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what is shopify automation

What Is Shopify Automation And How Does It Work? all right guys so what is shopify,automation how do

Roughnecks eCom

Updated on Jan 27,2023

What Is Shopify Automation And How Does It Work?

The above is a brief introduction to what is shopify automation

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What Is Shopify Automation And How Does It Work?

all right guys so what is shopify,automation how does it work how does it,benefit people what's all the scam stuff,out there let's go ahead let's talk,about it because as you guys know we do,have a shopify store and we've had one,for a very long time so i think we're a,little versed on this all right,let's go,what's up guys this it's roughneck,actual and you have reached the,roughnecks ecom channel,if you want to learn how to make money,online or offline then you need to be,right here i'm a seven-figure amazon,seller i'm also an honorable discharge,air force veteran,graduated from penn state and started a,career as a software engineer and,leveraged that to build my businesses,if you guys have any questions on how to,make money you're going to find all your,answers right here so stay tuned,all right guys yo good to see you guys,again man it feels like forever between,these little videos so let's go ahead,we're gonna break down shopify,automation and what it is so first off i,think we need to talk about shopify,right everyone thinks shopify is this,thing this like store and it's not,shopify is just a platform for you to,build an online store on okay that's,that's it nothing more okay,it's a platform for you to build out,your own website host your own products,run traffic to them whatever yada yada,so that's what shopify is,it's not the oh it's this particular,store it's not it's just a platform okay,and what is automation what is the,shopify automation about it's you know,building out stores and then managing,them the same way that we would with you,know amazon or facebook or click funnels,or whatever because whatever people are,doing these days because it seems like,everyone's doing some automation on some,type of but whatever,so,automating shopify,is,one of the,more recent trends okay so you've,probably seen it there's a lot of people,out in space there's a bunch of cap you,know they're talking oh yeah bro you're,gonna do you know 30 million dollars and,be the next fashion nova and all this,and that's that's more than likely not,going to be true but what is true is,that it's much faster scaling than,facebook or amazon due to the fact that,you get to run your own your specific,traffic for whatever products that you,have and the the thing is most people,are trying to build these shopify drop,shipping stores that they had back in,like 2017 with a bunch of general,products it's just a variety store that,doesn't work now all right you got to,build an actual brand so if you guys,don't know what a brand looks like check,our site out speedcircuit.net you can,take all the products whatever you want,do whatever you want to do like we,really don't care because you're not,going to be able to mimic the success,but,you need to build a brand so our brand,is all about cars you know we primarily,work on evo 10s older bmws like the e36,platform 911 turbos mclarens whether,that be the 570 650 uh you know the lt,model 720s whatever that's what we're,working on that in twin turbo v10 so we,built the brand around the car market,around the automotive performance,industry so when people go to search,they buy automotive performance products,that's kind of what we do when it comes,to the uh the product side of you know,our client store so we build out brands,and niches okay that is the way that it,really is supposed to work at least in,this day and age all right now let's,talk about some of the traffic sources,and things like that and how,how the products even get there like,there's so many things to talk about,when it comes to shopify automation,because you guys don't necessarily know,what is the truth and what isn't so now,we're going to break down the traffic,sources and why that,is important,so you can understand like your actual,margins and how much money you're going,to make and so on let's go all right,guys so let's talk about traffic sources,when it comes to shopify well shopify,automation specifically because everyone,knows that with shopify you generally,would run uh you know facebook or,instagram ads to your products and,that's how you get sales so when it,comes to shopify automation there's a,lot of different ways to do it um the,majority of people will run facebook and,instagram ads which work but it cuts,into your margins by a significant,amount depending on your sales so we try,to avoid that so for us we use all,organic traffic the same way that we,would with you know with our personal uh,shopify store so we typically don't run,facebook ads or instagram ads for our,personal shopify store you know speed,circuit store just because it's not,necessary when you build out a brand so,we try to follow that same structure,although we do pump it up a little bit,with the influencers so there's a bunch,of creatives that we have we reach out,to micro influencers whether that be on,instagram tik tok facebook whatever,and we leverage them to do the heavy,lifting for us so that way your margins,stay high,all right so,you could potentially sell more with,facebook ads but your margins are going,to be lower probably around 15,or so,usually what we found is 15 to 17.5,percent all right and that's just,because you've got to factor in that,cost and you're going to be spending,hundreds of dollars a day on facebook,ads and sometimes thousands of dollars a,day all right so it will cut into your,profit margins so let's say that your,margins like with us are roughly 30 to,40 percent depending on shipping and,where it's going or whatnot so,if our margins are 30 to 40 without,facebook ads if we start running,facebook ads facebook and instagram ads,for our clients next thing you know,their margins are going to get cut in,half generally so,if you sell 100 000 a month you're going,to make roughly 30 000 you know in that,profit now if you're running facebook,ads at a rate of you know 500 a day 500,per day that's 15 000 all right so now,your margins get cut in half so if you,were to focus more on paid traffic,versus uh you know the the creator route,you know like yes you could probably,scale that a little bit faster to get up,to 100k but you're also going to be,spending that money so instead of making,thirty thousand dollars in that profit,you're gonna make fifteen thousand,dollars in that profit so they both have,their pros and cons you know,speed when you're running facebook and,instagram ads versus reliability when,you're using uh you know micro,influencers and doing your own creatives,on the back end so it just depends on,the service and what they recommend now,we can do a little bit of both but it's,not something that,we tell clients that they should do you,know just be patient all right be,patient you're going to be just fine so,that's what you need to talk about with,whatever automation provider that you're,going to go with especially if it comes,to facebook ads because you're going to,need to have that money available right,so you're going to have to pay for those,facebook ads so if you don't have a very,big budget if you don't have a ton of,capital outside of their investment fee,you're not going to have enough money to,get inventory and run facebook ads you,know even though you get paid pretty,much every day with shopify usually it's,every three days depending on your,payment processor but if you're using uh,tools like um uh like what is it,like paypal and um,man there's there's a few a few other,ones that you could use to get paid,every day but the fees are a little bit,higher,uh not,no man it's not payability that's you,know we really payability is really like,for amazon yeah we don't really mess,with that stuff yeah so yeah you guys,know if you if you're gonna get paid out,every day you can use payability uh,that's something that we use for for,amazon or whatever but you know i,digress um but yeah i,can't remember off the top of my head,but uh yeah at any rate you know there,are payment processors that you can use,to get paid out every day so,uh the thing is again if you're going to,be running paid ads that's going to be,coming off your your capital pool and,then you might not have enough for,inventory even though you're getting,paid every few days you might have an,influx of sales due to those ads and,then you have to cover that and you,won't have enough and it just you know,becomes a big headache so there's that,now let's talk about brand building and,why that's going to be essential,depending on who you go with all right,let's go all right guys so let's talk,about why brand building is so important,when it comes to shopify automation it,doesn't really matter which provider you,go with you want to ask them about their,strategies for brand building and what,that means for the long term okay so,shopify is a really good way,uh it's a really good platform to build,out on if you're trying to make a lot of,money in a relatively short amount of,time as well as sell,that that brand that you're building so,if you look on on the shopify,marketplace you know for for certain,stores you'll see that these things are,routinely selling for you know 100 to,300 000 if not more than that so we,actually just sold a client store not,too long ago for around 350 000 was,actually a little bit less than that but,you know after fees and everything else,was around 350 thousand dollars now this,particular store was doing roughly 40,000 a month in that profit the owner,wanted to pull the plug he just wanted,to get a big you know windfall and there,you go i suggested you know you keep,this thing going but you know i'm just,one person so you know people have their,their own needs and you know he wanted a,six-figure windfall so why not,now when it comes to building a brand,like if you need to be able to,have this brand established for a myriad,of reasons two main reasons being,you want to convince the customer when,they're going to that particular store,to purchase and then become a repeat,customer if it's a very disjointed store,you know kind of like a,you know like a general store with tons,of different products you know cat,products you know gummy bears,you know freaking kid you know clothes,and stuff like that it's going to be,very difficult to get people to come,back and search and there's not going to,be any type of category categorization,all right and that's going to be one of,the biggest things uh when it comes to,developing your your brand you know,people need to be able to go to your,your store and understand what that's,all about so in the case of one of our,bigger stores uh you know this,particular store is in the the female,clothing niche right and guaranteed the,majority of females if you guys watch,this video you probably bought something,from there and it's a bunch of dudes,running this by the way so you can't say,that guys don't know what women want,because you know we're selling over a,million dollars a year and it's working,out very well so,you know case in point this store is is,centered around like women's sport,sportswear you know activewear and,the entire store is based on that okay,there's nothing out of the ordinary so,when people go there they know what,they're getting and then they can stack,all right so they can grab one thing oh,i want to buy you know leggings for,instance cool and the next thing they,want to buy is like you know maybe a,sports top and then maybe they want to,buy you know some you know like a yoga,mat or something that goes along within,that niche is like an add-on right so,it just helps people stack and then keep,them coming back because they know what,they're gonna purchase from there also,the second thing is having a strong,brand makes it easier to sell in the,long run so that way when you know let's,say you get tired of it because shopify,stores typically have a shelf life for,three to five years if it's a decent,store you know before you know products,get stale or you have to come up with,something new or you know some crazy,creatives or whatever you know maybe you,get tired and you're like man you know i,just want to pull the plug i want to,make 250 300 000 up front you know get a,big lump sum and then go do something,else you want to have a strong enough,brand so that way when it happens you're,able to do that all right so if you,don't have a brand or or the automation,company that you're,that you're working with doesn't build,out a brand for you,you're going to be eating on the,back end when you're trying to sell that,store you might make a ton of money in,the beginning you know if they're,running a bunch of ads and stuff like,that but overall you're going to end up,losing because you don't have a brand,that's strong enough to survive when it,comes to selling it on a marketplace so,keep that in mind so when you're asking,your provider what's going on you know,how you guys doing this you know make,sure you're you're finding out about,custom packaging like we do for our,clients right so we spend a lot of you,know that upfront fee that we charge,building out you know their their brand,you know that means their logos uh the,packaging that we use for the products,you know the creatives things like that,it's very expensive so if these guys are,talking about they're going to build you,a shopify store for you know ten,thousand dollars or fifteen thousand,dollars that's going to be impossible,for you to get all the creatives that,you need for them to build an actual,brand with your own packaging and stuff,like that so you know right off the rip,their line okay right off the rip,here we go,all right that's cool moped life,so you know that they're lying and you,know that they don't have any experience,building any type of brand because,right ten thousand dollars there's no,way you're going to be able to build a a,profitable shopify store for a client,maybe yourself but for a client just,there's just no way there's too many,moving parts and there's too many,creatives and there's too many things,that have to go right in order for for,10 grand even work all right so case in,point you know look at our website look,at speed circuit okay we have the,ability to make a lot of our own,products which we do,all right so that's how we're able to,keep our costs low and increase our,margins you know due to our brand,strategy if these guys are trying to,sell you a shopify store or shopify,package for 10 15k,the you gonna do with that,that story ain't gonna make no money bro,i'm just gonna be honest with you all,right just know so make sure when you're,talking to whatever provider they can,provide you,with some type of of of strategy and,give you some type of of comfort and,expertise some knowledge based on on how,that all works together all right so,let's go ahead we're gonna you know kind,of close it out a little bit also by the,way man make sure you guys comment click,the link below if you want to talk about,it or you know you want to see more,about what i'm doing want to follow me,on social media whatever the hell just,click that little link all right so,we're going to close out and we're going,to kind of break down what you guys,should be uh thinking about when it,comes to,when it comes to shopify automation and,what that particular investment could,mean for you relative to like real,estate and stuff like that all right so,let's go so let's talk about what you,can expect as far as like actually,making money okay so you guys understand,the margins,if you're running facebook ads are going,to be a little bit lower you're probably,going to be 15 to 17 and a half percent,maybe 20 if you're lucky but typically,that's just not going to be the case so,just keep that in in mind now you guys,if you follow me on social media,shameless plug below click that link you,can follow me on instagram facebook all,that good jazz so i don't even have a,twitter now i don't really use it but,whatever so,you can see some of the stories that,we're managing on a regular basis now,some of the bigger stores they're doing,100 200 000 a month so they're obviously,making more money some of the smaller,stores they're doing you know ten to,fifteen thousand dollars a month because,you know they're getting spun up now,your store is more than likely gonna do,somewhere in between like if you're with,a good service you can count on doing,roughly i'd say forty to sixty thousand,dollars a month okay so if your margins,are decent,even if you're at,you know let's just say,50 that's not bad it's ten thousand,dollars a month in net profit you know,that's that's not bad i think you're,doing pretty good with that if you're at,50 000 a year margins are 20,you know so,that's the power of of shopify versus,like amazon and all that and you don't,need a lot of capital because you're,getting paid out every single day,whereas with amazon,especially if you're doing wholesale fba,you would need a lot more capital to be,able to do 10 000 a month in that profit,but shopify really don't so that's why,the barrier to entry is more expensive,because it's more work to get everything,right okay because you have to build all,the moving parts or you have to take all,the moving parts and build the machine,whereas amazon already has the machine,and you just have to kind of jump on,board with that so,account on your your store is doing,somewhere around you know those numbers,depending on you know which service you,go with on average i'd say as long as,you have a decent service you're going,to be okay doing those numbers uh you,know 20 is generally the average going,rate between the services you know some,are higher some are lower depending on,what they do like you know we don't,really focus on facebook ads as much so,you know that's why the margins are a,little bit higher with us whereas,someone else they might you know kind of,scale you faster with facebook ads and,then maybe you'll plateau just because,those ads are fizzling out and you know,there's ad fatigue you know you can't,make the same amount amount of money,forever with the same ads because,there's ad fatigue people see them all,the time and then you have to get with,new creatives and all that stuff so you,know there's that but i'd say you know,around 50 000 you know in sales and if,you got a decent 20 margin you know,you're gonna make ten thousand dollars a,month i mean it's that's not bad you can,make six figures doing absolutely,nothing all right let's think about that,so if you spend fifty thousand dollars,to build out a shopify store or whatever,and you make you know ten thousand,dollars a month i think you're pretty,good you know that's a pretty good,return because if you put fifty thousand,dollars into the stock market uh you,know you're gonna typically see around,five thousand dollars made for the year,you're making ten thousand dollars a,month,that's pretty even if you're only making,five thousand dollars a month that's,still sixty grand versus five grand so,you know when it comes to investing man,you gotta look at it that way so,in in the case of you know someone like,me who you know buys real estate because,my businesses aren't passive all right,so i build passive income for people but,my business isn't passive so therefore i,have to work in order to make that,happen whereas my clients don't so for,me i have to put my money in another,thing so let's say i buy a house,especially you know out in p.a i've been,buying a lot of places and reading so if,i spend fifty thousand dollars in,reading which i have done uh typically,my rents for that place depending on you,know if i renovate or whatever it's,gonna be around 750 to 900 a month so,let's put that in perspective that's,what i'm getting so let's just say you,know i buy it cash i have no mortgage,you know i still have to pay property,taxes which are very you know very low,for the area so maybe a thousand dollars,or so you know for the year,but uh you know my rent you know the,rents that i can receive from that,particular rental property might be 850,bucks you know for the month so,that's still not near as good as what,i'm gonna do you know or what you could,do with a shopify store with an,automated shopify store like you can,make more than that within a single,month all right so just put that into,perspective when you're investing in,things you need to look at you know the,propensity for it to to grow in scale,and what you're trying to do do you want,safer investments do you want more risky,investments,you know i tend to get that question a,lot you know when i'm on the phone calls,with clients you know or prospective,clients you know there's some some,people are very risk adverse,and you know they just want your you,know 10 a year or what not and then,there's other people that are like yo i,want to risk you for the biscuit because,i want to make more money and those are,the people that are generally rewarded,which is in which is why i recommend uh,you know you should kind of you know,look at both ends right so if you're,looking at videos like this you're,obviously you know more risk prone and,you know that these types of investments,can make you a lot more money than,traditional means so just keep that in,mind guys i'm not saying whether it's,good or bad or what you should or,shouldn't do but you know just keep an,open mind so with that being said man be,safe be smart make sure you guys go,ahead click the link below again,shameless plug you know leave a comment,i'll go ahead and answer whatever,questions you have you can hit me up on,social media whatever so catch you guys,in the next one,peace,you

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