February 2018.

Hello campaigners,

You must have witnessed scenarios either in your own case or through other campaigners where the seller ends up in loss even after being able to sell their products.

Well, the aim of this blog is to make you aware of the possible pitfalls that are associated with the campaigns when it comes to the profitability aspect so that you can plan carefully when investing your time and money on campaigns.

Even the good selling campaigners miss the point that they are spending some money in the form of Facebook advertisements and don’t track the returns properly. In order to be profitable, make sure that the margin/profit per product is sufficient enough to beat the returns deductions and ad amount spent.

The basic equation for your profit comes down to this:

Profit =  Net Margin- Ad spent- Return deductions +Returns reuse margin

Net margin= Margin gained from all successful orders

Ad spent=  Money spent on Facebook/online advertisements

Return deductions= The amount that will be deducted from payout due to returns(Sum of base prices of returns)

Returns reuse margin= Margin gained from returns reuse

You need to take care of the following factors so that profitability is met i.e profit is positive.

Design- The first and foremost prerequisite for a successful campaign, the design should be good and also relatable enough to your target audience. It’s better to keep a particular type of audience in mind and proceed with designing which will help you in targeting also.

Ad copy- This should be attractive enough to convert the potential buyers into actual buyers.

Target Audience- Do some research on the target audience and how they can be targeted on Facebook using Age, Location, Gender and Detailed targeting tools.

Facebook Ads- Your Facebook ad is like your pet, you should be tracking the ad continuously so that you won’t waste the money invested in Facebook ads.Cut off the placements(Geography/Age/Gender) where the ad is performing poorly and you may scale up in the placements where the ad is performing well. As per our data, one suggestion we can give is to remove the states of Bihar, Nagaland, Mizoram in your ad placements; they have a high cost per conversion and high return rate.

Returns rate- This has been a headache point for the entire e-commerce industry. Sometimes people place the order just for the sake of placing it, this is called Impulse purchase behavior which is very common in India.Returns are due to – both logistics in India as such/ longer delivery schedules/ buyer psychology.And major returns come from Tier 2 & Tier 3 cities Other niches & metros attract minimal returns. Going by our data, the maximum tolerable returns percentage is 25-35%.

Type of buyers(COD vs Prepaid)-  In India 65%-70% people shop online with COD and very less percent with prepaid (Card, Net Banking).And going by our data the majority of returns come from COD buyers which can be avoided to a certain extent by incentivizing the Prepaid buyers which we are already been doing. If you are facing the issue of very high COD orders and therefore high returns, it’s better to go with only prepaid campaigns with a design for a highly passionate audience.

And finally Margin Per product– The above-mentioned factors are somewhat interrelated except for this one. You can choose you margin per product when launching the campaign irrespective of any factor. But the trick to profitability lies in choosing the margin carefully and using the other factors mentioned to full advantage.

Let’s take an example of a campaigner A with the total number of t-shirt sales as 10 out of which 3 are returned and 7 are successful deliveries, Zero are reused. Let’s say cost per conversion on Facebook ads is 100 per Tee(the maximum advisable cost per conversion for campaigners is 150)

So in order to be profitable, the margin per product should be:

Margin > (10*100+3*295)/7 i.e Margin should be greater than approximately 270, so the selling price should be greater than 599.

This example is to show how anticipating your return rate and cost per conversion and fixing your margin accordingly can land you on the profitable side.

So next time when you are launching a campaign, please keep the factors mentioned above in mind so that profitability is achieved.

 

Nikhil Beley has been leading our campaigner sales for quite some time and we thought of catching up to him and sharing his story with you all. He’s sold close to 2000 products till date and was so enthusiastic to share his story upon contact. Here are his story and approach towards campaigns in his own words:

 
My journey in internet marketing started back in mid-2013. I was very curious to learn how to make money online, unfortunately, I was left empty handed every time, had lots of ups and downs… but always had a burning desire to build a giant cash flow online.
 
Somehow I was able to sell digital products like ebooks, internet marketing courses in western countries using SEO and Google Adwords for a while but unable to make a big way out of it.
 
I knew about emerging e-commerce in Indian market but always left with a doubt whether it will work for me or not….since abundant population in India aren’t familiar with online markets.  One day I decided to give a try and started researching a trusted source that will help me to get the fastest cash flow.
 
A BIG thanks to My Dream Store, which helped me to get what I was searching for…  After attending MDS webinars and watching YouTube videos related to selling custom merchandise online, I was able to sell tons of Print on Demand (POD) t-shirts in just 3-4 months. The MDS platform is well robust and trusted which help customers to make fast and reliable checkouts.
 
The myth I’d in my mind about Indian e-commerce market was no more.Every day the sales started flooding in like crazy and fast payout system had helped me to leverage my business. Once again thanks to MyDreamStore, without it; it won’t be possible at all.
 
I would like to share my strategies on how to sell MDS t-shirt/hoodies online. Hope this will help newbies and others to get started and make big way.
 
Research: I test multiple designs across different niches. The average number of designs that we test everyday range from 3 to 5. We always reverse engineer. So, instead of deciding on the niches we want to go for, we focus on finding winning designs (on FB) and testing them.
 
We simply search for keywords like ‘get yours here’, ‘mydreamstore.in and ’t-shirt’ to see what’s working on Facebook. Money is where the engagement is. So whenever we find a good engaging post, we know that people are loving that particular design and its niche is worth tapping into. We usually see the number of shares a post has got. So, if a post has more than 2-3k shares, it’s worth testing and taking design-inspiration from.
 
Now, we take inspiration from that design and ask our designer to create something better and different. Along with this, we also research for 3-4 more designs in this niche that either has great engagement [on Facebook] or look really good to us.
 
Testing: We keep a total testing budget of Rs. 500-800 per product/campaign. We know that the experts say that we should have a 3-5 day testing window for products, but trust me, it has never worked for us. We usually test our products for 1 day or 2 days max. We usually get an idea of how well the product is going to work, in the first 24 hours itself.
 
We create 3-4 adsets per campaign. Every adset is run with a budget of Rs.200. We distribute the targeting in the following way:
 
Adset1: Magazines or websites | We usually intersect 3-4 magazines or websites in that niche.
 
Adset2: We target the ‘I love’ keywords for that product. So let’s say if we are to target dads, we’ll target interests like ‘love being dad’ ‘love my children’ ‘love being daddy’ ‘love my son’ etc.
 
Adset3: We select males and parents from the demographics. So, all fathers would be seeing our ad.
 
We usually try to keep our adset audience size to 300k-1 million. So either we add more interests or we intersect them, to reach our target audience size while testing.
 
 If we don’t get a sale within 24 hours, we let the adsets run only if they have a good CPC [Cost per link click]. Anything less than Rs. 15 is okay.
 
48 hours is the maximum we wait before killing an adset or the entire campaign.
 
 We’ve seen from experience that if a product works for us on day#1, it works when we scale it too.
 
If it doesn’t work for us on day#1 and works on day#2, it gives us a hard time while scaling it.
 
Scaling: We test multiple things one-by-one. Let me break it down step-by-step:
 
Rs. 200/adset, testing phase, 1-2 days
Works? Yes – Let’s scale!
 
Duplicate the adset to Rs.600/day
 
If it works, we duplicate the same adset to Rs.1000/day. And carry on with the same process[50-100-200] until the adsets are profitable. 1-day window.
 
If daily budgets don’t work when we scale, we run them on lifetime budgets. So if Rs. 200/day doesn’t work, we run them at Rs.3000 lifetime budget for 14 days.
 
If lifetime works, we duplicate the adset and keep doubling the budget [6000-7000-9000-12000 and so on]. 1-day window.
If none of these work, we increase the budget of the test adset slowly. So from Rs. 200, we make it 300-500-700-900 and so on. 1-day window.
 
Remember everything is winning design. If you have one… it’s a golden egg in your hand
 
Regards,
Nikhil D. Beley
#NeverGiveUp
 
 
 
 
 
 

               Now that Cupid has hung his boots, let’s shift our focus on to the next big event coming up i.e International Women’s day(March 8th).

Why should I focus on this?

Women’s Day is celebrated internationally on 8th March every year. It is an occasion to value the remarkable role of women in our society. The occasion has only increased traction from time to time since its inception and media tends to promote all the content related to the same.As we approach International Women’s Day on March 8th consider creating feminist/female-power themed designs your buyers will be proud to wear.

What does the data say?

Feminism, women’s rights, Female relationship niches proved to be a good bargain on our platform. Last year we saw a huge spike in these niches in the period of Feb10th-Mar 10th, our sales increased by almost 30%. Another interesting fact is that our returns rate is considered very low when the buyer is a female and what is the more appropriate time to sell these themes?

Put on your thinking hat, conjure some interesting designs and take advantage of the opportunity!!

Design Suggestions:

You can also target people with designs emphasising the female gender in relationships

 

Targeting Suggestions:  Use the Hashtag #PressforProgress in your ad content. This is the theme of this year’s women’s day and you can capitalize the buzz around this hashtag for your sales.

Please note that this audience segmentation can work well for designs making the audience proud of their feminine nature.

For Female oriented relation designs,





Since the time we have thought of STAR seller model, we have given utmost importance to one thing i.e Seller delight. To consolidate the same we have already rolled out features like Drop in Goal quantity, Next day shipping for matched return orders, Daily payouts, Abandoned Cart Recovery, Customer email lists etc.

Adding to these significant changes, we have made some additions to “Returns Dashboard”, for the campaigner to understand the effect of returns in payouts and the cash flow of the payments.

Returns Dashboard gives you the overview of the effects caused by returns in your payouts. Let’s have a look at the various tabs available on the dashboard.

The Homepage of Returns Dashboard looks like below when you click on the returns tab in your campaigner dashboard.

It gives you the overview of returns stocked in the warehouse campaign wise along with the 1-click relaunch button to make the relaunch easy.

There are five separate tabs to understand the nuances of returns

Returns in stock: As the name suggests, this tab gives you the overview of your total returns that are present in our warehouse.This is useful to plan your returns reuse according to the available stocks.

Returns Dispatched:  This tab gives you the overview of return products which are dispatched as a reuse and the delivery status of that reused product.


Returns Adjustments: This Tab gives you the overview of adjustments in payouts that happened due to returned products.

The “Total payable amount” in this tab indicates the amount that is payable to MDS from campaigner’s side due to returns. This tab gets updated every first week of the month and this gives you the logic behind deductions from payouts.

The sum of all the Debit amounts is the total payable amount.                                                                                                  In the Invoice ID of the amounts, you can see there are certain codes likes RD, RR, LT.

RD is the invoice ID generated for Returns Deduction.
RR is the invoice ID generated for Returns Reuse and this would come under Credit amount
LT is the invoice ID generated for Items which are Lost in Transit i.e Lost when returning to warehouse from buyer and this also would come under Credit amount.

Returns Invoice Settlements:  This Tab gives you the overview of the invoices of the settlements that happen due to returns or simply the statement of deductions in the payouts.

The total settled amount is the amount that is deducted from the payouts due to returns and the remaining payable amount is the remaining amount that is to be paid by the campaigner to MDS.

Credit Adjustments:  This Tab gives you the overview of payments to be made to campaigner after all the settlement of deductions from returns.This Tab gets activated once the remaining payable amount becomes zero and the amount that is to be paid to the campaigner after all the returns deductions, reuses and Lost in Transits; is generated as Credit Invoice.

We are working on simplifying the Returns Dashboard, so expect more changes to this dashboard which will enable you to understand the cash flow very easily.Hopefully, this would ease out your returns management and therefore your profitability from our platform.

It’s time to experience the month of cupid. Yes, the month of February has finally arrived!! What it brings along is the marketable Valentine week!!

What’s in it for ME?

The celebration of Valentine’s Day in India began to become popular following the economic liberalisation.

The day may be all about love, gifts, purchases and splurging, but if you are a little discreet, this is an opportunity to make money too, and how! The V-Day market has reached 22000 crore market in 2014 and has been only growing from time to time.

According to the latest Mastercard Consumer Purchasing Priorities Survey, more than half of Indian consumers plan to go out for a meal on Valentine’s Day (55 percent), and more than a third plan to spend time with their loved ones by going to the movies (42 percent).

Among the Indian consumers surveyed, a fifth (21 percent) plan to buy a gift for their loved ones on Valentine’s Day, on an average spending close to Rs 1,500.

Valentine’s Week has its own significance among the youngsters. During this week each day is celebrated in a different way.

  • Rose Day – 7 February
  • Propose Day – 8 February
  • Chocolate Day – 9 February
  • Teddy Day – 10 February
  • Promise Day – 11 February
  • Hug Day – 12 February
  • Kiss Day – 13 February
  • Valentine’s Day – 14 February

So what are you waiting for??

Train your brain cells and see what you can sell to all those who are drenched in the ocean of love 😉

Have a look at how the trend is picking up and it’s only going to increase in the next two weeks.


Still not sure how to proceed with the niche?

Worry not and have a look at some of the design suggestions to help you with.

Targeting Suggestions:

Location: Preferably Metro cities
Age: If the target is male(gift to a female), go with 23+; If the target is female(gift to a male), go with 20+.
Language: English
Detailed Targeting: You can choose any suitable targeting among Married, Newly Wed, Engaged, In a relationship, New parents depending on your design and target audience in mind.
Ad Placement: Go with the options of Facebook feed, Instagram, Audience network.

One interesting insight we got from this niche is that the reception of ad banners is good when the mockup has a model wearing the product. So we are attaching few of them to so that you may download and use them.