Industry: Retail clothing, footwear and outdoor equipment. Budget - $140/day Clicks - 11,233 Impr. - 1,157,463 CTR - 0.97% Avg.CPC - $0.28 Cost - $3,129.02 ConvRate - 0.68% Cost/Conv. - $39.13 Gross Revenue: $50,000 from adwords ads. Since this was our first year, I was just curious how we did. Thanks for any help!
You did $50,000 gross revenue on $3,129 spent and you are wondering if that was good? Are you for real? You're saying your ROI was just shy of 15,000% and you're not sure if that's good? uh huh...
That's right...we're not sure. As I said, this was our first year. As with any new business, it's good to know how we're doing. The conversion rate improved as we tweaked our ads, but we just don't have any numbers to compare it to....hence the post.
Amazing! Any advice? Next week will start my first year as an eCommerce entrepreneur myself, I plan to use adwords as well but on a smaller budget.
Congrats on the results! I know the gross revenue is not pure profit, nevertheless your website's ROI is amazing!
I will say this, ecommerce is not very different from traditional brick and mortar stores (we have a 26 yr old brick and mortar store). You still need to find good products that people want to buy. Supply and demand was the first thing we looked at.
beejeebers, We look at all total ROI, not just the ROI adwords campaigns. Unlike many "drop shippers", we actually stock our items for sale. Total ROI, including CGS is important not to lose sight of, especially in our industry. Imagine a CGS of 40-50%, slightly less than 10% for adwords, rent, insurance, etc...now, are the numbers still good? Maybe.
Would love to see your website (PM url if you are willing) I would ask the question, what is your profit margin? How much of that 50k was profit? I'm sure a good chunk, but, I'm curious! Now that you know it's profitable, get more traffic and more volume and therfore more profit (assuming it converts at the same level). Check out MSN Adcenter and YPN if you haven't already.... they don't have the same search numbers, but, every new visitor is a potential new sale. And, I heard MSN converts very well for ecommerce! Goodluck and I'd love to hear more!
Thanks for the congrats, but... I think I should state some facts here. 1- Please bear in mind that we are a physical product company. 2- We don't sell any e-products nor do we use adwords/adsense for income generation - ONLY for advertising our own products that we sell. 3- We did a tremendous amount of market research to reduce the number of products for sale. This step really took the bulk of the research time. I originally posted this thinking perhaps DP forums have members who run websites that sell physcial products, but now that I read some of the posts, it seems most members here are not(?) I was really curious what the adwords #'s are for others in the retail clothing/footwear industry. I just wanted to compare apples to apples if possible. About the member who asked about profit margins. As I've said, we are a retail clothing/footwear business and therefore, our numbers are in-line with most other retailers when it comes to markup, margins etc... I'd say our net margins are approximately 15-30% depending on the item. Anyone doing SEO for retailers like ourselves? I could use some help.
SEOJoe, I started our PPC campaigns using a PPC company. They did squat! I fired them started to tweek the ads myself with better results. With the #'s I've posted, if a non-pro genertaed those numbers, do you think a company like yours can improve our results substantially? Thanks.
You know.. its funny you state that because I was going to start a thread asking who actually sells a physical product here. I originally joined with the same idea and my retail site uses no kind of adsense. Not to knock anyone who makes their income through advertisements because I have gained a great deal of knowledge that will put me ahead of the game but I am starting to come to the same conclusion you have. My ad campaign starts in early January, I'll let you know how it goes.