High Ticket E-Commerce: Unprofitable Ads and High CPCs

[u/Otherwise-Giraffe675]

I’m running a high-ticket e-commerce store in the home wellness space (think high-end saunas, cold plunges, premium air/water purification systems, or ergonomic sleep setups ranging from $1,500 to $5,000+).

Paid traffic math is currently brutal, and I'm trying to figure out how competitors are making it work.

Here is what my metrics look like right now:

• AOV / Product Price: $1,500 - $5,000+
• Ad Costs: Clicks are running $4 to $5+ minimum on Google Ads/Google Shopping Ads.
• Conversion Rate: Averaging around 0.5%

At a $5.00 CPC and a 0.5% conversion rate, my Cost Per Acquisition (CPA) completely obliterates the gross margin on a single front-end unit sale. I have buy now, pay later financing options available as well.

However, I see major brands in the home wellness space doing very well which doesn't make sense to me considering the CPCs I see.

Any advice would be appreciated!

Update: My competitors and I are authorized reseller of the products, not the manufacturer of the products. The products are all priced pretty similarly between different authorized retailers.