How should I test products for my Shopify store?

3 replies
hey everyone,
so im pretty new to shopify and was just wondering how i should go about my testing. what i mean by that is that each day i find 2 new products and promote them through facebook ads and if i dont make sales then i move to the next product. I was wondering if i instead should combine the amount of money i spend on both products and just test one each day, also how long i should test a product before moving on to the next.
Thanks in advance!
#question #shopify
  • Profile picture of the author timokeefe
    What you're really looking for is whether you can make a positive ROI on your investment. To do this you need to have a cost to acquire the customer (CAC) that is lower than your profit.

    Let's say you have a product that costs $1, of which you get 50c profit, and you spend $100 on ads and get 1 sale. Your CAC was $100, and your profit was only 50c, so you'd need to make up a 200x difference through optimising your ad, landing page, etc, which is probably not realistic.

    However, if you have a product that costs $500, of which you get $50, and you spend $100 on ads and get 1 sale, then you'll have a CAC of $100, but a profit of $50. This one is interesting, as you need to make up a 2x deficit in profit, which is difficult, but feasible if you optimise everything well. Ideally you'd test something out and immediately have a CAC that is lower than your profit, but I wouldn't necessarily expect that.

    Also, in both cases you didn't have enough sales to be confident that your CAC would hold, so you'd want to see more sales to increase your confidence in that CAC.
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    • Profile picture of the author RubberTaco
      thank you for the reply, i will definitely have to look into this more i will keep you posted!
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  • Profile picture of the author VidasVegas
    Before you add any products to your shopify make sure these products are on demand in marketplace check on google trends first.
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