It’s time for a quick recap of June!
I broke a record in June… Unfortunately, I would have gladly left this record to February.
This is my biggest loss month this year so far.
Products reaching saturation, ROI dropping, employee skipping a full week of work, Facebook locking me out of my personal account…
I don’t think anything else could have gone wrong in June. Or at least, I’m not sure how much more I could have taken without losing my cool.
Here’s what happened in June
Where to start… There’s just been so much happening.
First of all, some products I was banking on to make some money back in June reached market saturation at the beginning of the month.
The ROI for these products dropped like a stone. No matter how many adsets with different or similar targeting I tried, it was impossible to get into the profit anymore.
As if it wasn’t enough, my employee decided to skip work for one day and assured me she’d come back the next day… And she did that 4 days in a row.
I ended up firing her, and doubling my own workload in a blink.
After 1 week of working insane hours to cover her work and mine while looking for a new employee, I woke up to find my personal Facebook account closed “for security reasons” to protect me after someone tried logging into my account from an unknown location.
I easily unblocked it by matching my friends’ names and pictures, then visited my business manager, to find everything under lockdown as well.
The only way to unblock this: contacting Facebook support. Their answer: we can’t unblock your account. I had to reach out 6 or 7 times through chat and email in the course of 3 days to finally gain back the access to my business accounts.
It’s been a very bumpy month, and it resulted in terrible numbers.
What I’ve been focusing on
My focus has been on keeping the business running with double the workload, and getting back the access to my Facebook advertising account.
I would lie if I told you it wasn’t a stressful experience.
To top it off, I ended up making the same mistake as previous months: trying to grow too fast before my campaigns were proven winners.
Taking a look at the numbers
By trying to grow too fast, I had a pretty massive growth in gross numbers, but it resulted in my biggest losses for 2017 so far.
If I round up the numbers just a bit, my gross revenue and expenses literally doubled compared to the previous month.
There’s only one little problem: last month was already a loss… so June turned out to be an even bigger loss.
My cost per purchase and average order value increased significantly compared to May because I tried to sell more expensive products.
I figured the market would be less saturated if I was going after products that newbies coulnd’t afford to advertise, but it was a mistake.
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||$1,431.41||▼ $586.24|
|Facebook Ads||-$111,313.78||▼ $60,009.20|
|Cost of Goods||-$26,852.83||▼ $9,791.15|
|PayPal Fees||-$4,156.38||▼ $1,675.56|
|Stripe Fees||-$2,736.52||▼ $1,494.70|
As if the increase of losses with my ecommerce site was not enough, the revenue from my niche site also went down by roughly $500.
To put it mildly, it was a very bad month, and I haven’t been very smart about it.
Trying to grow so fast while the campaigns are not profitable yet was not the best idea I ever had.
What’s happening next?
I need to get back to the drawing board.
A lot of things have to change if I want to turn this around and transform my ecommerce website into a thriving business.
I also need to find a new employee sooner rather than later to handle the workload (Fulfilling orders is not the best use of my time.), and give me time to do the planning and managing advertising campaigns.
See you next month for another update!