 What's going on guys? Welcome back to another video. So today I want to show you a Shopify drop shipping store that's currently for sale on flipper.com for $65,000. This is a Shopify store that's been going for just over 12 months and its average monthly profit is just under six and a half thousand US dollars. The reason why I want to show you this particular store then is just because of how profitable it is. So it's operating on an average profit margin of in and around 35%. If you've been following the channel for a while, you know that I'm a big advocate of running paid ads specifically Facebook ads to drive traffic to your Shopify drop shipping store to sell your products. These guys, yes, they do that, but it's only a tiny part of that overall marketing strategy and the way they're able to run their business so profitably is because they rely on affiliate marketing and influencer marketing, which I will touch on when we get to that part of the video. So if you've been running a Shopify drop shipping business, you probably know by now that the biggest expense when it comes to actually running your business is probably gonna be marketing. That's the reason why I wanted to show you this and talk about affiliate marketing because there are other ways to starting and scaling a successful business other than plowing thousands of dollars into ads. Okay, so let's jump into the listing. It's called blkmoonshop.co. We'll be taking a look at the Shopify store in a second, but for now, I wanna give you some context on the level of success that these guys are achieving. So it's 11 month old drop shipping store. As I record this video, it's a bit older than that now and it's in the trendy home decor niche. The site age is one year. As I've mentioned, the monthly profit on average is just under $6,500. So not bad, especially when you'll see how many hours they're putting into this business each week with a profit margin of 34% with the average page views of 51,000. Blkmoonshop is a 14 month old Shopify store with a drop shipping business model. So they're not keeping stock or holding stock of any of their products. They are indeed working with an overseas and remote supplier. In September, so that was of last year, the seller transitioned from Facebook ads to using influencers only with amazing results. With ad spend significantly reduced, the bottom line profit was over $12,000 and that is in one single month and it's continued into November with a profit of over $16,000. For Shopify store, the business has a high net profit margin of 31% and with this, the buyer can easily scale the business up by introducing more products. So I do agree with that. If they're able to achieve 31% with drop shipping, they could probably realistically expect 40, maybe even closer to 50% if they were to actually focus and double down on the products that we're selling. And what I mean by that is start working with actual manufacturers and keeping stock of these things. So Blkmoonshop.co was started in December of last year. So that will be not of 2022, but of 2021. So again, it's been going 14 months. The owner's developed it from scratch and scaled it to a five figure revenue and in Shopify store with a drop shipping model in just nine months. And the reason why I wanted to show you that and mention that is just to show you what one of the best benefits of drop shipping is and that is that once you find something and validated that it works, when it comes to scaling it, you can do things very, very quickly. And as cheesy as it sounds, I don't like saying things like this, but it's true. You can change your life very, very quickly once you find what is actually working for you. So the average net profit used to be three to three and a half thousand dollars per month, but increased in ad spend since July 2022 has led to increased net profit. Apart from ad spend, the holiday season also plays an important part in revenue spikes that goes without saying Black Friday Christmas that sort of thing. November 2022 was the highest earning month with over $46,000 in gross revenue and $16,000 in net profit. Okay, so products wise, almost 90 products are listed on the site. However, we'll be taking a look at their five best sellers. The average sale order value being $53. So if you're selling products at $25, then you're probably gonna be struggling. You need to be looking at selling those products in my opinion, given my experience as well of $40 plus. Business has a strong relationship with their supplier who's a private agent, so they're not just going to some random supplier on AliExpress. She carries out order fulfillment and shipping, making the process fully automated for the owner of the business. The supplier ships the products within 24 hours of placement who then invoices the business paid through PayPal or Pay-in-S or a perfect, perfect setup. Too many people think drop shipping is cheap, crappy, plasticky products that take weeks to arrive. That is not their case. If you work with a proper, decent and legitimate company or agent, then you can sell very high quality products with great profit margins and get them delivered to your customers very quickly. Business conversion rate is around 1.6%, so that tells you where you need to be. If you're not achieving this, then obviously you need, you've got some work to do with a refund rate of around 0.8% and for drop shipping, that's about right to be fair. So cost of sales around $12,000 on average. Cost of sales makes up 50% of their revenue, so cost of sales will be the cost of their goods fulfilling the orders. Advertising costs, that sort of thing. So this includes Instagram influencer marketing, which is about $2,000 on average. Okay, so if you've never heard of influencer marketing before, then basically it works in two ways. Number one is you can pay an influencer for a one-off shout-out, so this will be either a post on their news feed, it could be a story, and typically it would be in the format of them. Having the product, talking about the product, and then saying, hey, click the link in my bio and it will take them to your Shopify store and you will pay them for every referral order. There are apps in the Shopify app store which will automate this entire process, track those link clicks, and calculate what the payment should then be. The other way is that you just pay them for one post and depending on how many followers there are will depend on what they charge for that post. Some will charge, say, $50 for a 24-hour story, some will charge $5,000. It all depends on what deal and what niche and what level of influencer it is that you make that deal with. So the current owner spends 10 to 12 hours per week, so that is a business which give or take brings in about 70 grand, working only 10 to 12 hours per week. Again, I thought it was important to put that in here to show you another beautiful thing about dropshipping is that a lot of the tasks are automated. So once you have something that's established and you've got the correct systems in place, you can bring home a very healthy wage working part-time hours. The return on ad spend, so we're on both Facebook and Instagram campaigns has been above three. The average whereas however, ranges between 2.5 and 3.5, so all in all a pretty profitable outlet. Top countries visiting this site, US, Canada, Australia, UK. So once I show you the products that may spike or spark an opportunity or idea in your head to take these products and focus on some of these lesser focused on countries. Okay, so let's jump on to their Shopify store. We can see it's a very kind of in keeping with the types of products that they sell. So they have their catalog at the top, which takes them to an all products collection, a track your order page, which keeps consumers on the Shopify store, which is perfect and they also have a contact us page. To be honest, I think that's lacking some information and they might have done that purely because the store is for sale. In my mind, I like to see a phone number and at least an email address on there as well. So if we go back to the homepage, just kind of soak in the kind of niche that they're in and the kind of feel and theme that they've gone for of these kind of like unique and quirky products. And these five products here, which they're advertising on their homepage, I've actually gone ahead and found these all on AliExpress as well, just to give you kind of like some ballpark figures for what you can buy them for and what the ideal retail prices for them are as well. Okay, so first up, we have the SenStar diamond shaped wooden lamp, which they're selling for $39. I found this on AliExpress for give or take 10 or $11. So there's basically $30 on top of what they're buying this product for. We have this Gatsby crystal diamond LED lamp, which they're selling for $35. If we head on to AliExpress, you can see you can buy it here for $5. So again, there's another $30 on top of that one as well. And this Atomical Heart Ceramic Face is $40, which I believe is this one here, which you can buy for $10 or $15. So not as much on top of that one, but nonetheless still about $25. They have this product here, which I featured in a products recommendation video of mine a few weeks ago. Definitely a great product. So $45 for this one, and you're paying about $15. So again, give or take, there's another $30 or so on top of the sale price of that. And they also have this quite quirky, cool, and unique angle of fish rustic vintage lamp, which they're selling for $50. So not a cheap product. And again, I went ahead and found this on AliExpress for about $20. So again, give or take about $30 on top of that one as well. So hopefully that kind of gives you some insight into what the correct kind of ballpark figures need to be for these products. Or just kind of like drop shipping in general, to be honest, whenever I sell a product and I'm gonna be drop shipping it, I like to make sure as a very worst case now there's at least $20 in there. The closer you can get to 30, 40, even $50 of room. Yes, those products are rare to find, but if you can find a product with that level of profit margin, then when it comes to things like scaling, it gives you so much more freedom and so much more ability to be a bit risky and be a bit more aggressive with your ad spend. And so with that being said, that covers everything I wanted to show you about this business. I'm gonna end the video talking a little bit about marketing and building the traffic and kind of brand of your store in the cheapest way possible. It is a long game and there is a lot of work involved, but I understand that a lot of people get involved in drop shipping because they wanna make some extra money. And people who wanna make extra money probably don't have that much money to begin with. And to be successful with any kind of paid marketing platform, then you do need a fair chunk of cash that you're willing to kind of put into the machine and if you don't get anything back, then it not be the end of the world for you. Not everybody has that level of money to be able to test things properly and then scale things when they do find what works. So the only option you have at that point is things like affiliate marketing. And so if you're out watching this video and you're out on really tight budgets and you don't want to risk wasting potentially hundreds of dollars on ads, then you've got two options really. You either build it organically for free or you find a course or program with some form of guarantee or proven system that is gonna get you those results from day one. So the affiliate marketing strategy that I'm referring to basically is where you go out onto platforms like TikTok, platforms like YouTube, Facebook, Instagram, and you just try and find people who are in the niche that you're selling in and reach out to them and say, hey, do you wanna be a brand ambassador of ours? And in an ideal world, they'll work with you and promote your products and work purely on a referral basis. And that way you can get a lot of coverage and a lot of promotion for your business for relatively little cost. It does have its advantages, this strategy, but it will be a lot of work. You'll probably need to be DMing 50 to 100 people by the time you find one or two that are willing to work with you, but think of it as like a domino effect. Once you do build up that brand and that name and that selection of really cool products, a lot of it comes down to the product. If you're selling a really cool, interesting product that people like and wanna be part of, what you'll find is that influencers are soon more willing to work with you. So on that note, if you do want more information on that, in fact, I'm just dropping a comment down below. Maybe I could do a video specifically on that. It probably does warrant its own video because there's a lot that goes into it. But on that note, I'm gonna wrap the video up. I hope you guys have enjoyed watching it. Don't forget to subscribe for weekly videos like this every Monday, Wednesday, and Friday. Thanks for watching and I'll see you in the next one.