Be careful of what you see in earnings report

Tools of the trade E-commerce
#1

I calculate all the time. And here’s something i discovered.

When i see the numbers, screenshot posted, i get very cautious, because those numbers might just be a big fat lie.

This just hit my inbox while i was doing a calculation, on how much is on the surface vs how much is the net profit.

I’ve also found alidropship, which made me started a little into dropshipping. I won’t call it successful just yet so i didn’t wanna go all neg about it.

But what caught my attention is their journey and also other’s journey posted in their forum. Why am i so skeptical of it now? Because i’ve run some numbers.

So a guy there claim to have earned 10k in 2 months. Is it do-able? I don’t doubt it. But when you dig further into the cost of goods, shippping, and then ROI, i just highly doubt it’s running at a very good profit. We’re talking about net profit, not gross sales. His gross sales is 10k, his net sales may be just very minimal.

Then on the owner of the plugin, in his case studies, the item is sold at around 5 or 6$, and the COG+shipping of it is 5 or 6 as well. What is his net profit? 0 to 1$ per customer. So how many customers do you need to aquire before you hit 1k ? well, 1k it is. If you need to aquire 1k, what is the numbers you need for 10% CR ? 10k customers. Now run the campaign solely on shoutout, each shoutout cost 25$ minimum, and times that with how many shoutout you need to run to get that CR.

When questioned about their net profit, they either ignore it, or gave vague answers.

I’ve ran some test on the majority of his niche, using the same method, and only 1 niche made me 2 sales. Can i make more? Yes i can, by lowering the cost of it to bare minimum and that means almost 0 profit due to competition and etc.

// I dont doubt what it can be done on dropshipping, but the numbers may just be a marketing ploy to get people to buy their product. The guy who earned 10k in 2 months is also selling his site claiming it has now made a total of 24k. Gross sales, remember, not net profit.

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#2

well you are missing a lot of stuff tbh.

There is no way to get only 1$ profit per customer/order/product if you are dropshipping, if you do, you are doing something pretty wrong.

10% CR, for real, where are you getting that number? You better forget it asap

Shipping fees? nope thats free. That’s the point to not pick any random ali supplier

Paypal/stripe fees, yup we’re okay about this.

About the shop you are looking at, this dude went into this niche before the other 90% nerds on instagram so yea, the market was open at some point when he started, doesnt mean you are supposed to get the same numbers, or even any numbers at all. He did also target the perfect accounts at the right time

I know this dude, and trust me, selling his shop right now is a very smart move

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#3

Sure, i’m just making my own guess here on lots of things. But there’s no good explanation on how you can get a high net profit out of a 5$ sales with COG of 5$. The bracelet, in which case the original owner of the plugin is doing with his case studies, is sold at 6$ and the bracelet cost 5 inclusive of epacket.

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#4

Was that the only product he was selling?

Lots of people make their profit in the long term by upselling or collecting emails for future campaign blasts.

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#5

80% of his sales are hoodies, which are sold at 49.99 and bought at 12-20$

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#6

But yes to get back to that post’s subject, taking numbers how they come, is bad, you have to take in consideration a lot of fees/factors, that’s right, pretty much same thing for anything which is involving commerces/e-commerces

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#7

Exactly! Very nice topic. Also important for every massplanner User (proxy costs, numbers, accounts etc…)

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#8

This is what matters, not the fake screenshots, its the bottom LINE. This is your bread and alcohol.

I lol’d at this, cuz it’s true. But yes each and every person has a personal ROI. I can tell you that mine has varied wildly in the last 6 months. What was acceptable then is not acceptable now.

Great read, thanks for posting!

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#9

On a side note, does anyone have the code for wheelio? It would be awesome to create my own, instead of paying $15 a month for it.

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#10

Well, wheelio itself is good as it’s original. I probably wont look for alt, although i also dont like paying for apps as that will add up expenses.

The basic concept is exit intent, which there are plenty of free option, but wheelio did have a leg up for some features that’s not avail on a regular exit intent.

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#11

I have never purchased a plug in for shoppify, is it simple code that you add to your site? Or is it a an actual add on that you must have a sub. for?

#12

The subscription is separate from shopify’s monthly plan and you pay directly (as per the apps monthly), shopify handles the automatic payment.

It uses it’s own internal API and everything is linked.

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#13

Bummer. There are a lot of good exit intent sites out there. I like the novelty of wheelio, it definitely captures your attention.

#14

When it came out, 80% of the dropshipping sites (of which is advertised to me and i spied some) changed to using this lol.

Plus, this guy is the one that created the free countdown timer and i bet you’ve seen it on 99% of the ecomm sites.

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#15

Honestly just starting to dabble in e-com. I have multiple intitatives I am working on. I’ll have to checkout the countdown timer as well.

#16

It’s 100% possible.
I work with " alidropship " to.
I don’t earn any money (yet).

But all products are free shipping worldwide from aliexpress.
You can setup good price formulas like
0$/5$ X 2.3
5$/10$ X 2.5
10$/15$ X 3
Just an example.

The most important thing is the quality of your products. Title names/text/pictures and how your site looks.
To earn xx.xxx$ per month you need x.xxx / xx.xxxx daily traffick.

If i was the owner of that site and earn xx.xxx$ monthly i would never never sell it, but thats me :wink:
Why you should promote CPA offers for a maybe 7% profit ?
While you can send them to your shop and earn 100% profit + use the mails again & again.

#17

It’s nice to see so many people here start their dropshipping journey. By the way, what happens to CPA journey of you guys?? Do you still do it?? How much time do you guys dedicate to ecommerce?

I myself do not use shopify. Lol It is expensive. I just sell in marketplaces and social media. Scrape product using my own bot, post products using my own bot. Yummm… No monthly fee and transaction fee for hosting. Just paying salary for my cheap employee to answer customer queries and do some accounting.

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#18

Sounds like a nice strategy you got there. I am still doing CPA btw and I still not a lot of guys, it is definitely not dead yet. I am planning on creating something more long-term though right now, which I guess will probably start being very lucrative in a minimum of 6 months, but I can wait! :slight_smile: