Hey!
Long time lurker and learner on this sub, inspired by all the many great stories I’ve come across. Often when I’m feeling least motivated I revist this sub and always leave feeling inspired - so I’m hoping this post can do the same for some people.
No, I’m not a millionaire, and yes, this could all come crashing down tomorrow, but I seem to have figured out something that works consistently - and most importantly - can scale.
There’s quite an interesting backstory about how this business came around, but I’ll share that another time if anyone is interested.
So, let me share you what I was doing to make around 2k per month, and not even breakeven.
Firstly, I was selling exclusively on google ads, with a ROAS of around 1.7. I could only achieve this by selling our products at a razor thin margin, so I was actually losing a bit of money during this time. This went on for about 6 months, from January 23 until July 23. Throughout this time I’d dabbled with ads on Meta but nothing ever really took off - because I didn’t understand the importance of creatives. An image of your product alone is rarely going to work.
In June, I tried a new method. I created a video showing off our best selling product. It was a simple video, but highlighted all of it’s key features. It wasn’t super professional, I mean I was literally on my bed with holding the product and showing it off becuase the bedsheet was the only semi-decent background I could find.
Anyway, the day after I ran this video on Facebook and Instagram, I hit £290 in a single day, with an AOV of £72. The whole WEEK before this I only managed to do £300 with an AOV of £27
I didn’t change anything, and the next day, I did £469 - my best ever day before this was £300 but I was generally happy if we managed £100 in a day, so this was mindboggling.
The next day - £816!!! Each of these days I was only spending £40 on ads, so to get back £816 was truly amazing and more than double our previous best day by some margin! The best part was, we hit that figure by about 2pm, and then hit our facebook daily spend limit - otherwise who knows much we could’ve done in one day! For a few days the ROAS was around 10-15. Months later, I still sit around a 3-5 ROAS each month which is very profitable for us, and way better than the 1.7 we used to get via google.
This all started all in July 2023, and I managed to hit nearly 12k for the month. My previous best month was 3.8k - and I broke-even. Because this 12k was our best selling product that had a healthy margin, I netted about 4k that month.
I fully sold out of stock in July, and had to wait a month for new stock. I was ‘open’ for only about 5 days in August - but still managed around 4.5k - my second best ever month.
Since then, we’ve had continuous struggles with maintaining stock because the lead time is 60 days, and I simply haven’t got the working capital to buy enough of the stuff.
That said, here are the numbers by month since my new advertising strategy in July:
- July - £11,937.10 - AOV 45.06
- August - £4335.85 - AOV 44.18
- September - £20,567.70 AOV - 46.76
- October - £25,053.33 - AOV £47.40
- November (MTD 24th Nov) - £35,557.62 - AOV 48.39
We’re on track to do about 45k in November which to me is faily mindblowing! My goal is 100k revenue per month consistently which will be around 30k net per month. I come from a low-income background so this would be pure insanity to me.
All of this was only possible because of my advertising strategy on Meta. I watched countless videos and tried different things for MONTHS, but when I found what worked, I simply repeated the process and increased the daily budget. It’s not complicated and I’m 100% confident you can do this too, you just need to find what works and then scale it.
I’m confident I can continue to scale this because every time I increase the advertising budget, the revenue follows. We’re simply bottle necked by stock levels. A pretty good problem to have if you ask me.
Anyway, I hope this shares a little of what is possible. Our business isn’t anything particularly new, it just uses a new advertising angle. If you want me to go into more detail on anything then I’ll do my best to reply in the comments. For obvious reasons, I will not be sharing our products on website here.
How much did you invest into the ad tests on meta, before you got them working? Real life numbers are always good to benchmark against :)
For testing a new campaign, I would create 3 ads, and 5 ad sets. Each adset is a different ‘interest’, and I’d set each adset at about £20, which would be £100 per day for testing. Run this for a couple days and then scale the interests that worked best.
Nice write up! For it to be more beneficial to the readers here, would be nice to get some granular details.
- Did you test multiple variations of the video you found working? Tried different hooks?
- Are you starting to experience ad fatigue with that one video you scaled? Or are you scaling multiple videos simultaneously?
- What prevented you from securing a loan or investment to fund inventory / prevent the fulfillment constraints?
- Is the November sales increase partly due to a strategy shift or purely due to the typical Q4 increase in consumer spending? Does what you sell have an element of seasonality?
- Do you run ads to a landing page / advertorial, or straight to a typical Shopify product detail page? Anything you’re doing to increase conversion rates?
I think answering these specifics and “talking shop” might be beneficial to everyone here and something concrete they could take away. Obviously non pressure to answer. - Simon
Good questions, keep it up!
Great questions! Allow me try and answer them.
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Nope! The first one did quite well. Now that the hype has died down slightly and we don’t hit the 10 ROAS we did for the first few days, so i now test a couple of videos each week. Not all have worked well.
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Some yes - but they still perform well so i still run them. As said above I introduce new videos regularly. I also now run a couple of image ads now our brand is a bit more known.
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Not wanting to give up equity, or risk a loan. This all happened fast and I thought it could end quickly. I knew after a few months of being this profitable our cashflow would be much better - and we’ve reached this point now. I’m also considering an exit in a few years and want to retain equity. I may consider investment for US expansion as we only sell to UK currently.
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Yes we’ve been capitalising on BFCM. When we released our BF sales we did 3.5k in one day. Also propensity to spend is generally a bit higher in q4 anyway. It is not a seasonal product though, and we were trending up and up before q4. I expect q1 24 to be slower though.
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Most ads run to a ‘collection’ page - as we offer a core product along with bundles so the customer gets to see all that’s available. I’m doing my best to improve CRO all the time with images, gifs, web speed, guarantees, free shipping etc.
Great questions Simon, much appreciated!
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Thank you for sharing your journey!
I’m new to ecommerce. If it’s not dropshipping, where are you buying the products and storing them?
Alibaba. Stored in my flat as well as a storage unit.
Thanks for the answer! Also if you don’t mind, do you ship to everywhere in the world and which service do you use for shipping/ how long does it take on average to ship your product?
Did you sign up with your business email? I hear their spam is insane. Did you get samples first? How much startup capital do you need?
May I know how many SKUs are you selling at the moment? Is all thru your own ecom or are using third party platform?
I noticed your AOV has been increasing each month. Is that happening naturally or have you been pushing more ads for the higher priced items you have listed?
We’ve increased our price slightly, but also added more ‘bundles’.
Also, repeat customers buying a few products for xmas gifts is likely a factor too.
Finally, we often see repeat customers spending more anyway - likely because we’ve built trust now. Spending £100 on a website you found on IG for the first time can be scary!
You should look into selling on Amazon as well, they also offer a service to use that same stock to fulfill your website orders. So you’re just increasing your sales channels without locking up any additional volume.
But they take quite a big chunk for every order - but i am looking into fulfilment partners as i currently package this all up from home!
they do, but if they could also 10x your revenue then the cut is usually worth it.
How do you source your branding / packaging material? How long does it take to repackage them at home?
Our supplier in china does all the packaging - we sent them our designs so now when it arrives in the uk we can simply put it into a postage box and send to our customers.
I do something vaguely similar except importing from the US. Turnover 40k last 12m. your story is very impressive. Curious what courier you use in the UK? My items are ‘small parcel’ size, I’ve tried a few alternatives inclusive evri but 95% rely on tracked parcels via royal mail (click and drop - label printer saves me a great deal of time). Sadly royal mail are not doing free ‘collections’ in my area anymore so the journey to/from royal mail drop off is a pain. Are your items small enough for a regular post box? How fortunate, if so!
Wonder how much it cost to acquire your business in the first place - presumably you have recouped the initial outlay? Good luck for the next year
How did you choose the product(s) you are selling now?
I actually bought this business in Jan, but it turned out to be a hunk of junk and a terrible investment. I was left with no other choice but to make it work or lose my life savings. They were already selling this product, they just weren’t marketing it like i am now.
Where does one buy such a business? Could you elaborate on that part?
There is a webiste called ‘uk businesses for sale’.
I doubted things so much after making this purchase that I even attempted to sell it again about 2 months afterwards. Fortunately - I perservered!
Why did you decide to buy this business and how much did you spend on acquiring? Do you have design patent for them?
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u/maxmilner this is incredible! I am very happy for you!
I am just starting out with meta ads for my product. From your post I can clearly see that I should focus on video, would you agree? My product requires some modeling so it’s not as easily done but I‘ll get there.
Is there any other recommendation YOU would give me? Thanks and may the success stay with you! 100k a month! Let’s go!!
u/maxmilner do you think the recent success is owed to the products you are selling, or to your new acquired knowledge of online marketing (meta ads)?
It was a bit of both! Our product is better than traditional things, but it wouldn’t be selling without the right marketing. The previous owners used to sell this product for £20, we now sell it for £40 + upsells! Sometimes you just need the right messaging.
I’m curious about the product
We have a few products but all in the same niche. This isn’t a ‘find a product on aliexpress and dropship it’s style business!
Can you explain more on the niche? Maybe you can link a competitors product or something. I am in the Hi-Fi business and trying to figure out if something like this would work for me and should I invest my time in it.
Are you importing from China though?
Yes!
Hey, firstly congratulations on the achievement! I wanted to ask if I can work for you for free. I am a Computer science major and have interned at leading marketing agencies. I could contribute in a lot of ways ranging from the role of virtual personal assistant to creating for and managing your social media.
As a fellow software engineer I highly recommend getting your beak wet yourself. Software products need advertised like anything else (I’m taking notes from this guy) but costs little to no money to grow and maintain. Do a side job for ad budget. Anything you do now, if it works, will be massive in 1-5 years, or you’ll get the knowledge needed to make a better idea work down the road
Since you aren’t using Amazon FBA to handle shipments, does that mean you’re hand-packing/labeling, managing returns etc yourself? Isn’t that excessive to do daily with those revenue numbers? Or are you searching for FBA-esque shipping solutions to work with for your store? I sell on FBA only comfortably profiting around $500 and can’t imagine packing all day. You’ve also convinced me ads can have way higher than 1 ROAS just gotta keep at it!
Can you share the most helpful videos you found for advertising on meta?
I’m trying to figure this out as well.
I’m also interested to learn more about building these e-commerce type businesses. Please share any resources you’d recommend there.
Is the product one you built, bought or something else?
Congrats on the success!
This is probably the single most helpful video on it that i’ve found: https://www.youtube.com/watch?v=kztcF_IiTsQ&ab_channel=AndrewYu
Beware - he is selling a ‘prime’ membership thing which is apparently a scam, or maybe just not very good. But his first few youtube videos are actually really valuable.
There’s one on making a high converting video ad as well as setting up the campaigns (the one I linked above)
Could you please link the high-converting video ad one?
Good job OP, you deserve it! And hey if it all falls apart tmr you know you’ve done it once and yay can do it again!
Gosh knows I’ve rode that roller coaster myself more times than I can count!
Thank you!
Hahah that’s reassuring to know! I definitely feel more confident repeating this but perhaps in an industry I’m more passionate about.
I think I may look to exit in a couple years if growth continues, and then use the money to begin a new venture. Still figuring that all out. Would love to hear about your roller coasters??
Okay just the highlights…
90s ~ Started affiliate marketing ~ high 4 figures monthly revenue.
2000s ~ Moved to China started selling physical products ~ mid 5 figure monthly revenue.
2010s ~ Private Label platform/shopify sales ~ average mid 7 figures years.
2020s ~ COVID happened revenue obscenely good ~ year to date about mid 7 figures.
Ups and downs over the last few years with adjustments from platforms to platforms, algorithms adjustments the usual shit hit the fan!
But the constant is I’ve done it once I’ll do it again. At a certain point it’s not even a challenge!
Btw I’m 63 this year so old people can still get it up🤣
Why are people so afraid to say what they sell? Like it’s just so easy to try and copy what they’re doing hahhahha
Not everyone love to dox themselves. It’s not only about the product idea.
It actuality is. Hundreds of people will copy the exact pics, description, design, ads, etc. It’s just not worth it
That’s nuts lol. It doesn’t seem that easy to set up a competing business and expect to get the same profitability especially after knowing your competition you’re copying has it more or less on lock