Jan 24 2018
7 minute read

Why Facebook Advertising Is The Best Tool to Drive Dropship Sales

TL;DR There are several marketing tools that a dropshipper can use to boost sales and increase results. We go over why Facebook is the best and how it can be used to increase sales quicker.

Dropshipping, an industry which has seen huge growth this past year, is basically an arbitrage business. The low barrier to entry has enticed many budding entrepreneurs to become the “middleman” - capitalizing on cheaper product sources and selling them online to customers for a margin. But it’s important for this new generation of middlemen to make sure they leverage the right digital marketing tools to drive sales conversion.

Many dropshippers in SEA are currently exploiting an opportunity in the market that exists because their Chinese counterparts have not yet updated their digital marketing strategy to take advantage of tools such as Facebook advertising. Nevertheless, it is only a matter of time before they do this, so it’s crucial for the competition to get their digital strategy in place early.

There are different types of marketing strategies that dropshippers can easily use to increase brand awareness and sales.

1. SEO is a great pull-strategy that takes time (sometimes years) to establish. 

2. Content marketing, when used in tandem with SEO, is a great way to build brand awareness.

3. PR/Influencer marketing can be used to build relationships and get 3rd party endorsements for your product.

4. Social posting, if done consistently, will help to generate buzz and build a following for your brand.

However, all of these tactics face the same issue - time. Unlike SEO, PR or social media posting - which all take time to generate results - using Facebook you can start to see results immediately. And that’s why most of these entrepreneurs jumped on the bandwagon a few years back.

Facebook Advertising Dropshippers

Facebook is indeed a great way to kick-start the business - but make sure you do things right.

1. Know who you are / understand your strategy and understand the business you want to become. Who do you want to be?

    1. Product leader: Source the best product in your niche and build a channel with very deep product knowledge (E.g. HiSmile)
    2. Customer intimacy: You know your audience very well and cater to all of their needs. You have a wide assortment but are recognized for being reliable.
    3. Operational excellence: You have a distinct assortment and focus on delivering the product on time.

2. Translate this strategy with Facebook and regardless of your strategy you need to excel in the following:

    1. Product / market fit. That’s the cornerstone of your business, you’d better nail it.
      1. It’s time consuming
      2. To scale it requires to delegate
      3. It’s eating your margin so every cents will matter
    2. Maximize your audience, a captive audience is a great asset.
      1. Be consistent with your communication.
      2. Re-target them
      3. Refine, adapt to make sure that you grow a loyal customer base
    3. Get your business KPIs right. Depending on your strategy, you will need to become a data driven entrepreneur.
      1. Understand the margin you need for each product
      2. Focus on customer LTV
      3. Be stringent on getting the proper ROI and not sales at no cost.

Once you have done that, you will want to make sure that your strategy is efficient,  easy to optimize at every stage, and scalable. This is where marketing platforms come in handy.

ROI Hunter has been built with these needs in mind. We help entrepreneurs build sustainable businesses by:

  1. Helping you to A/B test at scale with no over-spending on staff
  2. Helping you to know your audience better with automatic re-targeting, leveraging Google Analytics or refining your audience in one click
  3. Creating your business dashboard so you can be smarter in making decisions.

We usually see 2x- to 5x ROI increase and help you to cut 50% time in creating ads for testing.

Would you like a free demo? Contact us here

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