Etsy Ads: are they paying for themselves?
ROAS on its own doesn’t say whether you made money. Your break-even ROAS does. Put in a period from your Etsy Ads dashboard and your profit per order before ads.
Break-even ROAS
break-even ROAS = average order ÷ profit per order before ads
With a $34.25 average order and $13.11 profit, you need $2.61 of sales for every $1 of ads. A ROAS of 1.37 is below that, so those ads lost money even though they brought sales.
Most you can pay per order
Your profit per order before ads is the most an ad-driven order can cost before it turns into a loss. Compare it with your cost per order: spend divided by orders.
Offsite Ads are different
Offsite Ads aren’t a budget. Etsy takes 15% (12% for shops over $10,000 a year) of an order that came from one, capped at $100. Turn them on in the fee settings above to see the hit, and use the price tool to price for it. Ads also bring repeat buyers and reviews this can’t measure.