We often get asked what type of ROAS we can expect with X type of business, be it a pet products business, a bedding store, a luxury clothing site, etc. But the reality is that the ROAS you can achieve has nothing to do with your niche; it has everything to do with your site's particular metrics. At the bare bones, your return on ad spend, or ROAS, is determined by your conversion rate, average order value and your cost per link click (with ads).
Are you curious the type of ROAS you might be able to achieve with YOUR store? Check out our ROAS calculator to find out! Make sure to "copy" the spreadsheet so that you can leave the "view-only" setting.
QUICK TIP: In this calculator, play around with the conversion rate, which tends to be more variable, to see how much your ROAS can improve or decline accordingly. Usually your AOV will be fairly static (unless you start implementing upsells or additional products/bundles), and the CPC typically will be around the $1-$2 range in Facebook ad campaigns. Sometimes CPC can be higher due to mismanaged ads, but it's also important to keep in mind that CPC is heavily affected by CPM (cost per impression) which is largely out of yours (or your advertisers) control.
If you have any questions, feel free to reach out to us!
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