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2025 Budget Guide

How Much Should Dropshipping Spend on Google Ads?

With $1.12 average CPC and $55 AOV, dropshipping stores need at least $1,500/month to see results. Here's how to budget for profitable growth at every stage.

Dropshipping Unit Economics

$1.12

Avg CPC

$55

Avg Order Value

$62

Avg CPA

2.8x

Target ROAS

Budget Tiers for Dropshipping

Choose your budget based on where you are in your growth journey:

1

Testing Phase

Minimum viable budget to gather data

$1,000 - $3,000/mo

Expected Sales

24-48 orders

Expected Revenue

$1,331 - $2,661

Target ROAS

2.2x

Focus: Standard Shopping only. Build conversion data. Test product segments.

2

Growth Phase

Scaling what works with data-driven decisions

$3,000 - $10,000/mo

Expected Sales

48-161 orders

Expected Revenue

$2,661 - $8,871

Target ROAS

2.8x

Focus: Add Performance Max. Segment by product performance. Test remarketing.

3

Scale Phase

Aggressive scaling with diversified campaigns

$10,000 - $50,000/mo

Expected Sales

161-806 orders

Expected Revenue

$8,871 - $44,355

Target ROAS

2.5x

Focus: Multiple PMax asset groups. YouTube/Demand Gen. Expand to new markets.

4

Enterprise Phase

Full-funnel strategy with brand building

$50,000+/mo

Expected Sales

806+ orders

Expected Revenue

$44,355+

Target ROAS

2.4x+

Focus: Multi-market. TV/Connected TV. Influencer partnerships. Brand campaigns.

How to Allocate Your Budget

Recommended budget split by campaign type for dropshipping stores:

Brand Search
15-20%8-15x ROAS

Protect your brand, cheapest conversions

Performance Max
40-50%2.5-3.1x ROAS

Main scaling engine (segmented)

Standard Shopping
15-20%2.8x ROAS

Control & comparison vs PMax

Dynamic Remarketing
10-15%6-10x ROAS

Cart abandonment recovery

Search (Non-Brand)
5-10%2.0x ROAS

High-intent category keywords only

Dropshipping Scaling Strategy

Follow this phased approach to scale your budget profitably:

1

Validation ($500-2K/month)

$500-2,000

Test products with advertorial campaigns at $0.10-0.30 CPCs. Only products with 3%+ CTR on advertorials move to Shopping. Calculate profit thresholds before any Shopping spend.

2

Profitability ($2K-10K/month)

$2,000-10,000

Run Standard Shopping for validated winners only. Focus on 5-10 products max with proven unit economics. Heavy remarketing to maximize conversion rate.

3

Scale ($10K-50K/month)

$10,000-50,000

Add PMax for proven winners only. Expand product testing via advertorials. Consider moving to 3PL for faster shipping to improve repeat rates.

4

Brand Building ($50K+/month)

$50,000+

Transition to branded model with private label products. Invest in brand search campaigns. Consider inventory investment for faster shipping competitive advantage.

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