 Hey, what's going on guys? Welcome back to another video. So in this one, I want to show you a Shopify store that's currently for sale on flipper.com for $100,000. It's three years old and has an average monthly profit of $3,700. This particular store is quite interesting because it's what I would call stage two dropshipping. They've kind of moved on from the traditional dropshipping business model into creating what most people would call a real brand. So instead of dropshipping the products and trying to scale it to the moon as quick as possible before then dumping it and moving on to a different product what these guys have decided to do is actually double down on that original product, get it private labeled, working with a mass producer in China and building a quote unquote real brand. And this is actually what I recommend everybody watching this video do. Now I don't know for sure whether these guys dropshipped the products you're about to see initially but given the products they're selling and the advantages and pros of dropshipping I'm going to do a specific video on this next week coming out on Wednesday on the pros and cons of dropshipping and in my opinion, what the best long-term strategy to follow is and to give you kind of like a shortened version it would be to use dropshipping to test the product and as soon as you've validated it and can sell it properly with dropshipping you should then move on to private labeling. But anyway, back to idolspace.com. So these guys currently for sale on flip it.com if you haven't signed up for their alerts I recommend you do so. It is a fantastic product research tool. Every single week you will get sent stores like this one that are for sale, that are profitable, that are selling products that you can source that we can source ourselves so we can see everything behind a successful business. So in this video I'm going to show you exactly what a successful Shopify store design looks like. I'm going to show you exactly what a profitable dropshipping products looks like and I'm also going to show you what profitable Facebook ads look like as well. So there's a lot to learn and like I said if you haven't already definitely sign up to alerts on flip it.com. Okay, so just some background information that you might find interesting because it helps create the picture of what a successful store looks like and gives you context for what I'm about to show you. So they currently have 12 main skews. Basically they're selling 12 different products. The average order value is in and around $200 and they have a refund rate which is close to 1%. So this is typically average when you're dropshipping you'll probably find it maybe closer to two. Having an AOV though of $200 carries many, many pros. The biggest one being is that you can afford to pay more for your customers. You can afford to pay more for your CPA. So your cost per acquisition. The business primarily generates revenue through the sale of its bean bags. So that's going to be the winning product that I'm going to show you. I'm also going to show you where you can source pretty much the exact products from. So you'll be able to see essentially exactly how they've been able to create this profitable business around just one product. The estimated time commitment to keep the business running is around 10 to 20 hours per week which is on the high side. I'm going to say I think it's on the high side and we'll see in a second what kind of workloads they're outsourcing or if they are at all. Given the size of this business I definitely think you'll be able to bring that down a bit. So those 10 to 20 hours per week includes managing the website which won't be a lot of time, sourcing new products which probably won't be a lot of time either, handling customer inquiries that could definitely be outsourced and order processing as well. This 100% should be outsourced. Any business that gets to a point where it's bringing in consistent sales on a daily basis is a much more valuable use of your time to put it into marketing, to put into the things that are growing your business and outsource all of the kind of maintenance to VAs. We currently have a great relationship with our supplier in China. They understand someone and so forth production is usually 30 days. Customer base is very 65% female with 25 to 54 year olds making up 50% of the demographic. So they're even telling you who you need to target to sell these products for all. And the brand primarily inquires customers through its website. Marketing channels including Google ads, Facebook, Instagram influencers, so on and so forth. Customers are primarily domestic from Australia and New Zealand. So what you're seeing in this video is a tried and tested proven business in these two countries which would show or tell us that there's definitely an opportunity to be had as they even put in their own words international expansion into other countries here in the UK or US or replicate something similar in a different country. If we talk numbers into these, they're three primary expenses. Facebook ads which are two and a half grand a month. They're freight, 260 and a 3PL 300. So what they're doing essentially is they're paying for all of their goods to be shipped into a 3PL who will then either go into the Shopify store or be sent a fulfillment list which they'll then pick pack and dispatch the orders for them. This is their revenue over the last 12 months on the best months being in December which is typical for pretty much every e-commerce business with a profit of $12,000. So here's the financial stats then for the last 12 months so that annual revenue of $90,000 are just under and obviously it's not crazy and typical what you would see on YouTube of people talking about doing millions in weeks or millions in months but it just goes to show. So 10 to 20 hours per week which is like a part time commitment turning over an annual profit of 45,000 US dollars. I think one of the biggest things or places where beginners go wrong when it comes to drop shipping or creating an e-commerce business is they get carried away way too quickly with trying to make as much money as possible when what they should be doing is trying to scale as slowly as possible but as profitable as possible. Trust me, there's so many more benefits to turning over $90,000 with a 50% profit margin than turning over say half a million dollars with a 10% profit margin. At the end of the day, both businesses are making the same amount of money bottom line. However, with a business like this which is so much more efficient it's gonna require so much less work to make that same amount of money. Okay, so jumping on to the Shopify store they have a really nice store with some real custom features that you don't see on kind of like typical standout or easy to spot drop shipping stores. As we can see, they've gone for kind of like a minimalistic type feel. Everything is kind of like pastely colors. They've gone for this kind of like computer texty type fonts. Everything is really kind of contributing towards that minimalistic sense and feel of using bean bags or the kind of environment that they're trying to create. I probably spoke and loaded rubbish there. It made sense in my head but hopefully you can understand the point that I'm trying to put across. So they have a nice scrolling banner here which is a nice touch. You don't see that very often at the top of your typical menu items home sharp about us journal contact us. In fact, journals not a usual one to see by this like probably by the looks of things just another word for blog. Let's take a look at all the different variants that sell in all the different products. So they have indoor and outdoor bean bags. What I'm gonna do is just kind of like take their standard one and white one for $150. And then here we are. So this is essentially what their winning product page looks like is obviously doing a good job given the results that they're having. It's profitable. So there's a lot to be said and a lot that can be learned from this particular page. One thing I'm not keen on looks like a bit of a glitch is this dynamic checkout button has like a blue background with the Google badge over the top. I'm not really sure what's going on there. But what I do like though is this sizing guide that actually doesn't work. So I'm not really sure what's going on there either. Maybe they're having some issues at the moment. But too many people I see selling products that require sizing guides will hide them right at the bottom of the product description. You want it upfront, right there, easy to see. So customers can very quickly and efficiently see what size they need to make a decision and buy the product. Today is Monday when this video gets released. I release videos every Monday, Wednesday and Friday. Wednesday I have a video coming where I'm gonna show you all of the things you need to port on your Shopify store to help convert customers. So if you're getting loads of people to your store and you're not converting them into customers, then make sure you subscribe and tune in on Wednesday for that video. So all in all, a very kind of simplistic, minimalistic type product page, nothing too kind of like extravagant or crazy or that difficult to replicate. I really like this touch or this section here with the soft, pastely background and the icons just highlighting the different kind of important features of the product as well as the website. And just to show you this image here, so it is private labeled, even just a tiny little label like this sets these guys apart from the competition. For me or you to replicate this store, we would not be able to compete unless we were private labeling our own products as well. And it's just such a tiny touch, but it does help set up rate from the competition and it adds very little expense. I mean to add a little label like that, you probably talk in pennies. What's interesting to note about this product as well is that this beanbag unfilled requires about 250 liters of beans to fill. So what I'm guessing is that they actually literally just send in without being too harsh, a large pillowcase that the customer then has to unpack and fill themselves by the sounds of it. But let's take a look. We'll come unfilled and requires about 300 liters. So it is, they're essentially just buying the outer skin, the outer layer, and they have to then further purchase beans on top of that to fill it with. Okay, so in terms of profitability then, and this is probably why these guys were able to be so profitable, is so the $150 they're selling a one-off for. And the size of this is one meter by 1.6 meters. I've gone on to Alibaba, so this will be pretty much where the whole, that's pretty much where everyone goes. If you want something from China in bulk, this is the website that you go to. And here's a similar-ish product. It's not identical, but it's one of the closest ones I could find without having to spend hours drawing in through different results. So it will still give you kind of like a pretty accurate representation of how profitable, how cheaply they are being able to source this product. So it's the same shape. You've got the flat edge at the front with the triangle at the back. Same as these guys. The size of their one is one meter by 1.6 meters. The size of this one, where did I see it? Is 1.4 meters by one meter. And the biggest difference, so the fabric is an Oxford cotton. And I think these guys are what? Flax linen, so French flax linen. So it is a different material. That's probably why these guys are a bit more expensive. But nonetheless, you can buy, so if they're buying 500 of these things, they're spending $10 to get them to the door plus what their freight is. We saw in their expenses, the freight was $260. So when you probe out of that per unit, they're probably getting these things to their own door for less than $20 a piece. Selling them for $150, that leaves a lot of room for them to acquire their customers for. Moving on to the final piece of the puzzle then. So we've seen the winning Shopify store. We've seen the winning products. We need to now know how are they selling this winning products? What do winning ad creators for these products look like? So to do this, I'm gonna use the Facebook or Meta ads library, where we can see exactly what ads they're running for these products. So we can see these ones in March, lots of different variations. That's a common theme of every successful e-commerce business you'll come across is they don't just have one or two different creatives that we test in dozens to really kind of split test and home down and narrow down and find out what works basically. So here we have a very simple carousel ad just featuring the different products and it's different colors in different locations. Very simple, easy to create. Here we have another image ads. Image ads are brilliant for reaching big audiences for low costs, because CPMs are typically a lot cheaper because there's less competition for them. They're ad primary text at the top then. So go with the slow and idle with us. Comfortable luxury and affordable price. Explore a range of premium flax, linen beanbags. Crafted from high grade flax linen, four unique colors, proudly Australian. So the products we know for a fact is Chinese and thousands of happy customers so they're getting money back free shipping with it in Australia and after-pay available. So that's something I forgot to mention in fact, somewhere on their store. I can't remember where I saw it. You do have after-pay. So after-pay basically here it is at the top. So welcome to Idol Space Shop, have bundles and save up to 20% shop with after-pay. Basically what it does is it lets them split the cost of a product over many months. It's a bit like Kleiner, if you're based here in the UK. So if you are selling products over the price of, I'd say $50, then give your customer the option to do so because what you'll also find, well it's a fact, there'll be, there's numerous studies on this. I won't try and dig one out and find you now. You can do your own research on this but giving people the option to split their payments over three months rather than have to fork out $150 upfront does in fact increase your average order value. What it also helps you do is come across as more legitimate by piggybacking the reputation of these household payment providers or finance providers and linking them to your store so you're able to piggyback off the reputation that they have. So with that being said guys, I'm gonna wrap the video up I reckon because I've shown you the store, I've shown you the context of the store, shown you the products, I've shown you the ad creatives. Pretty much everything you need to go out there and create something similar with a similar products, a different products but take the strategies and fundamentals you've seen in this and apply it to your own business. Just a final message then to leave you with is if you're getting started in this business, try not to bite off more than you can chew. Before you make a million dollars, you need to make half a million dollars. Before you make half a million, you need to make a hundred. Before you make a hundred, you need to make 50. Do not get carried away with your revenue. Do not get carried away with turning over X amount. Yes, it is exciting and it's cool to look at your phone and show your friends and on the surface it looks like you're making a lot of money but like I said, try and do it as slowly and profitable as possible. And on that note, thanks for watching guys. I hope you enjoyed it. Don't forget to comment, like and subscribe and I'll see you in my next video on Wednesday. Cheers.