It’s time for a quick recap of November!
$1,000,000. Yes, you read that right, that’s $1,000,000.
I have a hard time realizing it: I have sold over $1,000,000 of products on my Shopify stores so far in 2017.
When I started this journey in January, I wasn’t totally sure what to expect in terms on scale, but I was commited to making it work.
I haven’t been very diligent in keeping track of my total sales to date, but as I was compiling the numbers for November, I figured it could be interesting to check how many products I have sold. One thing leading to another, I dug more into my sales numbers, and here we are… $1,000,000.
Here’s what happened in November
After my assistant left me in October, I didn’t want to start training a new person to fulfill the orders from my stores, so I went the only other way I know: software and lean processes.
Through a combination of using ready-made software, building my own software for some tasks, and streamlining every process in my operation, I’ve been able to do the fulfillment myself, while also completing my other tasks.
I’m not going to lie, it’s been a busy month, and I’ve been falling behind for a numbers of things, and it’s going to be a nightmare when time comes to do my accounting.
On a positive note, I’ve been able to keep the ball rolling: fulfilling orders, managing customer support, managing advertising campaigns, social media, etc…
What I’ve been focusing on
Right from the beginning of the month, the numbers were looking better than all previous months.
I learned from my past mistakes, and I stayed consistent and rather conservative with my ad budgets throughout the month.
Black Friday & Cyber Monday weekend was the cherry on top, and it boosted my revenue even further.
Taking a look at the numbers
It’s only been my 5th biggest month in terms on gross revenue from my ecommerce store, however, in terms on net profit, it’s the best month since I started working on Ecommerce!
This was only my 3rd month this year turning a profit. I closed the month with a net profit of $11,952.09. That’s almost 3 times my previous record month in July ($4,273.31).
It’s also worth noting that I closed the month with a 13% ROI. I know it might not be impressive to the big ecommerce guys out there who are usually making 20-30% ROI, but to me it’s actually awesome: it’s my best ROI since I started Ecommerce.
As you can see on that chart, my Average Order Value has been constantly increasing since July.
This is thanks to a combination of things: better product pricing, upsells, cross sales, and selling higher value products.
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.
|Facebook Ads||-$65,899.94||▲ $215.01|
|Cost of Goods||-$20,337.94||▼ $7,589.27|
|Payment Fees||-$4,455.82||▼ $916.77|
|Email Marketing||-$240.00||▼ $25.00|
|Customer Service||-$207.37||▼ $250.33|
|Niche Sites||$8.56||▼ $456.17|
It’s amazing to finally see all this hard work starting to pay off. I know things can get even better now that I have found a recipe that works.
I’m definitely not growing as agressively as I did in previous months, and that allows me to turn a decent profit.
As you can see, I managed to keep my expenses in check and spent *only* $9,000 more than previous month while increasing my revenue by over $23,000.
What’s happening next?
I’m not going to reinvent the wheel for December, it will be more of the same as November.
At the moment, I’m actually even considering slowing down all my advertising campaigns for 2 reasons.
First of all, the big companies are increasing their advertising budget significantly in the last few weeks before Christmas, and it’s getting more expensive to reach teh same results.
Finally, ecommerce giants have set unrealistic expectations for consumers in terms of delivery time. While I usually manage to keep these expectations in check during the year through good communication, Christmas is a hard deadline. If the orders are Christmas presents but are delivered too late, you’re ruining the party, and that means more returns and customer support headaches in the next weeks.
I’ll keep you posted at the end of December when I’ll be closing my very first year in ecommerce.
See you next month for another update!