I have no experience of shops as we are a hotel selling B&B breaks, dog friendly market focused on for this, romantic weddings and, completely at odds with the first two - ghost hunts. We are toying with the idea of a shop for people to buy gift vouchers for stays at our Castle and for events such as ghost hunts, sunday lunches etc. We have used Adwords for years, probably not as wisely as we should, and budget about £50 a day across the various niche areas - weddings, ghosts, dogs etc. I notice Adwords visitors to the site spend a little less time on the sites than organic and direct traffic.
One useful thing I have worked out is that Adwords is best used 'seasonally' according to what is in demand when. The same goes for posts on facebook, worth boosting at a seasonally correct time with much lower Cost per click than Adwords and measurable sales results due to the specific promotion of a service for a given date. Could your business have seasonal sales of certain tools that would lend itself to seasonal promotions of tools to solve a need that arises at a particular time of year? Is there a time of year when you have more buyers for certain of your products, and why? Could more sales be achieved by making yourself more visible (by paying to be seen via Adwords etc) to buyers at a time they are most likely to buy.
You may be aware of the idea of a 'buying window' when people are likely to buy. This relates to people who enquire and the length of time from enquiry to sale - the buying window.
We've found in our service sector, weddings sell most in Jan and Feb as once people get Xmas over, they are ready to decide in the New Year to choose a venue for their wedding. New Year, New Start, I suppose and a lot of people seem to get engaged - or become more committed to each other - over Xmas. They settle on getting married, firm up their plans, and go out viewing venues in Jan and Feb.
We are reasonably easy to find organically for weddings in South Wales but I am aware a lot of the competition are more visible for certain keywords. I do not want to be 'insufficiently visible' in this peak buying period of Jan and Feb each year. I now triple the Adwords spend for weddings in this period but drop it back down again in March, when viewings and sales reduce. I have not found increasing adwords for weddings the rest of the year makes any difference to sales but if I do not boost Adwords in Jan and Feb I know I will book maybe 5-10 fewer weddings. For an extra £1000 each month for two months on weddings Adwords, to secure an extra 5-10 wedding bookings, makes sense.
There are other key calendar events that can be promoted with an Adwords campaign at the right time - e.g. Valentines B&B breaks at Valentines, however the return for these lesser services is much lower and the cost of Adwords is too high relative to Facebook, for a low return calendar event. A few extra B&B stayers for Valentines or some other specific period does not merit a huge spend. I prefer the much lower cost per click and far better targeting achieved with a well time Facebook campaign. Facebook does appear more effective. I recently paid just £80 for a boosted campaign on our Facebook ghost hunting page in April this year to promote Halloween and our 31st Oct Halloween night sold out in 6 days - 6 months in advance. But I would not use Adwords for Halloween, the economics do not work. That £80 facebook boost secured 30 bookings worth £3,000 (plus another £1k or so wet sales from the ghost hunters - so £4k worth of business) for Halloween. This shows how targeted promotions for specific items at specific times can be cost effective.
A hotel has seasonal trade and seasonal advertising can be necessary and effective, with maybe a specific landing page to a specific offer only seen by responders sourced to the advert, enabling you to see easily how many sales / clicks etc you get from the Advert. I have a couple of hidden pages I use for the occasional advertised promotion which only get seen by people clicking on the advert. As you run a tool shop, the obvious question is which of your tools has a seasonal buying element.
Is there any element of your sales cycle (maybe gardening tools?) that occurs seasonally, where it may may you to promote a specific product at a specific time either on facebook (if enough reach and followers) or on Adwords. Link the advert to a hidden page specific to the seasonal promotion, so you can track actual buyers back to the advertising source used. I promote ghost hunts in winter, dog friendly breaks in Summer, seasonal events such as Mothers Day, Fathers Day, Valentines, New Years Eve, etc etc at the relevant times, specific ads for specific services at optimum times. Can you package up an offer for sets of tools for a reduced price, that might be needed together to perform a particular function at a particular season? I do think Adwords and Facebook advertising needs to be for something specific at the correct time when people want to buy, rather than be used for general PR where you never quite know what element of your advertising spend works.
Once you start using Adwords just to keep your site visible for search terms generally, you can never really tell what your return is. Another problem I found is if you are doing OK organically, a lot of people would find you anyway, but inadvertently click on the Adword listing instead of your organic listing. So you can end up paying for clicks you would have had anyway.