šŸ”Research or Fail

Plus $700K Facebook ads strategy & Niche Dropshipping the gamechanger

šŸ‘‹ It’s Thursday, and we’re diving deep into winning product research, a $700K Facebook ad playbook, and diving into why niche dropshipping is shaking up the industry. 

It’s a quick 6-minute read. Only have a minute? Start with this:

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Ecommerce In Focus šŸ“¦

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šŸ”— Resources:

šŸ’” Pro Tips:

27 eCommerce Marketing ideas to Drive Sales Immediately!

Success

$700K Facebook Strategy

Today we’re breaking down an impressive $700,000 Facebook ad strategy from Henrik Wold, a seasoned dropshipper. He shared his step-by-step approach to achieving this level of success in just one month. If you’re looking to scale your dropshipping business efficiently, this strategy will guide you through product testing, ad performance optimization, and smart scaling. Here's how you can leverage his insights to take your store to the next level.

The Strategy

Henrik's approach to Facebook advertising revolves around three core principles: ensuring product scalability, optimizing ad creatives, and executing strategic scaling. Whether you’re just starting or looking to push your revenue past the $5,000-per-day mark, this guide has you covered.

  1. Vertical Scaling
    Vertical scaling is about increasing your budget on ads that are already performing well. Henrik recommends starting with a daily budget of $100. If an ad set performs well—meaning it generates multiple sales—you duplicate it and double the budget. This method allows you to maximize profit from successful ads without risking too much at once.

  2. Horizontal Scaling
    To broaden your reach, Henrik advises creating multiple ad sets targeting various demographics. This helps you find untapped audiences and avoid saturating your current market. Each ad set should include 12-15 different video creatives, allowing you to test which ones resonate best with your audience.

  3. Creative Optimization
    High-quality video ads are crucial. Henrik emphasizes the use of user-generated content and professionally crafted videos to build trust and improve engagement. A strong creative can significantly increase your click-through rate (CTR), which directly translates to more sales and a higher return on ad spend (ROAS).

The Numbers:

šŸ“… Timeframe: Last 30 days
šŸ’° Revenue: $700,000+
šŸ’” Daily Ad Spend: Starting at $100, scaling upwards
šŸ“ˆ Target CTR: 4%+
šŸ”„ ROAS: 5.0+ (Return on Ad Spend)

Breaking Down the Key Metrics

Henrik monitors two main metrics to gauge his ad performance:

  • Click-Through Rate (CTR): A CTR of 4% or higher is essential for driving traffic to your store. The higher your CTR, the more people are interested in your ads, leading to more sales. Henrik’s campaigns often achieve a CTR of 5-6%, which is exceptional in the dropshipping world.

  • Return on Ad Spend (ROAS): Achieving a ROAS of 5.0 or higher means you’re making $5 for every $1 spent. This is a strong indicator of a profitable campaign. Consistently hitting this level of ROAS allows you to reinvest profits and scale faster.

Key Takeaways for Success

  • Aggressive Testing: Use a variety of video creatives to determine what works best. Aim to test 12-15 different videos for each product to find the winning combination.

  • Smart Scaling: Only increase your budget on ad sets that are performing well. Scale gradually to avoid burning through your budget on underperforming ads.

  • Focus on Engagement: A high CTR is a good sign that your audience is interested in your ads. The more clicks you get, the better your chances of converting those clicks into sales.

Implementing This Strategy

To start, create a campaign with a $100 daily budget, targeting multiple demographics and using diverse creatives. Monitor your ad sets closely, and duplicate those that perform well. If an ad set achieves three sales, double the budget and keep scaling. For those that don’t perform, cut them quickly and reallocate the budget to stronger ad sets.

Henrik’s strategy isn’t just about throwing money at ads—it’s about smart investments and data-driven decisions. By focusing on what works and scaling those elements, you can achieve significant growth in a relatively short period.

For a detailed walkthrough of Henrik’s entire $700K strategy, check out his full video on YouTube.

Last editions polling results coming soon…

Recommended Resources

🌐 Dropshipp.com Community: Join Now

šŸ’» Ecommerce Website - Shopify: Start Free

šŸŽ“ Online Courses - Udemy: Dive In

šŸŒ Domain Names - Namecheap: Get Yours

šŸŽØ Graphic Design - Looka: Begin Now

🚚 Dropship Suppliers - Spocket: Discover More

āœ‰ļø Email Marketing - GetResponse: Learn More

šŸ” SEO Tools - SEMrush: Start Here

šŸ’° Sales Funnels - ClickFunnels: Explore Here

šŸ§‘ā€šŸ’» Virtual Assistants - Fiverr: Get Help

šŸ“£ Ads Agency - That Company: Check It Out

šŸ’µ Business Broker - Flippa: Find Out More

Innovation

Product Research or Fail

Let’s face it—if you don’t crack the code of product research, your dropshipping dreams are over. This is where most entrepreneurs get stuck, testing product after product with zero success. Stop the guesswork. To dominate in dropshipping, you must master these five principles. Skip any of them, and you’re setting yourself up for failure.

1. Solve a Real Problem—or Get Crushed

Your product must do more than just exist; it has to fix a specific problem for a dedicated audience. If your item isn’t making someone’s life easier or better, it’s not worth selling. Don’t just sell; serve a need:

  • Address pain points that your target audience is desperate to solve.

  • Make life easier for a specific group of people.

  • Create emotional impact that makes people feel they need your product.

2. High Margins—No Exceptions

Without strong profit margins, you’re burning money. You need at least a 3x markup on every item you sell. Period. Low margins mean no cash flow for ads, growth, or even staying in business.

  • High perceived value is key—don’t settle for anything less.

  • Buy for $10? Sell for $30–$50.

  • No wiggle room here—this is non-negotiable.

3. Lightweight and Compact—Shipping Costs Matter

Shipping can bleed your profits dry. If your product is heavy or oversized, you’re setting yourself up for disaster. Stick to small, lightweight items that are easy and cheap to ship.

  • Minimize shipping costs to maximize profit.

  • Avoid hassles with customs and logistics.

  • Scale easier with products that don’t require complex shipping solutions.

4. Quality is Non-Negotiable

Your product has to be more than just ā€œgood enough.ā€ It has to be exceptional. Subpar products lead to bad reviews, refunds, and a damaged reputation. You can’t afford that.

  • High-quality products lead to loyal customers.

  • Deliver on your promises—every single time.

  • Build a brand people trust and come back to.

5. Stand Out or Die Trying

You have to be different—end of story. Unique branding or proprietary features can be game-changers. Even if you’re selling the same product as everyone else, you can still dominate with better branding, packaging, and customer experience.

  • Custom logos, packaging, or features make all the difference.

  • Build a brand that stands out in a sea of competitors.

  • Make your store unforgettable—don’t blend in.

Stop Guessing, Start Winning

Follow these principles, and you won’t just survive—you’ll thrive. Ready to take your dropshipping game to the next level? Dive deeper into the secrets of successful product research by checking out Jordan Bown’s YouTube channel. Your million-dollar store could be one product away—are you ready to find it?

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That's it for this week, hope you got some value out of it.

Cheers,

The Dropshipp.com team

P.S. If you haven’t already feel free to join our free community to connect & network with other like-minded dropshipping entrepreneurs.