How Much To Spend On Facebook Ads Dropshipping?

how much to spend on facebook ads dropshipping

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Getting started in dropshipping can seem daunting, especially when it comes to understanding what budget to allocate for Facebook ads. After all, the term “budget for Facebook ads in dropshipping” alone could give the uninitiated a cold sweat. Don’t worry, we’re here to shed some light on this complex subject.

Using Facebook ads can be a powerful lever for increasing sales in your dropshipping store. However, ineffective management of your advertising budget could swallow up your profits.  How much to spend on facebook ads dropshipping ? Learn More in this article.

How to understand the cost of Facebook ads?

The cost of advertising on Facebook can vary from a few cents to several euros per click. This variation is due to a number of factors, including

  • Ad relevance: Facebook rates each ad on a scale of 1 to 10 according to its relevance. For example, an ad with a relevance score of 9 or 10 could achieve a cost per thousand impressions (CPM) as low as €1.68, while an ad with a score of 3 or less could cost up to €11.20 per thousand impressions. Relevance is determined by the quality of the ad and the reaction of the target audience.
  • Audience size: The size of your audience also influences the cost of your ad. To give you an idea, an audience of over 5 million people can result in a cost per click (CPC) of €0.01 to €0.15. On the other hand, a smaller audience (less than 100,000 people) could cost between €0.50 and €2.50 per click.
  • Competition: During periods of intense competition, such as the holiday season, advertising costs can increase by 20-50%.

How to determine the ideal budget for dropshipping Facebook ads?

So, how much should you spend on Facebook ads for dropshipping? While the answer depends on many factors, here are a few things to consider when determining your ideal budget.

Why is it crucial to determine an optimal advertising budget

Setting the right budget for Facebook ads in dropshipping is essential for several reasons:

  • Efficient resource management: By setting an ideal budget, you can ensure that every euro is spent wisely. For example, if you realize that €3 per day for each ad set generates the best return on investment (ROI), you can avoid spending unnecessarily more.
  • Financial balance: Setting a budget helps you keep a firm grip on your company’s finances. For example, if you spend €100 a day on advertising and your average profit margin per sale is €20, you’ll need at least five sales a day to cover your advertising expenses.
  • Measuring success: A well-defined budget enables you to measure the success of your advertising campaigns more accurately. For example, if you spend €300 on a campaign and generate €600 in sales, you know that your return on investment is 100%.

How do you calculate your advertising budget?

Determining your advertising budget depends on your company’s objectives and your financial situation. Here’s a step-by-step method for calculating your budget:

Define the objective of your campaign

Is it to raise brand awareness, generate leads or increase sales? The objective determines the structure and budget of your campaign.

For example, if you want to reach 1000 new people every day, you can estimate that the cost per thousand impressions (CPM) is €1 (this figure can vary depending on many factors). This means you’ll need a daily budget of around €1.

Understanding your profit margin

Let’s say you sell a product for €50 and your total cost is €30, leaving you a profit margin of €20. If the cost of acquiring a new customer (CPA) is €10, then you make a profit of €10 per sale. If your goal is to make 10 sales a day, you need to spend €100 a day (CPA x Number of sales desired).

Analyze your financial capacity

In dropshipping, it’s important to consider how much money you have available to invest in advertising without affecting your ability to order products from your suppliers or pay for website maintenance.

For dropshipping beginners, it’s often advisable to start with a daily advertising budget of approximately €5 to €10. As your sales increase, you can gradually increase your budget by reinvesting part of your profits in advertising.

How much to spend on facebook ads dropshipping : Average ad spend?

According to a study by SocialMediaToday, most small businesses spend between €1,000 and €3,000 a month on Facebook ads. However, these figures are only averages, and your budget may vary depending on your strategy, your niche and the season.

What are the techniques for optimizing your Facebook advertising budget?

Successful advertising requires more than simply setting a budget and launching ads. It’s a series of tests and optimizations to get the results you want. Here are some of the techniques you can use to optimize your Facebook advertising budget.

Using publication engagement ads (PBE):

Post engagement ads are an effective way to reduce overall ad costs. This is because people trust more an ad on which other people have reacted.

You can run PBE ads on Instagram and Facebook News Feeds. Here are a few steps to follow:

    • Create ad sets targeting specific interests.
    • Launch these ads to the broadest possible audience. An audience of over 5 million people is generally recommended.
    • Create three to five different ad sets.
    • In each ad set, use three to four different ad copies.
    • Experiment with different thumbnails, videos or images, and ad copy texts.
    • Monitor impressions, link clicks and cart additions.
    • Replace ads every four to ten days.
    • Create conversion-optimized ad sets with winning ad copy.

Use video ads

Video ads are another great way to maximize your budget. You can follow the steps below:

    • Start by experimenting with different thumbnails.
    • Change the thumbnail every four to ten days.
    • Monitor ads on a three-day basis.
    • Limit the text on the thumbnail.
    • Test new placements (Instagram Story, WhatsApp and automatic placements).
    • Create new ad copies for each specific placement.
    • Test both video and image ads.
    • Invest heavily in a specific placement that delivers impressive results.

By implementing these techniques, you can optimize your Facebook ads dropshipping budget and get better results for your money.

What's the low-cost Facebook strategy for dropshipping?

If you’re looking for a simple, low-cost strategy that will help you maximize your budget for Facebook ads in dropshipping, here’s a step-by-step approach:

  • Start by creating a campaign with budget optimization (CBO) and choose conversions as the target.
  • Create ten ad sets with a budget of €3 per day and target ePacket countries or the USA.
  • Exclude content posted in the last ten days and select a total of ten interests (one for each ad set).
  • For each ad set, select an interest that matches your target audience.
  • Test the new ad sets for one day and delete any ad set that has a cost-per-click of more than one euro.
  • Replace deleted ad sets with new creative (videos or images) and interests.
  • On the fourth day, remove any ad set that doesn’t have at least one purchase after spending at least  €12.
  • Repeat the process with new creatives and interests until you find a winning combination.

To make this strategy more understandable to a beginner, let’s take a specific example.Let’s say you sell pet accessories, and you’ve identified ten interests relevant to your target audience such as “dog lovers”, “cat lovers”, “pet care”, etc.

Day 1:

Create ten ad sets, each with a daily budget of three euros.Each ad set targets one of the identified interests. This will cost you €30 for the first day.

At the end of the day, look at your results. Let’s say three ad sets have a unique cost-per-click of more than a euro. You “kill” these ad sets, i.e. you stop them.

Day 2:

Replace the three “killed” ad sets with new ones, with new ad creatives and new interests. You’ve spent €30 again on this day.

The process repeats until day four.

Let’s say that at this point, you have three ad sets that haven’t generated a purchase despite a budget of €12. You “kill” these ad sets.

Day 5 and beyond:

You continue to test and adjust your ad sets, replacing those that aren’t performing.

This approach allows you to quickly test different audiences and ad creatives, while minimizing losses due to underperforming ads.

How much should you budget for Facebook Ads in Dropshipping?

How much should you budget for Facebook Ads in Dropshipping

What is ROAS?

The budget for Facebook ads in dropshipping is a key element in your commercial success. Its calculation must take into account ROAS (Return On Advertising Spend), which is the ratio between your advertising revenues and the amount you spend on ads.

A good ROAS is essential for a profitable business. As a rule of thumb, a ROAS of 2 to 2.5 is considered healthy for dropshipping businesses. This means that for every euro spent on advertising, you generate between 2 and 2.5 euros in revenue. If your ROAS drops below 1, it means you’re spending more on advertising than you’re earning in revenue, which can lead to losses.

It’s also important to understand the concept of profit margin. Suppose you sell a product for €30, and it costs you €10 from your supplier. This leaves you with a gross margin of €20. To be profitable, your advertising budget per product sold must therefore be less than this margin.

Here are a few levels to give you an idea:

Starting budget

If you’re a beginner with a limited budget, a daily budget of €5 to €10 may be enough to get you started. You can gradually increase this budget as you gain a better understanding of what works for your business.

Reaching sales of €500/day:

To achieve sales of €500 per day with a product sold at €30, you would need to make around 17 sales per day. If your conversion rate is 2%, you would need 850 visits to your site per day. Assuming a cost per click of €0.50 and an optimistic ROAS of 3, your advertising budget would be around €167 per day.

Reaching sales of €1,000/day:

In the same scenario, but with a sales target of €1,000 per day, you would need 34 sales per day. This would require around 1,700 visits to your site, and with an advertising budget of around €333 per day, you could achieve a ROAS of 3.

These figures are indicative and can vary depending on many factors, such as your conversion rate, your cost per click and the competition in your niche. That’s why it’s crucial to keep a close eye on your ads and adjust them according to the results.

How much to spend on facebook ads dropshipping - Conclusion

Budgeting for Facebook Ads in dropshipping is not an exact science, but a constantly evolving process. Every company and every product is unique, and this calls for a tailored advertising strategy.

Remember, continuous optimization and experimentation are the keys to the success of your advertising campaigns. By putting these tips into practice, you’ll establish an effective budget that will enable your business to thrive. It’s time to make your sales goals a reality.


What's the minimum budget for Facebook Ads in dropshipping?

To get started, a recommended minimum budget might be between €200 and €300. However, it’s important to understand that audience quality and ad relevance play a crucial role in optimizing your budget.

How can I reduce the cost of my Facebook ads?

Ad optimization, audience targeting and performance tracking are key to reducing costs. Experimenting with different ad formats and placements can also help you get a better return on your investment.

How do I determine the ideal budget for my Facebook ads?

The ideal budget depends on your sales objectives, your financial capacity and the cost of your ads. We recommend that you start small and gradually increase your budget according to the performance of your ads.

Is the cost of Facebook ads rising?

Yes, due to increasing competition and platform saturation, the cost of Facebook ads tends to rise. That’s why it’s essential to remain agile and constantly optimize your ads.

How much do I have to spend to achieve sales of €1,000 a day?

If your product costs €30 with a conversion rate of 2% for a CPC of €0,5, you might need around €350 of daily advertising budget to reach €1,000 in sales. However, this figure can vary depending on the quality of your ads and the target audience. Make sure you test and adjust your campaigns regularly to optimize your return on investment.

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