Page 1 Table of Contents Copyright Notice & Disclaimers ……………………………………………….. 2 Introduction ……………………………………………………………………………… 3-4 Part 1: How to Find Winning Dropshipping Products ……………… 5-13 Part 2: How to Build and Optimize a Shopify Store …………..……… 14-26 Part 3: How to Create Engaging, Successful Video Ads ……………. 27-31 Part 4: How to Launch and Scale Facebook Ads …………………….…. 32-55 Conclusion ……………………………………………………………………………….. 56 Page 2 Copyright © DropshipBetter 2023 | All rights reserved Page 3 Copyright Notice & Disclaimers for DropshipBetter ALL OF THE CONTENT IN THIS E-BOOK IS PROTECTED BY INTERNATIONAL COPYRIGHT LAW. You will not use this e-book, our website or the Services found in our website, including any of DropshipBetter’s related technologies, for any commercial use without DropshipBetter’s express prior written consent. If after reading the additional notices below you require any more information or have any questions about our disclaimer, please feel free to contact us by email at ken@dropshipbetter.com. All the information on this website - DropshipBetter.com - and in this e-book is published in good faith and for general information purpose only. DropshipBetter.com does not make any warranties about the completeness, reliability and accuracy of this information. Any action you take upon the information you find on this website (DropshipBetter.com) and in this e-book, is strictly at your own risk. DropshipBetter.com will not be liable for any losses and/or damages in connection with the use of our website and this e-book. From our website and this e-book, you can visit other websites by following hyperlinks to such external sites. While we strive to provide only quality links to useful and ethical websites, we have no control over the content and nature of these sites. These links to other websites do not imply a recommendation for all the content found on these sites. Site owners and content may change without notice and may occur before we have the opportunity to remove a link which may have gone 'bad'. Please be also aware that when you leave our website or this e-book, other sites may have different privacy policies and terms which are beyond our control. Please be sure to check the Privacy Policies of these sites as well as their "Terms of Service" before engaging in any business or uploading any information. Consent By using and reading our website and/or e-book, you hereby consent to our disclaimer and agree to its terms. Update Should we update, amend or make any changes to this document, those changes will be prominently posted here. Legal & Earnings Disclaimer We make no promises, suggestions, projections, representations, or guarantees about future income. We have not authorized any such projection, promise, or representation by others. You must obtain advice on taxes from a tax professional. You must obtain business formation, legal and patent/trademark advice from a legal professional. We take no responsibility for any information given that falls under those categories. We offer no guarantee of success, monetary or otherwise, and assume no responsibility for any time or money spent in relation to this e-book, website, courses, products, advertising, etc. Page 4 Introduction If you’re reading this e-book right now, it’s because you’re interested in dropshipping and want to learn how to successfully create and scale Shopify dropshipping stores. Now, you probably know a little bit about dropshipping and how it works. But you’ve probably only dipped your feet into the world of dropshipping before. You might be scared to lose money. You may feel like there’s too much information out there and you don’t know what to follow. That’s why we’re here to change all that. We’re DropshipBetter, and we cover the latest dropshipping strategies, tips and news. We also have an Instagram that publishes helpful content. While we love to educate others currently, we’ve also been dropshipping ourselves for years and have learned a thing or two along the way. We created DropshipBetter to simplify things, cut out all the fluff and only give you what matters. We want to not only help you make sales but make PROFITABLE sales. We want to give you the tools and resources to take you from someone with desire to be a successful dropshipper to someone who actually is a successful dropshipper. So what is dropshipping anyway? If you’re reading this, we assume you know. But just to make sure we’re all on the same page, we’ll review quickly: There are large manufacturing and distribution companies who wholesale products. What does this mean? It means they produce and sell in large quantities for very low prices. These companies are great at producing and shipping products. But they’re not too great at marketing. That’s where you, the dropshipper comes in. Essentially it looks like this: you’ll create a Shopify store for a product or several products. For simplicity, we’ll call it “Product A”. You’ll list “Product A” on your Shopify store and you’ll run Facebook Ads to your store to generate store traffic. You’ll list “Product A” for a higher price than you could purchase it from these wholesalers. When someone buys your product, you’ll order it from the wholesalers for that cheaper price, and you’ll keep the difference. It boils down to this: Product Price - Ad Costs - Product Cost from Wholesaler = Profit. Makes sense? Now that you have a solid understanding of the business model, we’ll walk through what exactly we’ll be covering in this e-book. Page 5 DropshipBetter’s 4 Part System for Dropshipping Success Part 1: How to Find Winning Dropshipping Products ● Getting the actual ideas for products ● Using DropshipBetter’s 5-Star Dropshipping Test Part 2: How to Build and Optimize a Shopify Store ● Choosing an enduring niche ● Creating a brand name and logo ● Creating a Shopify store ● Optimizing product pages Part 3: How to Create Engaging, Successful Video Ads ● Sourcing video clips ● Editing video clips Part 4: How to Launch and Scale Facebook Ads ● Setting Up Facebook Assets ● Calculating Profit ● Launching Your Ads ● Actually Running Facebook Ads Simply put, this e-book will be jam packed with value. If you read this entire e-book, follow our strategies, and put in the hard work, you can absolutely increase your chances of making some serious profits with dropshipping. So, ready to get down to it? Let’s GO! We’ll kick things off with Part 1 in the next chapter where we’ll teach you all about how to identify potentially winning dropshipping products. Page 6 Part 1: How to Find Winning Dropshipping Products The simple fact of online business is that not all products are created equal. Some products sell better than others. In fact, when you go on Amazon.com or Walmart.com, why do you think they have certain products displayed on the very first home page? Because they’re selling well of course! And here’s the thing - product selection is a skill. In fact, it’s a skill that can be taught, honed, and improved. If we can train this skill, we can have a much better chance of finding products that sell much better than others. What’s generally called a “winning” product in the dropshipping world. In dropshipping, we really believe it can be broken down into two main skills: product selection and marketing. Sure, there’s other things to think about as well but for simplicity's sake we think it’s best to focus on these two. For product research, there’s tons of strategies and ideas out there on how to find the best products. But the problem is that most of these research methods can be time-consuming, expensive, confusing or even all the above. So in order to maximize your ROI (in terms of both time and money) from product research, we just need to focus on the best and most effective method. The method that’s going to bring us the highest amount of potential winning products in the least amount of time. Our favorite method for this can really be broken down into 2 simple steps: 1. Getting the actual ideas for products 2. Using DropshipBetter’s 5-Star Dropshipping Test Both of these steps are crucial when it comes to finding winning products, so let’s dive into each step individually. Page 7 Part 1: How to Find Winning Dropshipping Products Step 1: Getting Product Ideas For this step, you really need to focus on asking yourself two questions. First, where do you plan on advertising the product? And second is what products are proven to sell in that space? To answer the first question, the answer is usually going to be that you’ll be advertising on Facebook and Instagram. These are the social media platforms where people ready to buy are spending the most time and therefore these are normally the best platforms for dropshippers to advertise on. To answer the second question, we can use a few different strategies to figure out what exactly is selling well right now. In our opinion, using these strategies to figure out what is already selling is the best strategy. This is called “ad spying”. So how do you actually do “ad spying”? Let’s go over a few major methods. Method 1: Scrolling Through Instagram and Facebook (Part 1) This method probably seems too simple, yet it continues to be both incredibly effective and underutilized. Reread that first sentence, because it’s not too good to be true! From experiencing this ourselves to talking with many other dropshippers, scrolling through Instagram and Facebook (with the intent of paying most of your attention to sponsored posts) continues to be surprisingly effective. For example, one reason is that Facebook loves when you use their platform in its intended way. Facebook makes money from you using their social media apps and showing you targeted ads. If you use the platform in its intended way (instead of using software that scrapes the platform), then you’re legitimately using a technique that not a lot of other people think to use for finding products. Simply scrolling through Instagram and Facebook (with the intent of paying most of your attention to sponsored posts using to find products) makes you more likely to be one of the few people who discover products in very early stages that have a ton of potential for you successfully dropshipping yourself. Method 1: Scrolling Through Instagram and Facebook (Part 2) Now here’s how to really go to the next level with this method and see the absolute highest quality ads (and therefore the best dropshipping product ideas) with scrolling through Facebook and Instagram. First, download Google Chrome here. Next, download the Facebook Pixel Helper Chrome extension here. We’re neither affiliated with Google Chrome nor Facebook, and also, both of these are completely free to download. Page 8 As a quick note, we want to take a moment and actually let you know that there’s not a single affiliate link or sponsorship in this entire e-book. From this, be assured that any and all of our recommendations for resources are 100% genuine, free, and chosen because we would actually use them if we were in your position. Okay, now let’s get back to us helping you. After downloading both of those, return to Facebook on your computer. Click on ads in your feed until you stumble upon a store that looks like it is dropshipping. On that store, first make sure (if you have one) to completely turn off your ad blocker Chrome extension for this whole process. Next, add the product to cart and then go to checkout. On the checkout page, click the Facebook Pixel Helper Chrome extension and open up the details of the “InitiateCheckout”. Next, copy the number between the brackets of “content_ids:”. Next, replace the X in the following script with the “content_ids:” number. Also, replace the Y in the following script with the total amount in your cart. fbq('track', 'Purchase', { content_type: 'product_group', content_ids: '[X]' , value: Y, num_items: 1, currency: 'USD', }) So for example, the store in the pictures below shows: content_ids: [4452944838692] and we are trying to spend $56.99. We would copy 4452944838692 and substitute it for X, and we would copy 56.99 and substitute it for Y. Therefore our new and final script would be: fbq('track', 'Purchase', { content_type: 'product_group', content_ids: '[4452944838692]' , value: 56.99, num_items: 1, currency: 'USD', }) (Below are some images to help you see what we’re referencing) Page 9 Next, right click on the checkout page, and press ‘Inspect’ and then press ‘Console’. Then, paste your script and press enter to fire the purchase event on that dropshipping store. Congrats! By doing this, you have just told Facebook that you're one of the rare and valuable users that actually spends money after seeing ads on their platform. Because of this, Facebook will more frequently show you ads of dropshipping products. Next steps are to go back to your Instagram and Facebook feed and keep scrolling! You’ll be seeing more dropshipping ads than ever, and be well-positioned to uncover some great product ideas. Method 2: Searching Facebook This also is a great free method for product research. It’s very easy to do, doesn’t require any paid tools and is relatively effective when it comes to finding great products. So here’s how you do it. You know how it normally seems like many Facebook ads use similar words or phrasing? You can easily capitalize on this! In the Facebook search bar, simply search for common phrases used in ads like “free shipping”, “50% off” etc. Once you search for this, you’ll even be able to sort videos by month to ensure these videos are current. As a result, many of these products you’ll see will be people who are dropshipping. To make this method even better, you can click on lots of these ads and spend some time on the website of each product (this is a simplified, less effective tip than what we just explained for how to fire the purchase event on a dropshipper’s store). With Facebook’s advertising pixel, it will pick up that you’re interested in these types of products, and make it more likely that Facebook will show you an ad like this in the future. Overall, when it comes to product research for dropshipping, searching Facebook is definitely one of the best free methods to get started. So there you go! 2 amazing methods to get you amazing product ideas. Now that we’ve covered all of this, we’ll move onto step 2 for finding winning dropshipping products. Page 10 Part 1: How to Find Winning Dropshipping Products Step 2: DropshipBetter’s 5-Star Dropshipping Test There’s a lot of information relating to step 2 so be sure to pay attention. Here’s how it breaks down. Step 1 gets us a list of possible product ideas. Step 2 validates if those ideas are worth pursuing. Now that we’re on step 2, we have to decide which possible products that we found in Step 1 are actually worth pursuing. So how do we do that? We call it the “5-Star Dropshipping Test”. We call it this because we believe great product research boils down to asking 5 different questions, and a star has 5 points. If the product has correct answers to most of these questions, it really might be a “winning” product. We’ll list the questions below, and then we’ll jump into each one. DropshipBetter’s 5-Star Dropshipping Test Questions 1. Does the product solve a genuine problem? If no, does it have a “wow” factor? 2. Is there content available you can use? 3. Can you sell the product at 3 times the AliExpress price? 4. Are the product reviews/comments mostly positive? 5. Is there a private label brand already doing very well? Now that we’ve listed the questions, let’s dive into each one. Question 1: Does the product solve a genuine problem? If no, does it have a “wow” factor? Why do you buy a skin care product? Because it gets rid of your acne. Simply put, people usually buy products because it solves a painful problem for them! Generally speaking, products that solve a problem usually sell best. However, not ALL products have to solve a problem to be successful. Some products can be funny or trendy and still generate millions in revenue. So while this isn’t the MOST important question to think about before testing a product, it’s absolutely something you should be thinking about. An example of a product that doesn’t solve a problem, but does have a wow factor is clothing. Many dropshippers have done incredibly well selling trendy designs that really make their customers feel stylish. Page 11 Whether you’re considering if a product solves a problem or has a wow factor, the final yet optional consideration is if the product seems relatively “new” and has only been around for a year or less. This isn’t required by any means (plenty of dropshippers have “revived” products that were seemingly too old or saturated) but it definitely helps. Why? Because you’d be selling a product that not many people already have, so there’s a greater likelihood of them buying vs. a product they already own. Also, it helps because if a product is new and people haven’t seen it before, ads of that product are more likely to get their attention since they’re curious. Question 2: Is there content available you can use? This question is very important, as creating content can sometimes be one of the important yet time-consuming parts of dropshipping. Basically, this question is exactly what it sounds like. Does the product you’re looking at have non-copyrighted content that you’re allowed to use for Facebook ads? This will save you tons of time in creating your own Facebook ads. To check if there’s content available to use, you can review a few different sources. First, check out the product listings on AliExpress. Often, the suppliers post plenty of pictures and a few videos, which generally are copyright-free in the sense that you have permission to use them commercially (for example, in your product listing or in your ad on Facebook). HOWEVER, just because they have content on their page, this actually doesn’t automatically mean that it’s not copyrighted... Some suppliers actually steal content from dropshippers who generate their own content, and put it on their AliExpress listing, thereby pretending that they took the photos. In these cases, you absolutely do not want to use that content. It can definitely be tough to identify these situations, so make sure to do a little extra research that the content on the AliExpress listing truly is not copyrighted. Some other resources for content are YouTube and Facebook. Both of these platforms have tons of content at your disposal. Simply search the product name and you’ll most likely find something. However, we still encourage you to check that the content is either NOT copyrighted or that you can get explicit permission to use it. If you have a little extra time on your hands, then the best way to get content for your ads and product photos is by shooting it yourself! Phones these days have incredible cameras, so check if there’s fast shipping from Amazon/eBay for the product you’ll be trying to sell, then order it, then take as many photos/videos as you want! You will not have to worry about any copyright issues in this case, because you just generated (and thereby own) all that content yourself. Page 12 Question 3: Can you sell the product for at least 3 times the AliExpress price? As a heads up, all mentions of ‘$’ or ‘dollars’ throughout this e-book refer to USD. Alright, let’s get back to the pricing of your products. When you find a product on AliExpress, you may be surprised at how cheap it is. But keep in mind, this is NOT the price (or really even close to the price) that you will be selling it for. Remember, in order to dropship you need a healthy margin. What’s “margin”? Basically, when you sell a product for a certain price (say $20), you need to buy it from AliExpress (say it’s $5). However, in order for someone to buy it, you need to spend money on Facebook Ads! If you spent over $25 on Facebook ads before someone buying this product, you’ll be losing money! As you can see, if you’re not pricing correctly, it’s very easy to lose money, even if you’re making a sale or two. So what’s the best way to ensure you’ll still make money and have a good margin? Selling your product for at least 3 times the AliExpress price. Basically, if you buy a product on AliExpress for $20, can you sell it for $60? As a quick note: when we say “AliExpress price” this means the cost of the product plus its shipping cost. So an “AliExpress price” of $20 may be $20 because the product costs $15 and then shipping to most countries costs $5. So, in this section, we’re referencing that the product cost + shipping cost = AliExpress price. Another quick note is that shipping prices will differ for different countries. Because of this, simply average out the AliExpress standard shipping cost (this is currently a faster, better method than ePacket) between a few countries like the USA, Australia and Canada, and use that as your “shipping cost” for these calculations. This pricing rule is a rough estimate, but we HIGHLY advise beginners and even most intermediate dropshippers to stick to this rule. This will highly reduce the likelihood of you losing money while dropshipping. To figure out if you can reasonably sell this product for ~3x the AliExpress price, check what competitors are doing and ask yourself if the product is truly worth the higher price. One last consideration for this test is to analyze your own selling price. So, after you multiply the AliExpress price by 3, do you end up with a selling price around $25-$60 USD? If you end up with a selling price below $25, it’s generally best to simply list that product for $24.99 in your store. This is because we’ve seen a common theme: when sellers dropship products for ~$5 on AliExpress and sell them for $15, “winning” products may only lead to ~$3 in profit per sale. Even though this is a 20% profit margin, you’d have to average 33.3 units sold every single day, to profit $100 daily. Overall, a selling price below $25 is generally not worth your time, and it’s simply more efficient to price the product higher, because you’re likely to achieve a higher profit margin, your sales will be worthwhile, and you won’t see too large of a drop off in conversion rates. Now, all of that was an over-simplified explanation of a common theme, but you get the point. Page 13 If when you multiply the AliExpress price by 3 you calculate a selling price above $60, we recommend looking for a more inexpensive product if you’re really just starting out with dropshipping. This is because higher-priced products are a little more challenging to sell and also require more capital to properly test (think of this as higher-risk, higher-reward). Consider dropshipping more expensive products when you have already generated yourself some profits, and have more experience. Question 4: Are the product reviews/comments mostly positive? This one is big. Look at what customers are saying about the product on AliExpress, and on dropshippers’ ads. On AliExpress, for a given dropshipping product you’re considering , the best listing to use generally is the one with the most orders. However, you also want to make sure that all of these criteria is met on an AliExpress listing: ● The AliExpress supplier has been around for at least 2 years and has a 95%+ rating ● There’s at least 300 orders on the product ● There’s at least 50 reviews on the product, and then if you sort the reviews by “Latest”, there doesn’t appear to be an influx of negative reviews (if there is, that generally means a lot of the initial reviews were faked, and that this whole time the product should actually have a much lower review rating) ● The average rating of the product is a 4.5 or above If all of these criteria are met, then the supplier is generally trustworthy and can fulfill your orders, while the product itself also is a high enough quality to sell. If all of these criteria are met AND there are more than 2000 orders on the most popular listing of the product, this helps support that there is plenty of demand to try and sell the product. The other check you’re going to want to make is on dropshippers’ ads. With these, there’s one surefire way to tell if their product isn’t worth selling, and that’s by looking at the comments on the ad. If it’s lots of angry customers claiming the product doesn’t work/is extremely low quality, then definitely be wary of selling the product (in this consideration, disregard the comments about too long of shipping times/lack of communication because that is an indication of poor customer service rather than a low-quality product). On the other hand, if the comment section is full of positive remarks, the product is likely a high enough quality and the store is probably doing great! It’s pretty simple, if people like a product enough to comment a positive message or leave a positive review on your ad, it’s probably a good product. Not all of these tips are rocket science! Page 14 Question 5: Is there a private label brand already doing very well? This is an incredibly important question, especially with the rise of DTC (direct-to-consumer) e-commerce brands. There are some generic products that are now heavily branded. Take a UV teeth whitening mouth guard set. About 4-5 years ago, this was a VERY popular product to dropship, and we don’t doubt there were 100s of dropshippers that made great money doing it. However, a few months into the craze, a brand called HiSmile popped up. HiSmile had done something interesting. Although they were selling the same (or a very similar product), they had branded themselves. Their products and packaging had their logo all over them. They grew insanely quickly and soon had celebrities promoting them. They had moved from dropshipping to holding their own inventory and were soon doing millions of dollars in revenue per month. They became the GO-TO brand in the industry for this product, causing the copycat dropshippers to become very unprofitable and quickly fade away. Now here’s the question. Do you really want to compete with a company like this? A company doing $2 million+ in revenue per month? A company with a 6 figure marketing budget for Facebook ads? We don’t think so. Overall: Make sure there’s no incredibly huge private label brand for whatever product you want to dropship. At the same time, don’t worry if it seems a couple dropshippers are doing well/scaling a product that you otherwise would be extremely confident in selling. Because even in that instance, there can still be space for you to compete, as long as your advertising and product page is high quality and differentiated (don’t worry, we have sections about both of these later in this e-book). So there you have it. Ask yourself those 5 questions! If you get great answers for all of them (or at least 4 out of 5), it’s probably a good product to test with some Facebook ads. But before putting the horse before the carriage and start talking about advertising, let’s move on to the next chapter and learn about starting your Shopify store! Page 15 Part 2: How to Build and Optimize a Shopify Store Now that we’ve talked about product research, we’re going to get into the nuts and bolts of actually building and optimizing your Shopify store. Obviously, this part is important. Without Shopify and a good website, you could have the best product in the world, the best Facebook ad strategy out there — but you won’t sell anything. So pay attention, and we’ll show you a simple 4-step process for how to get a great, high converting Shopify store as quickly as possible. We’ll make this simple. We’ll list the 4 steps, then jump into each one and break down exactly how to do it. Sounds good? Let’s get started. DropshipBetter’s 4-Step Shopify Store System 1. Choosing an enduring niche 2. Creating a brand name and logo 3. Creating a Shopify store 4. Optimizing product pages Now that you know the steps, let’s dive in. Page 16 Part 2: How to Build and Optimize a Shopify Store Step 1: Choosing an Enduring Niche So what is an “enduring niche”? Simply put, it’s a niche with products that sell well year-round. But to really know if it’s a good niche to enter, there’s 3 main questions to ask yourself. Question 1: Are there multiple “winning” products that have been sold in this niche in the past? If you followed along during our last chapter, you know what to look for, to ensure a product would be great to dropship. And if you really study different products, you’ll see that a lot of them fit into different types of niches. If you can find multiple past winning products in a niche, there’s a good chance that it’s an enduring niche. Question 2: Will this niche stay around long term? If this niche is just a fad, it’s probably a bad niche. Fads fade quickly. And fading quickly equals less potential profits over the long term, and that (generally) is just not worth your time. Question 3: Can you become a real brand within this niche? Can you see yourself selling products in this niche 2+ years rather than just 2 months? Ultimately, your goal in dropshipping shouldn’t be to do $20k in sales with 15% margins on time. It should be to build brands, stay in dropshipping long term, and eventually cross the 7-figure mark. Our Favorite Niches Now that we’ve gone over some good questions to ask yourself before choosing a niche, we’ll list a few of our favorite niches. Now these niches are quite popular — so it doesn’t necessarily mean they’re the best for a beginner to get into. But it’s definitely possible to make money with these niches, and at a minimum looking into them can help you brainstorm even more ideas. So, here’s a quick list of those niches: 1. Home Decor 2. Gardening 3. Beauty 4. Fitness 5. Hobbies 6. Pets 7. Babies Page 17 Part 2: How to Build and Optimize a Shopify Store Step 2: Creating a Brand Name and Logo Now that we’ve chosen our niche, let’s go over the best way to construct a brand name and create a logo. Brand Name This is relatively simple in principle but can be tough to get right. Simply put, you want to choose a brand name that’s memorable in some way. For example, if you can put two words in your name that rhyme, that usually works well. Or maybe you can put two words together that start with the same letter so you get the benefit of alliteration. Another tip. If you can fit the name of the niche in your brand name, it can help convey you as the expert in the niche. Overall, all of these tactics work VERY well for having someone remember your brand name. This is helpful because let’s say someone sees your Facebook ad, is interested in your product, but doesn’t buy immediately. How do they find your product again? By looking up your brand name of course! If customers remember your brand name, you’re guaranteed more sales! Brand Name: Examples To help get you thinking, we’ve included some brand names and some analysis on why it’s probably a great brand name. buybuybaby.com → Immediately know what types of products they have. Uses the word to establish as authority in the niche. foresidehomeandgarden.com → You know exactly what kinds of products they are selling and it includes a “brandable” first name that you will probably remember their product by. fashionnova.com → This is great because it uses the name of the niche. This makes it both memorable and conveys authority. Logo Creating a logo is MUCH easier than you think. Some of the biggest brands in the world have very simple logos. For a dropshipping brand, you don’t have to go crazy at all. Honestly, keep it simple and don’t overthink it. A simple black and white logo with a picture or shape is fine, but if you want to add a little color, you can do so without a problem as well. So how do you make these? We highly recommend canva.com. Hands down the best tool out there for creating logos. You can create an account for free, click “create logo” and use one of their templates to create a great logo in as little as 5 minutes. When you create your logo, we recommend using a height to width ratio of 4:1, and a size around 1000x250. There’s plenty of other options as well, so just go on canva.com and decide what works for you. After you’re done, Page 18 just download as a PNG file using the little download button in the corner and you’re all set. Another great free website is logomakr.com. If you have a little more money to spend and want to make an even better logo, check out fiverr.com. Just make an account, search for “logo designer” and higher a logo designer for $5-25. You’ll tell them what you want, they’ll make some samples, you choose one and you pay through the site. Logos aren’t rocket science, so this pretty much covers everything you need to know. Now that we have this covered, let’s move onto step 3. Page 19 Part 2: How to Build and Optimize a Shopify Store Step 3: Creating a Shopify Store Creating your Shopify store is very easy once you get the hang of it, but beginners often struggle with it. You’ll have to go to shopify.com and create an account. It’s a little difficult to explain all the steps through an e-book, so follow along closely. Also, feel free to search YouTube for videos that explain the process as well. Check out the list below to understand the ins and outs of creating your Shopify store: Choosing and Importing Products There’s no way to make sales unless products are imported to your store. So let’s get started! 1. Visit Shopify.com and click “Start free trial” 2. Fill in your information, answer Shopify’s questions, and create your store 3. You should now be looking at your Shopify dashboard, which looks like this: a. b. We’ll be referencing the Shopify dashboard a few more times going forward, so don’t forget what it looks like! Also know that you can visit this dashboard at any time by visiting: YOURSTORENAME.myshopify.com/admin i. And just to clarify, “YOURSTORENAME” should be replaced by what you chose for “Your store name” when you signed up: ii. Page 20 4. So you’re still looking at your Shopify dashboard, and now click “Apps” 5. Click on the “Oberlo” app and install it: a. 6. Also install the Oberlo Google Chrome Extension: Link 7. Visit AliExpress.com and search for the products DropshipBetter recommends or the products you found that pass the DropshipBetter’s 5-Star Dropshipping Test from searching around on Facebook 8. After entering the keyword of the main product in the search bar, sort by “Orders” and check out a few of the listings 9. Focus on suppliers that have 95% Positive Feedback score or higher (this can be found by hovering your mouse over the supplier name) 10. Identify the listing with the best combination of lowest fulfillment cost (product cost + AliExpress standard shipping cost) and highest customer ratings 11. Import that product to your Shopify store by clicking on the Oberlo icon. After you installed the Oberlo Chrome extension, the bottom right of your browser should display the Oberlo icon we’re referencing 12. Let the product import, and once successful, click “Open Import List” 13. Uncheck variants of the product that you don’t want to sell (in the “Variants” tab in Oberlo) 14. Uncheck images of the product that you don’t want in your product page (in the “Images” tab in Oberlo) 15. Finally, click “Import to store” button Editing Your Shopify Store Settings Next, we need to make sure your store can accept payments, has the right policies, and more. We’ll start with just returning to your Shopify dashboard. Next, press the “Setting” button in the bottom left corner: You’ll be taken to a page, and be looking at a 3 by 5 grid of 15 different settings. We’re going to proceed to edit some of them right now: 1. General a. Choose USD as currency b. Put your brand name in “legal name of business” 2. Shipping a. Click “Manage Rates” and delete all rates b. Create one “Shipping Zone” of that is 1) free and 2) worldwide 3. Checkout Page 21 4. 5. 6. 7. a. Select “Customers can only check out using email” b. Select “Show a sign-up option at checkout” & “Preselect the sign-up option” c. Send abandoned cart email 1 hour after checkout Payments a. Set up Shopify Payments Legal a. Create the templates for the Refund and Privacy Policy, and Terms of Service Preferences a. Disable the store’s password Enter your credit card information and sign up for the $29/month Shopify plan. You will not be charged until the 14-day free trial is over Editing Your Shopify Store Pages Next, we need to make sure potential customers can easily navigate your store. So, first return to your Shopify dashboard and then, press the “Online Store”. 1. Create these pages: a. Contact Us - we recommend a great free app called Form Builder, which allows you to build a contact form that is simple and professional. Build a form with the app and then paste the code into the contact us page b. About Us - just write a few sentences. A good template is: i. We're a family-owned (Your Product) manufacturer composed of experienced, passionate, and visionary people. We take pride in the quality of our products and most importantly, the satisfaction of our customers. When you buy our (Your Product), you'll experience the (Your Brand Name) difference. c. Track Your Order - either create a page however you like, or you can press the “<>” while in the page editor, and then you can paste this code: <span style="font-weight: 400;"></span> <div style="text-align: center;"></div> <h4 style="text-align: center;"><img src="https://media1.tenor.com/images/cb936926d59302a4944281af827f 8992/tenor.gif" width="199" height="149" /></h4> <h4 style="text-align: center;">Depending on your country, one of these websites will allow you to track your order:</h4> <div style="text-align: center;"><span style="font-weight: 400;">1) </span><a href="http://www.ems.com.cn/english.html?spm=a2g0s.9042647.4.3.62ca 4c4dHJJYkB"><span style="font-weight: 400;">http://www.ems.com.cn/english.htm</span></a></div> <div style="text-align: center;"><span style="font-weight: 400;">2) </span><a href="https://track24.net/service/ALIEXP/tracking/"><span Page 22 style="font-weight: 400;">https://track24.net/service/ALIEXP/tracking/</span></a></div> <div style="text-align: center;"><span style="font-weight: 400;"></span></div> <h4 style="text-align: center;"><span style="font-weight: 400;"></span></h4> <h4 style="text-align: center;">Have you not received your Tracking ID yet?</h4> <h4 style="text-align: center;">Go to the "Contact Us" page and submit a request!</h4> 2. Edit the navigation a. For the Main Menu, add: Home, Shop Now (that links to your product), Track Your Order, About Us, Contact Us i. *Note: “Shop Now” can instead link to a collection if you want. However, if you want to focus on quickly getting your store up and running to test a product, then just link “Shop Now” to your main product when starting out. And then if your product starts getting a lot more sales, you can create a thorough collection of products that fits well with your store, and link “Shop Now” to that a. For the Footer, add: all of the main menu, and then add your policy pages Editing Theme Settings Next, we need to make your store appear more professional! Return to your Shopify dashboard, and then press “Online Store”. Let’s now choose a Shopify theme to use. More specifically, let’s try to choose a Shopify theme that is uncommon. This way, people who view your store won’t immediately think it’s a dropshipping store. If you don’t have a lot of capital, then Google “free Shopify themes” and try to find a theme that will fit well with your product. If you’re spending too much time in this stage with research, just download and use the free theme called Brooklyn (it’s generally known to be the best for most beginners’ stores). If you really don’t like the look of Brooklyn, then go with the free theme called Debut. Both themes are pretty well optimized for allowing you to effectively test the potential for any dropshipping product. And then if you’re considering spending money on a theme (which we honestly don’t recommend if you’re a beginner), you can buy a theme from Shopify’s store. So that’s what theme to choose. While you’re still in the “Themes” section, press “Customize” and then press “Theme Settings”. Proceed to make these edits: ● Home Page ○ Colors: mostly pick black, white, and gray. Can use green for buttons Page 23 Typography: We recommend Futura or Lato. However, feel free to use whatever font you want ○ Favicon: upload your logo or an icon that represents your store well ○ Currency: have default currency be USD ■ *Note: When you’re customizing the home page, don’t spend too long but actually make sure it looks clean. Only if your product starts to really sell, then sit down, add more sections, and perfect it ○ Header: Upload your logo with a transparent background Other Pages ○ Product: Select “Show quantity picker”, Select “Button” for Clicker Type, deselect Dynamic Checkout ○ Cart: Make sure cart type is “Page” ○ Checkout: Upload your brand’s logo and then center it. 1800x150 or a ratio of 12:1 works well for this image ○ ● Installing Shopify Apps Shopify Apps are critical to increasing your conversion rate, average order value, and providing a great customer experience overall. We recommend you really try to mostly use free apps! Here are some we recommend: ● Oberlo (Link) - Free and easily allows you to import products ● Auto Multi Currency Converter (Link) - Free, great currency converter that automatically switches based on visitor’s location ● Form Builder with File Upload (Link) - Free and allows you to easily create contact forms that are simple and professional ● Jilt email marketing (Link) - Affordable, effective abandon cart autoresponder and email marketing software ○ *Note: If you start becoming profitable with your product and want to take your email marketing to the next level, use Klaviyo (Link) instead of Jilt ● Judge.me Product Reviews (Link) - Free app, helps collect and show product reviews ● AliExpress Review Importer (Link) - Free and allows you to export reviews from AliExpress to your dropshipping product pages ● Ultimate Sales Boost (Link) - Free and helps to increase sales with urgency, countdown timer, trust, and more Now that your entire store is set up and ready to go, it’s time to move on to step 4. Page 24 Part 2: How to Build and Optimize a Shopify Store Step 4: Optimizing Product Pages So now that we have the Shopify store built, we have to focus on optimizing our product pages so people actually want to buy from them once coming to your store! Optimizing your product pages really breaks down into a few different areas: 1. Product title 2. Product images 3. Product description 4. Pricing 5. Reviews 6. Urgency and scarcity tactics Let’s dive into each so we can figure out how to optimize your product page for the best conversion rate. Product Title A product’s title should do two things: explain exactly what the product is/does and convey a higher value for the product. This is important because #1, you want your customers to know exactly what they are buying as this will increase the chance they buy. And #2, you’re obviously selling at a slightly higher price than the product can be found elsewhere so it’s important to convey this value. Let’s go over an example. Let’s say you’re selling a plush dog bed. A great name for the product on your site would be “Plush Dog Bed”. This clearly explains exactly what the product does to your customer. However, we also want to convey a higher value for the product. To do this, we could say something like “Calming Plush Dog Bed”. See how this works? By using this word “Calming” we were able to make the product seem higher value because it can help dogs stay more calm. It’s little tweaks like this that can absolutely increase your sales. Product Images We really believe that the best place for dropshippers to source copyright-free photos are on AliExpress. If you have a little extra time and money, feel free to order the product for yourself and generate your own content. So let’s say you decided to just use pictures from AliExpress. Try to find at least 3 high quality product images from AliExpress that either already are or can be cropped down to ~800x800 in size. Try to find photos without watermarks or unprofessional-looking text that display: 1) The product with a white background 2) The product being used (or simply worn, if it’s a wearable item) for its main purpose 3) The product being used (or worn) in another setting Page 25 Ideally you have around 5-6 high quality, professional photos for your product page. If your product has 2 or more variants, then either search for or create a photo that shows all variants side by side. This enables a consumer to easily compare and determine which color, size, etc. they like best. And before moving to the next section, remember again our earlier explanation that just because an AliExpress supplier has a picture or video on their listing, this actually does not automatically mean that it’s copyright-free. Some suppliers do steal content from dropshippers who generated their own content! So please make sure you do a little extra research and determine if the content on the listing truly is not copyrighted. Product Description There are few different strategies for product descriptions, but we like to break it down into two different strategies to keep things simple. If your product is a classic “problem solving product” then the first part of your product description should convey the negative situation that customers are currently in while the second part of your description should convey how the product will change that into a positive situation. If your product is not necessarily a “problem solving product” then we’d recommend talking about why your product is interesting, cool, enjoyable to use, or fun in a very engaging way. Basically the difference between these two is that in the first product description, you’ll present your description in a problem/solution format where in the second product description you wouldn’t. In your product description, you should also include bullet points of the product benefits, details and specifications. Lastly, a word on shipping. As dropshippers, we know products will take around 14-29 days to ship. This isn’t ideal. But the best thing we can do is be upfront about it! This will really help reduce customer complaints and chargebacks. Additionally, to reduce customer reservations before buying the product, we recommend a specific layout to explain your shipping times. It looks like the sentence below. “After placing your order, please allow 1-3 business days for processing. International shipping will then take about 12-26 business days for delivery.” As a quick note, you can only really use this statement if you’re solely targeting ePacket countries (we provide a list of these later, and recommend that as a beginner you only target these with Facebook ads when starting out). Overall, a description of your shipping times like this can help customers understand why your shipping times are longer than companies like Amazon, Walmart, etc. Page 26 Pricing Remember in the last chapter when we targeted about marking your products up? Great! Now is the time to put it into action. As a beginner (or even an intermediate), you should be pricing your product at least ~3x the AliExpress price, which is the total cost for you to purchase and ship 1 unit of your product from the AliExpress supplier to a consumer. Additionally, in order to convey that your dropshipping store is still offering good deals, we recommend using a pricing strategy that shows the product being marked down. You can do this by showing another price on your store with a line through it, to indicate the product is being sold at a discount. This shows that you’re offering a good deal and increases the chance that consumers may be willing to pay your slightly higher prices. Most dropshippers show the product price being 50% of their “compare at price” and an example of what this looks like (if the AliExpress price of a product was ~$12.99) in Shopify is: Reviews In today’s day and age of online shopping and e-commerce, reviews are extremely important when it comes to providing “social proof” for your product. It allows customers to see that other people have not only bought your product but also loved your product. Think about it. When you go to buy something on Amazon or another e-commerce site and you’re comparing products, what do you do? You check the reviews of course! In fact, when you go to see which supplier you should source from on AliExpress what do you do? You check the reviews and ratings! Clearly, reviews are king and can really get someone to buy. The best way to get reviews on your site is to use the Shopify apps we recommended from earlier. In just a few clicks, you’ve helped add social proof to your product listing, and really increased the chances of someone buying. However, there’s still some strategy we need to talk about: With these apps you can choose exactly what reviews you want to import and use on your site. We recommend importing 10 or more picture reviews that show the product being used out of the box. This will show that the product works well and the person using it clearly appreciates their experience with the product. Regarding what kind of reviews to exclude, you’ll notice that some reviews on AliExpress are written in broken English. It’s up to you to exclude those, but make sure to definitely exclude the reviews that mention “AliExpress” or the phrase “Seller Recommended” because that confuses potential customers, thereby discouraging them from buying your product. And finally, most dropshippers exclude any review that talks about the shipping time being 4 or more weeks. Page 27 Urgency and Scarcity Tactics Do you ever notice how many commercials on TV or sales in stores always stress that “Sale ends soon!” or “Low Stock, Buy Now!”. It’s because these tactics work! These tactics are called urgency and scarcity tactics. Urgency tactics use language that tries and gets people to make impulse decisions on buy now. Whereas scarcity tactics use language that stresses how few units are left to entice people to buy to get the product while the store still has it. While these tactics were first introduced in retail stores, you can absolutely use them in e-commerce to increase sales. So how do you do this effectively? Let’s walk through it. Urgency You can use language on your site that stresses how a “Sale is ending soon!” or by using language like “Buy Now!”. Ultimately, these are psychological tricks that will normally result in people buying more often. You can also use a timer on your store. Be as authentic as possible in all of these steps, and consider using a cart timer (which can be created for free with the Ultimate Sales Boost app we recommend earlier). With that cart timer, use a phrase like “Hurry, your cart is reserved for X time!” or “Hurry, use code Y within the next X minutes to get Z% off!” We believe timers are really only effective on the cart page (using it on the product page is generally unrealistic). This is often a very important tactic, especially when it comes to people making impulse purchases. Scarcity For this we recommend writing something like “Limited Stock!” or “Only Z left at this price!”. Again, be as authentic as possible in this step and don’t completely exaggerate anything. Doing this will allow you to more effectively entice people to buy it now rather than waiting or just simply disbelieving your claims. Remember, most people will enter your dropshipping store through a Facebook ad and thus the whole experience of seeing the ad to making a purchase is only a few minutes (and sometimes, under 60 seconds). You need to make sure you’re using language that increases the probability that someone will buy quickly. One final note about this section is that you really only should use urgency or scarcity, not both. Using both can really dissolve the trust of the consumer and make your offer seem low quality or confusing. Therefore, choose to only implement urgency, or just scarcity. Great! That wraps up everything you need to know about building and optimizing your Shopify store. If you do these things, you’re well on your path to dropshipping success. Now, let’s go on to the next chapter which actually reviews creating ads. Page 28 Part 3: How to Create Engaging, Successful Video Ads As we mentioned in the last chapter, as a dropshipper you have a finite amount of time to get people’s attention, get them to your store and have them buy a product. Most customer interactions with dropshipping stores work like this. Customer sees ad → Customer clicks on store → Customer brought to product page → Customer reads product description and reviews → Customer either purchases or leaves the site Now do you see why it's so important to have a good product, a great description and an optimized Shopify site? But here’s the next piece. You have to get that initial click. Once you get that initial click, you have a chance to convert the customer to a sale. But if you can’t get that, you’re out of business pretty quick. This chapter is going to teach out all about how to create engaging video ads that make people want to not only click, but want to buy! So how do we do this? Another simple 2-step system. With video creation, it’s pretty easy: 1. Sourcing video clips 2. Editing video clips Seems simple right? Well, it is! So let’s dive in and figure out how to best approach both of these. Page 29 Part 3: How to Create Engaging, Successful Video Ads Step 1: Sourcing Video Clips With the scope of the internet these days, it's quite easy to find good videos of a product you’re interested in testing or potentially selling. However, it’s important to make sure those videos are able to be used and won’t result in copyright infringement, or Facebook disabling your ads and/or your ad account. Simply put, the best resources for finding product clips are Google (so you can search AliExpress and Alibaba) and YouTube. So let’s go through each one. Google Google is an absolute gold mine when it comes to information. It has more information than you could ever possibly search for! For this reason, it’s a great platform to track down various clips. Below we’ll go over our strategy for making the most of it. Start by Googling “[product name] + alibaba.com” or “[product name] + aliexpress.com”. As you know, AliExpress and Alibaba are some of the largest manufacturing companies in the world that manufacture and sell tens of millions of products to both wholesalers and dropshippers. On these sites, you’ll find dozens of product listings for these products. Once you reach these pages, click on a product and scroll through the description. On a few listings you’ll more than likely find several videos of the product being used. Look at several different listings to find a great, high quality video. Once you have, you can simply download the video using a Google Chrome Extension like AliSave. Now, you have a great video of your product that serves as a base before editing it! Although AliExpress will be the best resource for you, sometimes you might get lucky and find copyright-free sources of your product. Here are some of those resources below: YouTube First, YouTube is a great place to get some royalty-free audio content (and so is Facebook’s sound collection here). What does royalty free mean? It’s similar to copyright. Basically, royalty free means you can use the content without too many worries. You can try search terms like “royalty free hip hop”, “royalty free upbeat music”, etc. Once you find content that you like, just use a YouTube to MP3 downloader to convert it to an audio file. We recommend this one. Regarding finding product clips from YouTube, start by searching YouTube with “[product name]”. After finding potential content, you should try to comment/get in contact with the video creator to see if they’ll let you use the video for advertising. If they don’t respond within 1 day, or they give you a ‘no’ then you’ll either want to source video clips from AliExpress/Alibaba or make your own. A Word of Warning Because we’re talking about using content on the internet in this section, it’s important to give another disclaimer/warning about the ramifications of this. If you’re using content from the Page 30 internet, there’s a chance it can be copyrighted. And what does that mean? That means the original creator of the content owns it and so using it as your own (without explicit permission) to try and make money is illegal. This is obviously a problem, because that content creator has a case for suing you. Although yes, that is extremely unlikely when you’re just starting out, the fact of the matter is you can still be sued so try to avoid stealing creator’s content so that you can sell, scale, and profit with peace of mind. Page 31 Part 3: How to Create Engaging, Successful Video Ads Step 2: Editing Video Clips When it comes to dropshipping, if you have great video clips or product images then your editing process is probably fairly easy. Mostly, your editing should be focused on showing quality content, creating engaging transitions, and adding fun music. We don’t think an e-book is the best method to explain the ins and outs of video editing. So what we’ve done is compiled a list of resources from articles to videos that can help you explore the basics of video editing on different platforms. Additionally, we’ll go over our recommendations of different video editing platforms. Video Editing Platforms If you have a Mac: We recommend you use iMovie. iMovie is extremely simple to use and every Apple computer already has this software installed. It’s drag and drop technology allows you to easily import clips and trim them as well as add music. Basically, it has everything you need to create a great ad. If you have a PC: We recommend a video editing tool called Davinci Resolve. It’s free to download and is an incredible tool for editing. It has everything you need to make a basic dropshipping Facebook ad video. Also consider: Animoto is one of simplest, most effective editing platforms for dropshipping videos for a reason. This website makes importing and arranging videos incredibly easy, and also helps users design eye-popping captions. Animoto unfortunately does require a paid subscription in order to have their watermark removed, but it can be a worthwhile investment if you have the capital, and determination to design high-quality video ads yourself. Resources In this section, we’ll list some resources that will help get you up to speed if you’re not familiar with these platforms. These are tutorials from people that we know and trust — so know you’re getting quality content: ● iMovie written tutorial: blog.storyblocks.com/video-tutorials/getting-started-imovie/ ● iMovie video tutorial: youtube.com/watch?v=m4IGBKDyRyw ● Davinci Resolve video tutorial: youtube.com/watch?v=NoyDMKqo80U ● Animoto video tutorial: youtube.com/watch?v=zDmZvVSmP9g Video Structure and Tips Before we wrap up this chapter, we want to give you some ideas about video structure. What we mean by this is how to optimize the order of clips in your video ads: 1. Scroll stopper a. If your product solves a problem, intensely illustrate the problem b. If your product has a “wow” factor, display the most impressive clip 2. Reinforcement of the scroll stopper Page 32 3. 4. 5. 6. a. If your product solves a problem, highlight the product’s main benefit, show it effectively resolving the problem b. If your product has a “wow” factor, show another great scene of the product that impresses viewers Show written quotes/reviews of people who reviewed the product, with clip of the product still in the background List more benefits of the product Show real people who are using and enjoying the product Provide an explicit call to action (i.e. “Shop Now”) over a still image or slow moving clip that clearly focuses on your product So the previous part was how to organize your video. Here’s a simple list of our best overall tips: 1. Make sure your hook is extremely eye-catching: If your product is a problem solving product, we recommend the first part of your video convey what the problem is and why this is bad for your customers. 2. Fun, engaging music: If your music seems off, people will tune out. Most dropshipping ads contain fun, light, and upbeat music and this is the type of music that is most common in advertising. 3. Informative, concise captions: Add captions so people can understand what is happening. On Facebook, you can auto generate captions but these often aren’t perfect translations. You should have captions that are easy and quick to read and that explain exactly what your product does and the problem it solves. 4. Timing: Aim for the video being 15-40 seconds 5. Transitions: Transitions can be either engaging or distracting. You must be smart about this during video editing. We recommend just a few transitions in your video in places where the product is in different shots or doing different things Creating Different Video Ads After you create your first video ad, you need to create another one. You need to test different ad creatives because doing so inherently increases your chances of learning what potential customers react better to. Ultimately, you’re finding out what works and what doesn’t. If there’s a lot of content out there for you to use, we recommend making 3 video ads, each one with very different clips. However, if there’s not a lot of content for you to use, we recommend making 2-3 video ads, where the only difference between video ads is the “scroll stopper” (the first clip of the video where you try to grab a user’s attention). Page 33 Part 4: How to Launch and Scale Facebook Ads Now that we’ve covered everything from finding products to building a store to creating ads, it’s time to focus on everyone’s favorite part: Facebook ads. Simply put, Facebook advertising is the corner store of most established dropshipping businesses. Without an ability to promote yourself where customers are, dropshipping e-commerce stores would have almost no ability to compete with e-commerce giants like Amazon and Walmart. In this chapter we’re explaining our 6-step system that explains exactly how to create, launch and scale Facebook ads for your dropshipping store: DropshipBetter’s 6-Step System to Facebook Ads 1. Setting Up Facebook Assets 2. Calculating Profit 3. Launching Your Ads 4. Actually Running Facebook Ads This is going to be a long chapter so pay attention. We’re going to walk step by step and go over absolutely everything you need to know to get started. Buckle up and enjoy! Page 34 Part 4: How to Launch and Scale Facebook Ads Step 1: Setting Up Facebook Assets The very first step to running Facebook ads is simply setting up your Facebook Business Manager account. Essentially, this allows you to manage your pages and ads through Facebook. The best way to explain this to you is to simply see it for yourself and follow our written instructions, which are attached below. Create a Business Manager Account 1. Visit business.facebook.com 2. Click the three horizontal lines in the top left and click "Business Settings” 3. Click “Ad Accounts”, then click “Add”, then click “Create a New Ad Account” Create a Facebook Page for Your Brand 1. Visit business.facebook.com 2. Click the gray “Create a New Page” button under “Pages” 3. Select “Brand or Product” 4. For the page name, use the brand name you’ll be using on your website 5. Choose the category that you think best fits your niche. If you’re not sure what to put, choose “Shopping & Retail” Facebook Page Settings 1. Upload a cover photo and profile picture with your logo 2. Click “Settings” in the top right of your Facebook Page 3. For “Visitor Posts”, select “Disable posts by other people on the Page” 4. Page Moderation - add these words and then press “Save Changes” a. Ali,alibaba,express,walmart,ago,aliexpress,amazon,amazon.com,rip-off,rip,ripped, ripoff,off,scams,scammed,dodgey ,dodgy,fake,scam 5. Click “Inbox” at the top of the navigation bar, then click “Automated Responses” on the left, and then turn on “Instant Reply”. You can provide a message like this: a. Hello FIRSTNAME! Thanks for reaching out - please reach out to our support team at EMAIL@YOUREBRAND.COM, we best respond via email. In the meantime, feel free to visit our website! WEBSITE.com i. *Note: If you’re on an extremely tight budget and can’t afford a custom email with your URL, you can get a gmail account and use something like YOURBRAND@gmail.com for free. Just know that it looks relatively unprofessional if you do that, and it’ll be more difficult to get those extra sales from people’s DMs Page 35 Part 4: How to Launch and Scale Facebook Ads Step 2: Calculating Profit Now that you have your Facebook Assets set up, it’s time to talk about profit. Remember, in dropshipping your costs are mainly related to your product costs, any selling fees, and your cost to get a customer to buy (advertising cost). Before we jump further into this section, let’s go over some terms as they’ll be coming up a lot in this section: ● Fulfillment Cost: Also known as “AliExpress price” — It’s the cost to buy and ship the product you’re dropshipping ● CPP: This stands for “cost-per-purchase” — How much money it costs in Facebook ads for someone to buy something off of your store ● ROAS: This stands for “return on ad spend” — For every $1 you spend in Facebook ad spend, how much money you make in sales ● Budget: How much money you spend on Facebook ads ● Breakeven: It means you didn’t lose money or make money. This term is used most commonly with “ROAS” — Achieving a ROAS greater than BEROAS (breakeven ROAS) means you’re profitable. Also, achieving a CPP less than BECPP (breakeven CPP) means you’re profitable. ○ *Note: These breakeven calculations assume the customer only ordered 1 unit, and also ignore additional costs such as the Shopify subscription, payment processing costs, etc. When you actually are dropshipping and scaling a product, you’ll see that customers on average order more than 1 product. Regardless, for the sake of simplicity, we’re saying you’ll just about breakeven when your CPP = BECPP or when your ROAS = BEROAS ○ *Note 2: Yes we’re aware that there can be situations in which you’re achieving a ROAS > BEROAS but a CPP ≤ BECPP. For now, don’t worry about this situation Now that we know some terms, let’s get into how we actually calculate profit. In order to show you how to calculate profit, let’s do an example with an imaginary product called “Product A”. See our table below: Product Metrics for Product A: Selling Price: $30 Fulfillment Cost: $10 Product Cost: $8 Shipping Cost: $2 Breakeven ROAS: 1.5 Breakeven CPP: $20 To calculate the profitability of the potential product, “Product A”, let’s assume the price we’ll sell it for in our store is $30. And then let’s assume our fulfillment cost is $10. Remember, fulfillment cost includes both the cost of the product as well as the cost of shipping. Therefore, we add the product cost + the shipping cost to get our total fulfillment cost of $10. By taking $30-$10, we’ll get a Page 36 breakeven CPP of $20. This means, roughly (it doesn’t include Shopify fees + apps or virtual assistants), that to break even the cost to get a customer to buy needs to be ~$20. Now, to calculate our breakeven ROAS, we’ll take our sale price of $30 and divide it by our breakeven CPP of $20. 30÷20 will give us 1.5. Therefore, in order to break even, our return on ad spend must be 1.5. Put even more simply, for every $1 we spend on FB ads, we should make $1.5 in sales in order to cover our costs. Page 37 Part 4: How to Launch and Scale Facebook Ads Step 3: Launching Your Ads How to Set Up a Campaign in Facebook Ads Manager If you don’t know how to set up a campaign on Facebook when launching a potential product, we’re going to walk through that below. After that, we’ll talk more about ad strategy. Follow along below to see how we personally would set up our own campaign, if we were a complete beginner: Campaign Instructions 1. Visit business.facebook.com/adsmanager/manage 2. Click green “Create” button in the top left 3. Choose “Conversions” 4. Name your campaign. We normally name it something like this: a. Product # | Description b. For example, if we’re testing our first ever dropshipping product on an ad account, and we’re testing a CBO with several ad sets with just 1 interest per ad set, then this is what the campaign name would look like: i. 1 | CBO Interest Sandbox 1. *Note: An ‘Interest Sandbox’ is a fancy term for a campaign that is testing different interests, by having 1 interest in each ad set. Generally, you launch a few interest sandbox campaigns, then you launch retargeting campaigns and then you launch look alike audience campaigns 5. Turn on Campaign Budget Optimization (CBO) 6. Set the daily budget to 2-3x your product price a. i.e. if your product’s selling price is $30, then the daily budget should be $60-90 7. Press “Continue” Ad Set Instructions 1. We’ll come back to the ad set name in a bit… so don’t worry about editing that for right now 2. If you’re using a brand new ad account, you’ll press “Create a Pixel” a. Then, add code using a Partner Integration and choose “Shopify” b. Then, Follow the instructions they provide to set up your pixel on your store i. *Note: If the pixel is installed on your store, you’re visiting your website, and Facebook is still saying they’re not receiving events from your store, make sure your ad blocker is turned off (if you have one). Once it’s off, go back and visit your store. Now your pixel should be firing and sending data to Facebook! If it’s not, definitely reach out to Shopify support here: help.shopify.com/en/questions 3. After your pixel is set up, return to your ads manager. In the “Conversion” section: a. Choose “Purchase” for “Choose an event” 4. In the “Budget & Schedule” section: Page 38 a. Choose a start date of 12:00AM tomorrow (as long as this time is more than 8 hours from when you create an ad set. If it's 3PM and you’re creating an ad set, then choose a start date of 12:00AM the day after tomorrow. This generally ensures that all your ad sets start at the same time, because some ads take a full 24 hours to get approved) b. For a minimum ad spend limit, we recommend not using one i. *Note: Some people recommend putting a min ad spend limit of $5 or $10 in the beginning, but as of November 2020, we’ve been seeing that not having an ad spend limit works best for testing 5. In the “Audience” section: a. For “Location:” select “People who live in this location” b. Press “Browse”, then “Saved Locations”, then “Create List”. Then, select “Countries” and paste this list: i. Austria, Australia, Belgium, Brazil, Canada, Switzerland, Germany, Denmark, Spain, Finland, France, United Kingdom, Greece, Hong Kong, Hungary, Ireland, Israel, Italy, Japan, South Korea, Luxembourg, Mexico, Netherlands, Norway, New Zealand, Poland, Portugal, Russia, Sweden, Singapore, Turkey, Ukraine, United States c. Click the button “Add Locations” d. Next, then save this list as “ePacket” e. For “Ages” select 22-65+ i. *Note: From what we’ve seen, the age range 13-22 should not be targeted until your pixel has generated substantial sales. We almost always see targeting 13-22 as unprofitable in the early stages of testing products. So exclude that age group in the beginning to be more profitable f. For “Gender”, if there is a gender that obviously is much more likely to purchase (i.e. makeup), then select that one. Otherwise, select “All” g. For “Languages” choose English (All) h. Uncheck “Reach people beyond your detailed targeting selections when it's likely to improve performance” i. *Note: Sometimes, having this box checked can make campaigns that are breaking-even become profitable. If your campaign is hovering around breakeven after 2 weeks of running, try testing the campaign with this box actually checked i. For “Detailed Targeting” i. In this step, you’re choosing which interests to target ii. Generally, one of the best interests to choose is literally the product you’re selling. If you’re selling leggings, then one interest you should be targeting in an ad set is literally “leggings” iii. In most cases there isn’t an exact interest for your product. Regardless, some next best interests to target are activities or things that closely relate to your product. So if you’re selling some product that more effectively Page 39 iv. cleans things in a kitchen, then consider interests like “kitchen” or “cleaning” or “cleaning agent” *Quick Tip: if you’re having trouble brainstorming interests to target, then simply select a random interest (for example, “Google Chrome”). Then, press “Interests” and Facebook will show you all the interests you can possibly use: 1. ← So, press “Interests” 2. ← And then this appears *Quick Tip 2: Definitely use the “Suggestions” feature for coming up with interest ideas, even if you’re already confident with which ones you’ll use. You’d be surprised at how helpful it is to see what they show is similar j. For “Placements” choose “Automatic Placements” k. Before continuing to the next page, scroll up to the “Ad Set Name” and name your ad set. We simply like this format: i. Audience Size - Interest ii. For example, if we’re targeting the interest “interior design” and Facebook says the potential audience size is 290 million, then our ad set would be named like this: 1. 290m - interior design 2. *Note: It’s optional to include the “290m” part, but we personally like to see that because it helps us more easily see if larger or smaller interests are doing well 3. *Note 2: Don’t worry if your audience sizes vary significantly. Just make sure your audience for a given interest is > 1 million. We’ve seen plenty of times that 100+ million audiences be profitable for a new dropshipper, despite their pixel not being ‘seasoned’ (a pixel that has collected a lot of sales data, and thereby can more cheaply get you conversions than a fresh, new pixel on a new ad account with no data collected) l. Scroll to the bottom of the ad set page you’re on and click “Continue”. You’ll then want to finish set-up of your ads before duplicating this ad set i. *Note: Skip to ‘Ad Instructions’ below to see how we’d finish set-up an ad m. After you do that, then come back to this ad set and duplicate it - after you duplicate it, change the interest, rename the ad set, publish and repeat this until you have created the number of desired ad sets i. *Note: In regard to the number of desired ad sets, we recommend dividing your daily budget (the one you calculated earlier) by $10 and then rounding v. Page 40 down to get the number of ad sets to create, and therefore the number of single interests to test. For example, if your daily budget is $65, then you should have 6 ad sets (65÷10 = 6.5, and then rounded down is 6). Ad Instructions 1. For “Ad Name” you can use whatever naming convention you find most helpful. Personally, we just like to do something like this: Ad 1, Ad 2, Ad 3 2. For “Identity” a. Choose your brand’s Facebook Page b. If you already have an Instagram account with a few hundred or thousand followers, then customize that Instagram page for your brand, and link it to your Facebook page. If you don’t have an Instagram with a decent size following, then you can skip selecting an account. If your product starts selling consistently, then definitely take the time to create an Instagram account and link it 3. Select “Create Ad” and make sure “Single Image or Video” is checked 4. Then press “Add Media” and then press “Add Video” a. Press “Upload” and upload your video ad b. After your video uploads, press “Next” 5. Then press “Edit Video”, then “Thumbnail”, then “Custom”, then “Upload” and upload your thumbnail 6. For “Website URL” paste in the URL of your product listing 7. For “Call to Action” select “Shop Now” 8. For the “Primary Text” and “Headline” and “Description” we’ll explain what to write for these after this set of ad instructions. For now, just temporarily put the word“Test” as the “Primary Text” so that the ad will simply publish - but don’t worry, like we said, you’ll come back to write something in all three sections after we explain our strategy in a bit 9. Scroll down to the bottom and press “Confirm” to publish your ad (which will also automatically publish the campaign) 10. Next step after publishing your campaign is to make sure you return to the ad level of your campaign, duplicate your video ad, and replace it with your second video ad a. After you publish your second video ad, publish additional ads! We’ve found that Facebook delivers the cheapest conversions with this set up at the ad level: i. Video ad #1 ii. Video ad #2 iii. Picture ad #1 iv. Picture ad #2 v. Carousel #1 1. *Note: For picture ads, use your two best pictures of your product that are high quality, and would intrigue the interest of a potential buyer. For example, if we’re selling leggings, it’d be better to use a picture of a model working out in our leggings than using a picture of leggings simply folded up Page 41 2. *Note 2: For the carousel ad, use at least 2-3 pictures (feel free to also include 1 of your video ads) and make sure “Automatically show the best performing cards first” is checked b. After publishing all of those ads, you’ll want to return to the ad set level of this campaign after publishing the ad for the first time, in order to duplicate and create the additional ad sets (each different interests) for your CBO campaign Now that we showed you the basics of setting up a campaign, we want to expand on a few important concepts from what we covered. Detailed Audiences For targeting audiences, we have a 3-step ranking system that we think is helpful when it comes to deciding what kind of targeting to use. Essentially, this tiered system goes through how important each type of targeting is within your Facebook ads. Rank #1: People and audiences that are currently buying similar products from similar brands. Ex: Selling “gym leggings"? Target "LuLu Lemon" or "GymShark" Rank #2: The specific product category that your product would be classified as. Ex: Selling “gym leggings"? Target "womens leggings" Rank #3: People or audiences that are interested in things/activities that are related to your product. Ex: Selling "gym leggings"? Target "Fitness" or "Yoga" Remember, at the end of the day, Facebook is probably the biggest data platform on earth. It has so much data on your potential customers. Therefore, it probably has a pretty good idea who to show your products to! Take your time and research, then identify what you think are the best interests to use, and let Facebook ads go to work. Ads Your ad is the actual piece of content that will be being shown to people. As a reminder, the “umbrella” of how things are broken down for a Facebook ad looks like this. As you can see, your ad is the actual content! Now, we’ll break down our ad strategy. It really breaks down into 3 different areas: Type of Content, Thumbnail, Copy. Type of Content We absolutely recommend using video ads. Video ads almost always have higher engagement than picture ads. Additionally, we’ve already explained in this e-book exactly how to source and edit great video content. Additionally, this won’t be true for your first ad, but we generally recommend using an existing post that’s on your Facebook or Instagram page. It just makes it easier to keep things consistent across campaigns and ad sets and ads while creating your Facebook ads. Page 42 Thumbnail A “Thumbnail” is the first picture your potential customers will see when they see your ad. Simply put, it should be designed to get people to stop scrolling and pay attention. On Facebook, there are so many things competing for people’s attention and it’s imperative you get people to stop and pay attention to YOU. We have some great tips that if followed usually result in killer thumbnails. If you ask yourself these questions while making your thumbnail, you’ll probably end up with a pretty great looking thumbnail that’s engaging, eye catching and ready to make some sales. 1. Is your headline a “scroll stopper”? Does your headline emotionally resonate in just a few words? 2. Emojis are a great way to catch a potential buyer's attention, leading to the “scroll stopping” effect. 3. Ensure a scroll stopping headline with contrasting colors. This includes colors like black and white, green and white, or any combination that can make words pop! 4. If you have a person in your video, is this person/character/actor in your target audience? (ex: If you’re selling a pair of gym leggings to younger women, do you have a fit woman in your video?) 5. If there’s a person in your video, you should have them looking the user in the eye and using lots of emotions. Many marketing studies have shown that people react to these kind of expressions. 6. Does your thumbnail create a sense of urgency for the user? For example, when someone looks at your thumbnail, does someone think “I need to watch this!” or “I need to figure out what’s going on here” or “I need to see what this product does”. To create an effective thumbnail, we recommend using a screenshot of the most shocking or impressive scene from your video ad. Then, take that screenshot and edit it with canva.com, and make sure the thumbnail is the same dimensions as your video ad. When you’re creating this thumbnail, obviously, take into account as many of our tips above as possible. Copy “Copy” just means what type of language you use on your Facebook ads. There’s a few different parts to your Facebook ad copy: Primary Text, Headline, Description, Call to Action. We’ll put a sample Facebook ad below and then go over all of the key parts. Page 43 Primary Text The primary text is the text right at the top of the Facebook ad. Usually, a user will see the video and then read this text immediately. When it comes to creating this part of the ad, many people struggle with this. In fact, there are people who work at marketing companies, known as copywriters, who are paid lots of money to write convincing sales copy! While it can be challenging starting out, we have a 3 step formula to make it a little easier. It’s detailed below. 1. Emotionally connect with the audience you're trying to target 2. Explain specifically and succinctly what the main benefit of your product is to a user 3. Give them a call to action by telling them what to do next Now let’s think about what this looks like in practice. Say you’re selling a bracelet that doubles as a phone charger. Here’s what the primary text may look and sound like: 🔋 ❌ Quit having to worry about your phone dying! This bracelet doubles as a phone charger so you can charge your phone on the go! Get yours here today! ➡ goodeals.com/charger Notice how each line follows the format we talked about above? With the above formula, we can simplify copywriting as much as possible to make your Facebook ads very solid for a beginner. As you get better and start selling lots of different types of products you’ll obviously have to change things up from time to time. However, we think this is the best way to start. A great tip is to remember that about 70% of online advertising is viewed on mobile phones (source). Therefore, when you’re writing the headline, primary text, and description of your ad, make sure that you’re focusing on optimizing the ads appearance for mobile devices. Do this by Page 44 selecting the buttons to the right of the “Creative” section to see what your ads look like on mobile feeds for Facebook and Instagram. Headline Your headline should be eye catching. Basically, if people weren’t 100% sure if they should click on the link after reading your primary text, your headline should 100% sell them. There’s no easy trick for a good headline but we’ve listed some good examples and ideas below. 1. 2. 3. 4. The exact product title or product name of your product on your store “5 Star Reviews! The #1 Rated (insert product name here) On The Market!” “X% off sale ends today! Get yours while supplies last!” “This (product) helps with (specific problem your product solves)” Description The description goes right below your headline and should basically be one last “sell” of your product. It can answer a question the customer might be thinking about or just otherwise entice them to click the link! Again, the most important thing is we need customers being engaged enough to click links. Once they click the link, they’ll be taken to your store. And once that happens, they might buy! Here’s three different examples of good descriptions below. ⭐ ⭐ ⭐ ⭐ ⭐ 4.9/5 star reviews! Get free shipping now! Order today! Dermatologists don't want you to know about this… Call to Action Call to action is basically what you want your customers to do next. You can include call to actions in your primary text (ex: Click here to get yours!) but what we’re talking about now is what you Page 45 want your clickable button to say on Facebook. It has options like “Learn More”, “Shop Now” etc. This one is pretty simple. If you want your customers to shop (which you do!) then use “Shop Now” Creating Different Video Ads Remember how we have been talking about the importance of testing? You need to create multiple video ads. We touched on this earlier but if there’s a lot of content out there for you to use, you should make 3 video ads, each one with very different clips. However, if there’s not a lot of content for you to use, you can make 2-3 video ads, where the only difference between video ads is the scroll stopper. Now that we’ve covered launching new products, let’s move onto Step 4. Page 46 Part 4: How to Launch and Scale Facebook Ads Step 4: Actually Running Facebook Ads (Part 1) Just for 1 page in this entire e-book, let’s get real serious: We know for a fact that an unbelievable number of readers either skimmed through our e-book or just completely skipped the prior 15,000+ words filled with immense value, to see what we’d say in this section. Although we can’t force you to go back and actually read this e-book, we just wanted to break you some bad news. All you non-readers are at least 10x more likely to fail than those who took their time in actually reading, because you’ll be making so many dumb mistakes. That’s an undeniable fact. However, to redeem yourselves and really put yourselves back-on-track, understand this: Success in dropshipping mainly comes from choosing a great product, creating a great product video, and writing great copy. Those 3 things are critical aspects of marketing, which contributes to 80% of your success. Only 10% is Facebook ads and the last 10% is everything else. Okay, so this is literally the only thing highlighted in this entire book, so you know what we just said is important. Personally, we believe that people who understand this idea and take it to heart are 100x more likely to be successful. Literally. Without a doubt it’s the #1 mistake dropshippers have always made, and will continue to make. And you know why that is? It’s because great product research and marketing takes time, energy, and you actually thinking things through! And most dropshippers can’t wrap their head around this! Instead, they somehow tell themselves that picking a generic product, spending 10 minutes writing a few sentences on the product page, and publishing a low quality picture as an ad will profit them $100,000 every month. So, we’re begging you to not fall into the trap of believing that Facebook ads are the “make or break” for success, because they’re far from that. You failed because you chose a product that was way too competitive. You failed because your video ad’s captions are not compelling at all. You failed because your landing page doesn’t convince people they need your product. Please, read the entirety of this e-book. The reason the previous 44 pages were written is that they help you develop an holistic understanding for successful marketing in dropshipping (as well as occasionally teach you some of the important, absolute basics you need to know). 99% of the time when you fail, it’s because you seriously went wrong somewhere with your marketing efforts (most commonly, it is simply choosing either an outdated or unwanted product). The main takeaway from all of this is that the #1, absolute best way to position yourself for success is by reading and doing exactly what we have recommended doing throughout this entire e-book, which is based on our own success, and is extremely relevant to dropshipping in 2024. Page 47 Alright, so hopefully all of that makes you want to spend another day or two reading (or even rereading) all the prior sections of this e-book. Hopefully, it also makes you want to take more seriously the marketing components of dropshipping, and seriously perform in-depth product research, create high quality video ads and write compelling copy. Let’s now talk about our best Facebook ads launch strategy that we’re still using today: Page 48 Part 4: How to Launch and Scale Facebook Ads Step 4: Actually Running Facebook Ads (Part 2) For part 2 of ‘Actually Running Facebook Ads’, let’s talk about how to launch: For example purposes, let’s pretend we’re selling leggings. Here’s our initial data for 1 unit: Selling Price: $30 Fulfillment Cost: $10 Product Cost: $8 Shipping Cost: $2 Breakeven ROAS: 1.5 Breakeven CPP: $20 And here’s our initial Facebook ad campaign structure: ● 1 CBO campaign with a daily budget 2-3x the selling price of our product. In this case, that means we can choose to spend $60-90. Let’s just go with $60 ● The number of ad sets in our campaign = daily campaign budget divided by 10. In this case, $60 / 10 = 6 ad sets Let’s call today ‘Day 0’. Right now, we’ll schedule our CBO campaign with a daily budget of $60 and 6 ad sets in it, to start running at midnight (12:00AM the next day). During the rest of the day today, we’re going to do some quick yet important calculations. We’re going to calculate M-ROAS and H-ROAS. We came up with these specific terms, but the concept isn’t proprietary. M-ROAS stands for ‘minimum ROAS’. To calculate M-ROAS, multiply 0.80 x BEROAS (in this case, M-ROAS = 0.80 x 1.5 = 1.20). H-ROAS stands for ‘high ROAS’. To calculate H-ROAS, multiply 1.50 x BEROAS (in this case, H-ROAS = 1.50 x 1.5 = 2.25). To summarize, here’s all of our ROAS metrics: BEROAS: 1.5 M-ROAS: 1.20 H-ROAS: 2.25 And here’s a quick clarification of terminology we’ll be frequently using: ● BEROAS stand for ‘breakeven ROAS’ ● BECPP stands for ‘breakeven cost per purchase’ ● UATC stands for ‘unique add to cart’ — this is an important metric you will need to look at in your ads dashboard Here’s our recommended view of the Facebook ads dashboard: Page 49 And that’s everything! Let’s now finally talk about what the day-by-day of Facebook ads for our product should look like: Day 1: ● Do nothing and just let the ads run! Morning of Day 2 (i.e. 8:00AM) | Since Day 1... ● IF you’ve gotten 1 or more sales, THEN leave alone the campaign ● IF you’ve gotten 0 sales but 6 or more UATC, then leave alone the campaign ● IF you’ve gotten 0 sales and 5 or less UATC, THEN shut off the campaign and end test. The bad news is that your current marketing is very likely not good enough - you’ll need to go back to the drawing board and seriously think about either improving your video ad and product page copy, OR moving onto the next product. Simple as that. Morning of Day 3 | Since Day 1... ● IF your campaign’s overall ROAS > H-ROAS, THEN: ○ Increase the campaign budget by 20% ○ Schedule 1 new ad set to launch at 12:00AM the next day in your CBO campaign ○ And then in the evening (i.e. 8:00PM of Day 3, do this): ■ Turn off ad sets that have spent more than 2x BECPP but have a ROAS < M-ROAS, and replace each one of those turned-off ad sets with a new ad set, that you schedule to launch at 12:00AM the next day ● In our case with the leggings, the end result should be that your campaign has a daily budget of $78 and you have 7 ad sets running the next day ● IF H-ROAS > your overall ROAS > M-ROAS, THEN leave alone the campaign ● IF your campaign’s overall ROAS < M-ROAS, THEN shut off the campaign and end test. Back to the drawing board to either improve your marketing or start looking for a new product to test. Morning of Day 4 & 5 ● Do nothing and just let the ads run! Morning of Day 6 | Since Day 3... ● IF your campaign’s overall ROAS > H-ROAS, THEN: ○ Increase the campaign budget by 20% ○ Schedule 1 new ad set to launch at 12:00AM the next day in your CBO campaign ○ And then in the evening of Day 6, do this: ■ Turn off ad sets that have spent more than 2x BECPP but have a ROAS < M-ROAS, and replace each one of those turned-off ad sets with a new ad set, that you schedule to launch at 12:00AM the next day Page 50 ● ● IF H-ROAS > your overall ROAS > M-ROAS, THEN ○ IF this is not the second time in a row H-ROAS > your overall ROAS > M-ROAS, THEN Leave alone the campaign ○ IF this is the second time in a row H-ROAS > your overall ROAS > M-ROAS, THEN in the evening of Day 6: ■ Turn off ad sets that have spent more than 2x BECPP but have a ROAS < M-ROAS, and replace each one of those turned-off ad sets with a new ad set, that you schedule to launch at 12:00AM the next day ■ Also turn off your ads that have a ROAS < M-ROAS (i.e. if none of your carousel ads have generated any sales, then turn them off) IF your overall ROAS < M-ROAS, THEN shut off the campaign and end test Morning of Day 6 & 7 ● Do nothing and just let the ads run! Morning of Day 8 | Since Day 6... ● IF your campaign’s overall ROAS > H-ROAS, THEN: ○ Increase the campaign budget by 20% ○ Add 1 new ad set to your CBO campaign ○ And then in the evening of Day 9, do this: ■ Turn off ad sets that have spent more than 2x BECPP but have a ROAS < M-ROAS, and replace each one of those turned-off ad sets with a new ad set, that you schedule to launch at 12:00AM the next day ● IF H-ROAS > your overall ROAS > M-ROAS, THEN ○ IF this is not the second time in a row H-ROAS > your overall ROAS > M-ROAS, THEN Leave alone the campaign ○ IF this is the second time in a row H-ROAS > your overall ROAS > M-ROAS, THEN in the evening of Day 9: ■ Turn off ad sets that have spent more than 2x BECPP but have a ROAS < M-ROAS, and replace each one of those turned-off ad sets with a new ad set, that you schedule to launch at 12:00AM the next day ■ Also turn off your ads that have a ROAS < M-ROAS (i.e. if none of your carousel ads have generated any sales, then turn them off) ○ IF this is the third time in a row H-ROAS > your overall ROAS > M-ROAS, THEN: ■ Start back over at day 0 with your same product, BUT with improved marketing. This includes trying to really improve/change up your ads as well as your product page ● IF your overall ROAS < M-ROAS, THEN shut off the campaign and end test Overall, you should be able to see the trend here. If not, let me make it more clear below: Page 51 Page 52 From a high level, the Facebook ads strategy looks like this: ● Every 3 days, you evaluate the performance of your 1 campaign. This is because Facebook’s algorithm takes time for it to complete a ton of split testing, and learn how it can get you the cheapest possible purchases for your specific combination of ads + product + product page ● When your campaign is extremely profitable (when ROAS > H-ROAS), then you scale and try to spend more ● When your campaign is breaking even (when H-ROAS > your overall ROAS > M-ROAS), then you try to improve your targeting ● When your campaign is quite unprofitable (when ROAS < M-ROAS), then you need to seriously improve your marketing, or move onto a new product. This is really because in 99% of tests we’ve personally seen, a product needs completely new marketing (i.e. new video ads and improved product page) to have a chance from going from generating a ROAS < M-ROAS, to generating a ROAS > H-ROAS ○ *Note: Remember our #1 goal is to consistently generate a ROAS > H-ROAS because this means we’re maintaining a profit margin above 20%, and that there’s plenty of room to scale ● You increase the budget of a campaign in the morning because if you do it at night, Facebook may try to spend the leftover amount of the budget in an extremely short period of time, giving you very unprofitable results. Increasing the budget in the morning gives Facebook plenty of time to allocate the increased budget more efficiently ● You turn off ad sets and schedule new ones later in the day because if you turn off ad sets in the morning, your campaign would spend a whole day advertising with a fraction of the ad sets it should be advertising with (i.e. you launch with 6 ad sets, and on Day 3, 3 are meet the criteria for being turned off. So you turn off those 3 and schedule 3 new ones for midnight. All of a sudden, for most of Day 3, your campaign is only running with 3 ad sets, and this will give you skewed results) ● Also, when you turn off ad sets and schedule new ones later in the day, make sure to do it at least a few hours before midnight (rather than right at midnight), because the newly scheduled ad sets will take a few hours to get their ads approved. That’s why overall we recommend turning off ad sets and scheduling at ○ *Note: When we say 12:00AM, 8:00AM, 6:00PM, or any time, we’re referring to the time based on what time zone your ad account is in. Although this should be the same as your local time, it might not be, so double check On a technical level, here are the main actions you’re consistently performing: ● IF your campaign’s overall ROAS > H-ROAS, THEN increase the budget and schedule 1 new ad set for midnight ● IF H-ROAS > your overall ROAS > M-ROAS, THEN replace under-performing ad sets ● IF your overall ROAS < M-ROAS, THEN shut off the campaign and end test A Quick Note About Failing: Page 53 Yes, this result is disappointing. Yes, this result means you lost money. BUT, it’s absolutely critical to be okay with this and recognize the reality of dropshipping: If dropshipping was free money and easy to do, there’d be 7 billion millionaires on this Earth. But that’s just not the case. that the vast majority of dropshipping products fail, and that every single test still contributes to you becoming a better dropshipper. With each product, you get better at thinking outside the box, writing better marketing messages, and finding better products. So like we said, if your ROAS is not above your optimal and your CPP is not below your optimal, move on. When you find a winner, it’ll very likely offset all of the losses and leave with with many more profits Page 54 Part 4: How to Launch and Scale Facebook Ads Step 4: Actually Running Facebook Ads (Part 3) For part 3 of ‘Actually Running Facebook Ads’, let’s talk about what to do over time: Here is the schedule we like to follow: ● On Day 1, launch 1 interest sandbox CBO campaign ● On Day 14, launch 1 retargeting CBO campaign ● On Day 14, also launch 1 lookalike sandbox CBO campaign ● On Day 30, turn off interest sandbox and lookalike sandbox campaigns, and launch 1 CBO with just 1 ad set, that does not target any interests General tips for your interest sandbox: ● As you’re scaling, make sure to not have more than 10 ad sets running at the same time ● Use Facebook’s Audience Insights tool to get an idea of potential interests to test ● Be creative in choosing interests to test! It’s called testing for a reason - you’re trying to consistently identify what works best, so try testing interests that relate to who your target audience is, what they like, how they behave, and more! General tips for your lookalike sandbox: ● Before creating a lookalike audience, make sure there’s at least 1000 events have been occurred for your given product ● The process to create a lookalike audience is: ○ To visit https://business.facebook.com/adsmanager/audiences ○ Create a custom audience that you want to make a lookalike audience from ○ Wait 12-24h, then you’ll be able to make a lookalike audience from the custom audience. If you try to make a lookalike before 12h, you’ll generally get an error ● Be creative in your testing! We recommend testing as many different types of lookalikes as possible, as well as different percentages. For example, we might launch with these lookalikes: ○ 50% video views (1%), view content (1%), top 25% of visitors by time spent (1%), engaged with any post or ad on your Instagram account (1%), view content (2%) ○ And then over time, we’ll be able to launch audiences that time more time to get 1000 events for, such as 95% video views, initiate checkouts, ATC, purchases, ● With scaling your lookalike campaign, evaluate profitability in the same timeframe as your interest campaign (i.e. if ROAS over past 3 days is > H-ROAS, scale by 20%, schedule new ad set to run at midnight, and then later in the day turn off underperforming ad sets and replace them with newly scheduled ones) General tips for your retargeting campaign: ● We’ve found that keeping it simple results in a better performance as of November 2020. A lot of people recommend making 1 ad set each for VC, ATC, engage with any post or ad, but we recommend having these 2 ad sets when you launch your retargeting: Page 55 1 ad set that targets all events in the past 7 days, and only excludes purchasers in the past 180 days. So in your ad set, you’ll have several custom audiences like this: ■ VC in the past 7 days, ATC in the past 7 days, engaged with any post or ad on your Instagram account in the past 7 days, engaged with any post or ad on your Facebook page in the past 7 days ○ 1 ad set that targets all events in the past 30 days, while excluding purchasers in the past 180 days as well as excluding all events in the past 7 days (which are all the custom audiences in the other retargeting ad set). So in this ad set, you’ll have several custom audiences like this: ■ VC in the past 30 days, ATC in the past 30 days, engaged with any post or ad on your Instagram account in the past 30 days, engaged with any post or ad on your Facebook page in the past 30 days With scaling your retargeting campaign, evaluate profitability in the same timeframe as your other campaigns (i.e. if ROAS over past 3 days is > H-ROAS, scale by 20%) ○ ● General tips for your no interest campaign: ● If things are going extremely well for your interest and lookalike campaigns, then don’t worry about trying out a no interest campaign if you really don’t want. HOWEVER, we’ve seen no interest targeting almost always result in way higher of a ROAS than running a lookalike and interest sandbox campaign at the same time. Why does this happen? We think it’s because you’re really allowing Facebook’s ad algorithm to test things without any restrictions at all, and that makes it much more likely for it to get you the cheapest possible purchases. Plus, after 30 days, your pixel will be quite ‘seasoned’ and ready for this test Page 56 Part 4: How to Launch and Scale Facebook Ads Step 4: Actually Running Facebook Ads (Part 4) For part 4 of ‘Actually Running Facebook Ads’, let’s talk about some high level stuff: ● Profitability: You can have all the sales in the world, but if you’re not making money on each sale then it doesn’t really matter. NEVER forget about profitability, and protect your profit margin! You should only ever consider scaling a campaign if ROAS > H-ROAS. Otherwise, improve your marketing and/or targeting! Because profit margins almost always decrease as you scale, you need to make sure you have and protect your margin. ● Logistics: If you’re making a lot of sales but your shipping, logistics and customer service is bad, you won’t be in business for long. This is because chargebacks will start to add up, and Facebook will penalize you (by increasing your ad costs) when they survey their users and find out about their terrible experience with your store. So, how to ensure you have good logistics? Find a good supplier, hire customer service VA’s to respond every day, and process orders within 24 hours. ● Competitors: Be on the lookout for complete ‘copycat’ stores if your store is doing very well. If they copy any of the content that you actually own, you can submit a DMCA takedown notice on their Shopify store or Facebook ads ● Ad Strategy: Almost everyone thinks Facebook ads have some secret you can “hack” in order to get much better results. Unfortunately, this just isn’t the case. When it comes down to it, Facebook rewards brands with good products, engaging creatives, and stellar customer service. If you have this, Facebook will figure out who to show your ad to. The smartest engineers in the world code Facebook’s platform. Do you really think you’re smarter than Facebook? Or their algorithm which is getting better every single day? Chances are, you’re not. So let Facebook do the work! Know the basics, but don’t go crazy trying to figure out every single “hack” you can with Facebook ads. ● Testing: In general the more you test, the luckier you get. We’ve consistently seen that the dropshipper who tests more will almost always win. Be creative and consistently try new strategies to improve your product pages, ad creatives, targeting and more. ● Success: Remember what we said on page 44. Dropshipping success mainly comes from choosing a great product, creating a great product video, and writing great copy. Those 3 things are critical aspects of marketing, which contributes to 80% of your success. Only 10% is Facebook ads and the last 10% is everything else. Page 57 Conclusion & Next Steps Well, you did it. You’ve finally finished off our in-depth e-book on getting started with dropshipping in 2024, so take a moment to pat yourself on the back; there are very few like you who understand how big of an opportunity dropshipping is, and want to take it more seriously. So now, it’s time to get to work. You’ve been given tons of valuable information. Information that’s been accumulated, tweaked, and improved upon for years since we’ve been dropshipping, You have the information at your fingertips. All that’s left is to put it into action. A final word of advice before you go on your way: In fact, the number one piece of advice we could give to people who want to succeed: Don’t get bogged down by information. Just execute! Especially in the dropshipping world, there’s a lot of information out there. Don’t get paralyzed by decision making - and trying to figure out what the best information is. Until you spend 6+ months and some money, just focus on putting in work, not searching for more information! So with that, we hope you’ve found these e-book valuable and we wish you the best of luck in all of your entrepreneurial endeavors! Be sure to follow and engage with us so we can continue to help you throughout your dropshipping journey! Here’s our Instagram. Also, if you have questions about anything in this e-book, make sure you send an email to ken@dropshipbetter.com. And last but not least, keep exploring all the cool features of the course here and join the Facebook group here if you haven’t already.