average shopify store revenue
Published on: January 1 2023 by pipiads
Table of Contents About average shopify store revenue
- $0 To $1000/DAY PROFIT In 13 Days Dropshipping - (FULL REVEAL) - Shopify
- Average Shopify Store Revenue how to make money on Shopify in 2022
- How This SIMPLE Shopify Store Makes $1M Per Month
- [Need to Know] Average Profit Margins for eCommerce Stores
- How I Make $1,000/Day In Passive Income On Shopify
- How Much Profit Does a Shopify Automation Store REALLY Make?
$0 To $1000/DAY PROFIT In 13 Days Dropshipping - (FULL REVEAL) - Shopify
yo what's going on guys welcome to new,video in which i'm gonna be doing,something i haven't done before which i,always say but uh i mean i've only done,like,nine or ten videos so far so you know i,haven't done a lot of things so in this,video i'll be showing you guys how i,took a product from zero to more than,one k day profit,in less than two weeks and i think,that's going to be really good for you,guys who are like beginners or learning,about stuff so yeah i think it's going,to be probably the most educational,video on my channel apart from like the,seven day challenge so right so the,point of this video is just to show you,guys like what's possible how i did the,facebook ads how i found the product,everything like that i'm not gonna be,showing you guys the exact product and,the reason for that is if i show you,guys the exact product that i was using,everyone's just gonna copy it and it's,just gonna stop working so there's,really no point in that if you guys,wanna see other winning products just go,to any product research tool and just,search up like,previous winning products and you'll see,what kind of products work and then you,can base your,research off of that let's go straight,into it all right so the first thing,that comes into getting a product to 1k,a day,is actually finding the product now this,can be done in many different ways now,i'm going to be showing you guys the,main way i find products personally but,you guys can do,anything else like you can find products,literally in real life and then,like see if someone's advertising them,or something but yeah you can like,search aliexpress you can use any tool,but i personally,always use drop a spy and i just go to,filters last seen winning products and i,scroll through now this,is the crucial part of the process it's,literally the hardest part but,you just want to keep scrolling and,searching for something that makes sense,that like has a decent margin,that you can see yourself um selling so,yeah,like you can literally spend like hours,upon hours just scrolling drop us by,messing around with the filters like,entering some keywords here and there,and the text search so if you want to do,like a fishing product you want to do,like fishing or,something related to fishing like lore,or whatever and here we go now we're,seeing like fishing products and then,you want to keep scrolling here as well,checking out the website so for example,this product right here we always want,to check the site,so you can see their ad the exact time,that's working and you click on shop now,and here we are we're on the site so,now you can analyze and see if there's,anything you can improve and uh if it's,worth running,always pay attention to the margin and,this product's pretty cheap so,cheap products work as well but i,personally go for like higher margin,products,and i mean this is literally how i found,the product so i was just scrolling here,adding some keywords,doing stuff like that and i ran into a,product i saw the margin was there i saw,their site wasn't good so i improved the,site i got some ads from top notch ads,which,you know is always linked to the,description and i ran the ads which,you're going to see,soon basically want to see proof of,concept that someone's been running,successfully and then you just want to,make everything better and run it,yourself so that's literally what i did,and the next step once you find the,product is obviously like validating,that you're going to be running it so,you want to see the margin everything,like that and once you find a product,that checks all your criteria,what i like doing personally is using,saturation inspector so i just go to,aliexpress find the listing,and then for example this watch there's,only 12 stores that are selling this,watch at the moment,it's not too competitive it's not,saturated but it is a watch so i,wouldn't sell it and they recently had,an update with the software so now it,also works with cj dropshipping and,alibaba in case your product's not on,aliexpress so if i click the extension,and we wait for it to load it says,there's 15 stores that are selling this,product currently um which is not too,many so this product is also good and,even if we go to alibaba we can also see,that like this products being sold by 12,people so,it's pretty untapped as well and yeah i,really like the update so if you guys,want to use the software yourself,there's a link in the description so,check it out that's all good,you want to start building the product,page or the store now i personally,mostly run general stores i do have like,one,one product store but uh yeah mostly,around general stores and the reason is,they're like the most time efficient and,i've tested it there's not really much,of a difference,if you take a bad product and you test,it on one product store and in a general,store,it's not gonna work on either one and if,you take a good product and you test it,on both,it's usually gonna work on both so don't,stress that too much and yeah so i,always recommend general stores for,beginners and the store itself was,pretty simple just like the beautify,theme and i wrote out a pretty decent,description for the product,nothing too fancy but just like answers,pretty much all the questions that,someone would have a quick word from,this video sponsor,cinder so if you guys are doing drop,shipping or doing like amazon fba,any sort of e-commerce whatever you're,doing you're gonna have to do accounting,and that sucks so bad like there's,something i don't like doing it's like,accounting and those like business,related obligations that everyone has to,do or you go to jail,so luckily there are apps like cinder,that help you like track at everything,totally automatikally so you don't have,to worry about it it integrates with so,many things like i don't have time to go,over everything on the video so it also,integrates with like paypal and stripes,so you can track all of those like,transactions there as well and it also,integrates with like quickbooks and,similar software like xero and stuff so,you can automatikally like keep track of,all your purchases and sends all the,data and everything you really don't,have to worry about anything and you're,also able to import like historical data,so in case you haven't done any,bookkeeping before and you're like,screwed you can just connect it and it's,going to automatikally like sync all,your past,orders and stuff like that and if you,guys want to see a live demo i'll also,have that linked in the description,so yeah i mean if you guys are doing any,volume this is a must-have click the,link in the description check it out and,let's go back to the video i toked a,lot about like uh how to do it but like,let's go straight into the store itself,so i'm just gonna take you guys like day,by day because i know i would have loved,to see this uh when i was starting so,hopefully you guys do too i only ran,this product to like the british market,this is in the british currency june the,6th i launched the ads and i'll show you,guys how i launched them now what i've,done for the ads for the first day,is as i always do in my challenges and,everything like that seven ad sets at,like 10,a day one interest per ad set if you,guys want to see like more in depth,i think i went over in my 70 challenge,videos so check it out there but uh,yeah the cpms were pretty low um the ads,from the top notch has,been amazing the ctr was 2.31 and we,had like two purchases tracked on,facebook which like the tracking on,facebook has been pretty bad lately like,it varies from day to day sometimes it,like tracks a lot of purchases,sometimes it like miss tracks like 70 of,them so it is what it is you just got to,deal with it but uh here's my profit,loss,sheet the first date i made 72 uh we had,five purchases so facebook didn't track,three of them and i calculated,everything in uh,dollars just because that's what i,understand i want to know how much it,was worth in dollars i
Average Shopify Store Revenue how to make money on Shopify in 2022
guys welcome back to my YouTube channel,today I am here with an informative,video in which I will tell you about how,to earn money from Shopify,so this is the topic of my video and,let's start the video without wasting,your time before starting the video I,request you to like my video And,subscribe my channel and press the Bell,icon so you will get a notification,about my next video as soon as I upload,it,so here is the video,average Shopify store Revenue how to,make money on Shopify in 2022,overview how much money does the average,Shopify store make,during the covid-19 the e-commerce sales,have,suppressed and we are certain that you,must have already heard about it for,this reason the changes in the sales but,it's a new normal,normal have motivated business to opt,for online store,that being said Shopify stores and other,e-commerce platforms uh Witnesses,records sales in 2020 for instance the,2019 States show how that Shopify stok,was for 285 dollar but it spiked to one,thousand dollar in 2020 and we are not,joking,it is a return that Shopify makes money,from Merchant sales,so it means that companies who are using,Shopify are making,truckload of money now why wouldn't you,be a part of this money making platform,are you really don't know which country,is making how much money will read the,artikle below,I'll make two Shopify stores make in the,USA,according to the research and average,Shopify store in the USA makes around 72,dollar from pert customer,and the same research has also shown the,low earning and high earning,benchmarks,for instance the high paying Shopify,stores intend to earn 149 on upper,customer basis while learning Shopify,stores earn 44 on a per customer basis,so guys you I hope you liked my video,And subscribe my channel press the Bell,icon so you will get more notification,about my next video and see you soon in,the next video
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How This SIMPLE Shopify Store Makes $1M Per Month
1 million dollars that's basically the,American dream and honestly everyone's,dream out there most people work almost,their entire lives and don't even come,close to this amount of money now I'm,sure you saw the title by now today I'm,gonna be basically reacting reviewing,showing you whatever you want to call it,this really simple Shopify store that I,found that is basically clearing over a,million dollars per month in revenue now,if you don't know who I am my name is,Ari and I'm a Shopify store owner myself,so naturally when I see brands or other,Shopify stores in general that pique my,interest I start looking into them and,into their numbers into their whole,entire business basically to figure out,what they're doing right or just how,they're doing in general now I,personally like a lot of other people,learn best from examples and this is why,as a business owner or an up-and-coming,business owner I think it's so valuable,to look at existing businesses that,pique your interest and sort of dissect,them to really get to the root of their,success so that you can more or less,replicate that success in your own,business now I don't know if everyone,watching this is a business owner or not,some of you just may be quarantined and,bored as hell and saw the video and,we're like aw damn that sounds kind of,interesting but I think the stuff,is really interesting and I love,watching videos like this so without,further ado let me show you this store,right now this store that I found is,hosted on Shopify which if you don't,know it is one of the biggest online,commerce hosting platforms out there and,this store is actually called forever,spin calm now the e-commerce world is,extremely abundant and there's literally,thousands of stores out there Shopify,stores even that are doing over a,million dollars every single month in,sales but when you think of a million,dollar per month business on Shopify you,typically think of things such as beauty,brands or maybe clothing brands like,fashion OVA or evolve or Jim shark you,know do you just think of these these,traditional mass appeal consumer brands,that are thriving and like I said they,have a mass appeal,tons of people love those type of,products but this story is in a niche,that I don't even know what to call it,for this,called foreverspin comm sells these,spinning little toys I guess you would,call them now the first thing I thought,of right away when I saw this was am I,in a dream within a dream because if you,don't know what these little things are,from in the film Inception Leonardo,DiCaprio which was the main character,used one of these exact same things to,tell whether or not he was in a dream,deception is one of my favorite movies,so right away when I saw that it made me,intrigued and it Loki made me want to,buy one of these but let me show you you,know some of the clever ways that this,store is making so much money now of,course first things first is the proof,there's many ways to tell whether or not,a store is actually doing good or not,one of them is of course to just look at,their social media might see if they,have any hype around the brand more,often than not the amount of followers,and engagement that your brand has does,translate into dollar signs which is why,people with millions and millions of,followers are able to make a lot of,money but this partikular brand really,has no big social media following one so,ever they only have about 5,000,followers on Instagram which is,extremely low and as you can see their,Instagram is extremely simple it's not,complex at all the biggest reason why I,think this is the case is because,they're the people who are gonna be,buying this product are likely not,browsing Instagram which leads me to a,really important point that I'm going to,tok about here soon,but the biggest way to actually,determine whether or not a store is,doing well besides you know looking at,their earnings reports and stuff like,that which you can't do if a company,isn't public is by looking at their,traffic so I use a simple tool online,called similarweb,it's a Chrome extension but they also,have their own website that you can just,copy and paste a link into and on this,partikular Chrome extension what you can,do is tell whether or how actually,exactly how much traffic a partikular,store is getting and at this store as,you can see in the month of December,2019 they received about 1.1 million,monthly visitors now a typical ratio of,visitors to earnings is a one to one so,$1 per visitor so of course this easily,translates into over a million dollars a,month but I would argue that even now,during this quarantine and this whole,crisis that's going on they're still,getting 764 thousand monthly visitors,which I still believe translates into,over a million dollars per month and the,main reason why is because of their,average order value now I'm not exactly,sure of their average order value but I,think one of the smart things that this,site does and one of the things that I,think is making them so successful is,this bundle deal right here the first,thing that they have on their site is,this bundle it's not even of like one,product on its own it's this bundle of,products which I really don't understand,like honestly this I'm definitely not,the target demographic here because I,really don't understand how something,like this could cost nearly five hundred,dollars it's kind of crazy to me but let,me just go through the checkout as you,can see this is just a regular Shopify,store there's really nothing special,about this besides their landing pages,just the landing page this is all the,web site is it's this landing page and,then all of these different spinning,toys so as I just mentioned I still do,believe that this store is clearing well,over a million dollars per month and,it's definitely not because of their you,know organic social media efforts so,what I'm gonna do right now is actually,click on this more insights on similar,web which will lead me to the similar,web website so that I can actually sort,of track their traffic distribution so,this is why I love this website and why,I think it's like a great analytikal,tool as you can see they're getting a,decent amount of traffic from referrals,which is just other websites you know,the New York Times has featured them,forbes has featured them so they have a,lot of media publications which is very,interesting they're not verified on,Instagram or anything so I wouldn't have,thought that they go really heavily on,media publications but I guess they do,now of course you guys make sure that if,you know about this sort of knee,surely if you know why these things are,so expensive or if you're the type of,person that does buy this stuff leave me,a comment I really I'm genuinely curious,about like what this stuff entails,because to me this is like the simplest,Shopify store I've ever seen and I'm,amazed that they're doing this well or,just leave me a comment about anything I,love to answer you guys's comments in my,last video we got a ridiculous amount of,comments for the amount of view which,was just amazing and we had a bunch of,conversation so just leave me a comment,and while you're at it just smash that,like button but I digress let's continue,here as you can see most of the traffic,is actually coming from Facebook which,is pretty cool to see I kind of thought,that this would be the case since they,don't have big social-media followings I,knew that the majority of their traffic,came from paid advertising on Facebook,aka Facebook ads which is just the,biggest hack to starting a business,nowadays is if you know how to run,Facebook Ads you can explode a business,and this this isn't a good example of,that then I really don't know what is,because this product to me doesn't solve,any problem it just it's such a niche,product I feel like in yet they're doing,amazing and I think part of the reason,is because of their Facebook ad now when,I look at their page at the Facebo
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[Need to Know] Average Profit Margins for eCommerce Stores
hi everyone welcome to another video in,this video we're going to tok about,your gross margins as an e-commerce,store owner right it's definitely not,the sexiest video but it's definitely,one of the most important ones because,without really understanding your gross,margins you're not necessarily going to,know what kind of profit you're making,and how you can actually go about,scaling your store profitably if you're,not measuring your margins you might,actually be running backwards without,even knowing it you know most business,owners really just operate their,business based on the money in their,bank account and that's the worst way to,really go about you know growing your,business or even running your business,so with that said this video is going to,unpack all the different types of,margins that you need to be aware of and,how to monitor them and i'm going to,give you some averages,for the industry that you can track and,essentially hopefully aim for when it,comes to growing your business,profitably right so first of all we need,to understand that there are three,different types of margins and profit,margins that you need to be aware of so,the very first one,is called your gross profit or gp right,so your gp guys is literally the most,important thing uh when it comes to,identifying the type of product that you,want to sell because it is the best,identifier whether the product that,you're selling is actually going to help,you make profit it's also the first type,of profit that you make back after you,know someone has bought something from,you so in essence the gross profit is,the total revenue you've made from a,specific product versus what it's cost,you to buy that product so that you can,resell it to someone else and i'm just,going to quickly share an example with,you on my ipad so you can get a better,understanding of what i'm actually,saying,right so this is our gp and our gp is,obviously now as you know our gross,profit and our recommended,retail you know price would be for,example a thousand rand so if we are,selling a pair of jeans for a thousand,rand that's the recommended retail price,and if someone buys it from us we get a,thousand back into the business that's,really really exciting then our cost of,goods sold is what actually the price of,the jeans were when we bought it from,the supplier so that we can resell it to,sell it to the market and for arguments,like say if the actual price of the,jeans were 500 bucks and we had to,resell it for a thousand rand then our,average gp equals,uh 50,right so to conclude if you are buying a,pair of jeans for 500 bucks and you're,reselling it for a thousand rand then,you tiknically have a gross profit of,50,which is really really good because the,average store internationally you know,of e-commerce stores worldwide are,sitting with an average gross profit,about,42.5 percent that's roughly where the,average gross profit,is currently for most e-commerce stores,and if your gross profit is not in that,area then you're obviously a little bit,behind and it's something that you can,work on in different ways like you can,negotiate better deals with suppliers,the more you buy in bulk etc etc so the,smaller you are as a business the odds,are that you're probably making less gp,on a product because you have to pay,more for that product because you can't,negotiate in terms of buying in bulk and,getting better pricing from the actual,supplier so the average gross profit,that you make on a product is probably,not in that range but if it's anything,above 30 then you really have a good,product that is,really got the potential to help you,make profit,as a business so now that we've spoken,about gross profit the next type of,profit that you need to understand is,your operating profit or your operating,margin and again just moving over to my,ipad so you can have a look so here we,have our operating profit,and what that comes down to at the end,of the day is the total amount of,revenue that we've made and this could,be for a month or a year or whatever it,is so that's for argument's sake say,that we've made 1 million rand,then we need to look at the cost of,goods sold so how much did we actually,pay our suppliers during the specific,time frame and you know it might be,something like 500 000 rand so we have,made a million rate random sales but 500,000 rand of that was spent,buying the product that we obviously,wanted to resell now that is tiknically,your gp,but what makes this different is that we,also need to take into account,consideration are operating expenses,so operating expenses could be software,your warehousing your staff your,advertising all that type of stuff needs,to be considered as your operating,expenses is everything that you are,paying that helps you operate the,business successfully right,and that could for arguments like say be,around you know easily 400 000 rand for,the same period of time,and now what we're going to get is we're,going to get a gp so this is 1 million,rand 500k was dedicated to buying,product 400k was dedicated to helping us,you know run the business which means we,really have what 900k expenses in total,if we look at it so we're making about,100k profit so we're sitting with an,operating uh margin of 10,so that is really our operating margin,uh after our cost of goods that we've,paid for and operating the business cool,so that's gp and operating profit then,the last thing that's obviously the most,important one is your net profit right,the money that you actually take to the,bank the money that you can actually use,for yourself for your family and the,money that you can actually you know,spend knowing that you know it's profit,that you've made,and that is what we call our net profit,all right so net profit,is tiknically all the above,so we've made 100k,profit,and we're going to pay roughly you know,between 20 to 30 tax on that depending,on you know your business and how it's,registered and etc etc,that would mean that we are going to pay,we hundred and we're gonna pay thirty,thousand rand,that means that thirty percent of 100k,is 30k tax so that is 30k,equals tax,so tiknically your,expenses are then this 900k,so it's the 500 there,and the 400 in op x plus the 30k in tax,that is all your expenses,revenue equals,1 million,the difference is,so net profit,equals,70k,and that works down to a 7,net margin,net margin so you have a 7,net margin and if you sitting around,that mark it's really good because the,average net margin across the board for,most e-commerce stores is roughly around,4.95 percent so if you have,4.95,left,in the bank after generating the revenue,then that is your net profit and then,you are doing really well because that's,the average for most ecommerce stores if,you're doing less than that it's,something that you can obviously pay,attention to and see how you can,improvise and you know how can you lower,your cpa how can you negotiate better,deals with your suppliers and all these,different things and hopefully you can,start tracking your net profit,accordingly and start scaling more,profitably as well so there you have it,the three different profits at the end,today is your gross profit your,operating profit and your net profit,just to conclude your gross profit is,really just the difference between the,revenue of the product that you sold and,the cost of that product that you had to,buy in order to resell it for and that,is the first indicator of whether you,actually are going to make actual profit,net profit at the end of the day because,if that percentage is already very low,you still need to include the expenses,of running the business so that is,obviously just going to diminish even,further so if you're not already sitting,with a 30 profit margin roughly you know,things can get really tight for you as a,business down the line and that's why,it's so important to keep an eye on your,margins so that you can start growing,your business profitably as a business,owner no
How I Make $1,000/Day In Passive Income On Shopify
guys i have a confession to make i have,not been working on my shopify store no,like for real i only work around three,to five hours a week on my shopify store,but it's still generating over a,thousand dollars a day with little to no,work so in this video i'm going to,explain exactly how i got there and how,you can do the same thing with your,brand but first let's tok about the,profits as you can see over the last 30,days except for this day my business has,generated over a thousand dollars in,sales consistently and the profit is,decent as well some days we jump up to,800 in profit whereas other days we drop,down to 100 but pretty much every day,we're making 100 to 500 in profit,consistently now i believe there are,three main factors that contribute to,this level of consistency so let's break,down the first one i've been working on,this business for almost two years now,and it's taken me a while to get to this,level but i'm very confident that you,can do it too as long as you follow,these tips the first factor in seeing,consistent passive results on your,shopify store is ranking on google now,it's easier said than done and this does,take a little bit of time but here are,some things that i've done to,significantly speed up the process of,getting my brand ranked number one the,first and easiest thing you can do is,hire an seo expert to optimize your,website this is a one and done type of,job they go into the back end of your,website they optimize and fix everything,so that google's algorithm picks it up,and ranks it properly it's pretty cheap,and extremely worth it even at the,beginning stages of your business the,second thing i did is paying small blogs,to do a review of my product when,someone reviews your product on a blog,it creates what's called a backlink,backlinks boost the authority of your,brand name on google making it much more,likely for google to recommend your,website when people search for it now,before you do this make sure the quality,of your product is actually good because,otherwise i'm feeling a strong one to a,light too on this thing the second,factor in seeing consistent results is,running ads on multiple platforms the,goal at the beginning should be to lock,in and master one platform but as you,learn and scale on this platform you,should expand to others these days for a,beginner i would suggest starting with,tik-tok ads it's booming right now and,there is a massive amount of opportunity,currently on my store i run facebook,google and tiktok ads though most of,my sales are coming from facebook and,google because i've been running my,product there for almost two years and,it's pretty optimized i'm still,experimenting with tik-tok and i,haven't really been able to scale yet,but to be honest i'ma blame that on my,own laziness but maybe,[Music],anyways my structure for facebook ads is,as simple as it gets and i think that's,why i see consistent results every day,i'm pretty much only running one,campaign with one ad set targeting the,broadest interest for my product with,three ad creatives inside of there the,main thing i focus on is the creative,and the marketing angle itself because,that's what facebook really wants these,days yes interest targeting is important,and it still works but people get far,too hung up on it and these days i,barely even focus on it of course in the,testing phase the targeting is extremely,important but once you find what works,you don't really have to test that too,much more the main thing to test is the,ad the marketing angle and the copy that,you use to sell your product the key to,having success with any ad platform is,finding a great product study the ads,that are successful for that product and,try to make something that is on par or,better than what's out there that is the,ultimate challenge and if you can do,that everything else comes pretty easily,but the real consistency is coming from,google ads i'm running search campaigns,for my brand name my competitor's name,and all the terms related to my product,what this means is every time somebody,searches something related to our,product we are the first ones to pop up,and we're leveraging google's,retargeting feature which is extremely,powerful basically if you visit my,website one time you're gonna see the,product forever until you buy it the,combination of these things allows me to,have a consistent stream of buyers every,single day without doing that much work,of course i put a lot of work in up,front but these days it's pretty passive,but there's one final thing that's more,important than all of this but first i,have a very special announcement i've,been wanting a place to connect with you,guys and share more of the lessons i've,been learning along my journey so i,decided to create a free discord server,the goal is to build the ultimate,community for anybody looking to start,their own online store from beginners to,eight figure entrepreneurs and also my,team and i are going to be active in,there every single day to help you out,as much as we can and share exclusive,insights that you can't find anywhere,else this sunday i'll be doing a live q,a call with a bunch of giveaways inside,that discord so click the link down,below to join and i'll see you on the,inside this last thing is honestly the,number one mistake i see dropshippers,make there are so many people out here,chasing the bag but absolutely,neglecting their customers and it ain't,gonna work if you wanna see consistent,results you cannot be out here selling,garbage quality products with,three-month shipping times and i know,what you might be thinking jordan if i'm,drop shipping from aliexpress how could,i possibly avoid this well it's pretty,simple first make sure to do an extreme,amount of research on your supplier and,your product make sure there's a lot of,real positive feedback about the product,on the aliexpress reviews a lot of these,suppliers are going to fake the reviews,so the easiest way to tell is making,sure that there are a lot of photo,reviews and they look like they're from,real people then you want to go to the,suppliers page look at how long they've,been in business look at how many,transactions they've done and maybe even,shoot them a message just to make sure,that they're actually legit just from,taking these two steps you can save,yourself from a massive amount of,chargebacks next you should try to find,the exact same product on amazon and,order that thing so you could try it for,yourself seriously though try to find,the same one usually the easiest way to,tell is if it has the same images as the,one on aliexpress you should also order,one directly from your supplier using,the fastest shipping method so you can,see what their packaging is like and,make sure theirs is decent quality as,well not only will this allow you to,test the product quality but now you,have a product that you can film and,create your own content with which is,going to set you so far apart from your,competition and once you start getting,sales consistently you can take things,to the next level with an agent an agent,is somebody in china who has direct,connections to the best manufacturers,and fastest shipping lines to help you,negotiate the price of your product,improve the quality and get much faster,shipping one of the best agents i've,used on my store is named david and i'll,put his information down below his job,is to help you get the highest quality,product at the best price with the,fastest shipping and because i've,focused on this i've been able to tap,into the ultimate marketing method word,of mouth and this means that even if,we're not running any ads at all we,still have customers coming in and,coming back to buy more products again,and by the way this makes your business,much more valuable for anybody who wants,to buy it in the future if we look at a,breakdown of the last month you'll see,exactly what i'm toking about if you,look at how the traffic is broken up you,can see that the majorit
How Much Profit Does a Shopify Automation Store REALLY Make?
so how profitable is an automated,shopify store really look in today's,video we're going to be going over the,mechanics of how ecommerce works and how,profitable shopify stores can really be,for clients and investors okay so first,things first let's go over the mechanics,of how you know ecommerce works how does,online money work so let's take an,example with amazon because most people,shop there a lot of people shop there,but they're always looking for cheap,products just to get them quickly right,it's a different type of persona and a,different type of customer journey than,going to amazon but if you go to amazon,typically you're buying you know,toasters things like that you're looking,for a cheap product and you're trying to,get it as fast as possible because you,probably need it now okay so with amazon,people that sell on that platform that,are doing drop shipping typically find,that same toaster on walmart and then,just have arbitrage between it meaning,if they sell it on amazon for 25 bucks,and they found it for 15 they're making,10 in gross profit now amazon does take,15 off the top of all sales so after,that fee then you're left with your net,profit okay as long as you got the,products of the customer you're,typically left with about anywhere,between five to ten percent net profit,with an amazon store now the game with,amazon is to continuously drive up more,and more sales because amazon's taking,care of the traffic for you so you're,just ranking and hoping to list better,in the platform so that way you can get,more sales when people buy them okay,with shopify it's a completely different,mechanic because you're not depending on,someone else to drive you traffic okay,you as a shopify store business owner,have to drive your own traffic now in,order to get attention on these apps,like facebook instagram tiktok,youtube you have to create custom,content,and that content has to be good enough,in order to capture their attention get,them to stop what they're doing and then,actually go buy the product that you're,selling right and so with shopify the,mechanics really are first you have to,build out the store and create a brand,okay that's the most important part,because you can't be an amazon business,or a catalog business similar to how,amazon stores run because they're just,going to go to amazon for those products,right you want to build a niche branded,store that is in a specific industry in,a specific vertikal that you can create,custom content around so that's number,one number two is when you're running,campaigns when you're running ads on,facebook tiktok instagram etc those,have to be actively managed i always,compare it to a hedge fund actively,managed hedge funds are very very,similar to how media buyers typically,are with ad accounts just how you have,to study the markets move money around,and see how things are actually,performing to then give your investors,the best returns that's exactly what,media buyers do they have to monitor the,campaign they have to cut the losers,they have to scale the winners in order,to make that store or order to make that,shopify store very profitable okay and,so to the extent that you have custom,content to the extent that you have,operating capital and to the extent that,you have a great media buying team,that's working for you that will,showcase and really indicate how,successful your shopify store is going,to be right you can't just throw up an,ad click go and just let it sit and hope,that it scales out and that it wins,right there's ad fatigue there's you,know adjustments into the platforms,there's different formats that are,needed when you find something that's,working you want to double down and,reiterate and create more creatives,around what's actually working so those,are some of the mechanics just on the,marketing side of shopify you also have,the operational side which is the order,fulfillment the tracking and having,other mechanisms in place with email and,sms to update your customer see amazon,takes care of all that you're able to,you know have amazon send out the,customer service emails you're having,have amazon take over you know the,fulfillment emails and the orders that,are actually going out with shopify you,kind of have to build that out it's a,little bit more plug and play with all,the different apps and so there are,software expenses that go into shopify,plus having all these apps installed in,order to make that customer experience,really really solid that's really really,important because when you go to any of,these shopify stores that you're buying,products from you want to make sure they,have a great experience you want to be,able to have that traffic come back to,you and repeat by all the time and the,way that that works is by providing a,great experience from the get and so if,your store doesn't have the right,infrastructure if it doesn't have the,right things in place then it's going to,be a janky store and people are going to,be able to sniff that out remember these,purchases are actually people people,that are looking at your store to see if,they're legitimate or not and you know,people are going to spend their hard,earned money with you so making sure,that your store looks legitimate is,legitimate i should say and actually has,that thought and care put into it for,their experience is very very important,so those are some of the additional,things you got to think about when,having a shopify store versus an amazon,store now the profitability really comes,down to how efficient is the marketing,campaign and how much can you actually,drive the value of your products up so,let's take the same example with amazon,if i'm selling a toaster i can only,really sell that thing for so much i'm,not going to sell a 500 toaster unless,it was signed by the original guy that,made toasters or something right there's,no rarity factor or no value that can be,perceived in a toaster really at the end,of the day so i can only probably sell,that product for 20 25 maybe 30,right but if i go look at shopify i'm,not going to be selling a toaster number,one i'm going to be selling a product,that i can actually drive perceived,value up in so what may i sell i may,sell glasses i may sell a fishing,product i may sell camping products home,goods i may sell you know other products,that are anywhere between that forty,dollar price point all the way up to,four hundred 400,and the reason for that is so i can have,enough profit margin to pay for ads from,facebook tiktok etc right you have to,be able to dial in a cost per,acquisition cost in your product so a,lot of products that you buy now,whether it be from you know nike,lululemon or any one of these big brands,they factor in their cost per,acquisition right now those are massive,brands they've been around for a very,very long time and so their cost for,acquisition is relatively low but they,also spend billions of dollars per year,on marketing with top celebrities and,things like that right but if you are,building a brand and you're scaling it,up,you have to,reinvest into content figure out how,much it's going to cost you in your,store to have a person transact with you,and that really comes down again to the,marketing the content and the experience,and the brand that you are creating that,you're providing for your store for your,clients so now that we understand the,operations a bit deeper with shopify,compared to amazon and even other,marketplace selling what does the,profitability typically look like so now,that you understand the mechanics of how,e-commerce works let's go over the,profitability for about fifty thousand,dollars in sales with amazon you're,going to get docked about 15 because,that's amazon's feed then you have your,cost of goods sold and you're typically,left with about five to ten percent,profit margins on that fifty thousand,dollars in sales that's what i,experienced it's typically the average,with people with amazon and so,getting 50 grand in re