Insight
How Much Should You Spend on Facebook Ads? A Budget Method for E-commerce in Bangladesh
Every founder asks for a number. The honest answer is that the right budget is not a number anyone can give you. It is a calculation that starts from your product, not from a package.
By Manuar Jahan Rana · E-commerce Growth Partner
Search this question and you will find confident tables: this many taka per day for a small business, that many for a medium one. Those tables are written to sell packages, not to protect your margin. Ad costs in Bangladesh move with your product, your price, your creative and your competition, so a budget copied from another business usually fails in one of two directions: too small to learn anything, or too large for your economics to carry.
Start from the order, not from the budget
Work backwards. Take one product and write down its selling price, then subtract the product cost, packaging, delivery subsidy and expected returns cost. What remains is your gross room per order. Your advertising has to live inside that room, with profit left over. As an example only: if a product sells for BDT 1,490 and your costs before advertising come to BDT 1,050, you have BDT 440 of room. A cost per order of BDT 200 to 250 might fit that product. A cost per order of BDT 500 never will, no matter how good the targeting is. Every product you sell has this ceiling, and finding it is the first budgeting step.
Testing budget and scaling budget are different money
A testing budget buys information: which product, which creative and which audience produce orders under your ceiling. Judge it by whether you got a trustworthy cost per order, not by whether every taka returned a profit in week one. A scaling budget is different. It goes only behind a product and creative that already produce orders inside the ceiling, and it rises in steps while the numbers hold. Mixing the two is how stores burn money: scaling an untested product, or starving a proven one.
Small budgets fail quietly
A very small daily budget spread across many products produces a few clicks everywhere and reliable data nowhere. Decisions made on two or three orders are guesses dressed as data. It is usually better to concentrate a modest budget on one or two best products until the cost per order is proven, then widen. This is especially true for cash on delivery stores, where placed orders and delivered orders are different numbers, as explained in this article on COD advertising.
When to raise the budget, and when to stop
Raise it when the cost per delivered order sits comfortably under your ceiling for several days in a row and the store can handle more orders. Stop or fix when the cost per order crosses the ceiling and stays there: the problem is rarely the budget size, it is usually the creative, the product page or the offer. More money on a broken funnel only buys the same lesson faster. The results in my case studies were all built this way: prove the economics small, then scale what holds.
If you want this calculation done on your own products before you spend, that is exactly where an e-commerce growth strategy review starts: your margins, your ceiling, and a budget that respects both.
Questions Business Owners Ask Me
Can I start with a few hundred taka a day?
You can test reach and reactions at that level, but sales data will be thin and slow, and thin data leads to wrong decisions. If the budget is truly small, concentrate it on your single best product instead of spreading it.
How long should I test before judging a product?
Until you have enough orders to see a pattern, not a fixed number of days. A handful of orders cannot tell you the real cost per order. Judge on delivered orders for COD, over a run of days, not on one good or bad afternoon.
Should my budget be daily or monthly?
Plan monthly, manage daily. The monthly figure is what your business commits to learning and growth. The daily management decides where inside that month the money earns its keep.
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