March 27, 2021

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How We Generated $240,000 In Sales With Under $5,000 In Ad Spend

Marketing

Let’s start with the obvious point - these results are not typical. This client was able to make a 5500% return on their investment by working diligently and capitalizing on an incredible opportunity.

https://www.youtube.com/watch?v=VxxgJIC-e0Y

In this short article, I’ll explain exactly what we did to generate $240,000 in sales with only $5,000 spent on ads in under a month, and what steps you can take to achieve a high ROAS (Return On Ad Spend) for your business!

Product-Market Fit

Nothing makes your job easier than a great product. As marketers, we’re always looking for creative ways to introduce your product to your customers and invite them to make a purchase. But the fact remains, it’s a hell of a lot easier to sell a high-quality product with a strong brand, than a drop-shipped item with little brand identity.

If you’re just starting to sell products online, opening a drop shipping store is a great way to gain proof-of-concept and build an audience before you invest thousands into manufacturing & inventory. However, if you’ve been able to successfully sell drop-shipped products for several months and are starting to build a following, consider having the product manufactured with your branding. This is exactly how MVMT Watches and other reputable brands started out.

Content

You know the saying, “content is king”. Nothing is more true when it comes to selling products. Having a good combination of lifestyle videos, product photos & testimonials will make a dramatic difference in the performance of your ads.

When creating content, remember to keep your audience in mind. Does your product have multiple applications? Is it used by both genders? What other products are they buying? Use this information to your advantage and create content that properly demonstrates/displays your product being used by your ideal audience(s).

On the more technical side, try shooting bright, colourful images and fast-faced short videos (7 - 30 seconds) as these will likely perform best on Facebook & Instagram ads. Also, remember to shoot your content in both portrait and landscape formats, ensuring it’s optimized properly for stories (9:16), feed (1:1) and search ads (1:91:1). Pro tip 1: the new Samsung Galaxy S20 and iPhone 11 both have an ultra wide zoom that crops perfectly for all ad formats.

Logistics

Carving out your piece of the market and creating beautiful content is the fun part, but logistics is where it all comes together. Once you start selling north of 50 products per week, your fulfilment process should be thoroughly ironed out. The last thing you want is to leave your orders unfulfilled. This will inevitably lead to unhappy customers and refunds. So make sure you have enough product in stock and a reliable shipping partner. Pro tip 2: Some shipping providers (like FedEx) will allow you to negotiate lower shipping rates after you’ve shipped a certain volume.

Even small things like responding to emails, searching tracking numbers, or responding to Facebook & Instagram comments can take a lot of time. In O2 Canada’s case, they received upwards of 500 messages per day in January alone. Having dedicated customer support staff is critical to building lifelong relationships with your customers.


If you watched the attached video, you may have noticed when I explained to Andrew how we could sell an unlimited number products, but his largest concern may be having enough inventory. A good problem to have, but one that needs to be considered nevertheless.

The Right Team

The entire team at O2 Canada works tirelessly to serve their customers and propel their business forward. Operating like a well-oiled machine is key to their success. They are constantly researching their market and thinking about new ways to improve their customer’s lives.

At Digitl, we operate the same way. Our small team of 4 is constantly staying updated in the digital marketing world; paying close attention to policy changes, new platforms and coming up with creative ways we can help you sell more products! If you’re ready to make a difference in your B2C sales, click here and schedule a call with us.

Thanks for reading!

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