It’s time for a quick recap of August!
August was off to a great start. I was finally seeing some positive results with Ecommerce. You have no idea how exciting it was to see positive numbers for 2 months in a row. Unfortunately, this got to me and I made some very poor choices.
To summarize, I was about to make more or less $5,000 in August… And seeing this kind of results, I decided to double-down and experiment some more. Only to blow it off by losing $4,000 in less than 3 days at the end of the month.
This has been a painful lesson to learn, and hopefully I won’t be making the same mistake any time soon.
Let’s take a look at what happened in August in more details.
Here’s what happened in August
First thing first, I’m still very happy with my new assistant. She’s doing a great job and learning more about how to handle our customers’ orders.
My plan is to fully delegate the order management to her by the end of next month so I won’t even have to think about that side of the business.
It’s still a bit hard for her when looking for cheaper alternatives to the products we’re buying and making sure it’s the exact same product, but I’m confident we’ll get there.
On a more general scale, our second store picked up a lot of momentum and while we’ve significantly decreased our numbers with our first general store, we ended up with much higher total numbers.
There seems to be a trend that we have a hard time scaling down our sales to focus on the most profitable niches and products.
What I’ve been focusing on
Most of my time was spent planning the launch for our third store. Seeing how August ended for us, I’m not completely convinced that launching a new store is going to help focus on improving our ROI.
The store is almost ready for launch. We have a nice design, products, descriptions, facebook page, email sequences, and everything else we need for the launch. It’s just a matter of pushing the launch button.
We’ll see if we actually go through with it in September or if we wait a bit longer to finally work on lowering our costs and increase our profits.
Taking a look at the numbers
We were really set on slowing down our spending on advertising to have a better ROI… And we ended up increasing our sales from $153,576.12 in July to $224,632.35 in August (56% increase, ouch!).
Grossing almost a quarter of a million dollar in a month might look like an achievement to some people, but it really is just a vanity metric.
What really matters is Return On Investment, and unfortunately ours is nothing to be proud of as we’re barely breaking even.
As I wrote before, we were going to make almost $5,000 in profit this month (that’s only 2% profit), and I managed to mess it up at the very end of the month and we ended up losing $141.37 in August.
This is becoming slightly ridiculous to be moving this kind of volume and make no money at all.
Everything is not lost since we are still building our Facebook pages and email list, but I doubt it’s going to turn our ecommerce operation into a massive winner anytime soon.
What about the money?
Here is a breakdown of the money flow for my various projects.
To make this report easier to understand, I’m using a simple color code: green numbers are positive, red numbers are negative.
Please keep in mind that these figures may not be 100% accurate due to various factors such as refund requests and network adjustments. The terms for each payment may also vary. As a result these numbers may differ from the actual payments issued and received.
|Niche Sites||$1,109.25||▼ $489.87|
|Facebook Ads||-$172,126.54||▼ $57,906.61|
|Cost of Goods||-$39,506.85||▼ $15,183.61|
|PayPal Fees||-$5,118.36||▼ $548.93|
|Stripe Fees||-$4,836.38||▼ $1,704.63|
|Shopify Apps||-$171.73||▲ $4.15|
My old affiliate niche sites saved the month! If it wasn’t for these sites, we would have lost money in August.
The bad news is that the traffic to these sites is going down month after month. It’s no surprise since I haven’t touched them in forever.
I might have to do some work on these sites if I want them to keep saving us for a few more months.
It’s time that we rethink our entire strategy with Ecommerce. We can’t keep going like this forever.
We can’t keep selling hundreds of thousands of dollars of products and make money for Facebook, PayPal, our bank and all other entities taking their share of our gross revenue, while we’re barely making any money.
At this point, I’m even contemplating the idea of giving it up completely, and working on other projects.
What’s happening next?
September is the month when we’re going to (finally) cut down our expenses drastically. The path to follow is still a bit foggy, but we’ll get there, if and when the time is right.
That third store idea might not be the path to follow after all… We’ll see.
See you next month for another update!