Unit economics

Ecommerce Revenue Basis for ROAS

Gross sales, net sales, total sales, AOV, and platform conversion value can contain different things. Name the numerator before comparing the ratio.

60-second answer

Use net product revenue, excluding tax.

For order-level profitability, start with product revenue after discounts and mature refunds or sales reversals. Exclude tax. Show customer-paid shipping and shipping cost explicitly when they are material. Use the same basis for order value, contribution margin, and the attributed revenue being judged.

Model choice: This is ROAS Break's decision-model default, not a universal accounting standard. Keep a different basis only when every compared input uses it consistently and the business reason is documented.

Set a target from a defined basis

Field map

Do not treat every revenue field as interchangeable.

Field or component	Treatment	Decision risk
Gross sales	Reduce by discounts and mature returns	List-price demand can overstate earned revenue.
Net sales	Recommended product-revenue starting point	Still check tax, shipping, and adjustment scope.
Total sales	Reconcile before use	May add tax, shipping, fees, or other adjustments.
Tax	Exclude	Collected tax is not contribution available for ads.
Shipping revenue	Show separately when material	It can mask the cost of fulfillment.
Platform conversion value	Label with model and window	It may be attributed, delayed, or duplicated.
Chargebacks and unrecovered loss	Model as a cost if absent from sales reports	Net sales alone can miss the economic loss.

Worked reconciliation

A $100 checkout can become an $85 ROAS numerator.

Reconciliation	Amount	Use in model
Gross product sales	$100	Starting report field
Discount	-$10	Deduct
Mature sales return	-$5	Deduct
Net product revenue	$85	Calculator AOV
Sales tax collected	$8	Exclude
Customer-paid shipping	$6	Track separately

If product cost is $30, fulfillment is $8, return handling is $3, and percentage fees are 3% of the $85 basis, contribution before ads is $41.45. The break-even ROAS is $85 / $41.45 = 2.05x.

Do not also enter the $5 returned revenue as a return allowance after already reducing the numerator. That would count the same loss twice. Only add return handling, unrecoverable product cost, or fees that remain outside net sales.

Open the reconciled $85 order

Data workflow

Record source, window, and maturity together.

Choose the sales report and write down the exact field definition.
Use the same order-created or conversion date window for revenue and spend.
Wait until the normal refund and return window is substantially mature.
Reconcile tax, shipping, discounts, refunds, and manual adjustments.
Label platform-attributed value separately from store revenue.

Shopify sales reportsGross sales, discounts, returns, net sales, and total sales. Checked August 20, 2026.
Google Analytics ecommercePurchase, refund, tax, shipping, and item parameters. Checked August 20, 2026.