I call this bullshit. Mostly this part : "Paid Advertising is not a long term profitable Customer Acquisition Channel in E-Commerce". It may be for F+S but if you have a unique product or you know how to properly set up the ads , you can bank with facebook ads. Usual cost per purchase can go up to 15-25$ so price your item accordingly. F+S is way saturated and customers already know the catch.
Obviously, you need to take my message into context.
Adjusting your price relatively to your cost per purchase makes no sense unless you create a unique product, otherwise you won't be competitive in the market.
Do you think you are going to dictate the selling price for a product you are reselling ? No.. Again, you might make some sales, but your retention rate will be low, when your customers sees they could get the same items for cheaper elsewhere, they won't come back, and when they realise that it takes 2-3 or 4 weeks for their items to arrive at destination, they surely will never come back. Retention Rate & Customer Acquisition Cost (CAC) are a key component of the Customer Life Time Value (CLV).
When CLV > CAC ---> You have a long term sustainable profitable business
You can dictate the price if you create your own unique product (just like you said) but... most of the guys here won't do because they will do dropshipping with Aliexpress (the easy way) and customers will most of the time only be buying from you once. My previous message was mostly targeted towards those people, and telling them to be careful and looking for other customer acquisition channel.
Building a sustainable customer acquisition strategy with ONLY FB Ads is very very hard, so I advice everyone to also look for organic channel from day 1. The goal here is very simple, when you are reselling products and can't dictate the price on the market, you need to lower your CAC.
