Dropshippers often ask the question, “Does a $5 Facebook Ad still work for Shopify Dropshipping?” You must remember that the $5 Shopify ad can only be used for Dropshipping. This article will show you how to use a $5 Facebook Ad to get your Dropshipping company on the right track.
Does Shopify Dropshipping work with a $5 Facebook Ad?
It is common to be asked whether Shopify Dropshipping can work with $5 Facebook Ad. This question is asked on a daily basis. A few years ago, the reliability of a $5 Facebook advertisement was unquestioned. With the development of advertising media, and new business models, people tend to less on $5 Facebook ads . Five dollars for a Facebook advertisement was a lot back in the day. It could make a huge difference to your Shopify Dropshipping.
Facebook’s competition was much lower than it is now, a few years back. Facebook ads were less important for promotion of businesses. There weren’t many Dropshipping businesses that used $5 Facebook ads to promote their business. Facebook optimized that $5 ad enough.
However, the situation has changed somewhat. For typical purchases or add-to-cart transactions, you will need to have more than $5. This is a problem because $5 isn’t enough money to last 24 hours. Facebook has modified the way optimizes $5 for Facebook advertisements.
Facebook’s use of $5 is quite different. Your ad will not run for 24 hours if $5 isn’t enough. Your ad could be displayed in a local area at 4 AM in the morning. Because people sleep at that time, no one will click on your ad. Facebook does not have enough skin to recognize geographic factors. This makes it difficult to optimize $5 for Facebook Ads.
Facebook does not offer 24-hour testing, so you could lose customers who are able to buy your products at 8’oclock in the morning and 10’oclock in the evening. You need to make sure that your Facebook ads are optimized in the most effective way.
We will show you how to use the $5 Facebook Ad for purchase conversions.
First, remember that PPE ads can be used with $5 Facebook ads. You don’t need to spend more than $5 if you are working with engagement ads. You only need to work on your ads for a day or two.
You must be a social proof expert if you work with ads. These tasks can be done with five dollars. Five dollars will get you ads for one day.
Run Engagements:
First, you must run engagements for new products from your Dropshipping company. Your ad will be optimized if you spend five dollars per day. It should run for at least one day. Spending five dollars per day on your business is sufficient. These are the benefits of spending just five dollars per day:
- It will give you social proof.
- This will help you get your ads on Instagram and Facebook a boost. It takes into account the fact which product is most popular on Instagram and which ad is more effective for Facebook. This initial intelligence determines whether or not to promote the ad on Facebook.
It is important to remember that Instagram might get 80 percent of your ad budget, while Facebook gets 20 percent. The budget could be spent on Facebook at 90 percent and Instagram at 10 percent. This is because Instagram ads for certain products are more popular than those of other products.
Because of the intelligence of your pixel, we recommend keeping Instagram and Facebook together. Initial intelligence determines which platform is best for a product and optimizes the budget accordingly.
A $5 PPE ad allows the initial intelligence of the company to determine if the ad should go more towards Instagram or Facebook. One thing to remember is that a $5 PPE ad will provide amazing social proof that can help you determine if your product has potential. It’s not a good sign if you receive a cost of 20c per engagement rather than 1 cent.
You can now use the $5 Facebook Ad in your Dropshipping business by following these steps.
$5 Facebook Ads to Duplicate:
For duplicating, you can use $5 Facebook ads. Duplicating is most effective when you have a similar audience. Do your research about the audience you want to target. You can duplicate an audience you already know if it is similar. If you’re testing a 1-5 percent or 1-10 percent audience, you should replicate it approximately 3-5 times each with $5 each.
Next, you will need to select the winners within 2 to 4 business days. If you have good products, you might only have three of the five products. You should scale them vertically. This is one way to scale horizontally. You can use $5 Facebook ads to look like an audience.
It is important to remember that you need to focus on the geography of your audience. You should have enough data to target similar audiences. If you choose the United States, for example. Make sure you choose a winner product. You can do anywhere from 1 to 10 percent to 1 to 5 percent.
You can take that 1-10 percent and make it several times at $5 per day to increase the number of winners. You can also use $5 Facebook ads to look at a similar audience multiple times. Multiple percentages can be tested, such as 1 to 7 percent, 1 to 2 percent, or whatever. You can also duplicate these multiple times for $5 per day.
This is a cost-effective way to do it, as you only have to do it in one country. You can make 50 dollars per day, but if your winning product is available, Dropshipping will bring you back money.
Use conversion ads to implement a strategy.
To grow your Dropshipping company using $5 Facebook ads, it is important to understand that you should not spend more than five dollars per day on typical conversion ads. We have discussed that five dollars per day is not sufficient to test products during the conversion. If you start with a five-dollar PPE ad, then you should convert to conversions of ten bucks a days. Ten dollars a daily is sufficient money to pay for your ads to be pushed for 24 hours.
You can push your ads 24/7, even if your products are not being tested in countries other than the United States.
What is Dropshipping?
It is easy for a beginner to forget the precise definition of dropshipping.
It’s not easy to make money online, or get rich quick.
These statements are false, and dropshippers will not agree to them.
Let’s now talk about dropshipping.
Dropshipping is a form of B2C (Business-to-Consumer) eCommerce. B2C eCommerce refers to when a business sells products directly through its online store.
Traditional eCommerce stores purchase inventory, store the products and then ship the products to customers manually.
Dropshipping is a different kind of eCommerce.
Dropshipping is when businesses partner with suppliers to store and ship the products to their customers.
Here’s how the timeline looks like:
- Customer purchases an item in the dropshipper’s online store
- Dropshipper completes the order by forwarding customer information to the supplier
- The supplier will send the item directly to the address of the customer
- Dropshipper delivers the product to the customer
You may now be asking, “Why would a supplier work with me instead of purchasing my own inventory and shipping it myself?”
That’s a great question. The answer is easy.
Dropshippers can reduce their initial risk by not investing in inventory and instead holding it.
This allows dropshippers to market and test different products until they find one that is profitable.
Dropshipping offers many benefits:
- Low risk
- Initial capital investment is low
- Test and sell more products
- You can start a business anywhere you are in the world
- Highly scalable
- You don’t need to store and ship products manually
- Unlimitless product selection
Dropshipping can be a very lucrative business venture.
It is not easy to create a dropshipping business that works.
I will guide you through setting up your first Facebook ads campaign.
What are Facebook Ads?
You probably know what Facebook ads if you came across this guide.
But, many people don’t understand how Facebook ads work and what they can do to help them succeed.
Over the past 4 years of running dropshipping eCommerce businesses, I have learned that Facebook is still the best platform to sell products.
It has a highly advanced machine learning algorithm, a large userbase, and great scaling potential.
Why should you use Facebook ads for dropshipping?
I could go on about how powerful Facebook ads is.
Let’s not go into detail, but let’s focus on the top reasons to use it for dropshipping.
Machine Learning Algorithm
Advertisers choose Facebook ads because of its machine learning algorithm.
The Facebook ads learning algorithm automatically determines the most suitable users to deliver your advertisement to.
Here’s how it works.
- Facebook stores data about every user who interacts with your ad and website
- Facebook creates “Perfect Customer” profiles based on similar customer traits
- Facebook sends your ads to the perfect customer profile.
Huge User Base
Facebook’s active user base can be extraordinary. There are many potential customers available with Facebook’s 1.79 billion users per day.
Two things are important when a userbase is as large and diverse as Facebook’s.
You can find new audiences every day and you’ll never run out people to reach.
Pinpoint Targeting
Facebook’s interest targeting lets you find people interested in any niche. There are always relevant audiences for advertising to, regardless of the product you sell.
You can also target a wide range of interests, which allows you to be creative in your targeting. It is impossible to predict which audience will be most interested in your products.
Scalability
Scalability refers to the ability to increase your advertising budget while maintaining your profit margin. The return on your ad spending will usually decrease if you increase your ad budget.
This is also true for Facebook, but the Facebook algorithm makes sustainability easier.
Facebook Ads Structure and Basics
Before we get to the actual strategy, you need to understand how to set your Facebook ads up.
You should already have a Facebook ads account.
Here’s how your blank ads manager should look:
A Facebook ad can be broken down into three parts: ads, campaigns, and ad sets.
First, you will need to complete the campaign setup. Next, you will need to create an ad set and then add. Once you have completed all three steps, your campaign can be published.
Campaigns
Setting up the campaign is the first step. You can choose the overall goal/objective of your advertising campaign at the campaign level.
As an example, conversions is always my campaign goal.
As a dropshipper, I would recommend that you do the exact same thing. Facebook uses Conversions to help them find real buyers.
Ad sets
Now it’s time for the ad set.
You can use the ad set to get in depth about where, how and to whom you want your ads displayed.
There are two options:
- Schedule the start date and time for your ad
- Selecting countries, genders and languages to use.
- Targeting particular audiences and interests
- Facebook Ads: Where to Display Your Ads
Advertisement
The ad section will be the last thing you set up.
Here you can upload the video or photo you took for your advertisement.
You will also need to write captions and any other text that you wish to display alongside your video/image.
Beginner Facebook Ads Strategy
You should now have a solid understanding of the importance of Facebook ads and how to set them up.
It’s now time to get into our beginner Facebook advertising strategy.
This strategy is focused on spending $30 per day on your advertising budget.
This strategy is designed to help you build cash flow for your dropshipping company. You will also learn a lot more about Facebook ads through managing your own campaigns.
The strategy can be broken down into four stages: three testing and data collection phases, and one final scaling phase.
Creative testing and audience research are the key ingredients of any Facebook advertising strategy.
Product price
It’s important to understand that this strategy is best for products you can price at $30 or less.
It will be much more difficult to sell higher-end products, as our daily budget is $30
Facebook’s cost per purchase directly correlates with the product price.
You should only sell products that your supplier sells at $1-13. This will allow you to mark up your product accordingly.
1. Stage
Goal: To find a good audience and advertise
Stage 1 begins with creating a new campaign within your Facebook ads manager.
The campaign goal should be ‘Conversions’.
Next, click on ‘Create Campaign.
Your campaign setup is now complete. However, you will need to create your ad sets.
Check the box next your ad set, and click Duplicate’.
Repeat the 9-times previous ad in the current campaign.
Your dashboard should now have 10 empty ad sets.
Next, click on each of the 10 ad groups and click to edit.
Set the following options in the ad set edit Menu:
- Conversion Event – Buy
- Budget – $3 per day
- Schedule – 12 AM next day
- Select your country to advertise
- Age: 18-65+
- Language – English (All)
- Placement – Automatic
The ‘Detailed Targeting’ section is the last to be set up. You can enter specific interests that relate to your store’s niche in the detailed targeting section.
Go back to your Ad Manager dashboard and select only one ad set instead of all 10.
Every ad set should target a specific audience.
Under ‘Detailed Targeting’, type keywords that are related to your niche. Select any keyword that interests you.
It will display the potential audience size and reach after you have chosen an interest. I recommend choosing topics with at least 10 million people.
Once you have chosen your audience, rename the ad-set to reflect the audience name.
If you select the interest “Dog Lovers”, for example, change the name of the ad set from “Copy 1 Ad Set” to the “Dog Lovers” version.
This will allow you to stay organized as you monitor your ad performance.
Your goal is to create 10 different ad sets that each target a specific audience.
Once you’re done with your ad sets it’s time for editing your ad.
Select your ad set and click on Edit to modify the ads.
Upload the video/photo you made for your product advertising.
Fill in the URL, caption, and text.
You will now have one campaign, 10 ads sets and 10 ad campaigns.
Our strategy calls for 2 ads per ad-set because we want to test different creatives and audiences.
Select all 10 ads, then click on duplicate. You can choose to duplicate them one time.
Select all duplicate ads, and click on Edit to save them.
Import your second video/image and edit any text to match the new creative.
You will now have one campaign, 10 ad set, and 20 ads.
Congratulations!
You have successfully completed Stage 1 of Facebook ads setup.
You can now publish your ads by clicking “Publish” in the upper-right corner.
Monitoring Performance
The next step after you have launched your first Facebook advertising campaign, is to monitor its performance. We want to get rid of underperforming ads and ad set as quickly as possible.
These are the guidelines
- After 24 hours, view your ‘Ads’ and remove any ad with a Cost Per Click (CPC), greater than $1
- After 48 hours, you can view your ‘Ad Sets’ and turn off any that don’t have an Add to Cart (ATC).
- After 72 hours – View your ‘Ad Sets’ and turn off any without making a purchase
Your goal for the next 3 days is to have at most 2 profitable ad sets, and 1 profitable creative.
If you are having trouble turning off your ads and ad-sets, you’ll need to start again with new audiences or creatives.
You can still move on to Stage 2 if you have at most 2 Ad sets and 1 Ad turned on.
Stage 2
Objective: Check the Stage 1 Results
The second stage of our beginner Facebook ads strategy focuses on testing whether the results from Stage 1 are consistent profitable.
We will use the Stage 1 audience to test similar audiences.
will now select the winning ad set from Stage 1 to duplicate into a new campaign.
Name the campaign “Stage 2 testing”.
You want to end up with 1 campaign and 10 ad sets.
Next, you’ll need to duplicate the ad sets that you have saved from Stage 1 to get to 10 total.
Once you have 10 ad set, it is time to choose new audiences for duplicated ads.
Click to edit each set of duplicate ads individually.
To find similar interests, click on ‘Suggestions” in ‘Detailed Targeting’.
Each ad set should be targeted to a specific audience.
Last but not least, ensure you have two ads for each ad set. Duplicate as necessary. You can have exactly the same ad copy on both ads.
Once you have completed 1 campaign, 10 ads sets and 20 ads, you can publish your ads.
Monitoring Performance
To monitor your ad performance, we will use the same guidelines as Stage 1.
Guidelines:
After 24 hours, view your ‘Ads’ and remove any ad with a Cost Per Click (CPC), greater than $1
48 hours later – View your Ad sets and Turn off any that don’t have an Add to Cart (ATC).
After 72 hours – View your ‘Ad Sets’ and turn off any without making a purchase
You must have at least two ad sets per purchase to move on to Stage 3.
You will need to restart Stage 1 with new audiences and creatives if you don’t have the right audience.
Stage 3
Objective: To collect more data and optimize campaign budgets
In Stage 2, duplicate the profitable ads sets and create a new campaign.
Name the new campaign, “Stage 3 Testing”.
Toggle on ‘Campaign Budget Optimisation’ in the campaign edit menu
You should now have enough cash flow from profitable ads to allow you to increase your budget slightly.
Set the CBO budget at $90 per day and choose ‘Conversion’ for the objective.
Next, determine the “Minimum Ad Set Spend Limit” based on this equation:
- Minimum spend for each Ad Set = CBO Budget / 2 / # Ad Sets
If you bring 5 winning ads sets to Stage 3, your minimum ad expenditure would be 90 / 2 / 5, which equals $9.
CBO is our choice because they outperform ad-set spending at higher budgets, and they are easier to scale.
Next, publish your ads.
Monitoring Performance
Because Stage 3 has a higher budget, the rules for monitoring Stage 3 ads differ from Stage 2 or Stage 1.
After 2 days of ads running
- Take a look at the campaign level. If the Cost Per Purchase is greater than $10, you should stop the campaign. Instead, go back to Stage 2 and create new ads.
- If your campaign CPP is acceptable, take a look at your ads sets. Turn off any that have spent 2x or more than the target CPP but have made no purchases.
How to calculate Target CPP
First, choose a profit margin you feel comfortable with. I aim for 20%.
Next, enter your number into the formula.
- Target CPP = Pricex (1-DPM), – Cost
- (DPM = Desired profit Margin) Example:.20 for 20%
If your campaign meets your target CPP, you can scale your ads .
Scaling Guidelines
Your ads can be scaled by increasing the CBO budget from $90 to $180. Scale back to $90 if your scaled ad campaign produces negative results. If the ads are performing well you can increase the budget.
If scaled campaigns don’t perform well, you should always reduce your budget.
Once you have spent $500 in total on your ad account, Stage 3 can be completed if the scaled campaign produces consistent results.
You can also move up to Stage 4 if your advertising account has spent $500.
We will use the data we have collected as part of your advertising spend.
Stage 4
Objective: Scaling your Ads with Lookalike Audiences
Stage 4 is where you finally use all the data that you have collected in order to create lookalike audiences.
These custom audiences can be made from 5 different audiences.
- Facebook Engagement
- Pageview
- See more
- 75% Video Views (if using video ads)
If you’re using video ads, you need 20 lookalike audiences. If you don’t use video ads, you need 15!
Follow this CBO strategy with these audiences.
Last Thoughts
You should now be on your way to establishing a dropshipping business.
For beginners who are eager to get involved, our Facebook ads strategy is ideal.
It is important to understand how Facebook ads work, and why we make certain decisions.
If you don’t adapt to the Facebook ads platform changes, it will be difficult to stay successful and adapt.
It is important to be diligent in your ad creation and campaign creation.
