€10,000 in, €30,000 out. Looks great.
Now take off what Google Ads never sees:
Product cost: -€13,500
Shipping and fulfilment: -€2,400
Payment fees: -€600
Returns: -€3,600
Ad spend: -€10,000
Profit: -€100.
This shop needs a 3.03 ROAS just to break even. At 3.0 it loses money on every euro it spends.
Google Ads doesn’t know your product cost, your returns or your shipping. It only knows revenue. So it will happily push you toward more revenue at a loss.
Work out your break-even ROAS before you set a target:
1 ÷ your margin after all costs except ads.
Here that’s 1 ÷ 33% = 3.03.
Everything above that line is profit. Everything below it is growth you pay for.
