$0-$186,012 In 1 Month: It Was A Big Mistake! 😱😭 | Shopify Journey 2018

$0-$186,012 In 1 Month: It Was A Big Mistake! 😱😭 | Shopify Journey 2018


so you think you just need one winner
product on your dropshipping sore and then your whole life will just change
completely well in this video I’m gonna share with you like all the mistakes the
lessons and the reality of scaling to six figures per month hey ivy soo here
and if you’re new to my channel make sure to watch the video till the end
because I will be sharing my revenue ad spend and also my profit so make sure to
watch till the end of this video so right now let’s go into the Shopify
dashboard and also the ads manager alright guys so for people who are new
to my channel or my new subscribers I’m gonna refresh your screen so you guys
can see that everything is real and legit so let’s wait for it to load it’s
gonna take a bit of time okay so yeah 186 K October yeah so as you can see
like let’s talk about like this beginning in a little bit so around this
time I was not sure that I have a winner but then here on the 6th of October we
just started grow so much and during this time I was barely sleeping like
maybe like an hour a day or two you know during this time it was like out of my
reality like this growth I feel like I’m gonna grow to like 20k per day or even
more because it was just like every day you just started climbing up you know so
yeah and then then I like after a few days after my first 10k day I go to
PayPal hold so that’s why I can see a dip but then here this was my record so
far it was 12 K in a day this was my record so far okay guys so
what now I guess right now I’m gonna just show you the ads manager okay so as
you can see spent 60 2k on ads last month and yeah as you can see like this
number is not the same as in Shopify I think it’s because I Facebook doesn’t
does not really pick up on all the sales and also like some of the sales come
from like sharing and stuff like that so that’s why the numbers are a
little bit different but this number is correct so I spend 62k on ads and some
people were gonna ask so I’m gonna just tell you guys the profit before like
taxes was around 19% yeah around 19% my goal right now is just like trying to
push this to 25-30 percent it would be even better so yeah like right now let’s
talk about my lessons so yeah my lessons the first one like the first the biggest
one is don’t scale too quickly I was in a mindset that like it’s q4 I want to
milk all the profits get the most money you know quickly but the problem is like
the more you scale the bigger and like the higher the quantity of problems will
will come you know because right now maybe you think like oh all I need is
just winner but once you like you think your biggest problem is you’re finding a
winner right but then once you find the winner like the problems are just gonna
amplify you know I’m gonna show like later like what what are all the
problems but basically fulfillment you know I sold out all the products and
then the shipping times were just like like like slow you know like 30 days or
35 days shipping time which is slow you know I’m usually like with my supplier
it should be like 15 to 20 days you know but because I sold out everything then
you know the shipping times were long the other problem is like PayPal they
don’t really like people who scale you know because I scaled first I think it
was in June it was like 30 K around like that
then I had three months I really struggled you know during this summer I
started to find a winner during that time I almost gave up so
like my mom filled with revenue Dara was like 1000 per month or something like
that you know and then and then you know like in October it went from like 1,000
per month and then in October 81 it was like 186 K so this really freaked people
out and yeah I’m gonna talk about the paypal if
later the other thing is that you need to hire fast like when I started scaling
I just won VA for customer service and it got very messy they did very messy
because I was handling everything and the VA was doing just most mostly just
emails but you need you need way more like now I have three VA s for customer
service I’m hiring another one so it’s gonna be like four VA s for customer
service and then you know like some social media management you know the
page and some product upload and stuff like that then I have a video editor
then I have a person for thumbnails and then I also have an email marketing
expert and also I recently had a Google Ads expert and I also have a coder or
yeah I have a coder who’s also taking care of you know like coding scripts and
stuff like that like tweaking on my website so yeah the the team grew quite
quite big you know this was just like all this was done in the last two weeks
or so so that’s why I was like very busy and I was not able to I put out so much
content because I was hiring so many people they’re still I’m still like
teaching them like video editor and the VA is I’m still teaching them so that’s
taking some of my time another thing like the another lesson is that you
really need to hire a good quality people like into your team especially
for like customer service like I’m very satisfied with my current
team like our response time like we like our average response time is like 12
hours you know so if you if you have like an angry customer and you don’t
reply to them like in one day or like if even if it’s like two days you can get a
dispute or charge back you know so you really need to be careful because these
disputes and chargeback can destroy your business they can just shut down your
payment processor so you know it’s like this business is not just about the
marketing side and about the scaling you also gotta take care of the after sale
and just customer service as well so you can keep them
they make otherwise you know they can shut you down
yeah the next lesson is you need to ship fast so I never really used Aliexpress I
use it for like a week or two with like drop Fi and I really hated it because
sometimes I could drop a fight we just had some issues and I was not able I was
not able to automatically like send the order because the person’s name was like
Mohammed or there was like a wrong address or something you know and there
was just so many issues with the app so I don’t didn’t really like it also you
need to hire a dedicated person for for like fulfillment so I just I just have a
supplier and he has like faster shipping times and so on so yeah like if you’re
looking for a supplier you can find them in Facebook groups in e-commerce
Facebook groups just search for supplier sourcing agent or fulfillment and you’ll
find some some in China so the next lesson is PayPal will hold your money
you know like you need to be prepared like before the PayPal holds I was I was
like scared so much of them then once I started scaling I just felt like
invincible like I felt on top of the world I thought like you know like
nothing is gonna happen you know I’m just gonna scale really hard you know
and then the banhammer like not the banhammer but then the PayPal hammer
came in and yeah they put a hole in my account and a
rolling reserve which is taking like from the daily revenue like 20% you know
so like at this moment they have limited like hundred percent of my money again
for the second time in the last 30 days you know so right now they’re holding I
think like 80k or more of my money I think it was like around 80 or 81 K so
that is on hold yeah so let’s hope let’s hope they will release it in a few days
they should release like I think like 20 20 something k2
they should release and then the rest is still on should be still in hold so yeah
like with PayPal you really need to provide them all the documents like the
company business registration documents proof of ownership supplier invoices
tracking numbers like they just want proof that you’re sending these out they
also want to know the shipping times and everything make us pay they’ll need to
calculate their risk because there are some people that scale very fast then
they pull out all the money let’s say like they ain’t like in two weeks or
three weeks they may like 200k then they take out all of the money you know and
then run away and don’t fulfill those orders and PayPal is gonna pay the
customers so that’s why people is pretty strict with that so yeah you need to
provide them all the proof so they realize that you are not such a high
risk business for them right yeah since PayPal has so many holes and so
many issues they’re gonna slow you down you’re gonna need to payment processors
so like my store had only PayPal because I was not able to get a payment
processor but right now I’m working on getting one so yeah this should fix a
lot of issues with cash flow and everything so you basically really need
to get to payment processors even if it’s like not your like it’s not
available or something it’s hard to get you really need to try to get once
you’re scaling like you can start with paypal only but once you get to like 300
400 per day you should start working on the payment processor because it’s gonna
take some time so yeah you’re also gonna need backup credit or debit cards
because I was paying for my ads with PayPal and whenever they just limit your
account you cannot use you cannot use PayPal for for paying you know so all
your ads would just be turned off unfortunately this didn’t happen to me
this time because I learned my lesson last time they was in June and even if
you’re paying for ads with PayPal you always need one like backup card that
like enough money to cover like two or three days of ad spend
so whenever like they limit your whole account you have enough money on the
card usually PayPal limits your account for like 72 hours I think around like
that time so you need to have enough money for like four days four days let’s
say another thing is like before I was like laughing like at fees I was like
yeah 2% whatever you know but now I’m looking really closely at them because
the fees they can just kill your margins guys this is a hidden thing that a lot
of people are not realizing but the fees are very high like when you have Shopify
basic plan you’re paying 2% extra if you’re not using Shopify payments and
it’s I think that Q percent 1 percent 0.5 or if you get Shopify Plus which is
very expensive then it’s like – 0.25 percent right but let’s say like Shopify
is taking 1 percent right then paypal fees this can range around like 1.9 to
3.4 I have 3.4 percent at this moment I’m waiting for them to lower lower it
but yeah like 1% from Shopify fees then PayPal it’s like 3.4 then there’s 1 to
2% it’s like a hidden feed it’s a cross-border fee it’s usually for people
who are outside of us right so yeah let’s say let’s say like 1% so
let’s say like 1% from Shopify 3.4 from PayPal 1% cross-border that’s like 55.4%
you’re losing on your profit margins so if you if you have like let’s say 25
percent profit margin those fees will lower it down to 20 percent so that’s
huge guys that’s huge also if you’re not from us you’re not
able to withdraw money so if you have like USD in your PayPal account you’re
not able to withdraw USD to your USD bank account so you’d need to like you
would to withdraw to your local currency and
then you need to convert your local currency into dollars so there’s two
currency conversion fees and this can be like seven percent right so that’s huge
guys because 55.4% for the other fees then if you add in currency conversion
like another seven percent that’s twelve that’s twelve point four percent that’s
huge guys that’s like so much money and the one thing that you combat this with
PayPal is you can use a word first or Payoneer and their fees are like smaller
like their fees are I think like depending depending on your volume
they’re usually like two percent but if you have high volume you can get it to
1% maybe even a bit lower if you have huge volumes
another thing is disputes I was like I was very happy that I got only like
three disputes before but now you know I got like eight or ten disputes like one
day I got like four or five disputes and this like really freaked me out because
that day I got four or five disputes and I felt like it’s gonna continue every
day and if every day you’re getting like four disputes your account is gonna get
shot down so fast right so you got to be very careful you got to be very careful
you know you got to respond to disputes very quickly provide all the tracking
numbers and everything you know be very polite to the customer say sorry I also
have a good customer service so you can prevent those disputes there’s a lot of
things that you can also tweak on back-end to lower disputes and
everything but this is a huge topic you know if I would talk about every detail
of what I did during scaling this video would be would take like ten hours
because there’s so many things that I’ve done you know during this the past month
another big lesson like a huge lesson you know a huge one is you need to set
up your back-end like nowadays with ads being so expensive you really need to
focus like I’m gonna show you I’m gonna show you stats
really understand like the importance of that so I had video before and it made
me 11 K out of 77 K which is about 14% of the revenue was made because of we
leo so yeah you really need exit intent
pop-up app so Willie oh I think privy also has that so those are really great
if you’re more advanced you can get an email marketing guy and he can set it up
for you like even better you know but if your beginning like we leo is really
great it’s like 15 dollars per month I think or 30 dollars I’m not sure so
highly recommend this app another one is discounted upsells so I install this
like a month ago and it made me 26 K so discounted upsells is like an in cart up
so app so when people like buy let’s say like let’s say let’s like a dog looks
like a dog toy right so when they click Add to Cart what you can have is you can
have like ho buy another you know but another one at 20% off right so a lot of
people like I think like 15 to 20 percent of people will take that upsell
you know so this app is also very very good so yeah I think it depends I take
10 to 20 percent people will take the up solve so that’s huge guys that’s huge
yeah then there is a shop message this is abandoned card messenger app so this
made 12 K you know over the last nothing knows 30 days or something like that so
yeah huge apps like so much money yeah and this shop message it cost me like
hundred dollars per month and it generated a general 12 K so quite a lot
SMS bump so you can see here I spent seventy seven dollars and made 5k with
this app so if you if you like to add everything in I also didn’t I forgot to
add like abandoned cart emails and klaviyo but this also made me over 10k
like doing that during the last one I think inmate 15 or maybe even more 15 K
but yeah if you just count in the window 11 K 26 K from discounted upsells then
12 K from sharp message in 5 K from SMS bump you know I think like more than 30%
like more than 30% of my money was done on the back end yeah I’m not sure I
haven’t even counted but like yeah 11 K Plus this is shit
so it’s 37 K with this is almost 50 K 55 k so 55 k out of 186 so it’s a little
bit less than 30% right around 30% was made from the back end so this is huge
guys like if you’re struggling to get profitable is because you’re losing the
additional 30% of revenue that these apps made me right so the back end is
essential guys okay so let’s go into the next ones so like don’t think that
scaling is like like once you scale like all your problems will be solved you’ll
be happy no actually when you start scaling there will be lots of issues
like sometimes like the business manager won’t work
sometimes you know there is going with Facebook sometimes some app doesn’t work
sometimes you know like a lot of things like stop working so you will also make
a lot of mistakes so what you need to learn is you need to always contact
support the app support Shopify support like I I contacted sure if I support so
many times during during the past month I think it was like every two days every
three days I was just like asking them for for help of some issue you know so
you really need to be on point you also need to learn how to use Google search
if you don’t know how to do something just google it if you have any questions
how to do something use Facebook group search this is very essential yeah so
you need to use these also one of the pitfalls is be careful
spend too much time on Facebook or social media those are very distracting
so you really need to focus and minimize all distractions yeah so like I said
before like expect that there’s gonna be way way way more work you know expect
that like it’s gonna be very stressful you know I was kind of stressing out
because I was like making 10k per day and my profit margins were like
sometimes 20 sometimes 25 so I was trying to like really work hard to
increase the profit margins because as soon as you do it you know you increase
your profit margin by like 5% like the more benefit like the longer you get the
extra 5% every day right so like once you start scaling you need to optimize
everything so your profit margins can be better or they stay the same at least
you know because once you scale usually the profit margins go below like
decrease so you really need to work hard on setting up the back end you know up
cells and everything to increase that okay so the last thing is also spend
some of the time on education on improving you know it’s very important
that you implement and work hard but also spend some time on education like
some courses coaching or some high-quality YouTube videos that you can
learn from yeah like those really helped me to grow so much you know there’s
there’s a lot of people that are buying courses and expecting that to change
their life I don’t think so you know I don’t think a course will really like
change your life but you can’t you can learn some nuggets there and there you
know and this can help you out a lot but it’s not like you’re gonna buy one
course and you’re gonna you’re gonna make millions or six figures you know
usually it’s not the case also like coaching calls has have helped me a lot
usually like from coaching calls I get like one or two golden nuggets that
really that really give me great results you know even if you’re like having a
coaching call for one hour and you’re thinking like oh there’s so much awesome
content you really it’s just the one or two things that’s gonna really make the
difference so yeah so I think guys I think that’s it like that’s all the tips
I think I must have forgot something but there is so much thing like so many
things happening that yeah like if I if I think of something new I will tell you
guys in the next videos so you’re probably wondering so like what’s next
for me well guys right now I’m focusing on
changing my general store into a niche store and building a long-term brand
because this is what’s gonna help you with profits with launch activity
because with general stores they’re great to start but like the testing it’s
like so tiring because you always I got a thing of new angles and new products
and new niches and it’s just so tiring like right now it’s just so easy for me
to find a winning product in the same niche also with all the same pixel data
and all like the best audiences that I found this is way way easier so yeah so
first you start the general and then you go into a niche store so my next goal
would be to open more stores and just grow my YouTube channel so thank you
guys very much for watching the whole video till the end if you enjoyed the
video make sure to ask me a question you know like regarding scaling regarding
anything if you need any help make sure to ask me a question like this video and
share this video with someone you know if someone who is doing like EECOM who
wants to learn because on my channel I’ve documented my whole journey
since the start which is what which was in May of 2018 so you can see all my
progress in each and every one of the video so thank you guys for watching and
see you guys in the next one

55 thoughts on “$0-$186,012 In 1 Month: It Was A Big Mistake! 😱😭 | Shopify Journey 2018”

  1. Very useful this video, thanks!
    Every time I duplicate adsets and the budget does not work (probably because the pixel does not have enough data). How do you scale when you have 3/4 winning adsets?

  2. This question comes up in my head: why should I hire a lot of VAs if I have got enough time to do it easily?

    In my position, I can’t imagine that I have so much work, that it takes like more than 3 hours a day 😳 Fulfulling orders in CSV and editing the Shop and calling paypal etc.

    I just can’t imagine, that this takes so much time 😳 how do you time manage?

    By the way – video value level over 9000❤️

  3. I really don‘t know how to avoid disputes.. The first point in my „about orders“ section is the shipping time. After they order, they get an email that says „as you Know our shipping times take long… but look forward“ and anyway, I get 1 dispute every 50th order because of customers that are angry, that the product did not arrive after 3 days…. Maybe it’s just the German culture 😳😂

  4. Hi Ivy thanks for sharing the reality that comes with dropshipping. For now I am still in phase one which is testing and finding winners. I've been slightly profitable after spending 5k on ad's testing different products but failed to scale or scale flopped. I keep changing my testing strategy from ww to USA only or big five and not sure about 1 day click or 7 day click 1 day view please advice. Kos

  5. Wow awesome job! I noticed that your conversion rate is very good! What’s your theme? And have you done something special to improve it?

  6. The fees is why I went left and went for woocommerce I pay $48 dollars for the year on hosting and woocommerce is free

  7. Free tips – If you don't have business account, you gonna face issue surely. All you need to upgrade to business account, get registration if you're into private company or sole proprietor , get ssn or whatever the tax information u use in usa, open current account, provide all the relevant govt. id proof, bank statement etc if you're earning more than 10k a month.

  8. HI Ivy, your videos are a great help for me right now. I'm starting my store soon i was wondering where do u hire people? and what does VA mean?

  9. The backend part of this video is an amazing value. You may want to do a dedicated video for this. Thanks for the help, keep the value coming.

  10. You and Arie and Chris are great! The fact that you share your personal experiences (And you can tell that it's not B.S.) makes all the difference and it helps us!

  11. At first, do you use single image ads or video ads? Because for newbies, It is most likely we don't know yet which ads is better

  12. hI..Great Video… Can you tell me how do you handle the Customer Service part to your VAs. I mean what did you do and what instructions did you give to them to create a good customer service for your Shopify Store. Thanks

  13. I'm watching your videos from way back and I can honestly say.. you've inspired me to do this. Thank you so much.

  14. Great info brother, I live in the US and I changed Shopify payments to Stripe and still have PayPal. Is there a better option than Stripe to reduce the risk of holds?

  15. Tbh I don’t think you should show your winning product to everyone cause it’ll get saturated very quickly

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