Hi there,
Thanks for reaching out! Happy to give you some initial thoughts on your situation. It's a common challenge, launching a high volume of products as a dropshipper and trying to maintain a decent ROAS, especially in the competitive EU market. A lot of people burn through cash pretty quick doing this without a solid strategy. I've seen it many times.
Based on my experience running campaigns for lots of eCommerce businesses, I've got a few ideas that might help you structure your thinking and your campaigns a bit better. This is the kind of stuff we'd normally cover in an initial review, but I'll lay out the main points for you here.
I'd say you need to nail the fundamentals first...
Before we even talk about scaling strategies and complex campaign structures, we have to look at the basics. It sounds boring but honestly this is where most of the money is lost. You can have the best media buyer in the world, but if your customer journey is broken, you're just paying to send people to a dead end. Since you're dropshipping, trust and a smooth experience are even more important because you're fighting against a certain perception from the get-go.
So, the first thing I'd do is a bit of a diagnostic on your current performance, even if it's from small tests. You need to know where people are dropping off. It usually comes down to one of a few problems:
-> You've got really low Click-Through Rates (CTRs) and high Cost Per Clicks (CPCs). If no one is even clicking your ads, then the problem is the ad itself. It's either not reaching the right people (we'll get to that later) or the creative and copy are just not grabbing anyone. Your product images need to be top-notch, not just the standard supplier photos everyone else is using. Your ad copy needs to be compelling. Are you selling the product or are you selling the outcome? Big difference.
-> You get visitors to your store's home page, but very few click through to a product page. This is a classic one. It means your ad was good enough to get a click, but your store front didn't convince them to look further. This points to a few possible issues. Maybe the traffic is wrong after all (your targeting is too broad), or the store itself isn't up to scratch. Does it load slow? Is it cluttered and confusing to navigate? Does it look trustworthy? For dropshippers, this is a massive hurdle. You need to do everything you can to build trust. We're talking professional design, clear branding, customer reviews with photos, trust badges (secure payment, shipping info), a proper 'About Us' page that tells a story, and easily accessible contact information. Without this trustworthyness, people will just bounce.
-> You get lots of product page views, but almost no 'Adds to Cart'. This is a really common and frustrating problem. It means people are interested in a specific product, but something on that page is putting them off. Nine times out of ten, it's the product presentation. You need excellent photos, maybe a video of the product in use. Your product descripions can't be the generic ones from the supplier; they need to be rewritten to be persuasive, highlighting the benefits and answering potential questions. Is the price clear? Is the shipping information obvious? Sometimes a small special offer, like '10% off your first order', can be enough to nudge people over the line. But it could also be that they're just not ready to buy yet, which is why a good retargeting strategy is so vital.
Getting these things right is the foundation. Trying to scale on a weak foundation is like trying to build a skyscraper on sand. You'll spend a fortune on ads and have very little to show for it because the bucket is full of holes. Fix the bucket first.
You probably should re-think your campaign structure...
Okay, so once your store is converting reasonably well, we can talk about campaign structure. Your problem is a "massive amount of products". Just throwing them all into one campaign and hoping Meta's algorithm figures it out is a recipe for disaster. You need a methodical system for testing new products and scaling the winners. The best way to do this is with a funnel-based approach.
I'd structure your entire Meta ads account into three distinct stages: Top of Funnel (ToFu), Middle of Funnel (MoFu), and Bottom of Funnel (BoFu). Each has a different job, a different audience, and needs different ads.
ToFu: Cold Prospecting and Product Testing
This is your exploration phase. The goal here is to find new customers and to identify which of your many products have potential. You'll be targeting people who have never heard of you before. This is where you'll spend a good chunk of your budget, and the ROAS here will naturally be lower than other parts of the funnel. That's fine, its job is to feed the rest of your system.
For your situation, this is where you test your products. You could do this a few ways. You might group similar products (e.g., 'kitchen gadgets', 'pet accessories') into seperate ad sets and test them against different interest-based audiences. The creative here needs to be thumb-stopping. Video ads usually work best for demonstrating new products. You're trying to find a winning combination of Product + Audience + Creative. Once you find one that gets good engagement, clicks, and maybe even a few sales, you know you have a potential winner.
MoFu: Warming Up Your Audience
This is the part of the funnel a lot of people neglect. These are people who have shown some interest but didn't buy. They've visited your website, watched one of your videos, or engaged with your Facebook or Instagram page. They know who you are, but they're not convinced yet. Your job here isn't to hard-sell them, it's to build more trust and keep your brand top of mind.
The ads here should be different. You could show them testimonials from happy customers. You could show them different products from the same category they looked at. You could run carousel ads showcasing your best-sellers. You're reminding them you exist and showing them why they should trust you. These audiences are warmer, so your cost per action should be lower than at the ToFu stage.
BoFu: Closing the Deal
This is where the highest ROAS should be. These are your hottest leads – people who have added a product to their cart, initiated checkout, but didn't complete the purchase. They were *this close* to giving you money. You absolutely must have campaigns dedicated to these people. This is your Dynamic Product Ads (DPA) campaign, showing them the exact product they left behind. The copy can be more direct: "Still thinking it over?", "Forgot something?", or you could even offer a small, time-sensitive discount like free shipping to get them to complete the order. The conversion rates on these BoFu campaigns should be the highest in your account, and they are essential for maximising your overall ROAS.
By structuring your account this way, you create a machine. The ToFu campaigns find new people and test products, the MoFu campaigns nurture them, and the BoFu campaigns convert them. It's organised, scalable, and allows you to see exactly which part of your strategy is working and which isn't.
We'll need to look at your audience targeting in detail...
This is probably the most important part of getting Meta ads to work. A brilliant ad shown to the wrong person is a wasted ad. When I audit accounts, this is the most common mistake I see – people testing random, broad audiences with no real logic. You need to be systematic and prioritise your audiances based on their intent.
Here’s how I would generally prioritise audiences for an eCommerce store like yours, from top priority (highest potential ROAS) down to broadest (for scaling).
BoFu Audiences (Highest Priority - Retargeting):
These are your money-makers. You should be hitting these people hard.
-> Added to Cart (last 7-14 days)
-> Initiated Checkout (last 7-14 days)
-> Viewed Content / Product Page Visitors (last 14-30 days)
-> Previous Customers (for repeat purchases and promoting new products)
MoFu Audiences (Medium Priority - Engagement):
These people are aware of you. Good for building trust.
-> Video Viewers (e.g., watched 50% of a video, last 30 days)
-> Social Media Engagers (anyone who liked, commented, shared, saved a post, last 30-90 days)
-> All Website Visitors (excluding purchasers, last 30-90 days)
ToFu Audiences (Lowest Priority - Cold Prospecting):
This is for finding new people. Test these methodically.
-> Lookalike Audiences (LALs): These are your best tool for scaling.
-> Detailed Targeting (Interests, Behaviours)
Now, let's talk about the two main ways to find new customers at the ToFu stage: Interests and Lookalikes.
#1 Detailed Targeting (Interests)
When you're starting out with a new product, this is where you begin. The key is to be specific. If you're selling a fancy coffee grinder, don't just target "Coffee". That's millions of people, most of whom just drink instant. You want to target interests like specific specialty coffee brands, magazines about coffee, famous baristas, or even competitor pages. Think about what a true enthusiast would be interested in. The goal is to find interests that have a high concentration of your ideal customer. Once you've made some sales, you analyse which interests are driving the best results and focus your budget there.
#2 Lookalike Audiences
Once you have enough data (you need a source audience of at least 100 people from the same country, but honestly you want 1,000+ for it to be really effective), Lookalikes are how you scale. A Lookalike Audience is when you tell Meta, "Here is a list of my best customers. Go find me millions of other people who look just like them."
The quality of your Lookalike depends entirely on the quality of your source audience. This is why the audience prioritisation is so important. A Lookalike of "Purchasers" will almost always outperform a Lookalike of "All Website Visitors". I'd test them in this order:
1. LAL of your highest value customers (if you have that data)
2. LAL of all Purchasers
3. LAL of people who Initiated Checkout
4. LAL of people who Added to Cart
5. LAL of Website Visitors
You can also test different percentages. A 1% LAL is the most similar to your source audience and usually performs best for conversions. A 3-5% or 5-10% LAL is broader and can be used for scaling further once you've exhausted the 1% audience.
You'll need a specific strategy for the EU...
You mentioned you only advertise in the EU, which is smart to focus on but adds a layer of complexity. The EU is not one market. A strategy that crushes it in Germany might completely fail in Italy or Poland. Treating it as one big block is a mistake.
First, you need to think about country grouping. Don't just target 'European Union'. I'd recommend running seperate campaigns or ad sets for different country tiers or groups. For example:
-> **Tier 1 (High-income, English-speaking):** UK, Ireland. These are often expensive but can have high purchasing power.
-> **DACH Region:** Germany, Austria, Switzerland. Powerful economies, but you'll ideally want German-language ads.
-> **Nordics:** Sweden, Denmark, Norway, Finland. High CPCs but also high disposable income.
-> **Southern Europe:** France, Spain, Italy, Portugal. Can have lower costs but also lower average order values.
-> **Eastern Europe:** Poland, Czech Republic, etc. Often much lower ad costs, but you need to check if the purchasing power is there for your products.
By splitting them up, you can control your budget better and allocate more spend to the regions that are giving you the best ROAS. It also allows you to localise your ads (language, currency, even cultural references in the creative) which can massively improve performance.
You also need realistic cost expectasions. For eCommerce sales in developed European countries, you're probably looking at a Cost Per Click (CPC) between £0.50 and £1.50. A decent eCommerce conversion rate is around 2-5%. So if you do the maths, your Cost Per Purchase is likely going to land somewhere between £10 (£0.50 / 5%) and £75 (£1.50 / 2%). Of course, this varies wildly depending on your product price, niche, and how good your ads and website are. But it gives you a ballpark. If your product's profit margin can't handle a cost per sale in that range, you have a business model problem, not an ad problem.
We've run many eCommerce campaigns and seen a huge range of results. I recall one client selling women's apparel where we hit a 691% return using a mix of Meta and Pinterest ads. We also worked with another client selling cleaning products, and we saw a 633% return just on Meta. And I remember another client with a subscription box where a really well-structured funnel got us a 1000% ROAS. It's definitely possible to get great results, but it comes from this kind of methodical testing and optimisation, not from a single "secret strategy".
This is the main advice I have for you:
I know this is a lot of information to take in. To make it more actionable, I've put the key recommendations into a table for you. This is the framework I would use if I were starting on your account tomorrow.
| Area of Focus | Specific Action | Reasoning / Goal |
|---|---|---|
| Store & Funnel Analysis | Before scaling, analyse your metrics (CTR, CVR, Add-to-Cart rate). Improve product pages with unique descriptions, better photos/videos, and social proof. | To fix any 'leaks' in your sales funnel. There is no point paying for traffic if the website can't convert it effectively. This increases your baseline conversion rate. |
| Campaign Structure | Implement a ToFu/MoFu/BoFu campaign structure. Use ToFu for testing new products against cold audiences. Use MoFu for nurturing engagers. Use BoFu for aggressive retargeting of cart abandoners. | Creates an organised, scalable system. Allows for clear budget allocation and performance analysis at each stage of the customer journey. Maximises ROAS by tailoring messages to audience temperature. |
| Audience Strategy (ToFu) | Start with specific, layered detailed targeting (Interests) to find initial customers. Once you have 100+ purchases, create and test a 1% Lookalike of Purchasers. | To find new customers efficiently. Lookalikes of high-intent actions (like purchasing) are the most powerful tool for scaling with a high ROAS. |
| Audience Strategy (BoFu) | Run a dedicated Dynamic Product Ads (DPA) campaign targeting users who Added to Cart or Initiated Checkout in the last 7-14 days. Exclude purchasers. | To recover potentially lost sales from high-intent users. This is often the highest ROAS campaign in an eCommerce account. |
| EU Market Strategy | Do not target the entire EU in one go. Create separate campaigns or ad sets for logical country groupings (e.g., DACH, Nordics, UK/IE). Allocate budget based on performance. | To manage budget effectively across markets with different costs and purchasing behaviours. Allows for localisation of ads and improves overall ROAS. |
| Creative Testing | For any product you are testing, run at least 3-5 different ad creatives (e.g., static image, video, carousel) to find what resonates with each audience. | Creative is a huge lever for performance. A single winning creative can make an entire product line profitable. Constant testing is non-negotiable. |
Look, the principles I've outlined above are the difference between the dropshippers who make it and the ones who just burn cash. The truth is, there's no magic bullet. It's about having a solid, repeatable system for testing, analysing data, and making smart decisions about where to put your money.
While this framework should give you a much clearer path forward, the real work is in the day-to-day execution. Knowing when to kill a failing ad set, how to interpret the numbers correctly, and how to scale a winning product without destroying its profitability – that's where true expertise makes a huge difference. It's a full-time job to manage properly.
If you'd like to go over your specific situation in more detail, we offer a free initial consultation where we can have a look at your setup and give you some more tailored advice. It might be helpful to have a second pair of expert eyes on it.
Regards,
Team @ Lukas Holschuh