- Platform revenue is not net revenue.
- AOV and product margin change the ROAS you can afford.
- New and returning customers can have different value.
- Scaling should be judged on incremental performance.
- Attribution should be reconciled with store or analytics data.
Calculate a practical break-even target
A brand with high gross margin can afford a lower ROAS than a low-margin brand. I start with product economics and operating assumptions before declaring a platform ROAS good or bad.
Separate new-customer growth from existing demand
Retargeting and branded demand can produce strong ROAS while adding less incremental growth. I look at whether scaling is reaching new customers or mostly harvesting people who were already likely to buy.
Watch AOV, discounts and returns
Two campaigns can report the same ROAS but create different profit if one relies on deeper discounts, lower-margin products or higher return rates. Media buying decisions should reflect the quality of revenue.
Measure what happens after budget increases
The first £1,000 of spend and the next £1,000 do not always perform the same. I scale in steps and watch whether acquisition cost, conversion rate and new-customer economics remain healthy.
Questions people ask about this.
What is a good ROAS for e-commerce?
It depends on margin, operating costs, repeat purchase behavior and growth goals. A universal target can be misleading.
Should I trust Meta or Shopify revenue?
Use each system for its purpose and reconcile differences. Platform attribution helps optimization; store data is the source of truth for actual orders and revenue.
Can a lower-ROAS campaign be worth scaling?
Yes, if it drives more new customers, stronger contribution profit or greater incremental volume than a higher-ROAS campaign.