Beginning Your Shopping Feed Campaigns
When is an e-commerce retailer ready to begin or expand their comparison shopping engine campaigns?
Successful comparison shopping campaigns are essential to an e-commerce retailer’s growth in website traffic, conversions, and overall revenues. This all sounds good and great if you’re a budding retailer trying to bolster your company’s internet presence, but comparison shopping engines (CSEs) aren’t for everyone.
Here are a couple things to consider if you’re thinking about starting or expanding shopping feed marketing:
The majority of CSEs are paid. In the world of comparison shopping, there are CPC and CPA campaigns. The former, cost per click, requires that a retailer pay each time a consumer clicks on their featured product. The issue with CPC campaigns is that it requires constant management in order to promote cost-effective conversions.
On the other hand, cost per acquisition is a more relaxed campaign style. Here, a retailer is charged a percentage of each sale for being featured on a CSE and so it requires no management, besides fulfilling the orders. However, the reality is that the majority of major CSEs are CPC.
How much you spend depends on how many products you have and how many CSE campaigns you’re managing. Ideally, you’d like to be on 4 or 5 of the major CSEs, and it is recommended that you have a budget of at least $2000-3000 per month, which will go towards paying for clicks alone.
Other than money, you will also be spending a good amount of time managing your shopping feed campaigns because, quite frankly, CPC management can be tedious. In order to effectively manage your CPC campaigns on CSEs, you will need to visit each campaign at least once a week (every day is better). Obviously, the more products you have, the more managing you will have to do.
Your time managing CPC campaigns will be spent optimizing your product bids, meaning the removal or lowering of under-performing products, and potentially raising bids on high-selling products.
The bidding process will be explained in Chapter 3 of the series. Management will also consist of updating your inventory and shopping feed information whenever the product data on your site changes.
Generally speaking, you want to have a lot of products if you’re considering starting or expanding your comparison shopping engine campaigns. Product volume can be a good measure of how far along your e-commerce business is, and so it can indicate if you have the budget and manpower to handle shopping feed campaigns. However, you should have at least around 500 products, but this depends on the category your products lie in.
Mathematically speaking, the more products you have, the better chance you have at experiencing more conversions and overall better campaign success. However, you should be cautious not to bid on too many products for high AOV categories like furniture, where overspending is a common mistake.
If you have generally higher Average Order Volume (AOV) products that are also in a rather popular category like electronics (HD TVs, Gaming Consoles, etc.), you don’t have to worry so much about having a ton of products because the search volume for your type of products will already be high. Rule of thumb, you want to have at the absolute minimum 500-1000 products when starting your campaigns regardless of what category you’re in.
Additionally, before launching on CSEs or at least immediately after doing so, optimize your remarketing strategy so you can keep customers coming back for your business. For a few tips, check out some of these remarketing strategies.
Sometimes if you’re not sure whether you have the budget, the right products, or the time, it’s best to get an expert opinion on whether or not comparison shopping engines will be successful for you. We’ve helped hundreds of retailers from all product categories make informed decisions on whether to use or to stay away from comparison shopping engines. Contact us directly at email@example.com or call us at 619-501-6138 for a no-strings-attached free consultation.