I’m new to eCommerce and Google Ads. What would be a logical budget amount I should plan for my campaigns.
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The best way to calculate your budget plans is to start by estimating the amount of clicks you need to have in order to achieve your sales targets. Now the conversion rate (the % of Purchases to Clicks) is something that needs to be measured for your website, but you can look up some acceptable industry benchmarks. Normally good websites will turn visitors to buyers at a rate of between 2% and 5%. Better websites can reach up to 10%, but these are considered to be rare and exceptionally expert.
So, if you assume that for a new website you will have say 3% conversion and your click cost will be $1 per click, you will need statistically to bring 100 visitors to your website in order to make 3 conversions or sales. However, due to the statistical nature, it may be that your buyers will not be all concentrated in the first 100 visitors. You may need to drive 1,000 visitors to see the 30 conversions that are indication of a 3% conversion rate.
In that case you may want to spend some $30 per day to give enough breath to your campaigns to perform.
It’s important to note that many eCommerce stores allow for some 3 to 6 month to pass before they can make a clear decision on their optimal spend.