Day 37: The Dropshipping Diary – Progress and Insights

Started by znjlycs7q, Nov 19, 2024, 05:01 AM

Previous topic - Next topic

0 Members and 2 Guests are viewing this topic.


cacajem

This entry reflects the typical stage of a dropshipping business at the 37-day mark: moving from the initial testing phase into crucial data analysis and optimization.

Progress Summary
📊 Marketing & Testing
Ad Campaigns: Day 37 falls squarely in the middle of testing your initial set of advertising campaigns (e.g., Facebook, TikTok, or Google Ads). You should have completed several days of consistent spending, which is enough time to gather meaningful data.

Key Focus: The primary goal for this week has been to determine a "winning product" and find a "profitable ad creative/audience" combination.

💰 Financial Snapshot
Revenue vs. Profit: At 37 days, many dropshippers are still in the "net negative" or "break-even" phase. Survey data suggests the average time to first profit is around 2 months (60+ days).

Key Metric: Focus should be less on total revenue and more on Cost Per Acquisition (CPA) and Return on Ad Spend (ROAS) for each tested product.

Key Insights and Next Steps
1. Identify Your Winners (and Losers)
Kill Non-Performers: Any ad sets or products with a high CPA (where the cost to get a sale exceeds your profit margin) should be paused or "killed." Stop throwing money at what isn't working.

Scale the Winners: Campaigns showing a positive (or near-break-even) ROAS are your candidates for the next phase. Start by slightly increasing the daily budget on these winning ad sets to see if the performance remains consistent.

2. Deep-Dive Data Analysis
Your focus shifts from simply launching ads to analyzing the customer journey:

Website Metrics: Use Google Analytics or your e-commerce platform's analytics (like Shopify) to check Add-to-Cart Rate and Checkout Initiated Rate.

Low Rates? This signals a problem with your product page (description, price, or shipping time) or store trust.

Ad Creative Funnel: Use your ad platform's data to look at:

Click-Through Rate (CTR): Is your ad copy or image engaging enough to get the click?

Cost Per Click (CPC): Is it too expensive to even get visitors to your store?

3. Supplier and Fulfillment Check
Order Fulfillment: If you've made sales, ensure all orders have been fulfilled with tracking numbers and customers have been notified.

Customer Service: Address any early customer inquiries about shipping times or product issues quickly. This builds trust, which is crucial for long-term success.

In short, Day 37 is the critical pivot point: it's time to let the data lead the way and stop running purely on enthusiasm. You're nearing the point where you either cut a product and test a new one, or you find a winner and begin the process of scaling.





Didn't find what you were looking for? Search Below