How to Scale a Winning Dropshipping Product
Knowing how to scale a winning dropshipping product can be one of a dropshippers make or break times. Choosing and promoting products wisely in such a competitive dropshipping marketplace could set you on the road to a six-figure income.
But where do you start? In this article, we will give all our industry know-how and secret sauce to help you choose successful products, scale, and beat the competition.
How to scale a winning dropshipping product. To scale a winning dropship product, make sure you thoroughly test your products, including by increasing budget and creating a lookalike audience. Aim for at least 3 for ROAS. Check your VA’s are well prepared and that you use a supplier with enough stock.
Now we’ve had the brief answer, let’s delve a bit deeper and start with the most important phase of choosing and scaling winning products, which is the test phase.
1. Test phase
Testing products is probably one of the most important activities if you run a dropshipping business, Shopify, or any other type of eCommerce store.
Without thorough product testing, you could find yourself severely out of pocket by putting your efforts, not to mention your budget, into poor-selling items.
Although one of the attractions of dropshipping is its limited layout in terms of upfront cash, you could find yourself out of the race if you miss out on the crucial testing phase.
It’s a 3 point plan to success.
- Test different products
- Test audience
- Test creatives
One of the most successful methods of effectively testing dropshipping products is by using a Facebook Campaign with A/B test.
Create at least 3-10 $5 ad sets, depending on your budget.
You will probably only have to wait one day or so until you see 1000 impressions to find out which one is a winner with your target audience.
We will look into testing audiences a little later on in this article in more depth.
“Without thorough product testing, you could
find yourself severely out of pocket”
2. Conditions for scaling a product
There are some importing criteria to make sure you have in place before you are ready to scale your product.
- At least one of the ad sets is performing well
- The desired CPA is achieved
- The product has passed the initial test phase and is getting orders continuously
Making sure you put enough budget into each ad set to see a return is important.
The money you invest in advertising is usually easily understood by making it proportional to the cost of the product (or products).
As a general rule of thumb, you need to give at least 50-100 USD budget per day to test a product and associated Ad creatives.
Cost per action
CPA stands for Cost per action which is a digital advertising payment model that allows charging an advertiser only for an action taken by a prospective customer.
That action can vary depending on the advertiser and could be anything from a newsletter sign-up to a link click or sale.
The initial testing phase completed
When you have successfully come to the end of your winning dropshipping product phase, that does not only test the product but also the audience, you are ready to roll.
“your ad spends should be somewhere between 18 and 25 times the price of
the sale price of your product, depending on your budget.”
3. How to scale
Knowing when and how to scale is crucial to make sure you are keeping a tight rein on your budget.
Below are our 5 hot tips to make sure you have everything in place to make the most profit and succeed with new products.
- ROAS looks healthy (at least 3)
- Put budget into the best-performed ad set
- Utilize lookalike audience
- Make sure your VA is well prepared
- Make sure your supplier has sufficient stock
Now let’s delve a little deeper.
Once you have thoroughly tested your great new product and you are seeing good signs of it taking off, you are ready to scale!
Ok, so where do you start? Firstly take a drilled down to look into your marketing metrics. This is specifically ROAS which stands for
Return On Advertising Spend. This a metric that measures the success of any digital advertising campaign.
It helps anyone who wants to know how to scale a dropshipping business to evaluate which marketing efforts are bringing the best results. It also shows where improvements can be made in future marketing campaigns.
Best performing ad sets
Once you are satisfied you have 3, then it’s time to put your efforts and your budget behind the ad set that performed the best.
Utilize a lookalike audience
A lookalike audience is a great way to reach those potential customers who are likely to be interested in your products because they are similar to your current best customers.
Facebook lookalike audience
Facebook’s powerful segmentation tool sorts users into those with similar demographics and interests of your existing followers.
It’s easy to create and use them, which makes them effective in finding users with a high sale conversion rate.
Using email lists
Facebook can use email lists you have already uploaded.
For example, you have an email list of around 10,000 people. Facebook will then go on to match those customers to Facebook users who are similar in interests and attributes.
Prepare Virtual Assistants (VA’s)
No matter how well your new products have done in terms of trial advertising success, making sure your VA’s are up to speed with product lines and launches is crucial.
Your VA will need to know details on cost, shipping times and also have access to all the product details in order to successfully take and process orders.
Ensure stock with suppliers
Making sure before you scale that you have a reliable and reputable dropshipping supplier on board is critical to the success of your scaling process.
It’s crucial that your suppliers have enough stock and can grow your product line with you.
It could cause unlimited customer service issues if you can’t service the orders successfully, which could seriously harm your brand.
4. End of the Incremental phase
Once you’ve reached the conclusion of your testing phase, there will be a couple of options depending on the success of the campaign.
If it’s done well, then consider replicating the ad set with a new geo/language group or if see a performance decline, consider the following:
- Change price: a lower product price might convert better (get you more sales).
- Consider different offers such as ‘bogof’ or ‘buy this product get one for half price
- Duplicate your ads into another geo
And to finish on…
So there you have it! Everything you need to know to get started straight away and all the information you need on how to scale a winning dropshipping product!
Don’t forget to check out our blog section for more information on how to get the best out of your dropshipping venture, tons of industry information for beginners and experienced shippers alike plus everything you need to build your empire!