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Oberlo 101 Module 4

August 16, 2020


MODULE 04: Launch Facebook ads

In my opinion, this is the module that will either make this course great or forgettable. Facebook Ads is one of THE most important components of a successful dropshipping business, and therefor it is one of the aspects that I am most critical of.

Let's see if Oberlo and Jessica delivers.

Video Lesson 01: A brief introduction to Facebook ads
In this video lesson, Jessica teaches us how Facebook Advertisements work. 

Facebook has access to an incredible amount of data regarding its users, which makes it one of the most powerful marketing tools on the planet. 

Unlike traditional media, FB let's us specify WHO we want to target, WHEN we want to target them, and HOW much it is going to cost us. Well, the last bit is in theory anyway...

(FB would have you believe that you can set your budget. BUT you need to remember that you are bidding against people with similar products. If your bid comes in too low, not many people will see it...)  

The Google Algorithm promotes ads that people spend time reading, watching, or liking - this means that you (as a user), get fed advertisements that are relevant to you, based on your FB preferences. This means all 3 concerned parties win:
  • Users on FB see ads that are interesting to them
  • These "relevant" ads keep users on the FB platform
  • Advertisers reach an engaged audience through these highly targeted ads.

Jessica and Oberlo suggests that you use the CPM method, not CPC. This means that you pay per 1000 impressions (you pay to have your ad on 1000 feeds), as opposed to paying for each individual click.

Jessica says that $0.35 is a decent ball park figure for your CPM. So, with $35 dollars, you hope to get 100 people to your store. If you only get a conversion rate of 2% and those two people spend $20, then you made $5 profit. 

BUT, what if you want to go the CPC route, as many other courses suggest? 

Here are some (fat) facts for you to chew on:

The average CTR of FB Ads for all industries, is only 0.9%... 

This means that for every 1000 people who sees our ad, only 9 will click on the ad...

And that is only the Click Through Rate. That is NOT the conversion rate... This is only the amount of people who will go to our site, not necessarily buy from us.

See how FB Ads can make or break you..? You need to be VERY careful where budgeting and bidding is concerned... 

According to a Wordstream article (last updated 27 August 2019), the Top 5 FB Ads by industry with the highest CTR's, are as follows:













Yip. The highest Click Through Rate is only 1.61%... So, the best you can hope for is 16 people out of every 1000 will click on your ad...

And the cost of Facebook CPC? (For interest sake):













You need to decide which tactic is the right one for you - CPM or CPC? You'll probably only know once you've run Ad Campaigns with which to compare data...

For more stats on FB Ads, visit the informative post on Wordstream, titled "Facebook Ad Benchmarks for YOUR industry". 

If you'd like more info on Facebook Ads themselves and their associated costs, then click here for a post from AdEspresso.

 Total video length for Lesson 01: 20 minutes 58 seconds
Video Lesson 02Create a Facebook ads account
Creating a FB Ads Account is a straightforward process that can be done without any difficulty. Jessica shows us exactly what to do without any fuss or fanfare. She takes us through the following steps:
  • Creating a Business Page via FB Business Manager - this adds credibility and offers FB users more info on your business
  • Creating a FB Ads Account
  • Jessica also teaches us about the FB Pixel and how to install it.
The FB Pixel is a tool discussed in just about every dropshipping course and the reason is simple - the FB Pixel allows you to gather data from visitors who interact with your posts &/ ads, &/ visits to your site, thereby making it easy to re-target them with future ad campaigns. 

 Total video length for Lesson 02: 17 minutes 13 seconds
Video Lesson 03: Research your target audience
The success of your ad campaign very much depends on your target audience. Yes! Once again we are presented with yet another important piece of the FB Ads puzzle. 

Jessica proposes answering six key questions in order to better understand and target your niche audience. 

Answering some of these questions might seem like unnecessary work, but it is important to know your target audience as much as possible and these questions were carefully formulated to do just that.

I guess we have some homework to do...

Top Tips:
  • When doing research on our proposed target audience, we must use Incognito Mode in Google. This way we will not get results from Google based on our own personal interests.
  • Make sure to choose a broad range of interests so we have lots of targeting options. Facebook Business Manager does not recognize every interest as targetable, which is why it's important to have as many as possible.
  • The secret to successful FB Ad campaigns is spending our limited advertising budget on the exact audience we want to target.
 Total video length for Lesson 03: 13 minutes 20 seconds
Video Lesson 04: Set your campaign goals
Exciting times! After this lesson, we are able to launch Facebook Ad Campaigns!

In this lesson, we focus on creating an ad with "Conversions" as our campaign goal, since we want sales more than anything else, to start with.

Jessica takes us step by step through the entire process, starting with FB Ads Manager login. During the process we:
  • choose the campaign goal. In this case it is Conversions,
  • we name the campaign,
  • we set our budget (it's not as much as you might think), 
  • the goal of our first FB Ad set is not to gain sales, but to gather data. This is why we don't start the campaign budget high. (However, the more money you spend, the faster your "database" will grow...)

We start off creating three separate ads (the same ads, targeted at the same audiences, but in different countries), with a total daily budget of $30.

Jessica suggests you do NOT use the "much-advertised" $5 per day method - according to her it simply doesn't work... 

I tend to agree, as $5 per ad per day doesn't leave FB much to play with, which means gathering data is going to take a long time. The FB Pixel only really starts working once you've had a hundred different interactions from visitors...

One of my biggest beefs with these dropshipping courses, is that no one gives you an idea of what your marketing budget should be. 

That's because it all depends on your niche. And the product. And the competition. If you have a really specialized niche product with very little competition, you can expect good returns on $500.

However, if you have a product with a high level of competition, expect to pay thousands... (I know this from personal experience.)

Things to remember:

  • Do not create a split test for your first ad sets.
  • Don't start your bidding high - let the ads run a few days before you decide to scale up.
  • Follow the suggested settings that Jessica shows To THE T. Don't stray and change something. Don't skip anything. Follow AS IS.

In closing, we created three different (draft) ads with the same settings, targeting three different locations.

This is also an added little bonus, as most other dropshipping courses only focus on targeting audiences in the US.

 Total video length for Lesson 04: 16 minutes
Video Lesson 05: Create eye-catching video ads
In this lesson, we not only learn how to create our FB Ads, but we also LAUNCH our first ad!

Note: We cannot apply what is taught in this lesson, if we haven't received our product(s) yet...

In order to make a video ad that stands out and gets noticed, we need to remember the same rules we applied to our product descriptions:
  • Remind the customer of a problem, and
  • Show the customer how to solve that problem with our product.
We need to refer back to our product description and see if we can find more than one problem that our product solves. The more solutions, the better!

Jessica shares the lowdown of great FB Video Ads by showing us
  • the exact dimensions (video screen size and aspect ratio) should be for FB.
  • When to show the most eye-catching segment during our video.
  • What to include in the ad copy, and
  • Including correct wording in your Call To Action.
The additional resources include external links to all the sites we need in order to make, edit and post our video ads (for FREE - no costly software - BONUS!). Jessica even SHOWS you how to use the editing software, and even where to get royalty FREE background music.  

This course just keeps getting better in my opinion... It's a true pity that it's a course about dropshipping though...
 Total video length for Lesson 05: 22 minutes 19 seconds
Video Lesson 06: Analyze Facebook ads data
During this lesson, Jessica teaches us how to set up a custom report in Facebook Business Manager.

The default settings for FB Ad Reports show a lot of irrelevant columns, so Jessica shows us which columns to focus on and how to set up our custom report to ​show only the most relevant information we need. 

Jessica provides us with a detailed list (and why we need these columns), and shows us how to set them up. 

Jessica also shows us how to access Shopify's Store Analytics of our online store and walks us through each of the different reports.

The next important step for us, is to be able to analyze our Facebook Ads Data

This is where MOST of the dropshipping courses fall short. They tell you to look at your data and to use it in order to make decisions on whether to kill or scale your ads, but very few coaches actually teach you HOW to interpret the data.

Jessica actually takes the time to go through the columns with us, explaining what to look for that would indicate our biggest winners. 

Our next big step is a doozy! Based on the data we've analyzed, do we take it slow and steady, or do we go balls to the wall..?

 Total video length for Lesson 06:  21 minutes 52 seconds
Video Lesson 07: Retargeting and Lookalike Campaigns
Lookalike Audiences are made up of people who are similar to another audience (such as an audience of existing customers or a custom audience). The lookalike Audience shares the same behavioral traits and interests as the other (known) audience. 
 Total video length for Lesson 07: 16 minutes 56 secondsa
Video Lesson 08: Optimize ads for more sales

Buy this course just for the tutorials on FB Ads.


Jessica starts the lesson by saying that her store has generated sales. But NOT as soon as she would have liked. The initial idea was to film this lesson video a week after the Custom Audience, Retargeting Campaign and Lookalike Audience Ads have been running. 

But then Green Kitchen Goods only had a single sale. So Jessica went back, did some tweaking and another week later she had four sales!

Yes, I know what you're thinking: After all that time and effort (and she's a pro at Shopify), and she only has FOUR sales?!? (See why I don't like dropshipping / eCom anymore..?)

But that is beside the point. The point is that Jessica and Oberlo actually disclosed this AND Jessica shows you EXACTLY what she changed in order to get "more" sales. 

Jessica also reveals how much she spent on FB Ads, in order to get that first sale.

How is that for transparency / full disclosure..?

NONE of the other courses have done this, and this is something that EVERY single new student / online business owner wants to see and deserves to see. 

We need to know when something proposed by a course didn't work, and most importantly HOW to FIX IT.  

(And whether the business model is actually worth looking into...)

To get back to the lesson:

​Jessica shows you the results from her Ad Campaigns and how she interprets the data. 

​The disconcerting thing is: the ads were successful in that:
  • they had a lot of views, so the engagement was there,
  • they enticed people to visit the site - site visits grew exponentially, and
  • the ads even had people adding products to their carts
BUT, they were not converting into sales...

Even worse, is the fact that the single sale wasn't attributed to a FB Ad at all, but rather to a Reddit post...

For most people (including myself), this would NOT fill me with confidence in this business model (luckily there are alternatives. You can find out what my number one online business model is, by clicking here...)

Would you really want to spend hours trying to figure out WHY your ads are working in driving traffic to your site, but WHY your site is not converting those visitors into buyers? It's frustrating to say the least.

Well, Jessica says she loves a good mystery so she wanted to get to the bottom of this conundrum...

Based on a total of 14 search queries (all of them being on separate searches that generated a single search each - so fourteen searches for 14 different things), Jessica realized people were searching for certain brands of coffee machines on her site and wanted to know if the re-usable coffee pods she is selling, are compatible with their machines.  

The solution - Jessica found variants of her platinum product that would be compatible with different coffee machines.

This solution will in all probability not be applicable to your products, but it shows that there is a possible solution to every problem. 

So? Did this fix the conversion problem on Jessica's store?

Not quite...

She re-organised her store around her platinum product by redoing her banner image on the homepage, adding a link to her platinum product on the Menu (so that it shows on every page) and changed the Font.

After all this, Jessica had to make a decision. Up to this point, her FB Ads had already cost $500 for ONE, single, solitary sale... Do you quit, or keep pumping money into your FB Ad Campaigns?

The stats do NOT make for good reading...
  • First: The timeline - the store has been up and running for more than 5 weeks before it got it's first sale on August 6th for $16

Up until the 6th of August, the Ad Campaigns had generated 92 222 impressions and 8 408 clicks, with a total Ad Spend of $792.29. For one sale. Of $16...

Most entrepreneurs would call it a day when seeing that kind of ROI, but Jessica decided to spend more on her winning FB Ads. 

She spent an additional $222.51 and closed three more sales in a couple of days after scaling her ads.

This brought the Total Ad Spend to $1014.80 and Total Sales to $95.96... (and remember, the $95.96 is NOT profit...)

You decide whether this looks promising or not... Hopefully Jessica and Oberlo share later Sales Figures so that we can make a more educated decision. 

Key takeaways from this lesson:
  • We need to have money in the bank in order to be successful at Dropshipping (or any form of e-commerce for that matter). Sales are not going to happen overnight. It might very well take a few weeks before any come in.
  • Just because we're advertising, and getting impressions and visits, doesn't necessarily equate to sales. You need to test, test and test AND tweak, tweak and tweak. Oh, and all of this is for a product that actually looks good on paper (remember it ticked all the due diligence boxes) AND people are showing an interest in it. Imagine choosing a platinum product that people are not interested in... Can you imagine the frustration then..?
 Total video length for Lesson 08: 17 minutes 54 seconds

Module 04 - My Key Takeaways 

The standout lesson in this module, is Video Lesson 04: Set your campaign goals.

Jessica goes into great detail on how to do the settings for a conversion campaign - it is one of the most detailed lessons on FB Ad settings that you will find in dropshipping courses. 

We're shown EXACTLY which options to use (and how), and which options to skip. It honestly is one of the highlights of the course... Kudos to Jessica and the Oberlo team! Their attention to detail is outstanding.

As a beginner, this is exactly what you want from a course - clear and concise instructions PLUS the reasons behind the choices.

There is a downside though... I discussed those in my review of the last lesson, Video Lesson 08: Optimize ads for more sales...

It boils down to your initial ROI being terrible...

The question to ask yourself is:

  • How much time and money are you willing to put in before seeing success, or pulling the plug?


First and foremost: this is one of the better (if not THE best) modules I have come across dealing with FB Ads.

Does it guarantee success?


If anything, it shows you the realities behind FB Marketing.

It's not pretty. It's not cheap. Most of the time it's pretty competitive. And most often than not, it is NOT as successful as you would like.

You need a lot of patience and skill (and most probably deep pockets), to make FB Ads work in your favor.

Despite this though, this is an excellent module on FB Ads.

It is informative, brutally honest and up to date. 

There's one more Oberlo module to go!


Scared that FB Ads might sink your business?

The sad reality is that it happens - more often than you think.

So if you think it's a little too risky for you, why not read about my number one business suggestion for 2019 and beyond? ​

Click below to learn more...

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Ippei Kanehara
Founder/CEO Ippei Leads

$52K per month providing lead generation services to small businesses is for digital hustlers, industry leaders and online business owners.

His #1 online business recommendation in 2020, is to build your own 6-figure lead gen biz. You can learn more here.

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