[Case Study] $570k in 5 days Shopify Dropshipping (TikTok Ads)

Introduction

In this case study, we will break down the product selection process, ads, store building, and much more from a store that generated an impressive $ 570,000 in sales in just five days using TikTok ads exclusively.

Overview

Over the coming months, this channel will feature numerous case studies, in-depth tutorials, as well as my own winning product reveals. Unlike many courses and paid groups in the industry, which often hold back vital information, I aim to share all insights and strategies freely.

This $ 570k achievement predominantly came through TikTok, as evidenced by the sales by social source. There was no retargeting involved; the sales were purely from initial TikTok traffic. Importantly, the product we promoted was legitimate and not a scammy subscription model. I won't be discussing such unethical methods in this article.

Product Selection

The product that drove this success was connected to a significant, albeit short-lived, trend on TikTok. This trend attracted a passionate audience, leading to higher average order values (AOV) as customers purchased various related items alongside the main product. Notably, competition in this niche was nearly nonexistent.

We managed to source this product for under $ 10 without requiring any customizations. Our primary method for discovering this product involved the "Movers and Shakers" page on Amazon, which showcases the biggest gainers in sales rank over the past 24 hours. Tracking the keyword search volume using Helium 10 (a fantastic tool for drop shippers) indicated a spike in July, coinciding perfectly with our sales efforts.

An inspection of the main Amazon listing revealed it was generating around $ 800,000 per month, demonstrating its strong market viability. Furthermore, we discovered only one competitor running ads, using song-based creatives. After ordering the product from Amazon for testing, we were confident in its potential.

Store Setup

We utilized the Debut theme for our store, resulting in a clean and branded setup. Simplicity was key; we borrowed design inspiration from successful stores like MagFlare and Felicity. Our goal was to maintain a seamless shopping experience without overwhelming the customer with excessive images or information.

To encourage urgency in purchases, we implemented a countdown timer that displayed limited stock. The offer was straightforward—60% off on all products—which significantly boosted sales. Upon confirming the product as a winner, we initiated cross-selling with related items and even offered a buy-one-get-one discount, which also performed well.

Our cart flows prioritized urgency and FOMO techniques to recapture abandoned carts effectively. During the testing phase, we opted for custom content as ad creatives instead of pilfering others, which is neither sustainable nor ethical.

Advertising Strategy

For this winning product, we structured a $ 100 Campaign Budget Optimization (CBO) with five ad groups utilizing three different ad copies each. It’s important to allow initial testing campaigns to run for at least a day, as optimization takes time.

On the first day, despite discouraging key performance indicators (KPIs), there was a significant increase in sales later that same day. This information is crucial; many businesses abandon campaigns prematurely. Once positive results emerged, we doubled our budget and achieved a remarkable return on ad spend (ROAS).

Over the next few days, our scaling efforts were aggressive, ultimately exceeding $ 100,000 in daily sales within just four days. The revenue trajectory showcased consistent growth, demonstrating the effectiveness of our initial test.

Cash Flow and Scaling Challenges

While rapid scaling can be lucrative, it comes with its challenges. We managed our cash flow through credit lines and did not face significant issues financially. However, ad account suspensions can disrupt progress. Our ad account faced suspension about a week into scaling, which hindered sales, but once reinstated, we resumed generating revenue—albeit at a lower scale than before.

Profit Analysis

The product generated approximately $ 800,000 in revenue, with sourcing costs around $ 8.80 per unit. We sold over 29,000 units of the primary product, along with several related items, resulting in a cost of goods sold (COGS) of approximately $ 274,234.

In terms of advertising spend, we invested $ 227,000. Although these figures are rough estimates, we achieved an estimated profit of around $ 306,000, which was shared with my partner.

Conclusion

The success of this case study underscores the importance of ethical practices, thorough market research, effective ad strategies, and resilient scaling methods in the Shopify dropshipping space. Future content will delve deeper into various aspects of this case study, including advertising tactics and scaling strategies.

Keyword

Shopify
Dropshipping
TikTok Ads
Product Selection
Scaling Strategy
Revenue
Profit
Ad Account
Average Order Value (AOV)

FAQ

Q1: How much did the Shopify dropshipping store earn in 5 days?
A1: The store generated $ 570,000 in sales over just five days.

Q2: What advertising platform was primarily used?
A2: TikTok ads were exclusively used for driving traffic and sales.

Q3: How was the winning product found?
A3: The product was discovered through Amazon's Movers and Shakers page, targeting a trending niche.

Q4: What strategies were implemented to scale the store?
A4: The strategies included aggressive ad budget increases, effective use of CBO, and maintaining a clean, branded online store.

Q5: Were there any challenges faced during scaling?
A5: Yes, the ad account faced suspensions which disrupted sales; however, once reinstated, it continued to generate revenue.

Q6: What tools were recommended for product research?
A6: Helium 10 was highlighted as a valuable tool for analyzing sales data and keyword volumes on Amazon.