Anton shares one of the biggest mistakes he made early on in his eCommerce career. Apply this lesson to your own business and save yourself some cash!
In this episode, Anton reminisces about a mistake he made in his early days of eCommerce and shares the valuable lesson of tracking where your sales are coming from to get a better idea of what is working.
- When Anton was new to online business, he noticed that spending a few hundred dollars on Google Ads was making him good money. He decided to increase his spend on all types of ad sites without taking into account ROAS (Return on Ad Spend). As his sales were going up, his net profits were going down.
- The increase in orders added more work and more staff yet the business was not growing at the rate it should have been and this caused the business to stagnate.
- After this happened, Anton cut 80% of ad costs, which was not the best solution as he did not know where his sales were coming from and just cut ad costs across the board.
- Anton then found an agency to go through all of his Google Ad data, which costed a lot of money, to find out where his sales were coming from.
- His findings showed ads that were costing lots of money and showing relatively no return.
- He realized he was not looking at the business at a granular level and understood the importance of tracking sales to find out what is working.