In the last couple of months, I’ve seen more and more people complaining about Facebook ads getting more expensive compared to previous years. This is definitely true and there is 3 main reasons this is happening:
1 More competition: More marketers are getting into the dropshipping game so the cost of getting our ads in front of a targeted audience is higher.
2 The damn breach: I don’t pay too much attention to politics these days (more focused on my business) but after the US elections breach, Facebook had to change their shit and ads performance were affected in some way. They’re still updating things and as you know in the testing phase there could be shitty results or amazing results, they are in that phase now :/.
3 Final quarter: Q4 is here and a lot of marketers jump into buying Facebook ads mode in this time of the year, most of the companies make more money in Q4 than the entire year so everyone wants a piece of the pie.
Now you are probably wondering so dropshipping + FB ads are dead?
HELL NO! Ecommerce is the present and future of shopping and Facebook is the biggest social media platform, the combination of both work big time and you can still make millions of dollars if you know how to play it right.
ADAPT OR DIE
As ads cost increase we have to make sure we are still profitable after ad and product cost, the solution to this problem is to increase your AOV (Average Order Value). This means making your customers to give you more money in the same order so…
How can you increase your AOV?
This post is getting kind of long so I will give you an overview of how some friends and I could 3x our AOV overnite by applying this simple strategy:
1 Create bundles on the landing page (product page): Add simple bundles by making variants like buy 3 get 1 free, buy 5 get 2 free or buy 2 get extra 10% off. I recommend to use swatches instead of dropdown menus for this, it converts better.
2 Charge for shipping: You can offer free shipping but also offer some shipping rate where you make your customers believe is a better option, for example, *Plus Shipping w/tracking # and Insurance* for 3.95. You will send tracking number and refund if the product is defective anyways so you will make more money without doing anything different.
Post-Purchase Upsells
3 This is where the fun begins: Get a one click upsell app, this is freaking powerful because they already bought from you so all they have to do is to click in a button and they will get charged without enter their credit card information! But you have to know how to set up your upsells in order to convert high.
4 Skip the Line: This will be the first upsell you will offer your customers, you will process their order before everyone else, it is a physiological upsell because you are going to send their orders as fast as you can anyways, you will fulfill all of the orders the same day or next day ( I hope you are doing that right now). I’ve seen a conversion rate up to 40%
5 More of the same: Second upsell, offer 3 more items of the same one they bought with a huge discount like 30% Off.
6 Down sell: Same offer but a better discount, something they can’t refuse like 50% off, you have to give the best discount you can and still be profitable.
7 Third Upsell: Offer a similar product as a one-time offer.
This can 2x or 3x your AOV overnite. I have uploaded 4 videos on how I go about this in detail to my youtube channel. Let me know if you would like to watch these videos and I post the link in the comments, tons of value in these videos, all for free.
Cheers.
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