$1.85
Avg CPC
2.8%
Conv Rate
$85
Avg Order Value
3.5x
Avg ROAS
Based on D2C Brands benchmarks, here's what you can expect at different budget levels:
| Monthly Budget | Clicks | Orders | Revenue | ROAS | Est. Profit* |
|---|---|---|---|---|---|
| $2,000 | 1,081 | 30 | $2,573 | 3.5x | $-971 |
| $5,000 | 2,703 | 76 | $6,432 | 3.5x | $-2,427 |
| $10,000 | 5,405 | 151 | $12,865 | 3.3x | $-4,854 |
| $25,000 | 13,514 | 378 | $32,162 | 3.1x | $-12,135 |
*Estimated profit assumes 40% gross margin. Your actual margin may vary.
Understanding your breakeven ROAS is critical for profitable scaling:
Breakeven ROAS
2.5x
With 40% margins, you need at least 2.5x ROAS to break even. Anything above this is profit.
Max CPA for Profit
$34
Your CPA must stay below $34 to remain profitable. Current avg: $65.
Margin Matters
If your margins are 50%, breakeven drops to 2.0x. At 30% margins, you need 3.3x just to break even. Know your numbers!
Focus on these levers to push your ROAS above industry average:
Every 0.5% improvement in CVR can boost ROAS by 20-30%. Optimize landing pages, checkout flow, and product pages.
Bundles, upsells, and free shipping thresholds can boost AOV 15-25% without increasing ad spend.
Better Quality Scores, feed optimization, and proper segmentation can reduce CPCs by 15-30%.
Identify and pause underperforming products, keywords, and audiences. Focus budget on winners.