Revenue looks exciting.
Profit pays the bills.
Most Shopify dashboards show salesโnot what you actually keep after ads, shipping, refunds and fees.
I wrote about why that distinction matters ๐
https://t.co/Lkv5hyQ2ZJ
@SaulSellsStuff $65K+ in 2 days ๐ฅ Revenue looks great, but Iโd be curious how the 15% discount affected the actual profit after ads, COGS and fees.
@adamcitron_ This is a smart way to look at it. One bad day isn't enough to call a test a failure. I'd also keep a close eye on profit alongside ROAS, because a good ROAS doesn't always mean the store is actually making money.
@JxrdanB_ Crazy how quickly your perception of revenue changes once you start hitting those numbers. The bigger the store gets, the more important it becomes to know what you actually keep, not just what you generate.
@ecommozart Getting back to good performance is one thing, but keeping an eye on what you actually keep after ad spend and other costs is where it gets interesting.
@EcomKostnchko_ Revenue can look good while profit tells a completely different story. Tracking ad spend and the other costs together makes these decisions much clearer.
@lukasenECOM This is the part a lot of store owners miss. Revenue and ROAS can look very different once you account for the actual costs behind the sale. Tracking that clearly makes it much easier to know when to scale or pause
@bowora_com Revenue is easy to track. The harder part is knowing what you actually keep after all the hidden costs.
Profit should be the metric driving decisions, not just sales.
@BitbyBitFlips The multi-channel view is where the data gets really interesting. Revenue growth is great, but seeing which channel actually contributes the most profit makes it much easier to know where to double down.
@Evan_Swanson_ The contribution margin piece is huge. Forecasting revenue alone can look great while the actual economics are getting worse. Once channel performance, CAC, retention, and contribution margin are connected, you can forecast profit and cash impact, not just sales.
@adsurgeon This is the part most store owners miss. Revenue can look great until COGS, shipping, ad spend and Shopify fees are all deducted. Tracking the actual contribution/profit per day gives a much clearer picture of whether you're really scaling profitably.
@ecombender The โallowable CAC before launchโ point is huge. Revenue can look great while the unit economics are already broken. Knowing the break-even CAC before spending makes ad testing much more disciplined.
@antonioventre_ The interesting part is the gap between platform metrics and actual profitability. A $15 CPA can look great on a 3.9 ROAS campaign, but whether itโs actually profitable depends on AOV and contribution margin. Thatโs the number Iโd want to optimize around.
@Jordan_Ecomm 1.1% CVR with a 42% drop is definitely worth digging into. Iโd look at the numbers beyond conversion though, especially CAC, AOV and contribution margin. A campaign can look okay on CVR but still be losing money once ad spend and product costs are included.
@madsgrows $25 spend for 66 downloads is a great start. I'd be curious to see how those downloads turn into active users and eventually revenue. That's where the real signal gets interesting.
@ewitzs_david $200k in sales is solid. The interesting part now is whether the extra revenue from upsells is actually improving profit margins. At this scale, I'd be watching contribution margin alongside AOV and CVR.
@BobG_Ecom Makes sense. Do you calculate your break-even ROAS from your COGS + Shopify/payment fees, or mostly use the ROAS number from the ad platform?
@kurtinc@Shopify The 7.1% CVR is the really interesting part here. 0.7% of traffic generating 2.1% of revenue means ChatGPT traffic is punching well above its weight. The intent behind these visits seems to matter more than the volume.
@fromadstoassets 27.1% margin on a 2.16x ROAS is actually pretty solid, especially with the hero SKU being out of stock. Would be interesting to see how much that margin improves once the main SKU is back in stock.