how i made $1.1M dropshipping on autopilot (full case study) — Transcript

Full transcript

1. 0:00guys, Romath here. In this video, I'm
2. 0:01telling you exactly how a brand that I
3. 0:03built did $1.1 million in drop shipping
4. 0:05with Google Ads without me basically
5. 0:07ever touching it. And so, I don't really
6. 0:08do product tests. I don't really do like
7. 0:09product research looking for that one
8. 0:11key winning product that's going to blow
9. 0:12up for a month and then like die out.
10. 0:14And I'm also not making any creatives
11. 0:16for these products by themselves. And
12. 0:17so, the 10 different brands that I'm
13. 0:18managing right now, like they have
14. 0:19complete longevity. They're focused on
15. 0:21exit potential. Most importantly,
16. 0:23they're very easy to delegate, meaning
17. 0:25that I actually don't have to do any
18. 0:26work on these brands and they can just
19. 0:27print for the next couple years by
20. 0:29themselves. Like the whole point in drop
21. 0:30shipping is to be able to build a brand
22. 0:32that's consistently profitable without
23. 0:34you actually having to do a lot of work,
24. 0:36right? So, like all the brands that I
25. 0:37manage right now, I probably work like
26. 0:38two or three hours a week on every
27. 0:40single store. And so, every single other
28. 0:42person in drop shipping is using the
29. 0:43exact same format of how they're
30. 0:45building and scaling their brands,
31. 0:46right? So, they're doing like 10
32. 0:47different product tests a day. Um
33. 0:49they're making like 30 different
34. 0:50creatives for each product. They're like
35. 0:51making a bunch of different storefronts
36. 0:52for that product test. The whole point
37. 0:54is they're working 70 hours a week on
38. 0:56product test or making new creatives.
39. 0:58And so, in this video, I'm going to show
40. 0:59you guys exactly able to build and scale
41. 1:01these brands to like six and seven
42. 1:02figures while only managing them for
43. 1:04like two or three hours every single
44. 1:05week. And then in that extra time that I
45. 1:07have, I'm just continuously building
46. 1:09more stores by just copying and pasting
47. 1:10them but changing the niche in the
48. 1:12market. So, let me explain to you guys a
49. 1:13little bit more about what I'm talking
50. 1:14about. We can't be doing any Facebook
51. 1:15Ads, any Instagram Ads. We're not making
52. 1:17creatives for these products and we also
53. 1:19aren't doing any product tests and we're
54. 1:21not looking for that one winning
55. 1:22product. So, instead of us finding these
56. 1:24winning products that take a lot of time
57. 1:25for us to test and then also a lot of
58. 1:27capital for us to validate in the first
59. 1:29place. Instead of that, we're going to
60. 1:30be more focused on building a system
61. 1:32that can run these brands completely on
62. 1:34autopilot while we just scale them to
63. 1:35six and seven figures. The only way this
64. 1:37system is possible is through Google
65. 1:39Ads. So, with Google Ads, not only are
66. 1:41there no creatives because everything is
67. 1:43just a title, an image, and a
68. 1:44description, but there also are no
69. 1:46product tests because on your Google
70. 1:47stores, you just want to upload as many
71. 1:49products as possible and then Google
72. 1:50will find your winners for you. But the
73. 1:52best part is that there are higher
74. 1:53margins within Google stores because
75. 1:55everything is cost per click compared to
76. 1:56cost per impression. And there is also
77. 1:58more room for exit potential because
78. 2:00people want to buy these Google Ad
79. 2:02foundational stores so they can run
80. 2:04Facebook Ads on top of them. Every
81. 2:06single thing is system-based, meaning
82. 2:08that it's very, very easy to delegate
83. 2:10all of this work to an employee. All
84. 2:11right, so this store is called Dezuma
85. 2:12and they're only advertising their store
86. 2:14on Google Ads and it's probably the
87. 2:16easiest drop shipping store you can ever
88. 2:17build. Yet, this store is making more
89. 2:19than $1 million every single year just
90. 2:21with their product volume. And so, they
91. 2:23don't do any targeted copy. They don't
92. 2:25really have an ICP. Like all they focus
93. 2:26on is just a short description with a
94. 2:28specification and offer and just having
95. 2:30different product images. And so, the
96. 2:32way that I found this store is I just
97. 2:33typed in on Google outdoor lighting or
98. 2:35maybe even home decor. And so, when you
99. 2:37think about the customer's journey, like
100. 2:38if they wanted outdoor lighting items or
101. 2:40home decor items, like they're not
102. 2:41searching this up up on Facebook.
103. 2:43They're not searching on Instagram.
104. 2:44They're not searching up on TikTok.
105. 2:45They're searching up on Google and our
106. 2:47whole job is instead of running Facebook
107. 2:49and TikTok Ads convincing customers that
108. 2:50they need our products, we just want to
109. 2:52position ourselves where the customer is
110. 2:54already going, which is first place on
111. 2:56the shopping feed. And this is basically
112. 2:57what Google Ads look like. So, just an
113. 2:59image, a title, an offer, and a brand
114. 3:01name. And so, as you can see, like this
115. 3:03is the entire ad. Like we're not
116. 3:04actually building creatives. We're not
117. 3:05making any videos. We're not hiring UGC
118. 3:07or like stealing TikTok content. Like
119. 3:09the entire ad is what you see right
120. 3:11here. And so, with this tool called
121. 3:13Semrush, you can basically see how many
122. 3:14monthly visits every single website is
123. 3:16getting. And so, with Dezuma, they have
124. 3:18roughly 40,000 visitors every single
125. 3:20month. That's roughly around half a
126. 3:21million visitors a year. And with a very
127. 3:23standard conversion rate, which on my
128. 3:25stores I'm averaging between 4 and 6%,
129. 3:27but for this argument, let's just use 2%
130. 3:29to be conservative. That means that
131. 3:30they're roughly getting right around
132. 3:329,500 different orders every single
133. 3:35year. All right, so if I go to Dezuma
134. 3:36and sort by best selling, it looks like
135. 3:38this is their number one product and it
136. 3:39doesn't even look like it's being drop
137. 3:41shipped. Like this looks like a
138. 3:42legitimate brand and this product isn't
139. 3:43a winning or trending product. Like this
140. 3:45is a product that will sell the complete
141. 3:46year round. All right, so what I'm going
142. 3:48to do here is find the price of this
143. 3:49exact product that they're sourcing and
144. 3:51I'm just going to see how much money
145. 3:52they're actually generating every single
146. 3:53year. All right, so if I just take this
147. 3:54image and put this into AliExpress, it
148. 3:56will show me exactly how much they're
149. 3:57actually sourcing this product for. So,
150. 3:59it looks like there's a bunch of
151. 4:00different listings, so I just sorted by
152. 4:01orders and it looks like this one has
153. 4:03the most amount of reviews and also the
154. 4:04most amount of orders. So, if I just
155. 4:06select, let's just say 24 inches, that's
156. 4:08around 60 centimeters. So, they're
157. 4:10sourcing this product for $55 and
158. 4:12they're selling it for 232 bucks. All
159. 4:14right, so if I just take in their yearly
160. 4:15orders and multiply that by this product
161. 4:17price. And so, using that base price
162. 4:19with only 2% CVR, once again, a lot of
163. 4:22my stores are between 4 and 6%
164. 4:24conversion rate, they're roughly making
165. 4:26$2.2 million in revenue just from a very
166. 4:28basic home decor store. And so, also
167. 4:30this number is based on the cheapest
168. 4:32variant for this product, right? Which
169. 4:33is the smallest length and then also
170. 4:35only one piece of this lighting ring.
171. 4:36So, what I'm going to assume is a
172. 4:37customer would most likely purchase a
173. 4:39set of two, of course, if they want two
174. 4:41on the exterior of their home. They'd
175. 4:42also probably purchase a 48-in or 68-in
176. 4:45version of this product, which just
177. 4:47brings their AOV closer to $500, which
178. 4:49brings them to almost $5 million in
179. 4:51revenue every single year. And so, even
180. 4:53if I go back to their best selling and
181. 4:54I'm just going to use this $80 one as an
182. 4:56example, even if they're still making
183. 4:58$80 in average order value, that's still
184. 5:00close to a million dollars every single
185. 5:02year with a very, very easy store like
186. 5:04this. All this store is is just a
187. 5:06professional theme with as many products
188. 5:08as possible. And so, this theme, you can
189. 5:10detect using this tool called Shopify
190. 5:12Theme Detector. It's free. If you just
191. 5:14type in their store name, their theme is
192. 5:15called Calais, right? So, they basically
193. 5:17imported a theme called Calais and then
194. 5:19imported as many products as possible.
195. 5:21And all the products don't have any
196. 5:23marketing whatsoever. It's literally
197. 5:24just a product image and a title. And
198. 5:26so, the reason why this works so well on
199. 5:27Google is because when people type in
200. 5:29these products on Google search, they're
201. 5:31literally shopping with their wallet in
202. 5:32hand because they're ready to purchase
203. 5:34this type of product. Meaning, they
204. 5:35don't really have to market it that
205. 5:37well. As long as you just have a
206. 5:38high-quality image and a decent offer,
207. 5:40like people will purchase these
208. 5:41products. And so, even on this product
209. 5:43page, like the only work that I did was
210. 5:45making a title, copying these photos,
211. 5:47and just writing this short description
212. 5:48with some specifications. And then right
213. 5:50here at the bottom, they just have very
214. 5:51basic reviews that they probably
215. 5:52imported and then a suggested tab. So,
216. 5:54all this really is is just a theme with
217. 5:57a bunch of different products uploaded.
218. 5:58And the only three levers that they have
219. 6:00is the image, the title, and the
220. 6:01description. So, the best part about
221. 6:03Google Ads is like you do not really
222. 6:04need a research team. You don't really
223. 6:06need to understand your ICP or do any
224. 6:07direct targeting. Like all you need is
225. 6:09just products that people are willing to
226. 6:11purchase. Just changing up the image,
227. 6:13the title, and the description and
228. 6:14you're basically completely set. So,
229. 6:15that's exactly where this automation
230. 6:17system comes into play because there's
231. 6:18only three main variables, three main
232. 6:20levers within your store. All right, so
233. 6:22with Facebook, Instagram, and TikTok,
234. 6:23like this is the work you need to do to
235. 6:25actually become profitable in your
236. 6:26store. So, first off, you need to have a
237. 6:27winning product. You need to have a
238. 6:29winning creative that targets the ideal
239. 6:30customer profile. You need to have pain
240. 6:32points that actually convince the
241. 6:33customer needs to purchase. And you also
242. 6:35need a winning offer, which is like how
243. 6:36much you're charging your product for.
244. 6:38And then also winning landing page to
245. 6:40re-market this entire offer. But all of
246. 6:42this stuff is just within one singular
247. 6:45product test. And so, that basically
248. 6:47means that all of this work that you're
249. 6:48doing is just to test a singular product
250. 6:51that may or may not work. And the only
251. 6:52way you're going to find out if it works
252. 6:53or not is if you're spending hundreds
253. 6:55and thousands of dollars on actually
254. 6:57running your Facebook Ads. So, even
255. 6:58people in my network, they're spending
256. 7:00between like $500 and $1,000 for every
257. 7:02single product test and they're testing
258. 7:04out like 10 different products every
259. 7:06single week. And so, if you're doing
260. 7:07drop shipping with a low budget, like
261. 7:08even if you found the perfect product,
262. 7:10like there's always going to be someone
263. 7:11with more capital and more experience
264. 7:12behind you who is just going to rip your
265. 7:14entire store. So, I still run Meta Ads.
266. 7:16Like I still have brands that utilize
267. 7:17creatives. But the easy way to do drop
268. 7:19shipping that doesn't take a lot of work
269. 7:21is only through Google. So, Google has a
270. 7:22higher profit margin. Like the stores
271. 7:24that I'm running right now are average
272. 7:25between like 25%
273. 7:27profit. The customers generally have a
274. 7:29higher buying intent because they
275. 7:30wouldn't be searching up that product on
276. 7:32Google and clicking on your website if
277. 7:34they weren't going to purchase your
278. 7:35product because they already saw the
279. 7:36image, they already saw the title, and
280. 7:37they already know the offer. That
281. 7:39basically means that the only work you
282. 7:40have to do is just upload as many
283. 7:42products as possible and just optimize
284. 7:44the titles, descriptions, and images.
285. 7:46And so, this is exactly where the
286. 7:47automation system comes in. But also
287. 7:49quick side note, the only reason you
288. 7:51don't have to do a product test is
289. 7:52because when you upload, let's just say,
290. 7:541,500 different products in your store,
291. 7:56the only time you'll ever be charged
292. 7:58money as an advertiser is when someone's
293. 8:00clicking on your ad. You get charged
294. 8:01cost per click. Compared to Facebook,
295. 8:03which is charging you CPI, cost per
296. 8:05impression, which basically means if
297. 8:06someone watches your ad for 10 seconds
298. 8:08and has no buying intent whatsoever,
299. 8:09you're still getting charged. And so,
300. 8:10the way that you do this is you just
301. 8:12upload 1,500 different products into
302. 8:13your store and then whichever ones will
303. 8:15work, Google will tell you and will
304. 8:17scale up those products automatically.
305. 8:19And whatever's not working, you're not
306. 8:20going to get charged because people
307. 8:21actually won't be clicking on that ad in
308. 8:22the first place. So, you're not actually
309. 8:24losing money on these product tests. The
310. 8:26first step is just product research to
311. 8:27get you to 1,500 products. The way that
312. 8:29you do this is, of course, through
313. 8:30AliExpress and then also your
314. 8:32competitors. Your competitors can come
315. 8:33from ChatGPT, which I showed you guys
316. 8:35how to do in the first video. Um then
317. 8:37just regular Google search, which I
318. 8:38showed you guys how to do today. Just
319. 8:39type in home decor like outdoor lighting
320. 8:41in Google and see what other people are
321. 8:42popping up in the shopping tab. And then
322. 8:44also Meta Ads Library. Meta Ads Library
323. 8:46is a collection of every single ad ever
324. 8:48posted on Facebook. And the reason why
325. 8:50this is good for us is because people
326. 8:51are going to watch that ad and then
327. 8:53indirectly type in that product on
328. 8:55Google and that's exactly where we pop
329. 8:56up. And so, once you have these 1,500
330. 8:58different products, the way you automate
331. 8:59in importing them into your store is
332. 9:01through these tools called Copy and
333. 9:02Poki. So, of course, I'm not affiliated
334. 9:04by these companies. They're also very
335. 9:05cheap. They're like $2 a month. And then
336. 9:07with Copy, you can just import products
337. 9:09into your store and they also have this
338. 9:10AI copywriting tool, which means you
339. 9:12don't actually have to write these
340. 9:13titles and descriptions. And so, they
341. 9:15work on Shopify, Etsy, CJ Drop Shipping,
342. 9:17AliExpress, and then also this app
343. 9:19called Poki. They basically do the exact
344. 9:21same thing. It's just a matter of
345. 9:22preference. And that's exactly how you
346. 9:24automate importing these 1,500 different
347. 9:26products into your store. And so, once
348. 9:27you understand how to do product
349. 9:28research and then also using these tools
350. 9:30to import the products, like all of this
351. 9:32work can just be delegated straight into
352. 9:34an online employee. So, men, so this is
353. 9:35basically the format that you want to
354. 9:37have. So, of course, the CEO is you.
355. 9:38Your COO of operations and they hire
356. 9:41fulfillment VAs, support VAs, supply
357. 9:42communication, they do all the logistics
358. 9:44and the fulfillment. A CTO to actually
359. 9:46develop your store. So, they would hire
360. 9:48in product researcher and a product
361. 9:49lister. A marketing officer to help you
362. 9:51with Google Ads and email and Klaviyo. A
363. 9:53CFO, of course, to track your
364. 9:55profitability and then hire a
365. 9:56bookkeeping VA so all of your orders are
366. 9:58accounted for. You can also exit your
367. 10:00business a lot easier because all of
368. 10:01your books are clean. And so when I
369. 10:02started dropshipping 2 years ago, like
370. 10:04of course I did Facebook, of course I
371. 10:05did Instagram, TikTok, Pinterest,
372. 10:07Taboola, Snapchat ads. I basically did
373. 10:09every single thing, but I didn't have a
374. 10:10team behind me. Like it was literally
375. 10:12just me pulling like 90 hours a week
376. 10:14just working on all these companies. I
377. 10:15didn't have a team to work with me. Like
378. 10:17I was doing all of this manual work,
379. 10:19whether it be product research, product
380. 10:20listing. Like I wasn't using Copy or
381. 10:22Pokey. I was manually importing those
382. 10:23products. And so really like the only
383. 10:25reason I'm in this business in the first
384. 10:26place is just so I can have the freedom
385. 10:28to actually enjoy life and enjoy myself,
386. 10:30right? And so when I'm pulling these
387. 10:31hours, it kind of defeated the purpose
388. 10:33of everything that I was building. So
389. 10:34like even in my Discord right now, pull
390. 10:35that up. And so this is an example of a
391. 10:37brand that I used to manage and I
392. 10:38actually sold this brand earlier this
393. 10:40year, but like my logistics employee is
394. 10:42communicating with my supplier. And so
395. 10:43he basically said that order number
396. 10:4412,000 is not yet delivered. Can you
397. 10:46please check if something's wrong? Tell
398. 10:47the customer to contact the shipping
399. 10:48line at USPS for a faster delivery. And
400. 10:50so this just saves me from that 90-hour
401. 10:52work week of me just doing busy work
402. 10:54that doesn't actually move my business
403. 10:55forward. And so just within this
404. 10:57logistics channel, like there are
405. 10:58thousands of examples of work that I
406. 11:00didn't have to do because I delegated
407. 11:01and I outsourced all of it. And of
408. 11:03course the same thing with the invoices,
409. 11:04the sourcing and quotations. Like you
410. 11:05basically just want to have this format
411. 11:07running so that you actually don't do
412. 11:08any work within your business and you
413. 11:10can focus on actually moving the needle
414. 11:11forward. Now as the CEO, like the only
415. 11:13two things you have to do is just come
416. 11:14up with new store ideas, like niches and
417. 11:16markets. Also just enjoying life because
418. 11:18you do not want to be inside of the
419. 11:20business like doing all the busy work
420. 11:22when instead you can be outside and just
421. 11:23focusing on actually progressing. If
422. 11:25you're working 9 to 5, if you're a
423. 11:26student at university, whatever the case
424. 11:28is, like this system is probably the
425. 11:30easiest way to make money in e-com
426. 11:31without actually doing a lot of the work
427. 11:33in the first place. And so this is
428. 11:34crazy, but this is a board that I built
429. 11:36last year, I believe in late May. And I
430. 11:38was just trying to mind map every single
431. 11:39thing that would go on within a company
432. 11:41and literally nothing has changed from
433. 11:43that point last year to right now. So
434. 11:44I've been using this exact system for
435. 11:46the longest time and I'm telling you
436. 11:47guys it works and it works very well. So
437. 11:49also these stores have an insane amount
438. 11:51of longevity. Like people are always
439. 11:53going to be buying outdoor lighting and
440. 11:54home decor products on Google. And so
441. 11:56these stores can easily last you 2, 3
442. 11:57years before you decide to exit. So even
443. 11:59the last couple videos when I talked
444. 12:01about building like an actual brand with
445. 12:02like legacy and like a detailed customer
446. 12:04list, like I talked more about items
447. 12:05like these neck fans and even this
448. 12:07pregnancy pillow to build like a
449. 12:08maternity niche store. The exact same
450. 12:10process applies but on a smaller scale,
451. 12:12right? So instead of you doing 1,500
452. 12:14products, maybe between 250 and 500
453. 12:17within that niche. And then slowly once
454. 12:19you gather the data to see what's
455. 12:20working, then you redefine your store
456. 12:22within that niche. And so this
457. 12:23automation system applies the exact same
458. 12:25way. Although it will not be 1,500
459. 12:27products if it's a very specific niche,
460. 12:29it might only be 250 or 300. The exact
461. 12:31same process of finding competitors,
462. 12:33using these tools to import them into
463. 12:34your stores, and then also even building
464. 12:36out this full team like still applies to
465. 12:38every single store that you might make
466. 12:39with Google Ads. And if you want to
467. 12:40learn directly with me and want me to
468. 12:42come and actually build out one of these
469. 12:43systems for you, there should be a link
470. 12:44in the description. Other than that,
471. 12:46thank you guys so much for watching till
472. 12:47the end of the video. If you guys
473. 12:48enjoyed, definitely like, comment,
474. 12:49subscribe, all that fun stuff. And I'll
475. 12:51catch you guys in the next one. Peace.