210% RoAS & 4-Figure Revenue on a Flipped Dropshipping Store

Published on:

July 24, 2021

About the client

Tarron, the client first contacted me in 2017 enquiring about our services. However, recently he shared a link to a Flippa listing of a dropshipping store that had generated 400K in revenue and was up for sale. It was your usual 'general' dropshipping store with all kinds of products, with little relation to each other.

Now, such dropshipping stores are a double-edged sword. The numbers look great, but the sellers have already milked their products. They sell either because they can't get the sales they were getting previously or there have been serious issues with their Facebook accounts, branding, or supply chains.

After a few more months of discussion on the subject, Tarron bought the website & ordered our services.

The Problem

As expected, the product that the seller made sales on was an extremely saturated one. To make things worse, the same product was selling on Amazon for less than what Tarron could afford.

We knew straight away that the ad copy & the product page had to be compelling enough for an impulse purchase. We couldn't afford to give the user a chance to go on Amazon and search for the product as Amazon can prove to be a big nemesis to sales (Read: Should You Sell on Amazon Or Your Own Website?)

Goals

Tarron's goals were simple. Get consistent sales. Outsource everything. Sit back, relax & see the profits roll in.

What did we do?

Tarron bought our middle package (Advanced Lite) that offers a single prospecting campaign & a budget of 500USD.

Although not an ideal choice, it was a decent start for him & us.

We started with minimum budgets at the beginning to test our creatives and audiences. For targeting, we used the store's orders to create multiple Lookalike audiences.

We pushed our own creatives plus used some previous posts owing to the social proof attached to them.

Our standard process as mentioned in the timeline was followed - https://my.0penny.com/timeline

Challenges Faced

The product was priced at less than $20. This was a low-priced product. There were 3 ways to make a profit on this:

- Get a low CPA

- Add upsells & cross-sells to the store to increase average order value.

- Retargeting campaigns may not work as there wasn't a lot of price margin to work with.

Results

After breaking even in the 1st 2 weeks, Tarron decided to upgrade to Ultimate to test out more approaches. Now, Ultimate does come with Retargeting campaigns. And we nudged Tarron to give these a go.

Retargeting Campaign still needs to be optimised. However, here are the results in the 1st month of service:

*Excluding sales not reported by Facebook due to new privacy regulations

*Excluding sales not reported by Facebook due to new privacy regulations

Total sales: 187

Total Revenue: 6,363.96

Total Spent: 3,042.29USD

What's next?

The retargeting & increasing the average order value party has just begun. Next, we begin cross-selling his other products to existing customers.

As they say, a bird in hand is worth 2 in the bush. We will use our acquired customers and promote products to them via another funnel.

With Tarron's store's automation in place, he'll just have to grab a few more beers and do nothing else!

Honesty's Rare. But at 0-Penny We Care

Honesty is a rare commodity in this business. However, we strive to be very clear with the clients about what’s possible. The client took this as an experiment and gave us an opportunity. I am glad to announce that the client upgraded within the 1st 2 weeks of service & renewed for another month with our highest package.

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