Ecommerce owners 4 tips to success
The advantage of breaking even
Your initial target should be to break even. What does that mean? Let’s say
you have 50% margins on a 50 dollar product. Your goal is to get at least a 25
dollar CPP. Now, this may initially sound pointless because you’re making no
money. There is a tremendous amount of value in acquiring new customers. The
majority of ecommerce businesses have products that people would repeat
purchase, if your business ticks that box then having 10,000 customers for free
would be an amazing opportunity. The amount of those people that would re-order
would be insane. For those that don’t tick that box, I’m sure you have other
complementary products that could be bought from your store at a later date.
Often when running a Facebook ad campaign, you have to choose between short
term profitability and scale. As you scale you reach larger and less specific
and targeted audiences and your CPP increases. Either you can run your campaign
at a really low level and generate a profit on each customer or go to a point
where you can break even, look to acquire a massive customer base and in 6-12
months time you’re in an amazing position where you can generate a plethora of
sales from your email list and retargeting. Some businesses do this and launch
a new product that sells out immediately because they’ve already built that
The goal is to win in the long run rather than getting that profit in the
Increasing AOV to beat high CPP
A lot of business owners struggle with high CPP and try all these methods of
testing, creating new ad creatives when it’s a lot easier to increase your AOV
which will effectively do the same thing. What is so underutilised amongst
facebook advertisers who advertise ecommece products is using one-click upsells
to increase AOV.
HOW DOES THIS WORK?
Let’s say someone goes through your website and purchases a pair of shoes;
they are then presented with a page that says thank you for your purchase,
would you like to add this to your order, they click (one click no need to
enter details) and they get charged, leading to a massive increase in AOV.
Let’s say you increase your AOV from 30 dollars to 60 dollars at 50%
margins. Your breakeven CPP is now gone up from 15 dollars to 30 dollars.
Acquiring that many customers will do amazing things for your campaign over
A lot of people think video performs best. The ad format should reflect the
price point for your product. Expensive products need more complex ads,
cheaper products need simpler ads. Something like a single image or carousel.
If you’re offering something more expensive or something people are less
familiar with, that’s when you use videos and longer copy.
Constantly run a special limited time offer.
“For the month of September, we are offering 30% off this product range”.
The time frame causes urgency and makes people buy there and then. Then in
October, you change up the offer e.g buy 2 get one free.
PEOPLE LOVE TO PROCRASTINATE.
A way to overcome that is making sure your offer is running over a limited
Hope this post was helpful. Appreciate you taking the time out to read and
have a great day!