Complete Guide To Facebook Ads Setup for Dropshipping

The best thing that has happened to eCommerce enthusiasts since the eCommerce business model itself is the Facebook ads.

You can’t imagine a single eCommerce brand today that isn’t advertising their products on Facebook (unless you are selling some really huge machinery or stuff that’s consumed by aliens).

If you are someone who is just starting with dropshipping, other channels like SEO may take a longer time to work and cannot be a reliable source for getting that quick momentum.

Thus, if you are considering running Facebook ads & want to set up your ad account in such a way that you don’t run into operational confusion, knowing how to set up a Facebook ad account in the right way is important.

In this article, we are going to take a look at the step-by-step process of setting up Facebook ads for your dropshipping store.

If you follow along, by the end of this article you will have your own ad account set up so that you can get – up & running with your campaigns.

But before starting to make our hands dirty & look into how to setup Facebook ads for dropshipping, just in order to warm up, let’s first take a look at – why are we giving importance to Facebook ads for dropshipping?

Why Facebook Ads For Dropshipping?

When it comes to dropshipping, it’s all a numbers game. The more products you sell, the more the profits.

This can be achieved on one side by acquiring more customers & on the other side by selling multiple times to each customer. This is where Facebook opens up possibilities for us.

With more than 2.80 billion users (2021 data) on Facebook, we have huge opportunities to reach people from almost any type of background, demographic or psychographic. So irrespective of your niche, your audience is still there on Facebook in some numbers.

And when it comes to considering it as a primary marketing channel for dropshipping, here are a few things that make it considerable –

  • The amount & quality of data Facebook has of the users allows us razor sharp targeting while launching our campaigns.
  • Requires the least budget to start testing (you can start with as low as $5 per day or in India, 400 per day to start getting some initial results).
  • Once you get good results, you can strategically scale it to whatever level you can afford.
  • Features such as pixel tracking allows you to track the visitors who have done a certain activity on your website thus, increasing the efficiency of your campaigns.

Are Facebook Ads Profitable?

A lot of buzzes can be seen in various forums, YouTube videos, or Facebook groups about Facebook ads not being profitable these days. Many even go to the extent to claim that Facebook ads are dead for dropshippers.

You might have come across such content before landing on this article. Let me tell you this. Many of such claims are simply overreactions to the increasing ad prices due to more advertisers stepping in, strict policies & inefficient cookie tracking due to operating system policies like iOS 14 or 15 updates.

But did you notice this again – people advertising on Facebook are increasing. There are a lot of brands that have made it big recently leveraging the power of Facebook.

If it wasn’t profitable, how come many others are benefiting from it?

But all things said & done, yes, advertising on Facebook & making the campaigns profitable has definitely become more challenging than ever before. Thus, it all comes to strategy.

If you get the strategy right, you will see the magic happening for your brand right in front of your eyes. I will talk more about the strategy in the next blog post.

Till then, you can rest assured that if done correctly, Facebook ads are still one of the most profitable channels out there.

Now let’s jump straight into the field & start setting up the Facebook ads for our dropshipping store the right way.

Facebook Ad Setup for Dropshipping – Step by Step Process

To prevent you from getting overwhelmed while executing things, it is important that I clarify & explain to you all the tools and features that we are going to make use of during the process.

Let’s quickly get familiar with them.

Facebook Business Manager

Facebook Business Manager now rebranded as Facebook Business Suite is a tool that is a one-stop hub for all the things that you will ever do on Facebook.

All your Facebook Pages, Instagram Accounts, etc. can be managed from this one place. You can also add multiple users to this account making it easy for the teams to manage everything from one place.

You can see who all have access to the pages or accounts owned by you. You can also manage the permissions & add or remove users.

Facebook Ads Manager

Facebook Ads Manager is an individual Ad account through which you can run ads. You can also add multiple users to one Ad account & assign them roles, but it will be related to running ads & running ads only.

You get your personal ad account that is connected to your Facebook profile & then several Ads Managers that are connected to your Business Manager.

If you are aiming to run a serious long-term business, which in the case of dropshipping – you are, then it is important to stay away from your personal ad account as it has certain limitations.

Facebook Pixel

This is going to be your most important tool that will track your audience & their activities whenever they land on your website.

In simple words, a Facebook pixel is a tracking code given by Facebook that you can put on your website so that you can track whether the visitors coming from Facebook ad campaigns are converting or not.

You can run a retargeting ads campaign to the people who have landed on your website but have not bought any product.

Ad Campaign

In the Ads Manager, you have to start setting up your ad with the object or a goal first. It can be to generate leads, to get engagement on your post, to get more brand reach, or to get more conversions (ie. sales, downloads, form fill-ups, etc.)

This goal or an objective for a particular purpose is your ad campaign. But unless and until you have at least 1 Ad Set & 1 Ad under it, it isn’t eligible to be called a campaign.

Ad Set

The ad set is all about the targeting. Towards whom is your ad targeted? What is the location you want to show your ad to, what ‘interests’ are you looking in the audience to show your ad, etc. Ad Set is a part of the Ad Campaign. But you need at least 1 Ad for it to be called an Ad Set.


When we say only ‘ad’ in technical terms of Facebook ads, we are referring to the Ad media & not overall ads. Ad media comprises 2 things – Ad Creative (an image, carousel of images, or a video) and Ad Copy (caption or textual content).

Ad is a part of Ad Set & there could be several Ads under 1 Ad Set.

Let us also get familiar with how the structure of your account is set so as to give you a clearer picture.

facebook business manager structure

Facebook Business Manager Account Structure

Let me simplify this thing.

  1. First comes the Business Manager. Under this, there are several properties like Admins & Users, Ads Managers, Facebook Pages, Instagram Accounts, Business level Facebook Pixel, etc.
  2. Business level Facebook Pixel can be used across all the Ads Managers in that Business account.
  3. In Ads Manager, there is an Ad account level Facebook Pixel. It can be used only within that particular Ads account.
  4. In every individual Ad Manager, the ads are structured in 3 layers naming – Ad Campaigns, Ad Sets & Ads.
  5. Ad Campaign is about the objective of a particular campaign, Ad Set is about the particular audience targeting whereas Ad is the actual ad copy & the creative.
  6. So a single Ads Manager can have multiple Ad Campaigns, a single Ad Campaign can have multiple Ad Sets and a single Ad Set can have multiple Ads.

Take a look at the diagram below for easy understanding.

How To Setup Facebook Business Manager?

Now that you are comfortable with all the terminologies, we can smoothly move ahead at a decent pace. So let’s get going.

Step 1

In order to open up your Facebook Business Manager, you will first need to have a personal Facebook account or a profile. I assume that by now you must already be having your personal account. If not, go to Facebook and get one created.

Step 2

Now you need to create your Facebook Business Manager account. Once you land there, click on Create Account.

how to setup facebook ads for dropshipping

You will be prompted to fill in your business details in a popup form. Fill them & click on Submit.

Now your Business Manager is created. But it is of no use still. So what you need to do now is to create a Facebook Page for your dropshipping brand which will be connected to your Business Manager.

How To Create a Facebook Page From a Business Manager?

Creating a Facebook Page directly from your personal account is possible. But now that we are on track & to make our page easily connected to our Business Manager, we can create that from here itself.

Step 1

Go to the homepage of your Facebook Business Manager account. By clicking on the Settings, a new side panel will open. Click on the More Business Settings there.

Step 2

Under the Accounts dropdown, you can see Pages. Once you click on it, you will see Add in the right side area of the dashboard. Once you click on Add, you will again see 3 options in the dropdown.

  • Add a Page
  • Request Access to a Page
  • Create a New Page
how to create a new page from facebook business manager

If you want to bring in the page that you have already created before in this Business Manager, then of course you need to click on Add a Page & choose the page to which you already are an admin.

If you want to access a page of which you are not an admin, this can be a page created by your client or your partner for the dropshipping brand, then you need to ask for access.

In this case, you can click on Request Access to a Page. Once you do that, the admin of the page will be notified and will be required to grant you permission.

In the third scenario, we are here to create a new page from scratch altogether. So simply click on the Create a New Page option and you will be asked to fill in the details like what should be the page name, contact information, ‘about’ description, what category of business it is (you can choose shopping service or type of brand that you are), etc.

Once you are done with it, you are good to move ahead. It’s time to create an Ad Account.

How To Create a Facebook Ads Account?

Facebook Ads Account created from a Business Manager will be different from the one you can create from your personal Facebook profile.

It is not recommended to use your personal profile to create an Ad Account as it has some limitations and if in case your personal Ad Account gets disabled, you may lose access to all your properties.

So better you create your Ad Account from Business Manager.

Step 1

You will again need to go to the Business Settings of your Business Manager. Once the settings open, under the Accounts section, you will find the Ad Accounts option. Click on it.

Step 2

Here, again in the form of a dropdown, you will get 3 options.

  • Add an Ad Account.
  • Request Access to an Ad Account.
  • Create a New Ad Account.
how to create ad account from facebook business manager

Just similar to what we saw while creating a Facebook page, you can Add an Ad Account if you already have created one previously.

If not, you can Request Access to an Ad Account if you want to manage Ads from someone else’s Ad Account.

In the third case (which we are in right now), you can Create a New Ad Account. Once you click it, you will be taken ahead & asked for a few details. Once you fill them up & submit them, you are done.

Now you finally have a Facebook Page and Ads Manager setup. But when it comes to running ads for dropshipping especially for the B2C products, the most promising results you can get are through Instagram.

And if you want your ads to appear on Instagram too, you need to connect that with your Facebook page from Instagram Settings and then get it added up in the Business Manager.

Once you connect your Instagram Account to your Facebook Page (you might need to convert it first into Instagram Business Account if it’s a Personal Account), then you can add that to Business Manager by going to Business Settings > Accounts > Instagram Accounts > Add.

Once this is done, it’s time to set up a million-dollar code that you will need. The Facebook Pixel!

How To Setup Facebook Pixel?

You can set up Facebook Pixel on 2 levels. One is on the Business Manager level and another is on the Ads Manager level.

The Pixel that you create on the Business Manager level can be shared across all the ads accounts. The Pixel created on the Ads Manager level is specifically dedicated to that particular Ads Manager.

For this article, we will take a look at creating Facebook Pixel from the Ads Manager level which will be enough for your dropshipping business.

Note: You get only 1-pixel code per Ads Manager account and you cannot delete it once created. Thus, be careful while creating and managing one.

So let’s take a look at how you create a Facebook Pixel in Facebook Ads Manager.

Step 1

Head over to your Ads Manager. From the side panel, click on All Tools > Events Manager.

Step 2

Once you are in the Events Manager, hover to the green ‘+’ icon on the left side and click on Connect Data Sources. You will see 4 different options – Web, App, Offline, CRM. Select Web & hit Connect.

Again you will see 2 options – Conversions API & Facebook Pixel. Select Facebook Pixel & hit Connect.

how to create a facebook pixel

By going ahead, you will be asked the name that you want to give to your Pixel and your website URL. Fill in the details and go ahead.

Step 3

You can choose to install your Pixel either through Partner Integration or the Manual method. Let’s talk about the Manual method in this case as the Partner Integration method is pretty self-explanatory and you can go ahead that way as well.

In the Manual method, you will be shown the Facebook Pixel base code. You have to simply copy it and paste it into your website code at the bottom of the Header tag.

How To Add Facebook Pixel In Shopify?

Installing Facebook Pixel to your Shopify store is easy. You don’t even need to copy the base code. All you have to do is to copy your Facebook Pixel ID (you will find a 16 digit pixel ID just in front of your pixel name).

how to add facebook pixel to shopify store

Copy the ID and head straight to your Shopify store. Now, in the Shopify admin dashboard, under Sales Channels, open the Online Store and click on Preferences.

You will find Google Analytics, Facebook Pixel, etc. fields here. In the Facebook Pixel field, paste your ID and hit save.

how to connect facebook account to shopify store

Alternatively, if you have connected your Shopify store to your Facebook Business Manager, then all you have to do is –

  • Go to the Shopify Admin page and under the Sales Channels section, click on Facebook.
  • Click on Settings there and select the Data Sharing Settings.
  • On that page, click Enable Data-Sharing under the Customer Data-Sharing section.
  • Now Choose Data-Sharing Level option will appear for which you can choose Standard, Enhanced or Maximum.
  • You will be able to see the Facebook Pixel that you created in your Business or Ads Manager Account.
  • Select the Pixel that you want to connect to your dropshipping store and hit Confirm.

How To Add Facebook Pixel Code In WooCommerce?

Installing Facebook Pixel on your WooCommerce is a bit longer process compared to Shopify. But you don’t need to dive into the code of your theme and find the right place to place the quote.

You simply have to install a code manager plugin like HFCM. Once it is installed, you can go to the plugin from the left sidebar.

Inside the plugin, you can Add New Snippet, choose the location as a Header and manually paste the base pixel code that you got in the events’ manager.

hfcm plugin wordpress

That’s it! The pixel code is added to your WooCommerce website.

Now go to the events manager where the pixel code is opened and click on Confirm.

You can verify that by going to your website from the Chrome browser and using the Chrome extension called Facebook Pixel Helper.

No matter whether your website is hosted on Shopify or built with WooCommerce, you will find out whether the pixel is getting triggered or not.

But still, the process isn’t completely done yet. You have to create conversion events to get the exact activities tracked on your store.

How To Create Facebook Conversion Events?

Setting up pixel conversion events for your store is important to track all the important events.

This will enable you to track the results and retarget your ad campaigns to people who perform that particular activity on your store.

Now it doesn’t matter whether you are using Shopify Store or a WooCommerce store, Facebook’s new feature of being able to add events works on almost any type of platform.

You have to head to the Events Manager for that. Once there, you can select the Facebook Pixel that you have created and added to your store recently.

At the right side of the dashboard, you can see an option with a drop-down function called Add Event.

Once you click on the dropdown, you will get 3 options – Using The Conversions API, From a New Website, From the Pixel.  Click on From the Pixel (as you have already installed the pixel).

setting up conversion events in facebook

A new window will open up that will inform you about the event setup tool. Click on the Open Event Setup Tool which will take you to the next window asking for your website URL. Follow the instructions to set up the conversion events.

Make sure you set up all the important events like Add To Cart, Buy Now, and Purchase.

Aggregated Event Measurement & Domain Verification

Since Apple’s iOS 14 update, it has become compulsory to verify your domain and configure your selective conversion events which are now limited to 8 events per domain.

Your events might not be triggered if you did not verify your domain and list down your events in the Aggregated Event Measurement feature.

  • To do that, you have to head to your Events Manager.
  • At the right hand section of the page you will find a tab labelled as Aggregated Event Measurement. Once you click on it, you will see a button saying Configure Web Events. Click on it.
  • Now you will be taken to a new page. By now, we haven’t verified our domain yet. Thus, you need to click on the Manage Domains option on that page.
  • You will be automatically taken to the Business Settings page. On the Domains tab under Brand Safety dropdown, you will be able to add and verify your dropshipping website’s domain.
  • Once you complete the verification process, you can come back on the Configure Web Events page of Aggregated Event Management.
  • Now you will see your verified domain there. Hit the dropdown arrow and click on Manage Events button.

Here you can add a maximum of 8 events from those that you have already set up earlier. You will be able to list them from highest to lowest priorities.

Once you are done with all this, it is time to set up billing & payments for your Facebook Business Manager.

How To Setup Payment Information In Facebook Business Manager?

Go to the Ads Manager first of which you want to set up the billing and payment. Now click on Settings and in the Ad Account Settings, click on Payment Settings from the sidebar options.

how to setup payment information in facebook business manager

Now on this page, you can click on Add Payment Method and choose the method that you want to add.

You will be billed either through a Manual or Automatic billing cycle. You will get to choose this option while creating a new Ads account.

If you go for Manual billing, you simply have to add the funds to your ads account in a pre-paid manner. In the Automatic cycle, you are charged either when you hit a certain threshold, or when a month is completed. 

On this Payment Settings page, you can set your Account Spending Limit too by clicking the three dots on the right side of this option, clicking on Set Limit, and entering the value that you wish to set limit up to.

Once you are done with all this, it is time to add your team member(s) to your Business or Ads Manager account (if you have any).

How To Add People To Your Facebook Business Manager?

Before moving ahead, if you have a team, then it is first important to give them access to your Business Manager or Ads Manager and assign them certain roles.

You can add people to your Business Manager account either as Admins or Employees. Admins have similar authority in the account as you have. Mainly they have access to the Events Manager which has your Pixel & Conversion Events.

If you add them as Employees, they simply have the authority to manage pages or ad campaigns and nothing else.

roles available in facebook business manager

You can add or remove people from your Business Manager by going to Business Settings > People > Add.

There you can add new people as Admin or Employee and assign them properties ie. Facebook Pages, Instagram Accounts, or Ads Manager account.

For adding your team members specifically to Ads Manager or assigning them certain roles in your Ads Manager, you can go under Accounts > Ad Accounts > Add People.

roles available in facebook ads account

There you can either add new people or assign specific roles to the already added people. You can add people as Admin, Advertiser, or Analyst.

Setup Facebook Ads For Your Dropshipping Store

By now, you must have set up your Facebook Business Manager and Ads Manager well configured with Facebook Pixels and Conversion Events with your eCommerce website.

Now it is time to launch ads! If you have set up everything properly, it will be a smoother experience to go ahead and start creating as well as launching campaigns for your dropshipping store.

But remember. Setting up a Facebook ads account and all this configuration is just the first step. Your journey has probably begun. Now the real game begins!

If you play smartly and master the game, Facebook Ads will be something that you and your eCommerce business would not live without!

So did you find this setup guide helpful? Or did you face any difficulties while following the steps and executing them?

Let me know in the comment section below so that I will do my best to keep this guide updated.

Also if you have any queries related to setting up Facebook ads for your dropshipping store or need any help regarding it, you can go ahead and shoot me an email here – and I will make sure to make the task less overwhelming for you.

To Your Ecom Success,
Jayant Kumar Padhi

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