Explaining dropshipping terms like you're in 5th grade.

@laraecomwolf

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The Ecom Wolf Den

Learn to build, launch, and grow your own store. Go from 0-100k/mo

4 videos

Why it worked

The post breaks down complex dropshipping metrics into easily digestible explanations, using a '5th grade' analogy. This approach makes the information accessible to beginners and addresses a common pain point for those struggling with ad management, driving engagement and encouraging users to seek further guidance from the creator's linked resource.

Summary

This post explains key dropshipping metrics like ROAS, CTR, CPA, AOV, COGS, and Break Even ROAS in simple terms. It aims to educate viewers on understanding their ad data to improve profitability and encourages them to click the link in the creator's bio for help with AI-branded dropshipping.

Structure

1Hook: Explaining dropshipping terms simply
2Explaining ROAS (Return on Ad Spend)
3Explaining CTR (Click-Through Rate)
4

Original caption

If you’ve ever stared at your Facebook Ads Manager and felt completely lost looking at all the numbers, you’re not alone. I lost $15,000 trying to outsource my ads to 3 different agencies without understanding any of this. The crazy part is that once I actually learned how to read the data by getting my own mentors, everything clicked and I scaled my first dropshipping store to $1.1 million in 3 months. Knowing your numbers is the difference between actually making money and burning it. #dropshipping #shopify #ecommerce #onlinebusiness

More from @laraecomwolf

Product placement

The creator is explaining dropshipping terms and metrics, implying that understanding these is crucial for success in dropshipping. The creator's bio link leads to 'The Ecom Wolf Den' which is likely a course or community related to dropshipping.

Call to action

If you want help getting started with AI branded dropshipping, click the link in my bio!

On-screen text

Lara Rahib @theecomwolf Explaining dropshipping terms like you're in 5th grade. If you don't know these, you're literally burning money on ads. Save this so you don't forget... Last 30 days Total sales $97,733.87 47% Orders 716 47% Conversion 2.03% 10% $6K $4K $2K $0 Mar 23 Apr 2 Apr 12 50+ Orders to fulfill 4 Return requests 1. ROAS. Return on Ad Spend This is the most important one, guys. It's the amount of money you get back for every $1 you spend on ads. If you spend $1 and make $3 back, your ROAS is 3x. Higher ROAS = more profit in your pocket. 2. CTR. Click-Through Rate Out of all the people who saw your ad, this is the percentage who actually clicked on it. If 100 people see your ad and 2 click, your CTR is 2%. High CTR = your ad is grabbing attention. Low CTR = your creative is weak, change it. 3. CPA. Cost Per Purchase This is how much it costs you in ad spend to get one customer to actually buy. If you spend $100 on ads and get 5 sales, your CPA is $20. The lower the CPA, the more profit you keep. 4. AOV. Average Order Value This is how much the average customer spends per order on your store. If you sell 10 products for $1,000 total, your AOV is $100. Want to make more money? Add upsells and bundles to push this number higher. 5. COGS. Cost of Goods Sold This is just what it costs you to get the product from your supplier. If you sell a product for $100 and your supplier charges you $25, your COGS is $25. Always know this number before you run a single ad. 6. Break Even ROAS This is the ROAS you need to hit just to not lose money. Take your selling price and divide it by your profit per sale. So if you sell at $200 with $150 profit, your break-even ROAS is 1.33x. Anything above that = profit. Anything below = you're losing money. Now you actually know what you're looking at when you check your ads. If you want help getting started with AI branded dropshipping, click the link in my bio!