What about the product sourcing and fulfillment?
DFY Management has partnered with a global logistics company that provides an end to end solutions for all of our Shopify stores. For each store that we manage, our backend sourcing team is not only able to find just about any product available on the web, they are also able to source it at a much lower cost then the majority of suppliers. This means much higher profit margins and better bottom line numbers.
With warehouses in both the United States and China for storing product, we are able to sell at a global scale. Our partnering logistics company takes care of this operation on auto pilot providing daily fulfillment and tracking number updates. This allows for us to focus on what brings in revenue such as Ad Creation and Paid Media Management.
EX: This is an inflatable mattress that gets a few thousand orders on annual basis. We simply were able to just send the link of the product to our logistics company, and within 24 hours they were able to provide us with a product cost significantly lower than what we were sourcing it before. Previous cost from supplier when we got the store was $35 + $20 shipping.
With our logistics company: $20 product cost + $10 shipping. Close to a 50% decrease in COGS and shipping.
When sourcing, the current product listings may already be active in a marketing campaign. To ensure we do not have to sacrifice paid media performance, our IT team is able to take the specs of the replacement product and override the current Shopify product listing in the backend so we do not have to restart anything or pause any progressive learning with Paid Media.
When am I going to start seeing sales and how do I get paid?
Our initial prelaunch period is a 90 day process. Many times we are able to get up and going within a much sooner time frame however we always like to over deliver on expectations. For each of our clients, we create a new business LLC that it used to open a bank account. All clients are provided with an access invite to their bank account that they can login into at anytime. As the store becomes live and begins to generate sales, Shopify will deposit the daily sales into this bank account.
It is important to remember that the money going to the bank account is not the profit, this is the gross revenue that comes from the Shopify store on a daily basis. Please review your reporting Google Sheet to see total costs from the following; Ad Spend, Product Cost and Shipping. The remaining amount is the profit to be split between the Client and DFY Management. The profit amount will be highlighted in its own column within the Google Sheet to be easily distinguished on an ongoing basis.
Ongoing support andd questions
For any inquiries or questions, please reach out via the client portal. We will be get back to you with anything you may need within 24 hours. Do not message any team members on their personal cell phone or email.
After completing the onboarding process, we ask for a 30-90 day time period for us to acquire the Shopify store and to set it up to your LLC and bank account. Once this initial onboarding process is complete, we then begin running the Ads to the store. During these first few months of running the Ads, the profitability can be relativetly volatile as we are confirming which creatives and targeting converts the best and the most consistently. As we fine tune this paid media acquisition process, the scalability to then begin to increase the ad spend engages quite rapidly. Throughout this entire beginning process of getting the store synced up along with the sales acquisition processes, 180 days is generally a very conservative expectation before seeing a considerable amount of large profits. This is a marathon and not a sprint, while we are focused on short term monthly cash flow, we are also focused on the macro to scale these stores to a very high revenue consistently. To do so we prioritize all of the accounts and operations are not only set up correctly but are running effieciently.
Ownership of the Store
When onboarding as a client with DFY Management, our first course of action is creating a new LLC for the store that has a shared ownership between you and DFY Management. This LLC is then used to create a bank account that is connected to the Shopify store, PayPal account and any associated payment methods that customers may use when checking out on the store.
How Do We Pick Certain Stores For Clients?
In a similar fashion that goes into the decision making of investing into DFY Management, we are looking for safety, growth potential, previous success history and ability to scale.
One of the biggest factors in time duration to success is usually not the marketing performance, it is compliance congruency within all of the marketing accounts. Making sure that none of the accounts are suspended and they’re all able to operate smoothly without any possibility of getting held up. When acquiring stores, we first make sure all marketing accounts are in good standing.
Next is previous sales history, we want to know that there is a proof of concept for the store and the products being sold.
When looking through the marketing data, we also analyze the cost of goods and trailing 12 month financials. This allows us to get a sense of what the profits of the store would be under our management getting better COGS pricing and lower costs of acquisition using our internal marketing strategies.