What Is a Good ROAS for an Ecommerce Store?

Break-even ROAS is 1 divided by your gross margin. Gross margin is what is left of a sale once the product and the shipping are paid for, before any ad money.

At a 40 percent margin, 1 divided by 0.4 is 2.5, so every euro of ad spend has to bring back 2.50 in sales just to stand still. At a 60 percent margin break-even drops to 1.67. At 20 percent it climbs to 5. Same store, same ads, and the exact same ROAS number means three completely different things. That is why a benchmark from a blog post cannot tell you whether yours is good.

Break-even only covers the product and the ads. It does not pay your apps, your shipping software, your staff, or your own wage, and it leaves nothing to put back into stock.

So set your target above break-even by enough to cover those fixed costs and still leave profit. A 3 ROAS on a healthy margin can put more money in the bank than a 5 on a thin one. Track the money, not the multiple.

Inside Google Ads the target is typed as a percentage, not a multiple. Five euros back for every euro spent is a target ROAS of 500 percent. Google's own guidance is to set the target at or below what the campaign already achieves, which you read from the conversion value per cost column.

Set it above anything the account has ever done and the bidding turns cautious, spend falls off, and it looks like the campaign died. It did not. You asked for a result the data does not support yet.

ROAS bounces around day to day. One day tells you nothing, and today's number is always incomplete because sales keep registering after the day ends.

Read a multi-day trend instead, leave today out of it, and check the result against your actual bank balance. If ROAS is climbing while profit sits flat, you are usually scaling the wrong products.