eCommerce Lifestyle
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Dropshipping During a Pandemic [3 of 4]

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This series of four episodes is going to help you increase your revenue, automate your operations, and become the authority in your niche by sharing key strategies for dropshipping during a pandemic.

In today's podcast, I discuss paid traffic and how you can increase your ROAS (return on ad spend).

As always, if you have any questions or suggestions, please don't hesitate to leave your message in the comment section.

What's Covered in This Episode:


Solutions to increase ROAS

  • Cut ad spend on out of stock products

  • Invest in remarketing

  • Scale traffic on what's working

If you liked today’s show, please subscribe on iTunes to The eCommerce Lifestyle Podcast! The podcast is also available on all major podcast players including, Stitcher and Spotify.

Links From This Episode:

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Transcript

What's up, everybody? Anton Kraly here and welcome back to the eCommerce Lifestyle podcast. This is the show that's designed to help eCommerce store owners increase their revenue, automate their operations, and become the authority in their niche. If you've been following along like you should be, you know that this episode is part of a series I've been creating called Dropshipping During A Pandemic, and the goal of this four-part series is to help store owners be able to actually thrive and grow even when it's not business as usual. Like I've been talking about, we are making certain changes in our businesses that have allowed us to grow even while the world is a totally different place than it was even just a few months ago.

So this specific episode is episode three of four. Episode number one was about suppliers and how to increase units sold. Episode number two was about your stores and how to modify them to increase your conversion rates. This episode, episode three, is about paid traffic and how to increase your ROAS, meaning return on ad spend. And the next episode, episode four, is about planning for the future. So if you missed any of the previous ones, be sure to go to your favorite podcast player and search for eCommerce Lifestyle, click subscribe, go to the last two, listen to those, come back to this one, and be sure to always follow because we publish two new episodes every week, every single Monday and Thursday.

So with that being said, let's get into today's topic, which again is how to increase your return on ad spend. So first off, what are the problems, right? Why do we even have to do anything specific to now to increase our return on ad spend? Well, traffic right now is super cheap. It's cheaper than it's been in years. What that means is, for the same amount of money, our website visits are way up, but this is important, our lead to purchase conversion rates are down. So basically we're getting a lot more people to visit our website, we're getting a lot more people opting in to be on our email list, we're getting some more abandoned carts, we're getting people answering their email for gift cards, but based on our normal historical conversion rates, they are down.

So first off, why is this happening? Well, if you look at a report from Forbes, which I will link in the description, even way back in March, when this whole pandemic first started, what they saw was that internet usage was up 70% and streaming usage was up more than 12% as well. So basically what this means is, because people have more time, they can't go out and do what they normally do because also a lot more people are working remote, they just have this extra time and they're spending it online. So what this means to me and what we're basically seeing is there are now a lot more window shoppers.

So some of the solutions that we found to keep our return on ad spend up, first is to cut ad spend on out-of-stock products, the next, and this is probably most important, is to invest in remarketing, and the third is to scale traffic on what's working. And at face value they might sound all pretty obvious, but let me dive into each of these to tell you exactly how we're doing it.

And then one week goes by and you notice your return on ad spend is slightly down, but nothing that's going to hurt you and you're just like, "Oh, that's weird." Next week, it's down again. Week three, it's really down. Week four, it's way down. And you're trying to figure out why is that happening? Well, a big reason is because, if your product pages are updated, like I told you they should be in previous lessons of this four-part series, then what's happening is people are realizing, "I'm on the site now, but I don't want to wait two months." So they're clicking your ad, you're paying what you would pay, then they're leaving.

Again, this is like a slow burn if you don't do it, you're going to slowly see a decrease on return on ad spend and a month later, you're going to realize you're down thousands of dollars for the month so do this sooner rather than later.

I also want to throw in kind of like a bonus tip here. When you're going in there and you're turning off these products as ads, what you want to also be sure you're doing is going into your Google Merchant Center account and making sure you're enabling surfaces across Google. Now I teach you exactly how to do this in module six in the lesson for Google Ads, Inside of the Dropship Blueprint. Again, if you're not a member, you can go to dropshiplifestyle.com and get enrolled, or you can go to dropshipwebinar.com where you get a free training and a special offer for the program, so highly encourage you to do that, to literally see how I set this up and how we modify it.

But what we do is go in there, disable them as ads, but because we have surfaces across Google enabled, we can still get traffic to these pages from Google Product Listings for free in that organic section of Google Product Listings. So don't delete them from your Google Merchant Center, don't have them not yet go to your Google Merchant Center feed, simply turn off the ad spend for are those specific products inside of Google ads and allow them to run for free in Google Product Listings.

Now, the next thing we're really going hard with, and I recommend you do as well, is investing in remarketing. The reason this is so important right now is because people are definitely still buying, it's not like people aren't buying, but for a lot of them, it's taking them longer to buy. So again, think of this as the window shopper. Maybe that person that went to the mall to get a Starbucks and walk around as they were walking around, they saw Pottery Barn. They like Pottery Barn so they went in. They need a new sofa and they saw one and they sat on it and they're like, "Oh, I love this sofa, but it's four grand and I'm here to get a coffee." So they leave and they go home. Well, if they go home and they don't hear anything else from Pottery Barn, what are the chances that they keep thinking about that sofa and in a month or so really want it that bad that they go back? Probably not that good.

So what we're doing, and what I recommend you do, is invest in your remarketing so that when this person walks out, meaning leaves your website, they're still hearing from you for days, weeks, and months ahead so that they can come back and purchase when they are ready. So when I'm talking about investing into remarketing, we're investing in remarketing content and remarketing audiences and in remarketing ads. So let's go through these one by one.

First, when it comes to content, the main thing that we are looking for right now... And when I say content, I mean the things that we're going to show to our remarketing audiences, right? And the first thing that we're working on collecting is as much UGC as possible, it stands for User Generated Content. This can be customers that send you selfies with their product or videos with their product. What you want to do now is reach out to your past customers and try to get product reviews, try to get product photos, try to get product videos. And if you want to know, again, exactly how we do this, I show you in the Dropship Blueprint, how we incentivize this to make sure we get a big response rate, but that's all taught in the Blueprint.

Something else I want to share with you if you're like, "I've never really done remarketing before. I'm not sure what my remarketing content should look like," what I want you to do is go to facebook.com/ads/library. I'll link that into the description as well. And this is a tool that's free on Facebook that you can go to and you can type in any advertiser's name and it will show you all of the ads that they're running. So it's a great way to just see what your competitors are doing or what some of the biggest brands are doing, again, to inspire you. Don't copy anybody, but get ideas of, "What are their remarketing ads look like? What does the copy or the words that they're using look like?" so that you can use these in your own business as well.

Now, all of this remarketing content is great, but it means nothing if you don't have an audience to actually show that content to. So who are you remarketing to? Well, the best return on ad spend that you will get in your business, this holds true across all of my businesses, the best return on ad spend comes from remarketing on Google and on Facebook. So in Facebook, go to your business manager, look for a section called audiences, and in there you can create remarketing audiences for Facebook. On Google, click up top, inside of Google Ads, where it says Tools and Settings, and under Shared Library it says Audience Manager, you can click that and you can create audiences there.

Now, specifically the audiences that we create, I'm going to tell you what they are but I also know a lot of people are probably listening to this as they're out for a run or a bike ride or driving to the gym so don't think like, "Oh, let me try to type this in my phone as I'm listening." What I'll do is, under this episode, I'll post all of these audiences so when you finish your workout or you're running, your drive, whatever, just go to ecommercelifestyle.com, click on episodes, and then in the show notes, you can see this as a file you can access.

So the audiences that we're creating for Facebook are, first of all, website visitors, so everybody that's visited our websites within the past 180 days, then we're doing website visitors for 30 days, and website visitors for 7 days, our most recent website visitors. We're also making two audiences of people that have purchased from us, we're making one for people that have purchased in the past 180 days, and we're making one of people that have purchased from us in the past 7 days. Now, specifically for Facebook, we're also making two different engagement audiences. One of them is everybody that's engaged with our Facebook page in the past 180 days and the other is everybody that's engaged with our Instagram page within the last 180 days.

Now on Google, these are pretty similar, the audiences we make there. We do website visitors again for 180, 30, and 7 days. We do customers, purchasers, for 180 days and 7 days. And then if you have a YouTube channel, do YouTube video views last 180 days. Again, this is all made in the Audience section inside of your Google Ads account. And these are going to be the audiences that you remarket to.

Now when it comes to investing in remarketing besides time, when it comes to money, what you want to do is take about 10% of your total ad budget and put that towards your remarketing. Because like I said, these are some of the best return on ad spends you'll see. What I did is went into our Facebook Ad account and I sorted all of our campaigns by return on ad spend, and we have some of them, our top one was 366.22, that means for every dollar that we put into that campaign, it's a remarketing campaign, we get $366.22 back. Our next best one was $287.58 back for every dollar we put in. So again, you want to put money into this but don't make it your whole advertising budget because you have to fill your website with traffic so that you have people to remarket to. But again, what I recommend is 10% of your total ad budget should go into remarketing.

Now, when I refer to scaling traffic on what's working, what I'm talking about here is, as you're gaining control of bestselling products and as you're learning what's selling best during the pandemic, again, those two things were covered in previous episodes of the podcast of this series so if you haven't heard them back go back, or if you need a refresher, go back and listen a second or third time, but what you want to do is slowly go back into your Google Ads account, go into your Google Shopping campaign, that should be structured and created the way that I teach you inside of my Drop Ship Blueprint, and slowly increase your max cost per click for those specific products, not for the whole campaign, not for everything in your catalog, but for those products that are selling the best. Let's just say your historic average cost per click was 40 cents. Go in, make it 50 cents. Give that a few days, see if it's still profitable, see if it's more profitable, then maybe make it 55 cents or 60 cents. And every few days up at five or 10 cents so you can continue to dominate the new bestsellers because that's basically what we're doing here, we're creating new bestsellers.

So to recap, this episode guys, episode three of four of this Dropshipping During a Pandemic series, the solutions to increase return on ad spend during this pandemic that we are using are cutting ad spend for out of stock product, investing in remarketing, and scaling traffic on what is working. And if you do this, you're going to be able to maintain your short term return on ad spend while building huge audiences for cheap, that can be extremely profitable over time. Speaking of that, that's what we're going to be covering in episode four of four of the series, which is coming next, where show you how to plan for the future.

Now, if you're listening to this and you're brand new and you're like, "Anton, that was a lot. I don't even understand half of what you said." Totally fine. We all have to start somewhere and the best place for you to start is dropshipwebinar.com. So I'm going to link to that below this podcast. Go there. You can register for free, get a free training, and get a 30 page PDF I put together for you showing the top 237 products to sell in 2020. Again, that's dropshipwebinar.com. I also make an awesome offer there for the Dropship Blueprint, which is our flagship program.

So quick recap guys. So far in this series, we've covered suppliers and how to increase units sold. In the most recent episode, we covered stores and how to increase conversions. In this episode, we just covered traffic and how to increase return on ad spend. And in the next episode of the podcast, we are going to be covering how to plan for the future. So if you're not subscribed yet, again, go to your podcast player of choice, search for eCommerce Lifestyle, click Subscribe, and you will get notified as soon as the next episode comes. So, as always, hope you got value. If you did, do me a favor and leave a review on Apple Podcasts or wherever you listen, it really means a lot and it helps the message spread even more. So thanks for listening, have a great week, make a lot of money, bring in a lot of sales, grow your business, and I will talk to you in the next episode of the podcast. See ya.

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