INSTAGRAM vs. FACEBOOK Ads for DROPSHIPPING (which should you use with Shopify?)
Articles,  Blog

INSTAGRAM vs. FACEBOOK Ads for DROPSHIPPING (which should you use with Shopify?)


Hey guys. In this video, we’re going to be talking about
what is the best way to generate money making traffic to your dropshipping store. Is it Instagram shoutouts or is it Facebook
ads? My regular subscribers here at Wholesale Ted
will already know quite a fair bit about Facebook ads because we talk about it a lot on this
channel and inside our premium dropshipping course, the Dropship Club. Facebook ads are when you create an advertisement
for AliExpress products you’re dropshipping in your store that shows up in a Facebook
user’s timeline, but something that we haven’t talked about much is Instagram influences
and this is how that traffic source works. Let’s say that you’ve got this cute little
mug here that when you drink out of it turns your face into a cat. Well, what you do is you find large high engagement
Instagram page that is related to the product. In this case here, cats. You then contact the influencer and you get
them to make a post on their page which advertises the product and your store. And of course, the goal here is to get their
followers and potentially people that even organically find the page to see your post
and then to go to your store and purchase the product. So which form of advertising is better? Instagram shoutouts or Facebook ads? It’s a super common question that we get asked
here at Wholesale Ted and the honest answer is that each has their own pros and cons,
so let’s jump straight into the video. Which is the easiest for newbies to make money? One of the challenges that we’ve been discussing
on this channel recently for Facebook ads is the issue of trust. Think about it. You just created your Shopify, AliExpress
dropshipping store and now you are running Facebook ads promoting products to users who
have never seen you before, who have never interacted with you before and now you’re
asking them, despite not knowing who you are, to buy what you’re selling, hand you over
the money and trust you to send the products to them. That is huge ask and to be honest, this is
why I think I see people have success with Instagram shoutouts, then struggle to make
the shift to Facebook ads but not the other way around. With Instagram, the issue of trust is greatly
mitigated. Why? Well, because the followers of those pages
already trust them and you can even potentially make money from people who find those posts
organically despite not being followers of that page because of the enormous amount of
social proof that it has. With Facebook ads as a beginner, you don’t
have the luxury of piggybacking off of the existing trust that influencers have built. Of course, you don’t need to let this stop
you from running Facebook ads. There are many tricks that you can use to
overcome the issue of trust if you want to and store owners are doing this every single
day like getting really good at using ad copy and images to make people want to impulse
buy or by using trust symbols and words on your site. But there’s no way around it, there’s definitely
still a bit more of a learning curve when it comes to Facebook ads and so … And the
winner is Instagram shoutouts. Instagram influencers have gone and cleanly
knocked Facebook ads to the floor, but this fight is far from over. Which is cheapest for beginners to get started? I’ve already explained on this channel that
if you want to get started with Facebook ads, then you should be willing to set aside a
minimum of $450 to $500 in startup money. Why? Well, because you need to be prepared to test
multiple products on Facebook to find a winner. And I recommend that most beginners be willing
to test at least 20 different products, which means you need to be willing to test at least
20 different ads. As a beginner, a good ad test length is four
days with a $5 ad budget per day. So that means then that $20 for 20 different
product ads is $400, with the other $50 to $100 of your startup money going towards setup
costs. Now, let’s compare that to the cost of getting
started with Instagram shoutouts. With Instagram, you can negotiate shoutout
prices for pages with within 50,000 to 150,000 followers for between $10 to $20 so immediately,
they are cheaper. And as I’m about to explain shortly, low-cost
Instagram shoutouts usually have a much higher return on investment than low-cost Facebook
ads which means you’re going to make more money back during the initial testing phase
to help offset costs. So given that and also that $10 is half the
price of $20 … And the winner is Instagram shoutouts. Oh, Instagram influencers have pulled ahead
with an early two-point lead. Can Facebook marketing catch up? What makes the most money? With Instagram influencers and dropshipping,
if you see someone making $500 a day as in $500 of gross sales consistently, well, that
is pretty good. But with Facebook ads, you can make millions. In the beginning, Facebook ads are going to
cost you more money to get set up and, yes, in the early stages, the return on investment
is not great. A lot of people ask me the same question,
“Can you really make money if you spend just $5 a day for Facebook ads?” And the answer is no, you really can’t. Why? Well, because as I explained in a previous
video on this channel, those $5 Facebook ads do not hit high-value users. The algorithm is incredibly smart. It knows which users are more likely to click
on ads and buy products and, obviously, those users are in high demand with advertisers
so advertising to them is a lot more expensive than advertising to disengaged users. What this means is that when you run your
low-cost Facebook ads, their Facebook are not going to put that ad in front of those
people because if they did, you would blow through your daily ad budget very, very fast. So these low-cost $5 a day ads that you run
as tests, they’re going in front of low-value users which means your ROI is not going to
be great. With Facebook, if you spend $20 for a four-day
ad test and you break even or make a tiny profit, then that was a great ad, compare
that to Instagram where you spend $20 and you make $40 back. So on the surface, Instagram looks more profitable,
right? But, hold on. Yes, those $5 a day ads are not making you
much money but that’s not why you’re running them. You were running them with the goal of finding
profitable products and ads that have the potential to scale up to huge profits. And if that Facebook ad breaks even or makes
a tiny profit, then you will invest more money and how much you spend each day for that ad. You go from $5 to $10, $10 to $20, $20 to
$40 and so on. And once you scale to $40 a day, then you
enter the budget range where Facebook starts showing your ad to more valuable users and
that’s where the real money gets made. It’s because of this ability to scale that
dropshippers are able to earn millions of dollars, but that isn’t the only reason that
with Facebook you can make far, far more money. With Instagram shoutouts, you have a huge
limitation. When you find a Instagram page that works
with your ads, you can’t just go and post to it every day because if you did, you would
saturate that audience. Consistency can be very tricky with Instagram
shoutouts, so at most you can post to it two to three times a week and if you do this,
you’re going to need to vary up the products that you’re seeling so that, again, you don’t
oversaturate the page and kill it from over promotion. But, it doesn’t work that way with Facebook
ads. You don’t just get to run them two to three
times a week, you get to run them every single day. So even though Instagram influencers can start
out by making you more money, the profits do not scale and have an earning cap which
means … And the winner is Facebook ads. Facebook came from behind and gave a knockout
punch to Instagram influencers. It just got interesting, folks. Time to move on to round four. Which traffic method is the most scalable? Well, we’ve kind of already answered this
question because we’ve established that when you find a winning product and ad on Facebook
that you can keep pouring more money into it and as you increase the ad budget for it,
you reach more people and you make more money, and there is no equivalent here for Instagram
influencers. When you find a page that converts, you can’t
just pour more money into it every day so Instagram just flat out loses here. But there is something else that you also
need to know and that is compared to Facebook, with Instagram, you had a very limited audience. With Instagram, you need to run targeted ads. If you want to go and sell this mug here,
you can’t just run an ad to a general page. You will lose money. Instead, you need to run an ad to a page that
is specifically related to this product, for example, a cat page. Why? Well, let’s say that you go to a broad Instagram
account that has hundreds of thousands of followers but isn’t specifically related to
your niche. If you negotiate to buy an ad from them, you
negotiate to buy it for their whole following. And yes, there will be some people on that
Instagram page that has 500,000 followers that like cats but most people are not going
to be interested so they’re not going to buy your product and you’re going to lose money. But with Facebook, it’s different. Now, yes, in the beginning when you’ve got
a fresh Facebook ad account, you do need to run ads that are specifically targeted towards
your niche. But each day that you run your ad, Facebook
sees how it performs and its Pixel collects data on the types of users that click on your
ad, engage with your ad and buy your products which means that the longer you run your ad,
the more efficient that Facebook gets at picking who it should put it in front of. And it can get so good at this that, eventually,
you can run ads without niche targeting like millionaire dropshipper, Adrian Morrison,
and still make tons of money. Why? Well, because even if you throw it out to
a general audience, Facebook will do the work for you and it will figure out who it should
be putting your ad in front of. So not only are the ads by nature not scalable
for Instagram, you’re always going to be limited in the types of audience that you can target
which means … And the winner is Facebook ads. In the beginning, it looked like Facebook
ads had no chance and that they were an absolute goner but then they managed to come back from
behind and tie the score. It’s time to move on to round five. Which is the easiest for newbies to use? When it comes to setting up a Facebook ad,
it can be quite technical. You’ve got to install your Pixel, set up your
account settings, set up your ad settings and then in addition to having to create the
image for your ad, you also need to write the ad copy. Now, there are several steps involved in setting
up an Instagram shoutout campaign but in my personal opinion, they’re a lot more basic
and a lot less technical. You go to Instagram and you search for some
pages within your niche. You browse through the comments, make sure
that they’re real people posting. Check to see if the engagement score is good. You then email the influencer and ask them
about the price to run a campaign on their page. You then negotiate the price and you figure
out the terms of how it’s going to be run like what day it’s going to be on. And once you’ve done that, you give them the
ad image and the link to your website and pretty much, boom. There are steps involved to get your ad out
there but they require more soft skills, they’re not particularly technical. However, there is one major exception to this
which is important to note. If you are a self-confessed digitally challenged
person, then you might find Instagram shoutouts to be a bit harder. Why? Well, because of the fact that the audience
on Instagram is quite a bit younger and quite technically savvy, especially when compared
to Facebook. To do well on Instagram, you really need to
understand internet lingo and culture and if you don’t, you will not only struggle to
connect with your audience but perhaps more importantly, you are going to struggle to
personally connect with the influencers themselves. A lot of people running these pages, they
are literally teenagers, so you need to keep that in mind when you’re negotiating and talking
to them. And so I suspect for some people out there
that the culture shock of Instagram is going to be harder to overcome than the technicalities
of setting up a Facebook ad. But for everyone else … And the winner is
Instagram shoutouts. You know what they say folks, what doesn’t
kill you makes you stronger. Instagram took a bit of a beating but they
fought back hard. On to round six. Which is the most passive? With Instagram shoutouts, once you find some
pages that convert well with your ads, then you need to negotiate and organize ads for
each week. But with Facebook, once you got a winning
ad, there really isn’t much you need to do day-to-day unless you want to. Is a good practice to be testing new products
on Facebook? Absolutely, but the same goes for Instagram. Is it good practice to be testing different
ad creators like images on Facebook? Absolutely, but again, the same goes for Instagram. Testing is good but that goes for both platforms
and actually testing on Facebook is far more easier, efficient and a lot simpler to track
than it is with Instagram shoutouts. Facebook definitely requires more work upfront
but if you’re willing to put in that time, you get rewarded with a traffic source that
is more passive and requires less ongoing work to grow. And the winner is Facebook ads. And so there you go folks, it turns out that
it’s a tie. There’re advantages and disadvantages to both
traffic methods. Who would have guessed? And if you happen to be someone that is more
interested in Facebook ads, then due to extremely popular demand, we are running a second webinar
with millionaire dropshipper, Adrian Morrison, and there he’s going to be revealing his Facebook
and dropshipping strategy that he’s used to built million-dollar dropshipping stores. And that webinar is going to held on Sunday,
April 22 at 3:00 PM Eastern, USA time. Our last webinar maxed out on registrations
which is why we are running a second webinar, so I do suggest that you go ahead and sign
up ASAP. You will find the link on how you can sign
up in the video description below. Please note registration is essential as we
are not streaming this on YouTube. And of course, we have our free ebook, How
to Make $10,000 a Month Online With Dropshipping. You’ll find the link on how you can download
this ebook and find other videos that have been referenced in this one in the video description
below.

100 Comments

  • jorand73

    Hi Sarah. You always talk about testing products to find winners but what about identifying other shopify stores' winners and creating Facebook ads with these products? In other words, what about letting other people find the winners? Should another seller's winner be a winner for me and everybody else? I tried doing very similar ads to those that are getting a very good number of likes and comments in Facebook and are apparently selling very well in other Shopify stores, however I didn't get likes and my ads only reached a very limited number of people (On average 200 reach for each $5 ad) This is why I'm thinking that maybe it's not about the products I'm trying to sell but the way I'm doing my Facebook campaign. I really don't know what I'm doing wrong 🙁

  • ThunderTiger0801

    Hey Sarah awesome video! Really like the conten👍 I tried for ever to convince my parents to buy a dropshipping course for me but they dont wanna do it because they say I have to concentrate on my A level preparation (in one year😂) and that it isnt possible to run an online buisness by the way. The also said it isnt as easy as I think to make some ads for facebook or instagram like YouTubers do to get some traffic to my website in order to make sales if there are specific marketing educations which take 3 years to complete. According to them its also very conplicated to deal with unhappy customers or product defects and that I as a vendor am responsible for injuries produced by product defects. I dont know whats right or wrong…Whats your neutral opinion on this situation?

  • T Adams

    I just ended my 4 day like campaign on FB and it TANKED haha [ i messed up on the reach , i put in 38 million , i could not get audience down to 200k,everything i put in millions of people came up ]……have not started any ad placements yet….i think it might be best for me to start on intagram to build up the pixel….still learning

  • Rene Gonzalez

    I prefer Instagram when your starting out or want to gain view content or add to cart data but I defiently use fb ads and Google ad words to scale

  • T Adams

    When advertising on instagram do we follow the same rule like on facebook, to keep audience to 200 k or lower [ when we are just starting out ]

  • Jason Mettler

    I've contacted many influencers—and while there is always going to be some who give deals—the majority are onto the shippers and ecommers using them as ad tools. Thus, they are all raising prices. The cheapest I've ever had quoted to me is $25 for a 24 hr post. (17K followers, so quite low). Most 20-50K size pages are close to $100/post now. IG ad shoutouts still work; just is much more expensive than a year ago when it was new, unsaturated, and the influencers didn't know what they had.
    So, all in all, IG and FB are becoming more equalized in what you need to spend for a budget. IG is unpredictable but costs a few hundred to make some money. FB is predictable but takes a few hundred dollars to optimize a pixel and gain social proof/comments.

  • apeman171

    Great Vid . I owe it to you zeelander with a cute accent lol. I am not your student but I have listened to all your vids and teaching. I started my Amazon selling 3 weeks ago with 3 products and my sales is AMAZING total sales today $4,786 on 3 products. Thats all I have. I am re ordering products from China..But my point is YOUR Tips and Teaching really works…thanks again..continue the good work

  • Barret's Music

    the winner is none. I'm done. spent about $400 in both and made $80. fuck it :] I have a brick and motar that makes me $150 a day

  • Tome

    Great video.. .So how it works then when you have a more general niche and once you are trying to promote something else and then something completelly different. For facebook pixel to work properly do I have to only attack one niche and stick with it "forever" even if it is not profitable? FB manager only allows me to have 5 ad accounts so I can imagine to have 5 niches (different niches) and every ad accound would have different pixel connected to it. This subject is so complicated…especially when you have more general store. For example creative store (so you have creative items there) but it could be anything from creative rings to watches to toys. Is there any kind advice available for such a situation? Thanks, Tom

  • Ben Wilde

    Hi Sarah, you're videos have been great – I just have one major question. You recommend selling to the US when you start out but I've set my store up from Australia and can't change the store to US$ because of Shopify payments. Do you have any recommendations there? I see that in NZ you don't have Shopify payments so I was also wondering what you do too?

  • Rockey

    Very helpful content!! I have been a user of both platforms for a number of years yet a lot of the bullet points you just mentioned were alien to me. I have been working towards launching my shopify store this coming weekend. And these strategies will definitely help me get the most out of my ad bucks. Thanks!!!

  • Miss Fortune

    Super random question, not related to instagram / facebook ads; I'm currently trying to build an inventory using Oberlo, which is great, but I'm having trouble seeing stats beyond price / shipping price, and when searching for the same item on Aliexpress, I'm having trouble finding it – how do I fix this?

  • borboletamc1

    Hi , how can I make my store look better and more professional with out spend lots of money?🗣Please answer me.Thx.

  • Kevin R. Serrano

    Is it a good idea to use instagram to get your first 100 customers so that for so that I can get Pixel info and target using Look Alike Audience?

  • toolntims ideas Tim Harrison

    Hi I am 54 an not to say with computers but I'm going to do this I would like to start up an Amazon selling account I'm just a little service about the complete start up procedure I've watched A LOT of your videos and I think I overwhelmed myself i sure could use some start up ..step by step Advice. Could so.eone please help me thank you.

  • Stephane Roy

    This is a question about your course in the dropship club, in the course you provide do you teach how to select the right product on aliexpress, how to run a winning facebook ads and how to setup correctly a shopify website that makes sells ? Thank you

  • Kiwi Land

    Hi sarah, can you please mak video on how to add products slider for each collection on homepag with free app or code and also a video on how to cahnge color of header and menu bar Regards please Your fan

  • Itz Sable

    Hey Wholesale Ted.
    I have been making my site however i want to advertise it on FaceBook but i get an error when uploading the link, it says its blocked, any help?
    theuktechie.com
    Thankyou, any feedback on the site would be very helpful.
    Have a good day.

  • Marco Rodriguez - The eCom Project

    Instagram influencers can be a lot of work to approach and negotiate with, but they still have a strong bond with their following sometimes. It's like leveraging their warm traffic for yourself instead of going with purely cold traffic from FB Ads for example.

  • Aleks

    Excellent energy Sarah & great smile. Got 2 questions, if you've covered them in your informative videos, please provide reference link(s), as I will go back & watch.

    1) If your starting out utilizing Oberlo, Shopify – is there a way to collect the purchasing customers payment before placing the fulfillment order using your (sellers) money? Is there a way to collect & use the customers money to make the order purchase? If not, and you become overwhelmed with orders & the demand is greater than what you can initially order, what do you do in this scenario?
    2) Automate tracking info using 17track+automate a comment to suppliers that you are a dropshipper & to please not include the invoice or any marketing material in the product package (and also not to display the original price on the package unless this is required for customs) for each order automatically using Oberlo? It would be tedious to manually have to input this in every time theres a new order…Thanks

  • UXCELL Blackberry

    I can't learn a damn thing from her videos.. Don't get me wrong her advice is priceless and right on the money, but after 10 seconds I am totally mesmerized by mostly everything on her. From my position, the hardest artist to find is a beautiful, funny woman, let alone one that's so smart and hard working altogether. Being a tad weird and hyper makes her better or worse (to focus). Reminds me of Goldie Hawn, but an upgraded version. Somebody help me?Girl your stare, those eyes I (love it when you look at me baby)Your lips, your smile I…;-)

  • Lars Owen

    Your boy Aidan and his cronies at 7 Figure Cycle just got busted for plagiarizing Beau Crabill’s course. https://m.youtube.com/watch?v=2gS08HtY4uQ

  • Ross Coldrick

    Hey! I don't know where to contact you other than the comment section. I have a problem. I am selling some pool products from Aliexpress, but the images are of a fairly ok quality. I don't want to ruin my brand identity, yet I want to sell these products. Is it better to just scrap the product or should I sell it, then when I can invest in taking my own products?

  • Dylan Burrows

    Should I Build up a following on my page before I start to spend more money on advertising to my store ? I'm find it hard to get likes and followers on my pages at the moment help would be very appreciated 🙂

  • Cindy L

    Hey Sarah! I will be really thankful for your reply. with the Facebook privacy issue going on, does it affect the performance of Facebook advertising?
    great video btw!

  • timothy howell

    Sarah if a product gets traction and makes sales but is not in the green after four days of testing, would you continue to break down and keep testing different audiences until an adset is in the green and then scale from there? or would just move onto another product? (if you have a video on this topic that would be awesome!) All the best!! Any Informative response to this question from anyone else would be much appreciated also, thanks in advance.

  • Alan Pettyjohn

    I would think that whether you utilize Facebook or Instagram marketing would depend on the product. That is not mentioned here at all… Younger people vs. older people use different platforms.

  • eri lupz

    Sara can you make a video of how to find and use a real instagram influencers? There are so many liars and fakes influencers that scares me.

  • doesnotFempute

    I have a semi-related question that maybe you could help with: I currently run an Etsy shop for handmade items, but was thinking about starting a Shopify for dropshipping. Do you think it would be worth it to combine the two and run sort of a hybrid store on shopify? I was considering increasing the price of my handmade items a bit so that I can advertise free shipping on all items, and then focus most of the ad budget on the dropshipped items. Do you think this has potential, or is it a recipe for disaster?

  • james thomas

    New to dropshipping, new to FB ads…If the goal is to sell the item, why would I run a campaign for likes? Wouldn’t I just run a product conversion ad? Also, how is collecting email addresses beneficial?

  • Sojo R

    Whats drop shipping? And why does everyone in these search results has such animated thumbnails for their video? 😲 Feels like i landed in the twilight zone surrounded by copy cats, & cookie cutters.

  • Rihong Liu

    Hey Sarah, you kept talking about this cat guitar coffee mug, but I can’t find it anywhere… I was thinking to get it for my husband since that he is a big cat person…

  • qing li

    Hi Sarah, How to use influencers data to build Lookalikes on Facebook ? And how to use facebook pixcel when doing ads? Thank you so much, lm so confusing

  • David Marks

    Hi Sarah. What would consider a winning ad? If you re not going to make any sales off of a 5 dollar a day budget, how do you know when to scale? what should your click-through rate and CPC be on Facebook before you know you are doing alright?!?

  • Frederic Cook

    Another video jammed packed with valuable information for us newbies…..Thanks Sarah!….Still trying to figure out the 25,000 question. Whos Ted???….Happy Holidays from Sunny Naples…

  • Sherie McElwee

    So! I want to share with you all my experience in Shopify business! It was a great experience at all. I am so happy that I've experience this kind of shipping method, Very smooth, very well cared off. The reason for this is Fulfillman! That's all I need and it's all you need. No Worries about Advertisement because they have the state of art expertise! Truly success is within your hand. You may contact my trusted friend, Arnel-Fulfillman in Skype.

  • Dr TopDeal

    I got a quastion, how can i know the results of an instagram shoutout? Is there any way to track how many leads there where from that instagram shoutout URL?

  • Chads Pinnox

    Please, can anyone advise me on this facebook ad question?

    When advertising on Facebook ads, exactly when should I increase the budget and by how much over the testing period if I get one sale at every increase?

    For example, on Saturday I advertised a new product for $15; I set the ad at $15 and got an order on the same day and fulfilled it.

    Should I have increased the budget at that moment or left it at $5 for the testing period of 5 days or should I have increased it at every sale request?

    After Saturday, I did not get any other sale; but then on the following Tuesday, which is today, I increase the budget by another $5 and got another sale within hours.

    It seems like that every time I increase the budget I get a sale; is that what is suppose to happen?

    How often should I increase the budget during the test period if I get one sale on every $5 increase of ad budget?

  • tiraandaz

    Sarah, you are truly an angel. Thanks for putting all this stuff up; appreciate that. Would you like to make your opinion known about Pinterest. As Pinterest is a more visual platform like Instagram, I guess the comparison would become inevitable. What are your thoughts?

  • Python Ridge

    Can I get some opinions on my site? From anyone would be great. Extra points if Sara can do it: glamorcamping.com. Just a heads up I'm not using Shopify I'm using WordPress. I've been trying to follow tutorials on how to make sure my website converts. I'm starting a Google campaign tomorrow and I want to make sure it all seems ok!

  • Lowanna Natajini

    Here's a quick tip on Instagram marketing. Instead of paying hundreds of dollars on a large influencer and risking the campaign fail, use micro-influencers with an active following. This will cost less money and can be closer to your niche then a big influencer

Leave a Reply

Your email address will not be published. Required fields are marked *