How it is calculated
Per delivered order:
Net profit = price − product cost − shipping − payment fee − platform fee − ad cost per order − return losses- Return losses (key for cash on delivery): refused-order rate × round-trip shipping.
- Break-even ROAS = price ÷ profit before ads: the lowest ad return at which you don’t lose money.
- Maximum CPA = profit before ads.
Worked example
A product selling at 299, costing 90, shipping 35, 2% payment fee, 60 ad cost per order and 20% returns at 35 return shipping: net profit ≈ 90 per order; break-even ROAS ≈ 2.0.
Frequently asked questions
What is ROAS?
Return on ad spend: revenue ÷ ad cost. A ROAS of 3 means 3 of sales per 1 spent on ads.
How do I cut COD returns?
Confirm orders by phone before shipping, describe products accurately and deliver fast.
Should I include VAT?
If you are VAT-registered, enter the selling price excluding VAT.