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A Guide to Facebook Ads and Dropshipping in 2021

Updated: Nov 17, 2021

This year, a big question for people getting started with their businesses has been whether to use Facebook Ads for drop shipping projects. Many dropshipping sites seem to have had great success with Facebook advertising in 2021. Facebook advertising is generally acknowledged as a great way to promote your business, being easy to use and highly cost effective even compared to Google ads.

Advertising drop shipping through Facebook can seem like a quick and simple way to make money, but although you certainly can dropship through Facebook Ads, should you use Facebook ads for dropshipping? This guide will answer some of the common questions businesses and entrepreneurs are facing about Facebook ads and dropshipping, highlighting the potential pitfalls and offering tips to make Facebook ads and drop shipping work together for you.

Does Facebook Allow Ads for Dropshipping?

One of the changes Facebook has made for 2021 is the introduction of more user surveys, particularly focused on users who have become customers of businesses advertising through Facebook. Facebook has increased it’s focus on asking users about their customer experiences through the site’s adverts. The reason for this is that Facebook want to ensure high quality customer experiences for those who buy through their ads, so that Facebook ads retain their value. Bad customer experiences through Facebook ads translate into users who mistrust all adverts on the platform, which reduces face book’s position in the advertising market compared to competitors such as Google Ads.

So how does this effect dropshipping? Unfortunately, many dropshipping companies do not provide a high quality customer experience. This can come from the view of dropshippign as a quick money-making project, leading to a lack of focus on customer care and building reputation, but it also comes from the logistical limits of dropshipping. In a world with next day delivery as a standard option on most online shopping sites, the longer production and delivery times of dropshippign companies can come as a shock and a disappointment for customers.

Because of the limitations of drop shipping companies to deliver orders quickly, and a focus on amassing orders over building sustainable supply chains, a poor customer experience and a bad review from Facebook’s users is more likely. In a mild case, Facebook will suppress your ad campaigns, but several bad reviews could lead to your business being banned from advertising with the platform.

So the answer is yes, Facebook allows companies to advertise dropshipping through their site, but their are features of drop shipping which makes these ads more likely to run into trouble with Facebook’s ad policies than other business models.

How Much do Facebook Ads for Dropshipping Cost?

Lots of drop shipping companies will make the sales they are generating public, and their business can seem hugely successful because of this. However, to generate those kind of sales through dropshipping, considering the rarity of repeat customers we have already mentioned, can cost almost as much in advertising, and so their profits are often far lower than their publicity implies.

As well as this, there is the issue of customer satisfaction and delivery times. The long delivery times which often result from drop shipping can create their own hidden costs, as if a customer gets tired of waiting and cancels their order, your company has to find and return money you had counted as earned, maybe even weeks before.

Advertising dropshipping, like advertising anything else through Facebook, can be surprisingly affordable if you spend smart. Set an advertising budget for your business, and set a budget on Facebook for any ad campaigns you run for dropshipping, but do not expect to see proportional growth in sales versus spending if you advertise drop shipping long term.

Do Facebook ads work for dropshipping?

So do facebook ads for drop shipping work? Sometimes, but not always. Whilst there are circumstances in which Facebook Ads and dropshipping are a useful short term combination for your business (and we’ll get into those in a moment) using Facebook ads and dropshipping together is not an effective business model long term.

Facebook ads for drop shipping generally see poor customer retention, and a lack of growth over time. There are a few reasons for this. The first reason is a low quality customer service experience, because of the logistic limitations of drop shipping supply chains, and a lack of clarity in adverts creating a mismatch between results and expectations for the customer. To avoid bad feedback to Facebook, clarity in your adverts is crucial.

The lack of customer retention for drop shipping advertised on Facebook also happens because it is difficult when basing your company on drop shipping to build a distinctive brand. The drop shipping market makes it very easy for other businesses to copy yours. There is nothing to stop a competitor seeing your Facebook Ad and then using Facebook to advertise the same product, with very little difference in ad copy. This creates a crowded marketplace where customers don’t make any distinction between which drop shipping brand they are buying from.

Even worse, the Facebook ad campaign you are spending money on could be doing some of the work for another drop shipping business, as a user might see your ad, then see another company’s ad for the same product, and buy on the second encounter with the product.

When Should you Use Facebook Ads for Dropshipping?

So what is the solution? When are Facebook Ads and drop shipping an effective combination for your business? Well, the most effective way to use Facebook ads and drop shipping together is in the testing stages of your business.

Dropshipping is undeniably a fast and competitive way to get customers to see and buy your product, and for that reason advertising through Facebook at this stage of your business is a great way to measure interest and find your audience.

However, as we have said in this guide, drop shipping is not a good long term Facebook model, as it’s hard to build the kind of distinctive brand that customers will instinctively search for when they go to buy a product.

One part of creating a brand customers return to is creating as good a customer service experience as possible. Not only do you need to be clear about shipping times and logistical limitations of your business to avoid having to issue refunds and face poor Facebook rankings, but be focused throughout the testing stage on how you can improve customer experience going forward, and what you are learning about your customer’s priorities.

So how can Facebook ads help you go from dropshipping to having a strong online brand presence? The key is to use Facebook ads to gather information about your customers, and keep an eye out for your competitors. Decide how long you want to spend in this phase of your business plan, and set a budget accordingly, but use drop shipping to figure out your branding, your priorities in setting up a fast and efficient supply chain, and where your ads will be best targeted in future, whether on Facebook or elsewhere.

If you follow these tips, advertising a dropshipping business with Facebook ads can be the first step to building an online business with its own niche, and the kind of great customer service experience which will help your Facebook ads rank even higher.

To learn more about Paid Ads and how effective it can be for you, click on the link and you will be directed to our main page for more details.

If you would like to know more about Facebook Ads and Dropshipping contact Regal Roye today and we'll get you started.

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