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2 "MUST KNOW" NUMBERS IN YOUR DROPSHIPPING BUSINESS!

Published on: November 28 2022 by Peter Pru - Ecommerce Empire Builders

2 "MUST KNOW" NUMBERS IN YOUR DROPSHIPPING BUSINESS!

2 "MUST KNOW" NUMBERS IN YOUR DROPSHIPPING BUSINESS!

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00:00:00 00:00:05 what metrics what key performance
00:00:02 00:00:09 indicators KPIs should you be focusing
00:00:05 00:00:09 on in your e-commerce business
00:00:10 00:00:15 what is up Empire builders welcome back
00:00:13 00:00:17 to another episode of your brand new to
00:00:15 00:00:19 the Empire Builder family first and
00:00:17 00:00:22 foremost welcome please like comment
00:00:19 00:00:24 subscribe turn a notification bottle
00:00:22 00:00:26 down below as new e-commerce related
00:00:24 00:00:29 videos are released every single day and
00:00:26 00:00:30 check all the free resources and bonuses
00:00:29 00:00:32 down in the description of this video
00:00:30 00:00:34 that's going to help you build your
00:00:32 00:00:35 ecommerce empire but guys today we're
00:00:34 00:00:38 going to be toking about a question
00:00:35 00:00:41 that I got recently got asked is what
00:00:38 00:00:44 metrics what key performance indicators
00:00:41 00:00:47 KPIs should you be focusing on in your
00:00:44 00:00:50 e-commerce business now why are KPIs key
00:00:47 00:00:52 performance indicators any kind of
00:00:50 00:00:55 metrics important to your business well
00:00:52 00:00:57 be guys guys your numbers are the
00:00:55 00:00:58 lifeblood of your business right and you
00:00:57 00:01:01 probably already know this but most
00:00:58 00:01:03 people they don't give their numbers
00:01:01 00:01:05 enough attention okay and when I say
00:01:03 00:01:08 giving your numbers attention that means
00:01:05 00:01:11 knowing your numbers every single day so
00:01:08 00:01:12 for example and in today's video what
00:01:11 00:01:15 we're going to be toking about is
00:01:12 00:01:17 really the two numbers that you really
00:01:15 00:01:20 need to care about be first and foremost
00:01:17 00:01:22 okay there's not there's a ton of KPIs
00:01:20 00:01:24 you know cost per clicks right there's
00:01:22 00:01:27 CPMs there's there's just so many
00:01:24 00:01:29 metrics that you can track inside of
00:01:27 00:01:31 your inside of your business and they're
00:01:29 00:01:32 all important they all serve their
00:01:31 00:01:35 purpose but there are two that I think
00:01:32 00:01:37 most people just beat if you just focus
00:01:35 00:01:38 on these two you're usually going to be
00:01:37 00:01:41 making money and you're going to be more
00:01:38 00:01:42 profitable in your business okay now to
00:01:41 00:01:44 cut right to the chase the two key
00:01:42 00:01:46 performance indicators that I think
00:01:44 00:01:48 every one of you needs to be paying
00:01:46 00:01:50 attention to every single day and
00:01:48 00:01:53 watching it like a hawk is your average
00:01:50 00:01:56 cart value right your average cart value
00:01:53 00:01:58 is the amount of money that a customer
00:01:56 00:02:00 spends when they go through your funnel
00:01:58 00:02:01 okay so if you're not if you don't sell
00:02:00 00:02:03 it a sales funnel right now I highly
00:02:01 00:02:04 encourage you please please please start
00:02:03 00:02:06 using a sales funnel for your drop
00:02:04 00:02:08 shipping business if your don't know how
00:02:06 00:02:09 to set that up check out the sales
00:02:08 00:02:10 funnel masterclass the link will be down
00:02:09 00:02:11 below into this
00:02:10 00:02:13 scription on this video you can register
00:02:11 00:02:15 for that training class and I show you
00:02:13 00:02:17 why using these sales funnels is so much
00:02:15 00:02:20 more profitable than Shopify store or
00:02:17 00:02:22 Amazon FBA but the reason the average
00:02:20 00:02:24 cart value is important guys is because
00:02:22 00:02:26 it really is the average amount of money
00:02:24 00:02:27 that the average person is using through
00:02:26 00:02:29 your funnel now if you're using a
00:02:27 00:02:30 Shopify store for your drop shipping
00:02:29 00:02:33 business or your e-commerce business
00:02:30 00:02:34 guys you're not going to have a very
00:02:33 00:02:37 high average cart value because a
00:02:34 00:02:39 typical Shopify sales process when it
00:02:37 00:02:40 looks like it's a person comes to your
00:02:39 00:02:42 Shopify store they browse around they
00:02:40 00:02:44 finally pick a product that they want to
00:02:42 00:02:46 buy they add it to their cart and then
00:02:44 00:02:47 they leave okay so they just bought
00:02:46 00:02:49 something let's say for 10 bucks and
00:02:47 00:02:51 they leave now some of you guys that are
00:02:49 00:02:52 more savvy and e-commerce you might have
00:02:51 00:02:54 some post purchase upsells in there
00:02:52 00:02:56 which is fantastik so let's say that
00:02:54 00:02:59 might bump up that average cart value a
00:02:56 00:03:01 little bit now the reason the sales
00:02:59 00:03:02 funnel works as well as it does is
00:03:01 00:03:05 because the conversion rates are higher
00:03:02 00:03:07 than a Shopify store and more people are
00:03:05 00:03:09 going through your funnel and having the
00:03:07 00:03:10 opportunity to give you more money just
00:03:09 00:03:12 to give you some comparison shop refine
00:03:10 00:03:14 release numbers one point three three
00:03:12 00:03:16 percent was the average conversion rate
00:03:14 00:03:18 in a Shopify store guys one point three
00:03:16 00:03:20 three percent that means one point three
00:03:18 00:03:23 people out of 100 will buy from your
00:03:20 00:03:26 Shopify store now a sales funnel you're
00:03:23 00:03:29 gonna get around 10 to 15% ok I got
00:03:26 00:03:33 students up to 20 30 40 50 60 70 percent
00:03:29 00:03:34 order rates okay that means 10% on
00:03:33 00:03:37 average does it say 10 out of 100 will
00:03:34 00:03:40 buy from you that's 10x 10x what you're
00:03:37 00:03:42 getting from Shopify now what why that's
00:03:40 00:03:43 important is because with Shopify if
00:03:42 00:03:46 your conversion rates only one percent
00:03:43 00:03:48 your your back end funnel is it really
00:03:46 00:03:49 ever gonna be seen enough right it's not
00:03:48 00:03:50 gonna be seen enough your average cart
00:03:49 00:03:53 value might be high right in your
00:03:50 00:03:54 Shopify store but not enough people are
00:03:53 00:03:56 going through the funnel not enough
00:03:54 00:03:57 people are seeing your products and
00:03:56 00:03:59 having the opportunity give you money as
00:03:57 00:04:01 opposed to the funnel right because when
00:03:59 00:04:03 we use the funnel now right more people
00:04:01 00:04:04 are going to be going through that
00:04:03 00:04:05 funnel and more people are going to be
00:04:04 00:04:08 giving you money it's a lot more
00:04:05 00:04:11 profitable to do it this way okay now
00:04:08 00:04:13 average cart value again to go back is
00:04:11 00:04:15 how much money is the average person
00:04:13 00:04:18 spending in your funnel now with the
00:04:15 00:04:20 funnel guys everything is designed to
00:04:18 00:04:22 make us as much money as possible as
00:04:20 00:04:25 well as give our customers the
00:04:22 00:04:26 best experience as possible so how do we
00:04:25 00:04:29 increase average cart value while
00:04:26 00:04:30 average cart value guys it starts from
00:04:29 00:04:32 the moment honestly somebody hits a
00:04:30 00:04:34 funnel right they hit that opt-in page
00:04:32 00:04:36 that sales page a two-step order form
00:04:34 00:04:37 right we get their email address right
00:04:36 00:04:38 that's a lead that we're going to be
00:04:37 00:04:41 able to promote to later on with back
00:04:38 00:04:43 end sales right or when they when they
00:04:41 00:04:45 opt-in they get presented afterwards
00:04:43 00:04:47 with our order form now the order form
00:04:45 00:04:48 is where the magic happens because we
00:04:47 00:04:50 can give quantity break discounts we can
00:04:48 00:04:52 use order pumps as well which are
00:04:50 00:04:54 pre-purchase upsells kind of like when
00:04:52 00:04:56 you go to a grocery store and they're
00:04:54 00:04:58 just like easy tossed in items for you
00:04:56 00:05:00 to buy like a bag of chips or Altoids or
00:04:58 00:05:02 whatever you're gonna buy right easy
00:05:00 00:05:05 toss in items it's a great average cart
00:05:02 00:05:06 revenue booster before they go into like
00:05:05 00:05:09 the upsell sequence before they before
00:05:06 00:05:11 they buy now typically right here on
00:05:09 00:05:13 that order form you're going to see over
00:05:11 00:05:15 3x the profits and a Shopify store
00:05:13 00:05:16 because you're offering quantity breaks
00:05:15 00:05:18 and there's a couple of bunch of cool
00:05:16 00:05:20 hacks that you can do on your order
00:05:18 00:05:22 forms to get people buying a lot of your
00:05:20 00:05:25 products and then order bumps as well
00:05:22 00:05:26 are going to add that average cart value
00:05:25 00:05:28 they're gonna boost that up usually
00:05:26 00:05:30 you're gonna have around 20% of people
00:05:28 00:05:33 buying that order bump if you're not
00:05:30 00:05:34 getting 20% tweak the offer you at least
00:05:33 00:05:36 want to get that fifteen twenty percent
00:05:34 00:05:38 mark on that order bump right that means
00:05:36 00:05:40 fifteen out of the hundred people that
00:05:38 00:05:43 are gonna buy from you you want them to
00:05:40 00:05:45 also be buying that order order bump so
00:05:43 00:05:46 fifteen percent conversion rate now that
00:05:45 00:05:48 right there is going to increase
00:05:46 00:05:50 drastikally again three point four X's
00:05:48 00:05:52 from what I've seen just that order form
00:05:50 00:05:54 alone is only three point four X your
00:05:52 00:05:55 average cart value right which is
00:05:54 00:05:57 fantastik but we're not done there we
00:05:55 00:05:59 want to make as much money as we humanly
00:05:57 00:06:02 possibly can so the next step we take
00:05:59 00:06:03 people through is our upsell sequence
00:06:02 00:06:05 now your upsell sequence our
00:06:03 00:06:07 complementary products think of like a
00:06:05 00:06:08 McDonald's right do you want fries with
00:06:07 00:06:10 that do you want warm apple pie doing a
00:06:08 00:06:12 milkshake right well all that good stuff
00:06:10 00:06:15 right those are upsells they're ways to
00:06:12 00:06:17 get the customer spending more money in
00:06:15 00:06:19 your store okay now you can have as many
00:06:17 00:06:22 of these as you humanly possibly want
00:06:19 00:06:25 I typically stik around to five upsells
00:06:22 00:06:28 now upsells upsells one and two I
00:06:25 00:06:29 usually like to always do more of the
00:06:28 00:06:32 same thing that they just bought at a
00:06:29 00:06:34 better discount okay now I understand
00:06:32 00:06:35 not all products can lead to this maybe
00:06:34 00:06:38 you're selling a very
00:06:35 00:06:41 one-off product and it doesn't and it
00:06:38 00:06:43 doesn't necessarily make you it doesn't
00:06:41 00:06:45 make sense for you to sell more than one
00:06:43 00:06:47 of it or more of the same of it but I
00:06:45 00:06:49 encourage you to test it because I have
00:06:47 00:06:52 a student recently joined our $50,000
00:06:49 00:06:55 per month Club and he had a product that
00:06:52 00:06:57 I had no I could have swore guys that
00:06:55 00:06:59 this product would never nobody would
00:06:57 00:07:01 buy more than one ever ever ever it just
00:06:59 00:07:03 didn't make sense but guess what his or
00:07:01 00:07:05 OTO is one and two were a some more the
00:07:03 00:07:09 same thing are converting at over 15%
00:07:05 00:07:11 15% on those upsells right which is
00:07:09 00:07:13 fan-freaking-tastik okay
00:07:11 00:07:15 try it out everything is always worth
00:07:13 00:07:16 testing do never never never use your
00:07:15 00:07:19 own judgment in business guys let the
00:07:16 00:07:21 data tok okay most people don't let the
00:07:19 00:07:23 data tok let the data tok and then you
00:07:21 00:07:25 adjust from there and always give the
00:07:23 00:07:27 data enough time to see and make sure
00:07:25 00:07:28 that's working for example if you just
00:07:27 00:07:30 run your funnel for a day and nobody
00:07:28 00:07:33 took your upsell don't freak out right
00:07:30 00:07:34 let it run for about a week make sure
00:07:33 00:07:37 that it's at that there's enough data
00:07:34 00:07:40 into the funnel so you can really do a
00:07:37 00:07:42 decision okay boys always always let the
00:07:40 00:07:44 data tell you what to do next
00:07:42 00:07:46 now upsells wanted to again I love to
00:07:44 00:07:48 have that there some more the same thing
00:07:46 00:07:49 if possible if not sell complementary
00:07:48 00:07:52 products guys I mean it's just that
00:07:49 00:07:54 simple sell complimentary a similar
00:07:52 00:07:56 priced products more expensive products
00:07:54 00:07:58 or tests other front-end offers right
00:07:56 00:08:00 that's a good place to test and it in
00:07:58 00:08:02 our upsell sequences we also like to
00:08:00 00:08:03 have our continuity right
00:08:02 00:08:06 our continuities our reoccurring revenue
00:08:03 00:08:08 on it's the money that's gonna be coming
00:08:06 00:08:09 into our business month after month on
00:08:08 00:08:12 autopilot from our customers similar to
00:08:09 00:08:14 like a bark box or a fabfitfun where our
00:08:12 00:08:16 customers have the opportunity to join
00:08:14 00:08:18 our monthly subscription box a members
00:08:16 00:08:20 area whatever we're giving them access
00:08:18 00:08:22 to they point is they pass every single
00:08:20 00:08:25 month and we give them access to this
00:08:22 00:08:27 area which is an absolutely incredible
00:08:25 00:08:30 incredible revenue booster in itself
00:08:27 00:08:31 guys having that continuity program and
00:08:30 00:08:32 in our Thank You pages now we're not
00:08:31 00:08:34 going to go too much into Thank You
00:08:32 00:08:35 pages but Thank You pages are a great
00:08:34 00:08:38 opportunity to sell your customers more
00:08:35 00:08:39 stuff okay don't just because you're
00:08:38 00:08:41 done selling doesn't mean they're done
00:08:39 00:08:43 buying okay that's fantastik advice that
00:08:41 00:08:44 I got a from a mentor of mine but never
00:08:43 00:08:45 ever
00:08:44 00:08:47 ever assume that your customer is done
00:08:45 00:08:50 buying just because you are done selling
00:08:47 00:08:53 okay now if you're at that right there
00:08:50 00:08:55 those pieces are going to literally 5x
00:08:53 00:08:58 to 10x your average cart value in your
00:08:55 00:09:00 funnel now the next metric to average
00:08:58 00:09:02 cart value that is very important to pay
00:09:00 00:09:05 attention to is your cost per purchase
00:09:02 00:09:09 right your cost per sale your cost per
00:09:05 00:09:11 to get a customer into the funnel okay
00:09:09 00:09:13 now I typically because I know how to
00:09:11 00:09:15 set up a business I don't just rely on
00:09:13 00:09:17 front-end sales that's what I teach you
00:09:15 00:09:19 guys here you ever never never
00:09:17 00:09:20 just rely on front-end sales in your
00:09:19 00:09:22 business because that is no way to run a
00:09:20 00:09:25 business you always always always need
00:09:22 00:09:28 to be focusing on back-end sales now I
00:09:25 00:09:33 always like to make my cost per purchase
00:09:28 00:09:34 equal or less than my average Clark
00:09:33 00:09:37 value so for example if the average
00:09:34 00:09:39 customer is spending $35 in my funnel
00:09:37 00:09:43 right they're buying up cells they're
00:09:39 00:09:44 buying continuity they're buying the the
00:09:43 00:09:46 order form the order bumps if they're
00:09:44 00:09:48 spending around $35 let's say in our
00:09:46 00:09:49 funnel the average customer then I will
00:09:48 00:09:51 want to make sure that my cost per
00:09:49 00:09:53 purchase we have Facebook ads via
00:09:51 00:09:56 Instagram influencers or whatever is
00:09:53 00:09:58 less than $35 if not equal to I don't
00:09:56 00:10:01 mind doing equal like I don't mind
00:09:58 00:10:03 giving Facebook $35 to get a $35 average
00:10:01 00:10:05 cart now some of you might be like
00:10:03 00:10:06 that's crazy because yourself cost per
00:10:05 00:10:09 product you you have the products that
00:10:06 00:10:11 you have to pay for well what happens is
00:10:09 00:10:14 if you have your funnel set up properly
00:10:11 00:10:15 your continuity your upsells your order
00:10:14 00:10:18 bump your email marketing and back-end
00:10:15 00:10:20 sales right then it's fine it's fine to
00:10:18 00:10:22 lose a tiny bit of margin to get that
00:10:20 00:10:24 customer for free because I imagine guys
00:10:22 00:10:26 once you know your numbers a little bit
00:10:24 00:10:28 better that customer there's a there's
00:10:26 00:10:30 gonna be a percentage of them that
00:10:28 00:10:32 turned into continuity members which now
00:10:30 00:10:33 gets you paid every single month on
00:10:32 00:10:36 autopilot
00:10:33 00:10:37 okay now that right there is back-end
00:10:36 00:10:39 sales coming to your business so that
00:10:37 00:10:42 $35 that you just spent to acquire that
00:10:39 00:10:43 customer actually might turn into one
00:10:42 00:10:44 hundred and fifty dollars because that
00:10:43 00:10:46 average that customer might stay with
00:10:44 00:10:48 your reoccurring revenue your monthly
00:10:46 00:10:50 subscription box for five six months so
00:10:48 00:10:51 I'm okay with that because I understand
00:10:50 00:10:52 business okay
00:10:51 00:10:54 I want you to make sure you start
00:10:52 00:10:56 thinking this way just because you might
00:10:54 00:10:58 lose a little bit of money on Facebook
00:10:56 00:11:00 ads if you have your back-end business
00:10:58 00:11:01 set up properly and you're following up
00:11:00 00:11:04 with people you're launching new offers
00:11:01 00:11:05 you're launching new funnels right doing
00:11:04 00:11:07 things to generate revenue for your
00:11:05 00:11:10 business that's completely fine now of
00:11:07 00:11:12 course if I'm if I'm paying $35 for my
00:11:10 00:11:15 Facebook cause of Facebook to acquire a
00:11:12 00:11:17 customer and I have a $35 average cart
00:11:15 00:11:20 I'm going to work on this okay I'm going
00:11:17 00:11:22 to look and see where my funnel that I
00:11:20 00:11:25 can improve okay because I of course
00:11:22 00:11:28 want to lower that $35 cost per purchase
00:11:25 00:11:30 okay but again I don't mind an average
00:11:28 00:11:32 cart and cost per purchase are equal but
00:11:30 00:11:34 again it's a so that's a great base site
00:11:32 00:11:35 to have okay because as long as your
00:11:34 00:11:36 funnel set up properly you should be
00:11:35 00:11:38 making money with your continuity
00:11:36 00:11:41 programs back in sales all that good
00:11:38 00:11:44 stuff now as far as troubleshooting
00:11:41 00:11:47 those kind of issues right a lot of
00:11:44 00:11:48 people love to go jump at price right so
00:11:47 00:11:51 for example if you have a $35 costo
00:11:48 00:11:53 purchase and a $35 average cart right
00:11:51 00:11:55 that means let's start looking how can
00:11:53 00:11:57 we lower that cost per purchase so we
00:11:55 00:11:59 can retain more of that revenue well a
00:11:57 00:12:01 lot of people just go and lower their
00:11:59 00:12:04 price which is a terrible place that
00:12:01 00:12:06 terrible thing to do never go in and
00:12:04 00:12:08 just a lower price immediately it's it's
00:12:06 00:12:12 not a good thing to do okay
00:12:08 00:12:16 go out and offer more okay that's the
00:12:12 00:12:18 best best solution to it now obviously
00:12:16 00:12:19 you want to look through every step of
00:12:18 00:12:22 your funnel make sure that you're not
00:12:19 00:12:23 losing people like for example a lot of
00:12:22 00:12:25 students might have like a terrible
00:12:23 00:12:27 terrible opt-in rate okay but their
00:12:25 00:12:30 order form conversion might be amazing
00:12:27 00:12:31 or might be like 20 30 % so the issue
00:12:30 00:12:33 with their cost per purchase being so
00:12:31 00:12:35 high as their opt-in rate sucks okay on
00:12:33 00:12:37 that first sales funnel are all in that
00:12:35 00:12:40 sales page on that opt-in page so we'll
00:12:37 00:12:41 go back look at that sales page and see
00:12:40 00:12:43 hey how can we make that sales page
00:12:41 00:12:46 better to get people to opt-in to our
00:12:43 00:12:48 business okay so it's really important
00:12:46 00:12:49 to make sure you understand the key
00:12:48 00:12:51 metrics through the business but if you
00:12:49 00:12:54 just focus on cost per purchase an
00:12:51 00:12:56 average car value you're going to be
00:12:54 00:12:58 away ahead of the game and once you have
00:12:56 00:12:59 those numbers then you start looking at
00:12:58 00:13:01 the actual funnel right what's your
00:12:59 00:13:02 opt-in rate converting at what's the
00:13:01 00:13:04 order form what
00:13:02 00:13:05 cells converting it and truthfully guys
00:13:04 00:13:08 you should be looking at these numbers
00:13:05 00:13:09 every single day right tracking them
00:13:08 00:13:12 every single day I do this every single
00:13:09 00:13:14 morning in my businesses track every
00:13:12 00:13:15 single number how many sales conversion
00:13:14 00:13:17 rates for everything and so I can get a
00:13:15 00:13:18 running average and a lot of people will
00:13:17 00:13:20 say Oh whoopee I could just go look over
00:13:18 00:13:21 a month and see what my phone will
00:13:20 00:13:23 convert at well yes you absolutely can
00:13:21 00:13:25 but I want to see it on a daily basis I
00:13:23 00:13:26 mean the people that are obsessed with
00:13:25 00:13:29 their numbers are the ones that make the
00:13:26 00:13:29 most of money I promise you that so if
00:13:29 00:13:31 you have any questions about today's
00:13:29 00:13:33 video about these KPIs or if you have
00:13:31 00:13:35 any suggestions on what you love to
00:13:33 00:13:36 track in your business drop a comment
00:13:35 00:13:38 down below I absolutely love hearing
00:13:36 00:13:39 from you guys and I make some time every
00:13:38 00:13:41 single day to answer your guys's
00:13:39 00:13:42 question if you've got tremendous value
00:13:41 00:13:44 from today's video make sure to smash
00:13:42 00:13:46 that like button smash the subscribe
00:13:44 00:13:47 button and turn a notification bell on
00:13:46 00:13:49 because new videos are released here
00:13:47 00:13:51 every single day and if you are brand
00:13:49 00:13:54 new to e-commerce and you want to build
00:13:51 00:13:56 your e-commerce business without relying
00:13:54 00:13:58 on Shopify without relying on Amazon FBA
00:13:56 00:13:59 or any sort of expensive paid traffic I
00:13:58 00:14:01 encourage you click that link down in
00:13:59 00:14:03 the description below I show you how to
00:14:01 00:14:05 build your ecommerce empire using sales
00:14:03 00:14:07 funnels so you're actually profitable
00:14:05 00:14:08 and you can actually pay yourself from
00:14:07 00:14:09 your business but guys that is it for
00:14:08 00:14:11 today's video I hope you have a
00:14:09 00:14:13 fantastik rest of your day and remember
00:14:11 00:14:24 your empire starts now