What Is a Good ROAS for Ecommerce?

Sellers often ask for a single “good ROAS” benchmark, but the honest answer is that it depends entirely on your product’s margin. A 2x ROAS can be highly profitable for a high-margin product and a loss-maker for a thin-margin one.

Find your break-even number first

Before judging any ROAS as good or bad, calculate your break-even ROAS using your actual product cost, packaging, courier and fees. Everything above that number is genuinely profitable; everything below it is a loss, regardless of how the number looks on a dashboard.

Set a target margin, not just break-even

Most sellers want more than break-even xe2x80x94 add your target profit margin when using the Break-even ROAS Calculator to see the ROAS that actually hits your business goals, not just avoids a loss.

Revisit it as costs change

Courier rate changes, marketplace fee updates or a new return rate all shift your break-even ROAS xe2x80x94 recalculate periodically rather than treating one number as permanent.