Dropshipping remains one of the business models portrayed to people as a simple business one can venture into; however, not much is known about the intricacies of making substantial profit from dropshipping.
In this case study, we will be examining how to set up a jewelry e-commerce store in the love and relationship niche. Also, we will be discussing how to get the product and build the store, and the total sales made in 4 days.
Jeremy Ray Holst is an online entrepreneur who has made a lot of money from several online businesses. He uses his social media accounts to share his knowledge and experience in online sales primarily through Shopify dropshipping, and he has a mastery program with which he teaches people how to achieve the success he has attained in dropshipping.
Finding a Product to Sell
The first step required to be successful in any dropshipping business is conductive and effective product research, and it is advisable to use your marketing strategy or the method you will use for promotion to find the products. For example, if you want to use Facebook ads to promote your product, then you should find your product by looking through Facebook ads. The same applies to other platforms such as TikTok, Instagram, Google, etc. According to Jeremy,
"I recommend you think about the actual marketing angle that you're going to be using before you pick a product. Knowing this tells you where to find your product. For example, suppose you want to post videos about your product on TikTok, you should find the product using #TikTokmademebuyit. You can also find a product that has gone viral organically. If somebody has done it successfully before you, there's a higher chance that you will be able to do it successfully."
The Product Review
The product Jeremy chose for his Shopify store was a soulmate necklace. This little ribbon-shaped pendant is finished with 14K white gold over stainless steel and is embellished with dainty clear crystals surrounded by a sparkling 7mm round cut Cubic Zirconia. The necklace's adjustable cable chain allows it to be worn from 18" to 22" in length, and the height and width are 0.8" (20mm) and 0.4" (10mm) respectively.
It is essential to remember that whatever product you choose for an e-commerce store must solve a specific problem, or it must be a product people feel they need. Jeremy started the dropshipping business one month before Valentine's Day. Jeremy said,
"Before Valentine's Day, people buy gifts for their lovers, and this was why the first thing I thought to sell as soon as I started looking for products is a Valentine's Day gift because I knew it would be in demand at the time."
Jeremy did further research on the soulmate necklace and he claimed he found that some people generated $10 000 per day in revenue from selling this product. Although he didn't reveal the tool he used for product research, there are a lot of tools that can be used to do product research, and one is FindNiche.
FindNiche is a leading dropshipping spy tool and research software used to find winning products to sell online. Its features that allow you to quickly search for hot-selling dropshipping products include a handpicked database of AliExpress products, a Shopify database, an ad spy tool, and a list of popular niches updated daily.
Some of the features of Findniche are:
- A huge database of over 80 million AliExpress best-selling items
- Sales data and links to suppliers and competitors
- Ad spy tool for finding top-performing ads on social media sites
- Daily updated list of handpicked products in popular niches
- Shopify database with more than 60 million trending products
In terms of pricing, FindNiche is free to use for a limited number of products and data, but paid plans begin at $9/month and include access to more advanced features and data, such as sales analytics and links to top suppliers and competitors. The premium plan is the most popular because it gives you unrestricted access to all tools and data, including the AliExpress database and the Ad Spy tool. When paying yearly, discounts of up to 20% or more are available.
Using FindNiche
To enhance and ease your process of finding a winning product, there are several ways you can use Findniche.
First, search AliExpress for high-demand, low-competitive products. Set the filtering options, "Order & Growth," "Reviews," and "Competition," to the desired range to find untapped niches with growth potential.
Second, FindNiche assists in the selection of winning products, and it displays important product metrics such as total orders, 7-day orders, order trends, wishlist trends, and price trends. These are critical for predicting the potential of any products in which you are interested.
Not only that, FindNiche tells you who is selling the products. You can check the seller on AliExpress and their ratings, reviews, and customer feedback. This helps to find possible suppliers.
Thirdly, Findniche provides market aggregation analysis information. It analyses all of the stores and listings in a specific category and provides a macro analysis of market trends, as well as market volume and competition, which are both important factors for dropshippers to consider when selecting a niche.
Building an E-commerce Store for Your Product
Jeremy named the jewelry brand Luxeco and he said,
"I called it Luxeco because I think that sounds clean, reputable, and like a jewelry brand."
The screenshot above depicts how the store website appears. The store displays a foreground image, then an image of the necklace, some unique product descriptions, and reviews from people who have purchased the necklace. Jeremy stated while explaining why he follows this simple store structure,
"I followed this simple store structure because I want people to see the product and I have a lot of reviews with photos. Also, every order has free shipping, hassle-free delivery, and a money-back guarantee."
Running a Paid TikTok Campaign For Your Dropshipping Store
To launch a paid TikTok ad campaign, you need to have an account, which is very simple to set up. For some campaigns, the stores may benefit from setting up a TikTok pixel on their store websites.
The pixel is a small piece of code that you place on your website to track visitor actions such as page views and purchases. If you want to run conversion-focused campaigns, you'll also need TikTok's tracking pixel. You can start creating a campaign once you have an account. To begin, select "Campaign" from the TikTok Ad Manager's top tab. Then click "Create" and enter information about your goals and budget.
The first step in creating a campaign is to select one of three objectives: awareness, consideration, or conversion. Awareness will increase the number of TikTok users who see your ad, assisting new stores in developing product awareness. Consideration is preferable for established stores because it encourages users to seek additional information and cultivates interest in the store's products. TikTok's sub-objectives are as follows: traffic, app installs, video views, lead generation, and community interaction.
When setting up the budget for an ad campaign, there are three choices:
- No Limit,
- Daily budget, and
- Lifetime budget.
The No Limit budget is essentially an unlimited ad budget, whereas the Daily and Lifetime budgets are the maximum amounts set to be spent on a daily or lifetime basis. Remember that TikTok ads have a minimum budget requirement based on the user's choices, and at the time of writing, the minimum for both daily and lifetime budgets is 50 USD, but ad groups can run on a daily minimum of 20 USD.
TikTok Ad Manager walks you through the process of creating ad groups after you've set a budget for the campaign; each campaign can have one or more ad groups. Placements, Creative Type, Target Audience, Budget & Schedule, and Bidding Method and Optimization are all ad groups.
You can either advertise directly on the TikTok app or on one of TikTok's affiliated properties, which include BuzzVideo, TopBuzz, and Babe. TikTok allows auto ad placement, which uses an algorithm to place ads where they are likely to perform well.
Every campaign and ad group is aimed at a specific customer or group of customers, and the system allows you to target them specifically based on specific characteristics. Age, gender, language, and location are common demographic options.
You can also target your audience based on the devices they use and their interests. TikTok allows you to upload the Identities of existing TikTok users from previous engagements via ZIP, CSV, and TXT files for more specific targeting and retargeting. It also offers advanced targeting options, such as dynamically optimizing target audiences to reduce costs or maximize conversions (automatic targeting), automatically expanding the target audience if the selected targets are predicted to be too difficult to reach (targeting expansion), and recommending interests and behaviors to include in the ad group (targeting recommendations).
The final step before publishing your ad is to define your campaign's bidding strategy and optimization goal. You can optimize your campaign for conversions, clicks, or reach, and your optimization settings may be preset by default depending on the objective you set when creating your campaign.
You can select either standard or accelerated delivery depending on your bidding strategy. Standard delivery means that your ad budget will be throughout the campaign, whereas accelerated delivery means that your budget will be spent as quickly as possible, and your ad will be seen by your target audience in the shortest amount of time.
Performance of the Store in 4 Days
The first day of fully allowing the advertisements to run generated $461 in revenue. When discussing the complexities of running TikTok paid ads, Jeremy stated,
"You guys need to understand that if you are a beginner, you need to just relax when starting your stores. I see too many beginners get too caught up in the little nitty-gritty details of their product description, and they don't focus on what's important, which is marketing. For this particular store, I focused on marketing and didn't care so much about making the best website.”
On the fourth day of running the ads, the store had 19 orders with a revenue of $739.59. The store made $1 011 in revenue over four days, though it could have been more profitable. According to Jeremy, the profit made from those four days was $179.
Conclusion
Jeremy earned $1 011 in four days by promoting a soulmate necklace. He got the idea from the upcoming holiday, Valentine's Day, and tested its profitability with another dropshipping spy tool.
Findniche, a dropshipping spy tool, is used to generate ideas for trending products, as well as a market analysis of the product, competitor activities, and top product ads.
According to Jeremy, it is critical to use a simple store structure and focus more on marketing when opening a store. Finally, we looked at how to set up a TikTok paid campaign to maximize profits.
