The dropshipping business model is gaining popularity. This case study analyzes a dropshipping store that generated $243,000 in just three months during Q4 2021. We’ll delve into the profits, advertising strategies, product selection, and operational tactics that fueled this success.
Q4 is typically a prime time for dropshipping, but ad competition is fierce. This store achieved 20,837 orders with a 2.96% conversion rate. Over 95% of traffic originated from mobile devices, primarily through Facebook and Instagram ads. The target market focused on the US, UK, Australia, and Canada.
The 3-month advertising cost was $19,153, resulting in an impressive 2.22 ROAS (Return on Ad Spend). The average CPM (Cost Per Mille) was only around $2 across the top 4 countries. The key was utilizing carousel image ads with an incredibly low CPC (Cost Per Click) of just 26 cents.
The chosen product was a disposable eyebrow and facial hair remover for women, an evergreen product with year-round demand. The retail price was $7.95 for a pack of 10. This product capitalized on the trending “dermaplaning” beauty technique popular on TikTok and YouTube.
To increase profits, the store implemented an upsell offer: a different eyebrow trimmer for $4.95. The upsell conversion rate reached 40-50%, boosting the average order value to $16.6. By partnering with a dedicated supplier, product and shipping costs were optimized to around $3.37 per order.
The total net profit after 3 months was $51,176, representing a 21% profit margin. Monthly profit reached $17,000, an impressive figure for a dropshipping store.
The most effective ads were carousel ads with simple images, focusing on the customer’s problem (unwanted facial hair) and the product’s solution. The ads emphasized safety, effectiveness, and time-saving benefits.
Conclusion:
This case study demonstrates the success of the dropshipping model with a low-ticket product and a smart advertising strategy. Selecting an evergreen product, optimizing costs, and focusing on carousel image ads yielded outstanding results. You can apply these strategies to your own dropshipping store. Contact Sellbm5.com for detailed consulting on dropshipping and advertising.