Ecommerce Economics
Walk through your numbers step by step — margins, ad targets, daily budget & customer value
1
Your Margins
What does each sale actually put in your pocket after product costs, shipping and payment fees?
Selling Price (AOV) i
$
Cost of Goods (COGS) i
$
Shipping & Fulfillment i
$
Payment Fee i
%
Contribution / Order
—
Profit before ads & overheads
Gross Margin i
—
Benchmark: 60%+ healthy
Payment Fee / Order
—
Taken per transaction
2
Ad Targets — CPA & ROAS
These are the numbers you watch inside your ad manager to know whether your campaigns are profitable.
Target Net Profit Margin i
%
Monthly Fixed Costs i
$
⚠ Max CPA — Breakeven
—
Never pay more than this per customer
✓ Target CPA i
—
Benchmark: under $25
⚠ Breakeven ROAS
—
Minimum ROAS to cover all variable costs
✓ Target ROAS
—
ROAS needed to hit your profit goal
3
Daily Ad Budget
How much should you put on your ads each day to hit your revenue goal?
Monthly Revenue Target
$
Store Conversion Rate i
%
Orders From Paid Ads i
%
Total Orders / Month
—
Needed to hit revenue target
Paid Orders / Month
—
Orders ads need to deliver
Paid Traffic Needed i
—
Visitors at your CVR
✓ Target Daily Spend
—
At your profit margin goal
⚠ Max Daily Spend
—
Breakeven — zero profit
4
Customer Lifetime Value (LTV)
A customer who buys more than once is worth far more than a single order. Understanding LTV lets you justify spending more to acquire them.
Returning Customer Rate (12 months)
i
%
Find this in Shopify Analytics → Customers report
Avg Orders / Customer
—
Expected orders in 12 months
12-Month Profit LTV
—
Total profit per customer over 12 months
⚠ Max CAC from LTV
—
Breakeven — never exceed this
✓ Target CAC from LTV
—
Spend this and hit your margin goal
Weekly Store Performance
Log key metrics each week to spot trends and measure your growth
Log This Week
$
%
%
$
Revenue Trend
Log at least 2 weeks to see a trend
History
| Week Ending | Sessions | Revenue | Ad Spend | ROAS | CPA | Profit After Ads | AOV | CVR | Return Rate |
|---|
No data yet
Start logging your weekly metrics above
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