Is it worth investing in google adwords if you are selling low cost items?

It only makes sense if you use these items as tripwire offers for upsells/crosssells. If your main goal is to sell the item by itself, then its usually not worth it. Exception: when you sell something that you could potentially sell over and over again to the same customer (not applicable 95% of the cases though).

Alternatively you can search for cheap longtail keywords related to your main keyword, but if your margin really is extremely low then you can normally forget that as well.

Unless you are going to ultimately make MORE THAN $30 in profit from a customer (whether that is on the initial sale or over the lifetime of that customer), it almost certainly is not worth it.

If you are able to compete on price or are doing a brand play, Adwords might be a possibility. If you're going for an impulse buy and don't have a very competitive price, I find paid search is hard to compete in.

For example, if you are selling a mug with a dog on it, people who Google "dog mug" are going to find better deals and many options in search.. Conversions are tough..

However, if you are generating an impulse buy through a niche Facebook ad, your funnel is designed more to pull in a sale out of the blue.. they don't price shop, and you get a sale.

Hi Jurisa,

AdWords works great for low priced products and services.

Like any industry you target, you need to have a competitive offer and have margins that are inline with your competitors'. If you have low margins, as compared to your competitors, you will have a hard time regardless of which channels you use to market you product/service.

If you are trying to sell a low cost product and targeting keywords that are typically searched by people that are in the market for a high ticket item then you may be targeting the wrong keywords. So choose only the most relevant keywords for products or services in your price range.

For example, if you are selling windshield wipers for a 2016 Audi A3, you wouldn't be able to target a keyword like "audi a3 2016" because you would be targeting a "high-ticket item" keyword in an attempt to sell a low-ticket item. By choosing your keywords more carefully, you can target the low-ticket item keywords (i.e. wipers for a 2016 Audi A3) and make the campaign profitable.

Avoid targeting keywords used for high volume, high AOV bulk purchases of a low ticket item if you are only selling onesie-twosie.

And finally consider the lifetime value of acquiring a new customer rather than a single transaction value to be sure that you are not underestimating the value of a click.

If you target appropriately, have a competitive offer with competitive margins, and understand the full value of a new customer then you should have no problems using AdWords for low-ticket items. Your competitors set the price of clicks based on where they can make the most money, so no reason you cannot also make money at those prices if you can source products/services competitively.

HTH,

Don Burk

Thank you for your replies. I`m not familiar with adwords, so gonna skip all the hustle. At least for now.