I am a new direct to consumer e-commerce business. I made a custom supplement and the product and packaging really is incredible.
I spent $15,000 and only got 20 sales, about $1,000 in sales. I only need about a 1x ROAS. My creative is good, landing page conversion rate is amazing so the website is good, also CTR is good. I think the main issue is that the CPM is around $250. CPM stays high no matter what I do. I have created many campaigns to test different angles.
What do you suggest I should try next?
It feels like I am stuck in the learning phase and can't get out. I am scared if this keeps stating like this I may need to close my business which I worked on for over a year to get here. Any help would be greatly appreciated. Thank you!
That's a whole ton of clicks! Let's assume in the worst case your clicks are say $3, you had 5,000 clicks on your ads but less than a 1% conversion rate. So, there are various potential points of failure in your sales journey that you can investigate to understand where the issue is:
1) Targeting.
Is the traffic you are driving coming in from the correct market, check your traffic location, check that if you click an ad the product the user see's matches what they would expect, check your search terms and negative anything that doesn't specifically match your type of product. I've seen furniture ecom sites where users were searching for "5 draw chest of drawers" but they only sold 3 draw variants. Check for material type searches etc.
2) Technical Issues
Are your sales all coming from mobile/desktop? Is your performance different on either of those channels? If so optimise your landing experience accordingly.
Install something like HotJar and monitor user journeys to see if people are finding an error in the journey, perhaps the add to cart function isn't working, or something is failing particularly on mobile.
3) Funnel Issues
What is happening to all those clicks once they hit the product page?
If they all leave straight away, something about the product is not what they expect. Perhaps it's expensive, perhaps the design is poor, pictures are poor. Or again perhaps the ads/targeting weren't right and the product just isn't what they were expecting to see.
If you are getting some add to carts but the users aren't checking out, is it a technical issue?
If people are clicking checkout, but not checking out. Is it a technical issue? Are they at this point seeing your delivery options and seeing that delivery will take like 30 days (chinese drop ship etc)?
If you can drop $15k on ads, you can afford a reasonably skilled Google Ads professional. Find a reputable freelancer or agency around the $1k per month price point and get them to do a pitch based on your account and results so far. A good professional should be able to tell you exactly what the problem is, and how they would run it differently. Give them a budget of at least $5k and 30 days to prove it.