Peter Szabo walks through a client e‑commerce case study showing ad account and Shopify admin details: in December the store spent $24,000 on ads and generated $46,000 in sales (~$22,000 gross profit, ~$8,000 net profit) by selling an electric scalp massager. The video explains prior testing of many products (most lost money), an initial November ROAS of ~1.2x for the scalp massager (roughly break-even after costs), subsequent optimization (ads, targeting, mobile-friendly store, conversion elements, bundles) and rapid scaling from $2k to $24k ad spend within a month. The main lesson emphasized is continuous testing to find a winning product and the ability to scale quickly once found.
Questions this video answers
$24,000
$46,000
$22,000
~$8,000
Electric scalp massager
Chapters
Hey, this is Peter Szabo and in this case today, I want to show you this client that made $46,000 last month. And instead of just showing you a screenshot, I want to take you behind the scenes of the ad account, the store show you the exact product, and even the Shopify admin. So let's start with the ads in December last month we spent $24,000 and made $46,000, resulting in $22,000 in gross profit and around $8,000 in net profit. And you can see the store here. Cor gadgetry.com you can check it out. We test a bunch of different products and the one that ended up working is the electric scalp massager. We did bunch of bundles to increase the average order values. We put in all the right conversion elements such as testimonials, high quality product imagery, good copy, etc. And then you can see here the Shopify admin as well. If I refresh and you look at last month, then it's 46k and $200 in sales. Now this is an important thing to note is how ecom works is you always got to keep testing because you should not expect to find the winner right away. So actually before we found this winner, we tested a bunch of different products for this client, dentures and kid phones. And most of them lost money or broke even. Didn't look really good until we found this one. And I want to show you something interesting because if I pull up the previous month of November, we were still testing various products, as you can see, and there was one product, the scalp massager, that started to look promising. We got a 1.2x ROAS return on ad spend, which is technically profitable. But as soon as you account for the cost of goods sold, the product itself shipping, it was pretty much breaking even. So at this stage, the next steps is really optimizing the metrics. We tested different ads, different targeting options. We optimized the store itself, making it more mobile friendly, adding different elements, and then literally within the next few weeks, the numbers changed. So much so that we went from breaking even to making $8,000 in net profit, 46k in sales. So. So really the moral of the story is never stop testing. This is simply how ecom works. This is what we tell clients. You should expect to test five or 10 different products before you find the winner. And once you find the winner, this is not a physical store, right, where you need to buy more inventory, hire more people, get a larger plot. You can scale very quickly. We literally went from spending 2k to 24k on ads within a month. And next month is going to look even more exciting. So with that being said, thank you for watching watching. See you in the next one.
