Your $15 product has $5 profit. Average CPC is $0.80, conversion rate is 2%. That's $40 CAC for $5 profit—mathematically impossible.
Example: $12 product, $3.50 profit, $0.75 CPC × 3% CVR = $25 CAC. Losing $21.50 per sale.
Low-ticket items often have shipping that equals or exceeds product price. $8 product with $5.99 shipping = 70% checkout abandonment.
Example: 65% abandonment when shipping exceeds 50% of product price
Low-ticket buyers often purchase just one item. $15 AOV with $40 CAC is fatal. Without bundling strategy, unit economics don't work.
Example: 1.2 items per order average, $18 AOV, impossible to profit
Low-ticket products are impulse buys, but Google Ads catches research moments. By purchase time, they've forgotten or found alternatives.
Example: 75% of clicks don't purchase within 24 hours—impulse window closed
Low-ticket returns often cost more to process than the product is worth. 15% return rate on $12 products destroys any remaining margin.
Example: $5 return processing cost on $12 product = negative margin on every return
With a single asset group, Google optimizes for aggregate ROAS by heavily favoring your top 5-10 products. The rest of your catalog gets almost no impressions. Worse, low-margin products drag down profitability while appearing successful in aggregate.
Fix: Segment products by performance tier: Winners (scale), Potentials (test), Underperformers (cut or fix). Create separate asset groups for each.
PMax claims credit for brand searches that would've cost $0.30 through a dedicated brand campaign. Without exclusions, you're paying 3-5x more for customers already looking for you.
Fix: Add brand exclusions to PMax and run a separate Brand Search campaign with exact match keywords.
Missing GTINs, generic titles, no custom labels, and missing sale prices hurt your Shopping ad performance. Single products dominating
Fix: Create bundle listings (3-pack, 5-pack, kit)
Your 5x ROAS might look great until you realize 70% of sales are repeat customers who would've bought anyway. You're paying to acquire customers you already have.
Fix: Segment reporting by new vs returning customers. Set up customer match lists and analyze true CAC.
Not all campaign types work for low-ticket products stores. Here's what to skip:
CPCs exceed profit margin
Will spend on any traffic
Too expensive for low-ticket
Follow these best practices to maximize your Low-Ticket Products Google Ads performance:
Budget: 50-60% • Target ROAS: 2.5-4x
Budget: 20-25% • Target ROAS: 4-8x
Budget: 15-20% • Target ROAS: 3-5x
Budget: 10-15% • Target ROAS: 4-7x