Google Shopping Ads - High Cost/Conversion

[Jethro Hazelhurst]

Dear community, I need some help.

I am spending £570/day on google shopping.

The profit margin on each order is 20% at the MOST.

Looking at October my average cost per conversion (CPC) was £11.77.

Same period my average order value is £65.64.

So google is taking 18% of each transaction. Leaving me 2% to pay the lights and water.

I would attach images but I can't.

Do these numbers line up with your own experience? Or are am I truly wide of the mark?

Many thanks,

Jethro

 

[AllUpHere]

What type of product do you sell?

 

[Jethro Hazelhurst]

Hi AllUpHere,

Apologies for omitting that important information - it would have been included in the screenshots. We sell Alcoholic Drinks (Whisky, Gin, Vodka, Rum and Liqueurs). Gin is our most popular product category.

 

[AllUpHere]

Hi AllUpHere,

Apologies for omitting that important information - it would have been included in the screenshots. We sell Alcoholic Drinks (Whisky, Gin, Vodka, Rum and Liqueurs). Gin is our most popular product category.

Are they products that are freely available from elsewhere, or are the products exclusive to you?

 

[Mr D]

I'd look at changing profit margins or reducing your spending on the product.

Google taking too much? Change the equation so they take less. If that means less orders then so be it - you want profit, not turnover.

Examine your breakdown of the google costs. You do have a breakdown of that £570 a day? What is cost effective and what is not? Google will happily take whatever you decide to spend, so limit what you are spending so its cost effective. And don't spend where its not cost effective.

 

[CompleteWeb]

I suspect your situation is not THAT unusual. But it's not desirable. It seems like you are only just staying in business, after your fixed costs maybe not even that.

You either need to increase your profit per order or decrease your advertising costs. This could be through better targeting of AdWords or finding other ways to advertise.