¿Por qué no estás escalando tu tienda online? Aquí la respuesta
Pate breaks down why most online stores don't grow: wrong product selection, poor pricing strategy, weak website conversion, and ineffective advertising. He covers margin importance, email marketing, and audience targeting as the core levers for scaling a private label business.
In today's video, I'm going to give you a masterclass on the basics of scaling your online store so that you understand them very clearly. I'm taking advantage of the fact that I'm on a road trip so that you can later apply videos specifically on my channel and understand in general terms how you need to scale. In case you don't know me, my name is Pate and I help founders of private label online stores make a lot more money with their store without depending on agencies or freelancers or anything like that. The first thing you need to understand is before the store. And before the store is, what am I going to sell? But more important than what am I going to sell is who am I going to sell to?
Why?
Because I'm sure you're having trouble selling your product. You think that maybe it's the price. Why do people come to my website and not buy from me? Intrusive thoughts about whether anyone likes your product or whether it stopped being popular, whether I used to sell more. That's something that I often encounter with online stores founders who I meet and who are customers. And maybe it's not so much about the product itself, but rather the people, the audience you're targeting. We have to understand that in private label e commerce, we're not targeting the person who wants the cheapest prices.
Why?
Because if you're selling clothes, for example, there's Primark. If you're selling home decor, well, I don't know, there's a Chinese store where you can buy a fake flower pot for €1. So people who are guided by price are never going to be your customers because it's impossible for you to complicate things with prices. With companies that have completely different business models, such as private label e commerce, the first thing you have to be clear about is who you're targeting. I recommend that when you're thinking about your product or positioning the product, you always try to aim for the highest possible value. I'm not telling you to become a luxury brand, but I'm telling you to completely distance yourself from those products with the lowest possible price and to try to get a lot of volume by having a good product at a low margin so that you can sell more. That is a complete mistake in private label e commerce today. And connecting with this, which I mentioned, the margin is the most important thing when setting up a private label e commerce.
Why?
Because when you go to market, which we will discuss later, which is mainly advertising to get paying customers, what will allow you to invest more or Less is the break even that you can afford. We will discuss this in more detail later. But the best thing you can do is have very, very high margins.
Why?
I recommend that if you are in arbitrage process, which is buying something cheaper and selling it for more, try to at least multiply it by three or four.
Why?
Because in the end between shipping and handling costs for the product, packaging and everything, you will end up with a gross margin of 70, 80 or 90, which is ideal for scaling an online store.
Why?
Because when you go to create ads, if my client can afford ROAS of 1.5 and be profitable and you haven't worried about the margin and haven't positioned your product with high value to be able to charge a high price, which is not just expensive but a high price with a high margin. Well, when Both ads have ROAS of 1.7, my client will increase the budget and end up with one of your customers and you will have to turn off the ads. And that's why the margin is so important. And for that you have many videos on my channel on how to position your product with more value, how to create a product page so that in addition to more people adding to their cart and buying more, you can set higher prices. Because that's super important when it comes to advertising. So that way we have a very clear idea of what we need to do before the store, which is who we are going to sell to and what we are going to sell with what margin. The same goes for prices. We don't want to have the highest prices, we want to have the highest prices possible for the value we are providing. And to have a high value which is perceived as high, we have to convey it very well. Because many founders of online stores have the problem that when they sometimes do pop ups or do, I don't know, showrooms or show the product they have created or are setting up the store to friends and family, people freak out. It's very easy. It's very easy to sell.
Why?
Because they see the quality of the product, you are explaining it to them. But the magic of E commerce, the game, the difficulty is communicating that which is so simple in person through a screen. And that's why what you have to do is worry about web ads and email marketing, which I'm tired of repeating, you have videos on my channel on how to make a good website, how to do good email marketing. But I'm going to summarize it for you. A mistake that many online store founders make is thinking that their ads aren't working because of the ads, because they need to improve the photos, or because they need to do a better job, I don't know. Or because they need to hire the UGC person and they make a serious mistake because no one pays attention to what they are doing before the ads. And surely if you look at the Shopify statistics panel, which you probably don't even check, you'll see that your conversion rate is relatively low. If it's less than 1, forget about it. Because if you're selling something for less than €80 and you have less than a 1% conversion, you're way out. Okay, this is beautiful. I just raised my phone to record. Yes, yes, yes. Uh, in fact, we're in Galicia and I've fallen in love with Galicia. I want to be Galician, please. It's beautiful. You always have to check before the ads. You might have a good center on the ads, but then when they go to your website, they don't buy from you. And to do that, the first thing is to filter the ads very well. We'll see that later. But when the website arrives, you have to take your customers by the hand where you want them them to go. I mean, this isn't a physical store with shop windows and customers coming in and, well, seeing what they like about everything. Right? You probably have the most popular products, best sellers, or a new collection. And it can't be a catalog. Your online store has to be one where you grab your customer as soon as they enter the store and take them where you want them to go. There are videos on my channel on how to structure a website. Well, to take them exactly where you want them to go. And then the most important thing is the product page. I look at websites, I look at dozens and hundreds of online stores a week, and very few, very few are well done. Very few, very few are well done. Above all, the copy says what people care about the most and the least. For example, here I have my girlfriend recording, and I'm going to ask you if you're going to buy some cosmetics for your face, do you care if it's 98% sea salt or if it's 100%, I don't know, amino acids, or do you want me to tell you when you put this on, you're going to be the prettiest of your friends? The second thing is that there's no shame in trying to be nice, to be politically correct. We don't really reach people's hearts or their pain. It's just that we can't get There and always wearing the same cloth clothes, 98% cotton and made in Spain, that doesn't impact anyone. But anyway, despite that, the copy can be saved a little. But you have to convey the value in many ways. One way to convey it before reaching the product page is by connecting with the audience. As the founder of an online store, you have great power, which is that you can become an influencer for your brand and show how you make the product, how you take care of it, and how you send the packaging on social media, which is completely free. So you're no longer just buying this cosmetic product that I was discussing here with my partner, but I'm buying this cosmetic product from Pal, who I know spent six months in the lab to create the formula because he was telling me about it while he was creating it. And I also see that when he makes the packaging, he puts a lollipop in. So it's not just this cosmetic product anymore. It's all the value that you're adding to an experience, which is buying a product online. And also what you're going to achieve is that many times they're not going to buy from you because of the product, but in the end they're going to buy from you because of you. Because on top of that, they like you. Like pow. I don't know. Apart from cosmetics. Well, you know that I like soccer. And on top of that, he's a Madrid fan and I'm a Madrid fan. I don't know. Or if you're a Barca fan. Well, look, I'm going to buy this Madrid player. At least I like them. Nonsense, nonsense. But that has a huge impact on the purchase. And then you can raise prices, which is all included in E commerce, as we mentioned before, the margin and another mistake that many people make. Maybe I see it very clearly because I'm in my own bubble with my clients and with my content. But I won't tire of repeating that. Nowadays no one buys from a store for the first time as soon as they discover they just remember the last time. So nowadays we need several impacts to make a purchase because the level of awareness of the population in E commerce has increased. And so, well, we want to think about the best, we want to see other options, we want to evaluate the reviews of the product we want to buy of those sneakers, of whatever it may be. So since we need multiple impacts, when someone enters your online store for the first time through an ad, they have two to buy from you or not to buy from you. And surely if it's the first time, the second will happen. And so we want to give them more impacts. And you can do those impacts through ads by paying for them again or through email marketing, capturing their contact method, which is email, their email, to be able to impact them for free, almost for free. Then you pay straight away. Well, you understand me. So when someone enters your website and leaves you their email, you know that sooner or later, if you're my client and you work, as I say, through me, if you apply my free content or are my client, you know that it's going to happen sooner rather than later.
Why?
Because we have structures, a methodology for impacting people that sooner or later those systems will easily sell for you. So you simply have to worry about attracting more people to that system, to that space spider web of email marketing that I'm talking about. And once you have a website that conveys value, you know that at least one person out of every client who enters will buy from you and if possible, even more. And also if they don't buy, you know that they will buy from you sooner or later due to the web of email marketing. That's when we start with the ads. That's how I work with my clients. When a client comes to work with me, I review everything. The offer, the margins, the website, the email marketing, we work on that quickly before moving on to the ads. And ads are very simple when everything is right. When you have a personal brand, a good product that reaches a good audience with a good margin. And on top of that, when someone enters, they find a website that converts. And if they don't convert, they'll eventually convert through email marketing. Put all the money in the world into ads and you'll multiply it. You'll multiply your money. So ads are very simple. They're very simple. You simply have to be a risk manager through a meta business manager. But then you have dozens of videos on my channel on how to make ads. But basically, if you have everything before the ads, then this will be very simple. But you have to understand starting at what point it is profitable. If not, it is useless. I mean, many times someone has told me, no, if it is more than roas. One, I increase the budget. I say, well, but starting at what point you are profitable. Oh no, I don't know. I don't know. Well, that is the biggest mistake in the world. First you have to know what your numbers are, what your margin is, what your roas is. Your roas, break even your cpa, break even your cost. The maximum you can pay for A client, how much you have to multiply your money to be profitable. You have to be clear about that. And you have videos on my channel. And then you have to test to see which product works best for you, the angle that works best for you, and from there scale up, do more of the same. And while continuing to test different things so that it doesn't die very briefly, but that's it for you. And now to finish that off. Everything has been about getting clients in a profitable way, which is easy to say, but it has its complications. And then once, once a month, you take advantage of all those people you're getting in a very specific way.
Why?
Because the only difference between your store and Node products project at Black Friday and at the same campaign level, at the same product level. Imagine everything the same is the difference. They will invoice millions and you will only thousands. Because Nude Project is going to tell 2 million people in its database and you are going to tell 2,000 people. So that's the difference. And this has been summarized a bit. A masterclass on how to scale an online store or how to structure an online store. Well, who am I targeting, what product with these margins? Because if not, I'm not going to sell, but I'm not going to make money. And that's the last thing we want. What is a person going to find when they arrive at the online store? Both the website and the email marketing, which I then bring as many people as possible to. Let's end with these views, which are spectacular, which bring as many people as you want, that you're going to be profitable. And also all the money for the founder of the online store is not in those ads, but in the second, third, fourth purchase. Because the biggest cost in an online store store is the cost of acquiring those customers that we make with ads. But when a person who has already bought from you for the first time makes that second, third, fourth purchase, well, that's where the money is. But you need a lot of people who buy from you for the first time. Anyway, let's end the video here. I hope this has been helpful. This has been a bit of an overview, but you have specific videos on how to create a website, how to do email marketing and how to create ads. And if you are sure that you want to work with me, I want you to download the document where you have all the resources that I have been talking about here, such as conversion calculators for your online store, how to create flows in your email marketing, how to know if your ads are profitable all in the first link in the description and if you are sure that you want to work with me, schedule a meeting in the second or third link in the description so that I can see your store from the inside and see if you are ready to start my six month support. Okay, See you in the next videos. A big hug.
