Ecommerce profit decision library
Start with the decision, not the metric.
Use a platform definition, transparent formula, and worked example to move from a reporting question to a profitability threshold you can test.
01 / Unit Economics
Find the money available for acquisition.
Choose the revenue and cost basis before setting a ROAS or CPA target.
Connect contribution margin, ROAS, CPA, POAS, MER, and CAC payback without mixing units.
Ecommerce Variable-cost ChecklistAudit every revenue deduction and pre-ad variable cost into one calculator input.
Contribution Margin vs Gross MarginInclude the order costs that gross margin leaves out.
Ecommerce Revenue Basis for ROASKeep discounts, refunds, tax, and shipping consistent.
Shopify Net Sales for Break-even ROASMap Shopify sales and profit reports into calculator inputs.
Payment and Marketplace Fee Impact on ROASModel fee evidence once so the acquisition ceiling reflects its actual cost burden.
02 / Paid Media Metrics
Translate platform ratios into profit targets.
Separate an advertising metric's definition from the business threshold it needs to clear.
See why strong revenue ROAS can leave weak contribution profit after ads.
ROAS vs ACoSConvert the inverse metrics and connect both to margin.
What Is a Good ROAS for Your Profit Margin?Replace generic benchmarks with three transparent cost scenarios.
Google Ads Target ROAS vs ProfitConvert a retained-profit goal into Google's percentage format.
Meta Ads ROAS and AttributionAttach the ad set's selected attribution settings before comparing credited value with a profit threshold.
Amazon Break-even ACoS and Target ACoSSet the ad-cost ceiling from seller contribution economics.
Scale Spend with Profit GuardrailsSeparate marginal contribution, capacity, maturity, and payback checks from a scale decision.
03 / Promotions & Merchandising
Test what a discount must earn back.
Keep revenue reduction, return loss, and volume assumptions visible.
Compare contribution at the same traffic and order target without hiding extra units.
Free Shipping Profit ThresholdCalculate the AOV, order, or CVR lift needed to replace lost shipping revenue.
Returns, Refunds, and DiscountsModel different loss mechanisms separately so the operating action stays clear.
04 / Customer Economics
Measure when acquisition pays back.
Use cumulative contribution from mature cohorts, not lifetime revenue claims.
Convert fixed-window cohort sales into contribution before setting allowable CAC.
New Customer ROAS vs Blended ROASSet separate acquisition and store-wide thresholds from the right contribution boundary.
CAC Payback by 30/60/90/180/365-day CohortPrepare cumulative contribution data and recognize an unrecovered cohort.
05 / Planning & Measurement
Reconcile reports before changing spend.
Keep attribution credit, store-wide efficiency, and total contribution as separate evidence.
Rank equal-spend product-channel combinations by total contribution profit instead of ROAS alone.
Refunds and Conversion AdjustmentsCorrect canceled and partially refunded transactions before recalculating attributed ROAS.
Conversion Delay and Data MaturityDecide when recent attributed ROAS is stable enough for a budget decision.
TikTok Shop ROAS and AttributionCompare click, view, Assisted Shop, and store-net revenue views without combining their claims.
Attributed ROAS vs MERReconcile channel claims without adding duplicated revenue.
Monthly Ad Budget and Contribution-Profit ScenariosInspect budget, ROAS, AOV, margin, and total contribution as stated scenarios.
ROAS Break MethodologyReview the site's revenue, cost, rounding, attribution, and source rules.