E-Commerce Profit Calculator (For Shopify Brands Running Google & Meta Ads)

Your average order value might be increasing while your actual profits are silently disappearing - a paradox that's bankrupting e-commerce stores every day.

In this episode of Ad Spend Secrets, Luke Smith shares the exact unit economics calculator his agency uses to pinpoint profitability and scalability for clients.

Using a real-world example, he reveals how seemingly minor factors - like items per order - can drastically impact the bottom line of your Shopify store.

Discover the common pitfall of confusing cost per item with cost per order, especially when running e-commerce promotions.

Luke also demonstrates how discounts can boost average order value (AOV) while squeezing profit margins if basket size increases.

You’ll learn to calculate crucial metrics like break-even CPA, minimum ROAS, net profit per order, and the LTV/CAC ratio to determine ad spend scalability.

Key Points:

00:01:00 The forecasting blueprint
00:02:32 Variable costs exposed
00:04:00 Basket size danger zone
00:06:00 Shipping margin impact
00:07:25 Calculate real profits
00:08:48 Master performance metrics
00:09:32 30-day LTV advantage
00:10:17 Know your break-even point
00:11:15 Double profits instantly

Ready to master your e-commerce unit economics?

Tune in now to access the forecasting tool Luke's agency uses - and uncover hidden profits within your existing sales. Let’s boost your e-commerce profitability today.

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