How I Scaled 3 E-Commerce Brands to 7 Figures with Facebook Ads

Introduction

Over the past few months, I successfully scaled three e-commerce brands to seven figures using Facebook ads. In this article, I will share the commonalities among these three brands and the strategies we employed to achieve significant growth. If you're new here, my name is Justin, and I'm the founder of SP Advertising, an online marketing growth firm that specializes in elevating thriving brands by simplifying digital advertising campaigns.

The Brands We Scaled

Brand 1: Health and Beauty

The first brand we worked with operates in the health and beauty sector. We have been collaborating with them for 13 months and have witnessed impressive growth during this time. They operate two Shopify stores—one for Australia and the other for the US. Initially, our client believed that their US store had better scaling potential based on historical performance. However, as we analyzed the data, we realized that the Australian market was delivering better returns on ad spend (ROAS). Eventually, we shifted more of the budget towards Australia, leading to significant improvements in sales.

Additionally, we learned that optimizing for profit through creative content production was pivotal, as a decrease in new creative materials negatively impacted performance.

Brand 2: Fashion

The second brand is a fashion business with whom we have been working for three years. Over the last 12 months, they have achieved a 19% growth rate, generating $ 1.77 million in sales. Our long-term partnership has allowed us to refine our advertising strategies further, resulting in substantial results.

Brand 3: Digital Products

This brand specializes in digital products, specifically online masterclasses, and is a recent case study on our channel. Though they are not yet hitting the $ 83,000 monthly threshold required for seven-figure annual revenue, they recently surpassed $ 80,000 and thus qualify as part of the seven-figure club due to their rapid transformation. This brand operates in a half EU, half US market, showcasing diversity among our clients.

Key Commonalities Among the Brands

The question remains—what do these three brands have in common? Here are the key factors:

Shopify Health Score: All three brands had a Shopify Health score above 190. This score is calculated by multiplying the conversion rate by the average order value (AOV), indicating strong product-market fit and website optimization. A score below 100 often means issues with product desirability or website issues, while scores above 200 typically indicate a solid foundation for advertising profitability.
Superior Products: Each of the three brands offers products that sell themselves. We effectively ran catalog campaigns that demonstrated this success; if a product can sell well with minimal advertising effort, it indicates a strong market demand.
Returning Customer Rate: All three brands maintained a returning customer rate of 15% or higher. This metric suggests that while they are successfully acquiring new customers, they are also retaining existing ones, which is a crucial aspect of profitability and sustainability.

Our Advertising Approach

While many factors contributing to the brands’ successes lie outside our control, we excelled in the advertisement execution. Our process begins with thorough data analysis of existing ad accounts. We investigate past campaign performance, creative types, audience engagement, and more.

Our creative strategy involves extracting insights from market data and the brand’s own story. We analyze competitor offerings, customer pain points, and demographic information to ensure our messaging resonates with targeted audiences.

We also meticulously track every ad's performance, documenting the variables that comprised each campaign. By maintaining a clear communication of successes and failures, we cultivate an adaptable advertising strategy that learns from every campaign run.

Conclusion

Scaling e-commerce brands to seven figures is no stroke of luck; it requires careful analysis, strategic planning, and a deep understanding of market dynamics. If you’re an e-commerce brand looking to scale, consider your Shopify Health score, the quality of your products, and the importance of retaining customers.

If you are generating around $ 50,000 a month, I invite you to connect with our team at SP Advertising for assistance in your advertising journey.

Keyword

E-commerce
Seven figures
Facebook Ads
Shopify Health Score
Product-market fit
Conversion rate
Customer retention
Digital products

FAQ

Q: What is a Shopify Health Score?
A: The Shopify Health Score is a metric calculated by multiplying the conversion rate by the average order value (AOV). It indicates how well a business’s website is converting visitors into customers.

Q: How important is a returning customer rate?
A: A returning customer rate of 15% or more suggests a healthy balance between acquiring new customers and retaining existing ones, which is critical for sustained profitability.

Q: What does it mean for a product to 'sell itself'?
A: A product that 'sells itself' typically has high market demand, allowing it to generate sales through minimal advertising efforts, often evidenced by successful catalog or Google shopping ads.

Q: How can I improve my e-commerce brand's performance?
A: Focus on optimizing your website for conversions, ensuring strong product-market fit, and nurturing customer relationships to encourage repeat business.