Store economics
The store economics behind advertising: unit economics, margin and profit-based bidding, prices, discounts and order value.
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Ecommerce Pricing Strategy for Google Shopping Ads
See whether to change price, shipping or discounts first in Shopping ads. In our data on 213,913 products, a smaller share sold if priced far above the market.
Ecommerce Unit Economics: From Margin to Break-Even ROAS
Find the ROAS where your ads break even: a 25% contribution margin needs 400%. Then see what one order earns after cost of goods, delivery, fees and ads.
Profit-Based Bidding in Google Ads: Four Ways Compared
See which way to make Google Ads bid on profit fits your store, and why conversion value rules cannot carry product margin.
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Average Order Value: Formula, Google Ads Mismatch and ROAS
Calculate average order value for ad traffic and see why Google Ads shows a different figure from your shop's, such as one default value for every order.
How to Calculate Cost per Acquisition and Break-Even CPA
Find out what one order costs you in Google Ads and the most you can pay for it: average order value × margin, minus delivery and other per-order costs.
Price Testing on Google Shopping: Raise, Cut or Hold?
Find which products can take a higher price and which need a cut, then change prices about 5% at a time so Shopping ads and Smart Bidding keep working.
Product Bundling Around a Bestseller to Raise Order Value
Earn more per order from the shoppers your bestseller brings: a worked example of how big a bundle discount can be, and when to add the bundle to Shopping ads.
ROAS Formula: How to Calculate It and When Not to Trust It
Get the ROAS formula, a worked example and checks that show if your Google Ads figure is real: a fixed value on every order can turn a true 4.5 into 3.75.