A little background: I've never had any experience with ecommerce before but was always interested so I started my first store about a month ago. Since it was my first, I decided to go the dropshipping + shopify + running ads route to test things first and minimize my risk. My goal is to build a brand with sustainable business.
The results were surprisingly good and it's been profitable everyday. The products are from a sourcing agent in China with somewhat decent shipping timeframes (5-12 business days to the US). The products I sell are unique because you can't find it widely available at retailers in the western world yet and I do a pretty decent job in branding.
I've only been running & scaling ad campaigns for only one product, which makes up the majority of my sales. The campaigns are SALE ads (XX% off for a limited time/holiday sale). I also have available a small selection of complementing products listed that people occasionally buy together with the most popular product.
A few things currently in the works:
- Starting to work on content marketing for SEO
- Listing more products, ordering them and taking my own photos
- Run ads for other products, but just breaking even because CPM is crazy right now. Maybe I'll try again in a couple weeks time.
- Incorporating a limited liability corporation
- Setting up email marketing (I think I would be using Klaviyo)
Now I'm thinking ahead for the next few months after holiday season is over:
- I know I probably should take off the sale ads since it does say limited time/holiday sale, but I think my revenues would drop when ads show products are at regular price. It's so tempting to keep running this campaign but run the risk of eroding customer trust and seeing less profits. Any advice on this?
- Should I start white labeling and looking into custom packaging for my most popular product? It comes in a clear plastic wrap right now….
- Do people typically "grow out" of this dropship phase and move on to a different model or is working with a dropshipping sourcing agent sustainable in the long term?