According to a study conducted by MarketingSherpa a couple of years back, the average gross margin for eCommerce stores was found to be somewhere between 30% and 40%.
Gross margin, by definition, is the difference between revenue and cost of goods sold. If you take into account the operating expenses, salaries, taxes and other expenses, the net margin for eCommerce stores can be quite minimal.
It does not actually make sense to advertise your eCommerce store in this scenario. Pay per click advertising has become quite expensive over the years. The conventional logic of identifying niche targeted keywords to advertise might not be profitable any more.
This is also the case with Facebook advertising. The average CPC can be around $0.35, and this number is likely to be much higher for newsfeed ads that are known to offer the highest conversion rate. In this article, we will take a look at a few tips that can help eCommerce advertisers sell their products on Facebook.
Use Retargeting Ads
Two million blog posts are written every single day. At the same time, the consumption of internet-based media content has dramatically risen. One study showed that the average user consumes nearly eight hours of media content each day.
And media consumption on the Internet itself has risen 105% between 2010 and 2015. This is a fantastic opportunity for eCommerce advertisers to make use of non-sales targeted content to draw in their niche audience and then retarget these readers with product ads.
Take the example of an eCommerce store selling spare auto parts. The store owner in this case could publish content that covers topics in which a car owner would be highly interested. Once the audience has been drawn in through organic means, these readers can then be retargeted with product ads on Facebook. The CPC in this case is likely to be way lower than that of regular Facebook ads.
Sponsored Message Ads
Facebook has recently been experimenting with ads delivered over Facebook Messenger. In essence, the user would receive from the sponsor a new message notification with which they might engage.
To eCommerce business owners, Facebook Messenger is a lucrative channel. The reason why is they can set up personalized conversations with each of their prospective buyers.
For best results though, you should let the user initiate the conversation with you. You can achieve this by using conventional advertising techniques and using the “Send Message” call to action.
Clicking this CTA will take users to the Messenger window where they can have a conversation about the product with the eCommerce store. You can check out this guide on Facebook advertising from Shopify for a more detailed tutorial.
Use Facebook Offers
The Facebook advertising platform has a number of elements that makes it attractive to eCommerce advertisers. One popular feature is “Offers,” which allows advertisers to promote an offer exclusively to Facebook users. An offer in this instance can be a discount of a certain dollar amount or percentage value. Offers can also be free giveaways or even BOGO (Buy One, Get One) deals.
Advertisers can choose to host the offer campaign within Facebook or redirect it to their own websites. They could also choose to restrict the campaign to their own Facebook groups or make it available to the larger audience across Facebook. The Facebook Offers feature works really well if you sell impulse goods that customers are ready to buy without any significant forethought.
Tie in Facebook Advertising with Other Marketing Channels
As an eCommerce business owner, you are likely to make use of a bunch of marketing channels. These might include advertising, email marketing, content marketing and even offline advertising.
Quite often, marketers make the mistake of assuming that these channels are independent of each other. Because of this misunderstanding, they carry out their campaigns in silos. But doing so is sub-optimal. It not only leads to an inefficient campaign but also could be expensive since you might be spending money acquiring the same customer twice over these different campaigns.
It is important to bring together these different channels in order to have a single view of your customers. You could do so by integrating your audience from your email marketing list with the one from your Facebook channel.
Or you could bring together your retargeting campaigns from both Facebook and Google. Streamlining your campaigns ensures continuity and also brings down the cost of acquiring one unique customer.