$1.12
Avg CPC
+26% vs branded ecommerce
1.45%
CTR
1.8%
Conv Rate
2.8x
Avg ROAS
-33% vs branded ecommerce
$55
Avg AOV
$62
Avg CPA
Source: Varos Dropshipping Report 2025
Different campaign types have vastly different CPCs for ecommerce. Here's what to expect:
Product-focused ads with high purchase intent. Best for catalog-based advertising with visual products.
Blends Shopping, Search, Display, and YouTube. CPC varies widely based on where Google shows your ads.
Your brand name keywords. Cheap CPCs but don't let PMax cannibalize these—run separately for control.
Generic product keywords. High competition drives up CPCs. Only profitable with high AOV or strong conversion rates.
Retarget cart abandoners with specific products. Low CPC because you're targeting warm audiences.
Focus your budget on these high-converting keywords:
Feature-specific searches indicate product awareness and purchase readiness
Explicit purchase intent, ready to buy immediately
Problem-aware searches convert well with proper advertorial funnels
Benefit-focused searches show clear purchase motivation
Price-conscious but ready to buy—matches dropshipping value proposition
Lower CPCs = more clicks for your budget = better ROAS. Here are proven strategies:
[Benefit/Use Case] + [Product Type] + [Key Feature] + [Differentiator] Well-structured titles improve Quality Score and lower Shopping CPCs by 15-25%.
Create separate campaigns for Winners (high ROAS), Potentials (volume), and low performers. Bid aggressively on winners, conservatively on the rest.
Run branded keywords in a separate Search campaign. This prevents PMax from claiming credit for cheap brand clicks and inflating your actual CPC.
Fix disapproved products, add GTINs, include all recommended attributes. Higher feed quality = better auction eligibility = lower CPCs.
These keywords drain your budget with low purchase intent:
Research phase—send to advertorial instead of product page
User wants Amazon specifically, won't convert on your store
Bargain hunters with high return rates and complaints
Local intent, dropshipping can't fulfill urgency
Shipping expectation mismatch guaranteed
As you scale, your CPC dynamics change. Here's what to expect at each phase:
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.
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.
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.
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.