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Facebook Ads- my cost per sale is high?
Hi all, if any of you have experience with Facebook ads, can you please help me?

My cost per sale is always higher than my revenue.

I'm selling a product for $30 on Shopify but my average cost per sale (ie what I spent on Facebook ads) range from $50-$80.

I'm using video ads to story sell to cold audiences.

I have a branded website that looks trustworthy. I have good copywriting on the product page.

My product has a wow factor and solves a problem.

My offer: buy 1 get 1 free. Also, I offer free shipping.

How do I get my cost per sale down? Is my competition too high?

My cost per click is $4.60. My click through rate is 9%.

Will optimizing (ie split testing) get my cost per sale down?

Thank you
Last edited by Delta; Mar 8 @ 7:02pm

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Showing 1-8 of 8 comments
Target audience :csd2smile:

*drops mic*
Delta Mar 8 @ 7:14pm 
Originally posted by Phénomènes Mystiques:
Target audience :csd2smile:

I usually target broad (no interests) when testing and let Facebook's algorithm decide who best to show the ad to. Are you saying it's better to target different interests related to my niche?

What are your thoughts about going broad?

Thank you.
Well I wouldn't personally recommend Facebook Ads, but...

It sounds like you need to set the max CPA/CPI.

You are bidding for the highest search result position to advertise upon, yet bidding against others who are likely large companies, etc.

It can also depend on the targeted keyword(s) to the cost of them to get quality traffic that will actually likely go and purchase your product.

You can also add rules to stop the ad campaign after going over a certain budget limit. Another way is to reserve a max price for the ad, rather than bid for a high position.

I would suggest looking up "Facebook ads Cost Capping with Shopify Dropshipping" on Youtube or similar to get a tutorial upon it.

https://www.youtube.com/shorts/_ntqtOi9oZI

There is also support from Shopify itself to setup Facebook ads:
https://www.shopify.com/blog/facebook-ads-cost

Last edited by Azza ☠; Mar 8 @ 7:17pm
Delta Mar 8 @ 7:21pm 
Originally posted by Azza ☠:
Well I wouldn't personally recommend Facebook Ads, but...

It sounds like you need to set the max CPA/CPI.

You are bidding for the highest search result position to advertise upon, yet bidding against others who are likely large companies, etc.

It can also depend on the targeted keyword(s) to the cost of them to get quality traffic that will actually likely go and purchase your product.

You can also add rules to stop the ad campaign after going over a certain budget limit. Another way is to reserve a max price for the ad, rather than bid for a high position.

I would suggest looking up "Facebook ads Cost Capping with Shopify Dropshipping" on Youtube or similar to get a tutorial upon it.

https://www.youtube.com/shorts/_ntqtOi9oZI

There is also support from Shopify itself to setup Facebook ads:
https://www.shopify.com/blog/facebook-ads-cost


Thank you Azza, this is helpful information!
Delta Mar 8 @ 7:25pm 
Another question: how do I find products that have little to no competition yet?

For instance, EcomHunt has a Saturation Meter that shows how many stores are selling the product...

Have you ever sold a dropshipping product that has no competition?'

Thank you
Last edited by Delta; Mar 8 @ 7:25pm
Originally posted by Delta:
Another question: how do I find products that have little to no competition yet?

For instance, EcomHunt has a Saturation Meter that shows how many stores are selling the product...

Have you ever sold a dropshipping product that has no competition?'

Thank you

It's similar to how you find "keywords" that have little to no competition for websites SEO.

Depends if you want free or paid? Do you want to search online via a website or download an app to deep dive scan with a web crawler?

I would personally recommend "Google Trends" and "Google Keyword Research"... you will need to sign into a Google Account, but otherwise it's free and kept up to date with all the Google search results.

You can compared the Global Search Volume vs the Advertisers upon it.

You would consider a large range branch of products - such as:
- "health and personal care"
- "pet products"
- "bluetooth gadgets"
- "smart home devices"
- "gaming accessories"
(etc)

From there it will mention what people search for and you dive down into narrowing it to a certain product. The product with the most searches and popularity going up on it, yet doesn't have a ton of advertisers already upon it.

Another to consider would be Dropship IO: https://www.dropship.io/

However, there's only a 7 day free trial, then it costs monthly or yearly, the price ranging depending on how many searches done per day. Yet the 7 days might be enough to find one or more Nichie products.

I personally like SEMRush:
https://www.semrush.com/

Yet again it's only a 7 day free trial, then it costs monthly (a lot more) and more designed for webmasters SEO than just product selling. That's likely overkill for what you want.
Last edited by Azza ☠; Mar 8 @ 7:52pm
Delta Mar 8 @ 7:52pm 
Thanks Azza, I appreciate your help!
Delta Mar 8 @ 7:56pm 
Originally posted by Azza ☠:
Well I wouldn't personally recommend Facebook Ads, but...

Would you recommend reselling brand name products on Amazon or Ebay instead?

Jim Edwards is the author of the book Copywriting Secrets. He said that cold traffic is the most lucrative but also the hardest traffic to convert.

Whereas, if I resell brand name goods that are in demand I'm dealing with hot traffic. Hot traffic converts at 10%, whereas cold traffic converts at 1%. Facebook = cold traffic. Amazon= hot traffic. With Amazon, no advertising is required when reselling brand name goods (as opposed to building my own brand)
Last edited by Delta; Mar 8 @ 7:59pm
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All Discussions > Steam Forums > Off Topic > Topic Details
Date Posted: Mar 8 @ 7:00pm
Posts: 8