What is a good ROAS for ecommerce?

Short answer

A good ecommerce ROAS is around 3x for most stores and 4x or better for products with under 40% gross margin. Break-even ROAS equals one divided by gross margin, so a 35% margin store needs roughly 2.9x just to cover the cost of goods.

Break-even and target ROAS by gross margin

Gross margin	Break-even ROAS	Target ROAS
20%	5.0×	6.5×+
30%	3.3×	4.5×
40%	2.5×	3.5×
50%	2.0×	3.0×
70%	1.4×	2.0×
90% (digital)	1.1×	1.6×

How to read this table

20% sits at the top of the table (5.0×) — 6.5×+. If your situation looks like this row, plan against the upper half of the range rather than the midpoint.
90% (digital) anchors the bottom (1.1×) — 1.6×. Treat this as the conservative case you should still be profitable at.
The gap between the top and bottom row is roughly 4.5×. That spread is why a single blended average is close to useless here — pick the row that matches your setup instead of averaging the column.
With 6 reference points in the "break-even and target roas by gross margin" table, the fastest way to use this page is to find the closest row, take its break-even roas, then stress-test it ±30% before you build a plan on it.

Context

There is no universal good ROAS, only ROAS relative to your margin and repeat rate. Stores with strong repeat purchase behaviour can profitably run near break-even on first orders because the second and third orders carry no acquisition cost. Judging campaigns on first-order ROAS alone systematically kills the channels that build a customer base.

What moves this number

Product margin

Gross margin sets the ceiling on what you can pay to acquire a customer. Everything downstream is constrained by it.

Acquisition cost trend

Paid acquisition costs drift upward as you scale spend. A blended CAC that works at $5k/month often breaks at $50k/month.

Repeat purchase rate

Contribution on the second and third order is what makes most stores viable; first-order profitability is rare in paid-heavy models.

Fees and returns

Marketplace fees, payment processing, shipping, and returns commonly consume 15–35% of gross revenue.

Methodology

Break-even ROAS = 1 ÷ gross margin. Targets add a contribution buffer for fulfilment, returns, and overhead based on typical ecommerce cost structures.

Assumptions and caveats

Figures are before returns, chargebacks, and marketplace fees unless noted.
Category economics vary widely; apparel and electronics behave very differently.
This page was last reviewed on 2026-08-12. Ranges are updated as new data lands, so re-check before using them in a contract or a plan.
Use these numbers as a starting range, not a guarantee — your own historical data always beats a benchmark.

Frequently asked questions