When many people get into dropshipping, it can look pretty daunting, especially when they have to understand how much they have to spend on Facebook Ads. You might think the entire process can be difficult for you.

But don’t worry. We will help you understand this complex subject. Facebook Ads is a great tool that will help increase the sales of your dropshipping business. However, the ineffective management of the Ad budget might swallow up the profits.

So, how much money should you spend on Facebook Ads for your dropshipping store? Read this post to find out.

The Cost for Facebook Ads in Dropshipping

When you plan to spend money on Facebook ads for your dropshipping business, it will be better to start with a small budget. That way, you can measure its usefulness right before scaling up.

 You can begin with just $5 to $10 for every Ad set to obtain helpful information from the audience feedback. Try to allocate a total budget of $100 to $200 to experiment with different ad variations for your dropshipping store.

Once you find out the Ads are doing well, you can increase the budget. Make sure to spend around 20% of the revenue on the Facebook Ads. For example: “If you want $1000 in sales each day, you must assign $200 for the Ads”. When you see an increase in the sales, there will also be an increase in the Ad spending.

You must also consider the LTV (Lifetime Value) of the consumers. When a consumer brings in around $50 of profit during their lifetime, you must spend $20 to obtain them, as it will be highly profitable.

Using this metric can help you set up the CPA (Cost Per Acquisition) target. You should carefully monitor the following metrics as well:

• CVR (Conversion Rate)
• CTR (Click Through Rate)
• CPC (Cost Per Click).

Apart from that, make sure to fine-tune the budgets, creatives, and targeting properly so that you don’t face any issues.

How to Optimize the Facebook Ads Budget for Dropshipping?

When it comes to successful advertising, you will need a lot more than launching Ads and setting up the budget. You have to conduct various tests and optimizations to get the best outcome. In this section, you will find several methods that you can use for optimizing the Facebook Ads for your dropshipping store:

The Video Ads

• Step 1: Experiment with various thumbnails
• Step 2: Keep changing the thumbnails for every 4 to 10 days
• Step 3: Track the Facebook every 3 days
• Step 4: Don’t try to use too much text on the Thumbnails
• Step 5: Test out the new placements, such as automatic placements, WhatsApp, etc
• Step 6: Make new Ad copies for every placement
• Step 7: Test out both the image and video Ads
• Step 8: Spend money on a certain placement that will provide the best results.

PBE (Publication Engagement Ads)

The PBE Ads are also a great way to reduce the overall cost of the Facebook Ads. Many people trust all those Ads, which other individuals have reacted to. You can easily run the PBE Ads on the Facebook News Feed and Instagram. To use these Ads, follow these steps:

• Step 1: Make all the Ad sets that target certain interests
• Step 2: Launch the Ads to a wider audience. We suggest an audience of over 5 million.
• Step 3: Make 3 to 5 types of Ad Sets
• Step 4: In all the Ad sets, you must use 3 to 4 types of Ad copies
• Step 5: Experiment with various Ad copy texts, images or videos, and thumbnails
• Step 6: Keep checking the cart additions, link clicks, and impressions
• Step 7: Replace the Facebooks every 4 to 10 days
• Step 8: Make a conversion-optimized Ad set with the winning Ad copy

Types of Facebook Ads to Use for Dropshipping

By now, you’re well aware of the cost of Facebook Ads for the dropshipping business. But now, you might be wondering what kind of Ads you can use for the dropshipping store. We have mentioned some of the best Facebook Ad types below:

Image Ads

When you’re just starting with Facebook Ads, you should use the Image Ads. These types of Ads are created easily but need to be of high quality. Ads with boring images and plenty of text will not work.

Instead, you should use attention-grabbing, colorful, and top-quality images, which will drive results. For the Image Ads:

• Keep the headline till 40 characters
• The link description should not be over 30 characters
• The body text should stay at 125 characters

Dynamic Ads

These Ads are also called “Personalized Ads” and are displayed to individuals who have the same interests. To understand these Ads better, here is a small example:

“When you are interested in kitchenware or arts and crafts, Facebook will check your engagement with other similar content and then will display these types of Ads.”

Dynamic Ads are also the most promising Ad format on Facebook for dropshipping businesses, as they will provide the best results. However, to use these ads, make sure to create an account with Facebook Business Manager.

Story Ads

Using story Ads on Instagram will be extremely worthwhile and popular. These ads will also be displayed on Facebook, but they will get a much better revelation on Instagram. This is because Facebook is a lot more focused on stories than Facebook.

For the Story Ads, the resolution needs to be 1080 x 1080 pixels, and the primary text should be 125 characters.

Collection Ads

These types of Ads will enable you to find and see more about your items with a pleasant visual experience. In the Collection Ads, you can include videos and images, making it an ideal option for your dropshipping business.

The Ads will let you display all your products properly, and you can include the “purchase section.” That way, people can buy your products without leaving Facebook. For these Ads, you should keep the body text to 125 characters and the headline up to 40 characters.

5+ Best Places to Run Ads for Dropshipping in 2024

Final Words

Budgeting for Facebook ads for dropshipping is a constantly evolving process. It requires a tailored Ad strategy because every product and business is unique. 

Just follow the information and tips in this post, as it will give you a clear idea of how much you should spend on Facebook Ads for your dropshipping business.