The Real Reasons Shopee Sellers Waste Ad Budget — and How to Turn It Around

If you’re a Shopee seller, you’ve probably been there:
You spend money on ads, but clicks barely move. Even when someone does click, they don’t buy. Your return on ad spend (ROAS) is painfully low.

Sound familiar?

Poor ad performance doesn’t happen by accident. In most cases, it comes down to weak foundations or a lack of understanding of how Shopee’s ad system actually works.

In this post, I’ll break down the real reasons why Shopee ads underperform and share practical, beginner-friendly strategies to help you fix them.

1. Check Your Ad Setup First

Many Shopee sellers think running ads is as simple as turning them on. They set random budgets, random bids, and random campaign modes—then wonder why the results are bad.

The truth? Half your ad problems can be solved by getting the basics right.

a. Don’t Set Your Budget Too Low

Budgeting on Shopee is not about being cheap—it’s about giving the algorithm room to work.
If your daily budget is too low, Shopee’s system assumes your campaign might “run out too early” and therefore limits your exposure.

Here’s a rule of thumb:

• Set your daily budget to at least $4 per product.
• If your budget is tight, allocate at least 80% of that amount to start.
• Once you’ve gathered 20–30 clicks, switch to manual settings, and raise your daily cap to around $14.

That’s the minimum you’ll need to get meaningful impressions. Anything less, and your ads will barely show up.

b. Choose the Right Campaign Type

Don’t jump into manual bidding right away. For new listings with no sales history, start with GMV MAX Auto Bidding instead of GMV MAX Custom ROAS.

Shopee’s system doesn’t know your audience yet. If you set a strict ROAS target before the system has enough data, it simply won’t deliver.

Let the Auto campaign run for a few days to collect data. Once you see stable performance for 3+ days, then you can switch to custom ROAS to optimize profitability.

2. Understand Shopee’s Ad Algorithm

Shopee’s algorithm has its own “personality.” It needs time to learn, test, and adapt.
If you keep changing settings too frequently, you’re basically hitting the reset button on its learning process.

When you launch a Shopee Global or Local campaign, it goes through a learning phase:

• Local stores: around 7 days
• Cross-border stores: around 14 days

During this time, Shopee is experimenting—showing your ads to different types of users to find out who’s most likely to convert. That’s why your ROAS may swing wildly during the first week.

Here’s what you should not do: panic-adjust your ROAS the moment you see a bad day.
Every change restarts the learning phase, and your campaign performance will never stabilize.

Best practice for Shopee sellers:

• Make adjustments no more than twice a week.
• Avoid touching your campaign between days 4–7.
• Review performance after a full week, not after one or two days.

Be patient. Good data takes time to mature.

3. Your Product Might Be the Real Problem

Here’s the harsh truth: ads can drive traffic, but only good products drive sales.

If your product isn’t competitive, no amount of ad budget can save it. Shopee ads are simply traffic tools—they can lead buyers to your store, but they can’t make them click “Buy Now.”

Here’s how you can strengthen your product side:

a. Make Your Product Stand Out

Create differentiation, especially in your main image. A unique, eye-catching photo can instantly improve CTR (click-through rate).

Your visuals should tell a quick story—what makes your product better, easier, or different?

b. Optimize Titles with Specific Keywords

Generic titles don’t work anymore. If you’re selling kids’ shoes, don’t just write “Children’s Shoes.”
Write something like “Non-Slip Running Shoes for Kids (Ages 3–6)” instead.

It’s not only clearer for shoppers but also helps your ads appear for long-tail keywords that real customers are searching for.

c. Adjust Pricing to Match Competition

If your price is way higher than competitors—especially if your main image looks the same—buyers will simply skip your listing.

It doesn’t mean you have to undercut everyone, but align your pricing strategy with your niche average. Small adjustments can make a huge difference in conversion rate.

d. Don’t Waste Money on Dying Products

Every product has a life cycle. If sales have been dropping for weeks and your ROAS keeps falling, it’s time to cut your losses. Move your ad budget to newer, higher-potential items.

How to know a product is declining:

• Sales drop consistently for two or more weeks
• ROAS falls below 2.0
• Negative reviews or complaints increase

When you spot these signals, start reducing your ad budget—or stop it entirely. Don’t throw good money after bad.

4. The Bottom Line

Shopee ad optimization isn’t as complicated as it seems.
It’s mostly about getting the fundamentals right:

• Set a realistic budget
• Use the right bidding strategy
• Choose competitive products
• Monitor your data daily

When you start, results might still look inconsistent—and that’s okay. Testing is part of the process.

Maybe today you double your budget from $15 to $30. Tomorrow you update your main image. The next day you add a store coupon. Within a week, you might notice your clicks and conversions climbing.

Advertising on Shopee isn’t about “set it and forget it.”
It’s about “set it, test it, and keep improving.”

Start small, analyze often, and adjust strategically.
That’s how smart Shopee sellers turn weak ads into winning campaigns.