1 Week Dropshipping Challenge with $500

Introduction

In the world of dropshipping, many people claim to have made thousands of dollars, but unfortunately, that hasn't been my experience. Despite testing numerous products over the past three months, I've yet to hit the jackpot. However, I believe that persistence is key, and eventually, I will discover a winning product. In this article, I will share my journey of testing a new product—a unique water bottle—with a budget of $ 500.

Research and Product Selection

Before diving headfirst into product selection, I conducted thorough research using tools like PPads and other ad spy tools. I stumbled upon an intriguing water bottle designed to enhance the drinking experience by incorporating scented pods, including flavors like pineapple and lemon. The concept behind this bottle is to make water more appealing for those on diets or anyone who struggles to stay hydrated.

However, upon further research, I found that a competing brand named Era was already well-established in the market, boasting strong branding and a loyal customer base. To stand out, I needed to create a professional website and brand my version of the product effectively.

Marketing Strategy

With the product selected, my next step was to outline a comprehensive marketing plan. My strategy focused on creating six compelling TikTok videos to promote the water bottle. Not only would I post these videos organically, but I would also run them as ads. I decided to employ a Campaign Budget Optimization (CBO) strategy, allowing TikTok's algorithm to determine the best ad placements rather than manually setting budgets for different ad sets.

Website and Branding

As I awaited the arrival of the product, I got busy designing a visually appealing website. I avoided replicating the branding of Era and settled on an original brand name: Just Take a Whiff. After securing a domain and using a paid Shopify theme, I successfully created a beautifully branded website, complete with upsell options and free shipping to encourage purchases.

Execution of Ad Campaign

Once the water bottle arrived, I tested its functionality and documented my experience. Although it smelled great, I was disappointed to find that it didn’t deliver the flavor promised. Undeterred, I forged ahead with my marketing plan. I began shooting videos for TikTok, aiming to let the product shine through genuine content rather than flashy edits.

I initially posted three videos organically and received surprising results, garnering over 4,000 views in one day. However, day two saw a decline in performance, accumulating only 2,500 views but still gaining 50 new followers. Despite this, I decided to run ads on the well-performing videos.

Ad Spend and Results

To maximize my advertising potential, I revamped my strategy to include four separate $ 50 ad campaigns. On the first day of running the ads, I spent $ 230, resulting in four sales, including a double order. The second day yielded only two additional sales while spending $ 224. In total, I generated over a thousand visitors, resulting in 113 added to cart and only six completed sales.

Despite spending $ 454 in advertising expenses and achieving six sales totaling around $ 299.76, I ended up with a net loss of $ 302.45. Although I didn’t see profit, I learned that dropshipping is far from dead, and it’s possible to get sales if executed correctly.

Conclusion

Reflecting on this challenge, I realized several factors could have improved my results. I could have optimized my organic video strategy and experimented with different price points. Most importantly, the strong branding of Era likely overshadowed my efforts. Nevertheless, I’m motivated to keep going and learn from my experiences, as I believe success is a journey.

Keywords

Dropshipping
TikTok Ads
Water Bottle
Marketing Strategy
CBO
Branding
Sales
ecommerce

FAQ

Q1: What is dropshipping?
A: Dropshipping is a retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when you sell a product, you purchase the item from a third party and have it shipped directly to the customer.

Q2: How much did you spend on the dropshipping challenge?
A: I allocated a budget of $ 500 for the dropshipping challenge.

Q3: What product did you choose to test?
A: I chose a unique water bottle that incorporates scented pods designed to enhance the drinking experience.

Q4: What marketing strategy did you use?
A: I created TikTok videos and utilized a Campaign Budget Optimization strategy for my ads to let the TikTok algorithm determine the best placements.

Q5: Did you make a profit from the challenge?
A: No, I incurred a loss of $ 302.45 after accounting for advertising expenses and the cost of goods sold.