Determine exactly how much you can afford to pay for a customer while maintaining your target profit margin.
Pro Tip: Most successful dropshippers aim for a Target CPA that is 30-40% of their selling price.
4 ways to lower your CPA and boost margins.
Ad fatigue kills CPA. The only way to lower ad costs is to test 5-10 new creatives per week. Use Minea to find viral angles.
If you can't lower CPA, raise your Order Value. Use ReConvert for upsells. Increasing AOV from $50 to $65 boosts margin by 30%.
Doubling conversion rate halves CPA. Use Hotjar to find drop-offs and ClickFunnels for faster landing pages.
The profit is in the second sale. Use Klaviyo and PostScript to retarget customers for free via Email/SMS.