Eleven POS
elevenpos.online
ROAS is not profit
ROAS (return on ad spend) = revenue ÷ ad spend. A ROAS of 4× sounds great — but if your product cost, delivery and returns eat 80% of the price, you are losing money. What matters is whether your ad cost per delivered order is lower than the profit each order leaves you.
The numbers that matter
- Break-even cost per order = selling price − product cost − delivery cost ÷ (1 − return rate). This is the most you can spend on ads to get one delivered order.
- Break-even ROAS = selling price ÷ break-even cost per order. Below this ROAS, every taka of ads loses money.
- Cost per message and message → order rate show whether the problem is the ad (expensive messages) or the inbox (messages that don't convert).
Example
$50 spend at ৳130 = ৳6,500. 40 orders, 15% returned → 34 delivered. Price ৳1,450, cost ৳650, delivery ৳90. Break-even cost per order ≈ ৳694; actual ad cost per delivered order ≈ ৳191 — clearly profitable, so the budget can be raised.
How to improve
- Confirm every COD order by phone — it cuts returns more than anything else.
- Take a delivery-charge advance for outside Dhaka.
- Test 3–5 creatives and keep the one with the cheapest cost per order, not the cheapest click.
- Scale budgets by 20–30% every few days; doubling overnight usually raises the cost per order.
A POS with order tracking shows the real delivered and returned orders per campaign, so you stop guessing.