Scott Redgate

What Is a Good CPC (Cost per Click) For Your Business?

Figuring out your CPC (cost-per-click) can be a little tricky, but it’s an essential part of setting up your eCommerce advertising account. You want to make sure you aren’t wasting any money on ads that don’t convert, and finding the right CPC is the key to that. In this blog post, we will teach you how to calculate the best CPC for your business!

Here’s how to calculate the CPC for your eCommerce business:

Step One: Single Product Sale Profit

single product sale profit

The first step is to calculate your single product sale profit. To do this, you will need to know your product revenue, minus the cost of goods sold and any variable costs. 

Step Two: Break-Even CPC

Breakeven CPC

Once you have your single product sale profit, you can calculate your break-even CPC. To do this, take your average conversion rate and multiply it by your single product sale profit. Your ideal CPC is at least $0.01 less than your break-even CPC.

For example, let’s say your average conversion rate is two percent and your single product sale profit is $20. This means your break-even CPC would be $0.40 ($20 x 0.02). Therefore, you would want to aim for a CPC of $0.39 or less.

Of course, your actual CPC will vary depending on a number of factors, including the competitiveness of your industry, the time of year, and so on. But using this method will help you ensure that you’re never overpaying for clicks.

You can now answer the question, “What’s a good CPC?”! These are two simple methods for calculating the ideal CPC for your eCommerce advertising account. By following these steps, you can be sure that you’re getting the most bang for your buck.

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