strong Focus On Dynamic Retargeting Ads
As an agency, at our core, we are big believers in Facebook’s most efficient ad, the Dynamic Product Ad and for all clients, this forms an integral part of any advertising strategy. There was a high daily ad spend on the account which inevitably resulted in website visitors dropping off at various stages throughout the sales funnel.

DPA’s retargeted these customers based on pixel data and consistently achieved 3-6 ROAS. We ran numerous targeting variations on DPA’s but found, due to the high traffic levels, retargeting traffic 3-4 days old performed best. The best performing audiences were people who had viewed content or added to the cart in the last 4 days but not purchased.

As an agency, we are always looking for “banker ads” these are ads that we can rely on to consistently perform, generate sales and a healthy ROAS. Dynamic Product Ads fit this category on all of our accounts.

Big wins came initially with interest-based targeting as the niche provided lots of relevant associated interests to test and scale.

The majority of scaling was achieved with lookalike audiences which were tested up to 10%. Larger percentages can provide surprising results as you provide the algorithm with more data to optimise and find your ideal customers. Larger audiences are also more suitable to scaling over longer periods of time. Creativity with LLAs is key and often you will be surprised with the audiences that provide the best ROAS.

High quality creatives are key to Facebook & Instagram advertising success in 2019 as the landscape becomes more competitive and customers more conscious to advertising.
High definition videos showcasing products in natural forest environments resonated with the target audience. Videos run time was between 15-20 seconds.

Ad Copy
Copy was kept relatively short with scarcity highlighted around stock levels, sales, limited time offer etc. Shortened link was included in the copy alongside emoji’s.

Ad Structure
The only 2 advertising objectives running on the account were conversions and catalogue sales (DPA’s). No long funnels or complicated strategies, with the niche, price point, website, creative and copy tested and optimised, we were able to scale sales relatively quickly.

Campaigns and ad sets were scaled horizontally on a daily basis. Budgets were scaled more aggressively after audiences had been tested with results more predictable.
Manual bidding was also used due to its ability to scale daily ad spend relatively quickly while maintaining ROAS.

We hope you found this insight in to how our agency scales accounts helpful. If you would like to discuss how we can apply these principals to help scale your business then please get in touch below. We would love to hear from you!

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