How we tripled an e-shop's revenue in 2 months

Who this method is not for — for those who don’t advertise their goods through product listings on Google, Favi, Biano, Glami and similar aggregators.

We have a method that will help you distribute your budget more effectively across the products that are key to your sales, and so minimise unwanted spending.

This is exactly the method we used to increase sales in the e-shops of:

• cosmetics
• carpets
• kitchen supplies
• home accessories
• food
• and others

This method is for those who want to manage their sales effectively, minimise the cost of marketing, warehousing and operations, and at the same time influence those areas successfully.

Thanks to it you’ll understand where your growth points are, where you’re losing money, you’ll see which products bring you sales and profit. And you’ll be able to influence your income systematically.

Over two months, using this method, we increased sales in this store threefold (from 146.000 Kč to 506.000+ Kč):

we raised sales in another e-shop:

and in another store:

If you have fewer than 30 products in your assortment, unfortunately this method isn’t suitable for you.

The method that will help you increase revenue from advertising

Almost anyone can set up ad campaigns. All it takes is finding a few videos on YouTube.

The real magic lies in how well you can optimise your sales by learning to work effectively with your assortment within paid advertising.

This process isn’t a one-day job and it requires involvement. Nevertheless it’s so simple that everyone will understand it. To put it in place you don’t have to be a marketing specialist or an analyst.

Put simply:

invest money into promoting the products that bring you profit.

This process was designed to make sure your budget goes to products that bring you profit. That lets you minimise advertising costs and ensures you’re not spending your money for nothing.

The method works in 2 directions:

• Increasing the budget on what sells
• Reducing the budget on what doesn’t sell

And that’s why you need to take 3 steps:

1. Get your advertising results for every product
2. Find out which products are draining your budget and which, on the contrary, sell profitably
3. Give priority to the products that bring profit

We used the “Magnifying glass” method to get 3x more sales in 2 months

Now I’ll show you how step by step you can apply this approach to your business. But before we get into it, let’s first lay out a few facts about what this solution can give you.

Over the last 2 months we applied our method to ad campaigns and increased revenue by 3.51x:

We cut cost per conversion by 25%

The number of orders more than doubled.

We found out that only 2/3 of the assortment brings us any revenue at all. On 1/3 of the assortment we’re simply throwing money away.

What did we take away from this?

1. We let the marketer go.
2. We built a system that runs itself — without our involvement.
3. We made sure we’re not wasting money.
4. We started earning more

To achieve higher advertising efficiency we have to work with platforms like Google and help them:

• identify what sells best for us
• find out what is most profitable for us
• determine the products we want to invest more into promoting

Over time, as we improved our strategy, we tested every option we could think of. We wanted to find out what really delivers the best results.

The result was a three-stage system that we use for our clients so they get results that can exceed expectations.

For example, for this e-shop we cut the spend per order by 43.5% within 1 month.

It was 418 crowns. It became 236 crowns.

We didn’t raise the budget, we didn’t switch products off…

So what did we actually do?

The 3-step “Magnifying glass” method for changes in your sales

Just 3 steps to complete the “Magnifying glass” method successfully:

• Step 1: Pick the items that bring sales.
• Step 2: Prioritise the products.
• Step 3: Fix the product catalogue.

Below is a breakdown of how each part of the formula works.

After analysing the ad spend on every product, we found that there are:

• Products that bring us profit.
• Products we sell, but spend all the profit on them, sometimes more.
• Products with no revenue and no sales.

Imagine you’re standing at a market selling goods. Sneakers, for example.

You watch your sales and you feel that only some sneakers sell. Like any sensibly thinking person, you start putting those products up front. On the most prominent shelves. And the sneakers that don’t sell you put on the back, lower shelves.

And so we told ourselves that the same thing can be done with advertising on the internet.

You just have to pick a shelf for every product. And constantly rearrange the products according to their sales.

Every day, place your goods on different shelves.

Every day you send items to Google Shopping and similar services, and you place all the products on one shelf.

I don’t know how many items you have on offer. It could be thousands or just a few dozen. And you surely notice that some products sell more often than others.

And if you don’t work with them by this simple, logical system, then you’re losing money.

So how do you choose which shelf to put a product on?

Let’s go through every step in detail.

1. Find out which sneakers bring you profit.

All you have to do is a couple of minutes of work with data in spreadsheets. Just basic Excel skills, plus minus multiplication division.

Let’s take an example from Google Ads. By all statistics roughly 50-70% of online store sales come through Google.

Here you’ll find a simple manual in Notion: http://bit.ly/3KI9mOJ

2. Now we have a list of products. We have to place them on the right shelves — ad campaigns.

And here you’ll also find a short manual on how to work with it: http://bit.ly/3GF8dFd

3. Repeat the first 2 points every day.

It’s all simple. Repeat these 2 steps every day and you’ll get similar results:

We made 1763 changes.

335 changes.

212 changes.

How much time will those 3 steps take? It depends on the number of products in the advertising, how big the budget is and how many ad campaigns you have. From our own experience — 2-3 hours a day, about 60 hours a month.

I’ve done it manually many times. And frankly — I got sick of it. To make it simpler, we built getprofit. We did it for ourselves, and now we’re sharing it with you.

If you don’t have 2-3 hours every day, getprofit will help you with it. We connected getprofit for our clients, and you’ve seen the results above.

Getprofit replaced for them:

• a marketer
• an assortment analyst
• the person who works with products in the advertising.

And it works every day. No weekends off.

And most importantly, connection speed — 10-15 minutes. No complicated integrations. No programmers.

That’s why we offer all clients a connection to getprofit.

Even though it isn’t a universal solution, it can definitely help:

• It will remove the uncertainty about the marketer’s work
• It will give a real picture of your assortment
• It will make changes in the advertising automatically.

And these steps regularly lead to the following results:

• Sales growth (thanks to placing the most profitable products on the front shelves).
• Budget savings (you’ll stop spending money on products that bring no sales).
• A better understanding of how your assortment works (knowing exactly which products bring profit and which run at a loss).
• Regular management of your assortment in the advertising with daily control of the data.
• Saving money on a marketer and less need to supervise them thanks to automation by algorithms.

We decided to work out how much the work without getprofit was costing us:

• A marketer from 10.000 (10-15 hours a month, and you don’t always know what those hours went on).
• An analyst from 8.000.
• An assistant or a manager from 15.000.
• The owner’s time for supervision and organising — let’s say 2-3 thousand crowns an hour.

On top of that the advertising works more efficiently. You don’t lose budget for nothing.

So if you want:

• A systematic approach to working with the assortment
• To stop losing budget
• To stop supervising the marketer
• To earn more
• To see the real picture

It would be strange simply not to try it.

This, in fact, is where the reason this method delivers such results comes from. In almost every e-shop. That’s why it has proven itself in 10+ other online stores.

If you have an e-shop in which:

• more than 100 items
• you run advertising in Google Ads

Then we can almost guarantee that getprofit will significantly increase the efficiency of your advertising. With the very same budget. Without you having to change the advertising itself.