How Much Will Your Australian Drop Shipping Store Make?
Today, I'm going to be talking about how much your Australian drop shipping store will make and basically how I calculate what it's going make by how much traffic is coming into my store, so with that let's get cracking
Right, so how much will you drop shipping store make? I've got a quick little formula that I do and it basically works out if I funnel targeted traffic into my store, we're usually operating at about one percent or 1 in a 100 okay,
So it tends to average it's self out so it might not be exactly a hundred people coming in to get 1 sale but it might be like 150 or 200 people, but you'll often get two sales back to back, you know in one time, two real quick bang bang at the end of that 200 traffic volume.
Now if you're selling high ticket items (which we recommend) at say five hundred dollars and if you've got a margin of call it 20%, all right so 20% of $500 is $100, not bad right....
So, for every a hundred people that you send to store it will spit it out roughly one sale, you can basically in theory expect to make $100 off a $500 sale all day every day, so the idea is to get as much highly targeted traffic to your store as possible obviously from as many different sources as you can.
We find most targeted traffic comes from PLA's (Google Shopping) and Google AdWords you'll usually find that the Google PLA's and the Google AdWords (text Ads) convert at about that, so all you need to do is basically keep pumping your ads and scaling up your ad spend.
Facebook traffic especially for the high ticket items is little bit wishy-washy harder to predict, I know people on Facebook are not as motivated to buy right then and there, so they generally converted at more than one in a hundred so you are going to really have to watch your conversion rates closely.
So look if get four or five hundred people across your site every day and you'll be looking at in theory roughly $500 per day gross profit.... 1 in 100 it's just a calculation that we use to work out what I'm going to roughly make...
Hopefully once you've optimized your store and advertising you'll doing more like 2%, 3% or even 5% for every 100 visitors to your store but at least at first that's a rough guide of what to expect, so now you know that the idea is to get as many people across your site every day and convert at 1%.
Now obviously you can grow, expand, optimize and send different traffic from all over the internet but I'm just talking basically talking about the basic paid traffic methods that we use which is PLA's and Google AdWords and what you can expect to be converting it at 1%, so 1 in 100 and then you can work backwards from there on what you will make.
So, that's a little technique that I use to work out basically what my stores going to be making me depending on how much targeted traffic I send and how much I need to spend to convert that traffic.
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