Scaling can be very profitable indeed. That’s why we are going to learn how to scale your dropshipping store today. Scaling is when you increase your ad spend and thus increase your number of sales and thus overall profit. With scaling, you will be sacrificing some profit margin but it is still preferable usually due to overall volume. There is of course a right way to scale and a wrong way and that’s what we will be discussing in this article. Without further ado, let’s find out.
How to Scale Your Dropshipping Store Correctly
You cannot scale without doing some preparation beforehand. If you do into it blindly, it will not be optimal for you and your dropshipping store. First things first, you need to ensure your supplier on Aliexpress has sufficient supply of the product you are scaling. There is no point in selling a lot of a particular product if there is none in stock to send to the customer. This would reflect badly on you and your brand which we want to avoid at all costs. It’s unlikely this customer would ever buy from you again if their order is cancelled and refunded.
Communicate with your supplier and ensure they have enough product in stock. If you are scaling to huge amounts ($1000/day ad spend), ensure your supplier is prepared to ship a lot of orders. There would be nothing worse than to start scaling aggressively only for your supplier to go on holidays, for example.
Next you need to ensure you have a team in place to fulfil the increased orders. This is important to note if you want to know how to scale your dropshipping store the right way. If your orders will be doubling or tripling, you should be prepared for this beforehand. This will take up a lot of time so make sure you have a virtual assistant trained and ready to fulfil orders. If you need to hire an extra hand, so be it.
I mentioned in the beginning how scaling reduces your profit margin due to increased ad spend. You need to ensure you are still making healthy profits even though you may be losing some margin. If you’re not profitable then there is no point in scaling. You are better to maintain what profit you currently have than completely waste it.
When and How to Scale
Everyone loves scaling and it’s easy to see why. You put more money in and get more money out, right? Technically yes, but it doesn’t always go according to plan. With that said, you should know when the right time to scale is and exactly how you do it.
Only successful ad sets should be scaled. If the ad set isn’t successful at $5/day it won’t be successful at $10/day or $20/day. If you try to scale unprofitable ads you will just lose more money. There is no need to scale rapidly. Often times if you scale too fast, it can become too volatile. Slow and steady is often a better approach.
So how exactly do you scale? It’s very simple actually. You duplicate the successful ad set and increase the budget of the duplicated ad set. Nothing else should be changed because you want to maintain the properties of the already successful ad. You should duplicate the ad spend in the beginning but after a while you can begin to increase the range you increase the ad spend to.
Some people argue that you should increase the budget on the successful ad set. I disagree with this and so do many others. The reason being is that the Facebook algorithm is quite temperamental. This means you should not change what is already working. Any alteration in an ad set can cause it to stop working and thus stop making sales.
Scaling is great and you can keep increasing the ad spend as long as you are profitable. Enjoy the process and keep an eye on your metrics. They will give you insight into how your ads are performing. I hope you enjoyed this post on how to scale your dropshipping store the right way.