May 30, 2022 0 529

How to Earn Big With E-commerce While Selling to EU Countries

Building a winning Facebook campaign for e-commerce while targeting European Union countries is a bit different. It requires different techniques because here, you need to target more than one country in order to get the same audience size as that of a country like the USA.

Today, we are sharing tips from Luca Chowdhury, an e-commerce entrepreneur and Facebook advertiser who has scaled his e-commerce brand to over $17 000 000 while selling online in Europe. He shares his campaign setup for EU countries that has enabled him to scale to millions in sales with his clothing e-commerce brand. Let's get into it.

Marketing and selling online to the EU is not difficult in terms of campaign setup, according to Luca. He has always used a campaign setup that has remained stable regardless of the country or any other circumstance. His campaign strategy is as below:


Testing Campaigns

For the testing campaigns, he goes with a conversion campaign, with the lowest cost, and is always set as CBO (campaign budget optimization). He usually starts testing at €50 per product and sets up only one campaign per product per country. He always does automatic bidding at the lowest cost, and he has never changed that.

Ad Set

Luca starts with one ad set, always optimized for purchases, with no warm-up Add To Cart events.  He always sets up full broad targeting with no interests, or age limits, he just targets the country. For a German store, he targets Germany, Austria, and Switzerland because the majority of the people speak German.

Pro Tip 1: For women's products, only target women, for men's products target BOTH genders.

Luca also recommends going for all ad placements.

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Ads

Luca advises setting up 1-3 creatives per ad set with the following types of creatives.

  • One collage with one big product picture, and up to three small ones
  • A slideshow video with 1 second per product picture
  • A single product picture

For the ad text, he prefers to keep it simple, with a one-line description. It can have 3-4 nice keywords, with the last sentence being  "Buy here — shortened link to the products, one smiley, done".

For the ad title he usually goes for "free shipping in the native language of course" with a smiley, and in the description, he does not write anything.

Pro Tip 2: Change the background of all ad creatives with canva, to let your ad look unique.

That’s all with the testing campaign setup, next let's get into scaling.

Scaling Campaigns

While scaling, Luca prefers to use the same campaign setup as the testing campaigns but this time he increases the budget in a step-by-step process which he implements every after 48 hours. So he always looks at two days of spending and therefore two days of real store roas! Whether a product is profitable or not, bro you have to do the math.

He usually follows this scaling pattern every 48 hours;

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  • €50 to €100
  • €100 to €200
  • €200 to €500
  • €500 to €1 000
  • €1 000 to €2 000
  • €2 000 to €5 000
  • €5 000 to €7 000
  • €7 000 to €9 000

His highest spend for a single product daily was €9 000.

To evaluate if he has to increase or decrease the budget, he calculates it according to the standpoint of absolute profit. If the absolute profit is higher than the spend, then he increases it. If the ad spend gets higher than the absolute profit, he goes back to the lower ad spend from the previous step. The return on ad spend (ROAS)  is only as important as the profit allows.

"Just try to find the sweet spot for the most absolute profit! ROAS is relative because it is always connected to your profit margin before ad spend! We always try to keep COGs around 30%, so we know the range we need to be profitable. The more you test, the more of the higher budgets you will have, the more money you will make, it is as easy as it sounds." Luca says.

Retargeting

If the campaign has been active for at least 4 days of scaling, with the budget in between  €100 to €200, Luca advises duplicating the ad set within the campaign and making a retargeting ad set out of it.

Then you create another campaign, this time round to retarget website visitors from the product sales page.


Conclusion

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The most important way to make Facebook ads work for you in 2022 as an e-commerce seller, according to Luca, is by using agency accounts.

"Believe me, agency accounts aren’t all the same and we learned that the hard way. We have worked with our partner for two years now and we have got the privilege of no bans, no spending limits on the accounts, and having limitless ad accounts. I stopped worrying about Facebook the second we started using this.",  Luca says.

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