Illustrative scenario — composite example based on common ecommerce patterns, not a named customer case study.

High volume, razor-thin margin — made profitable

A WooCommerce electronics retailer moved huge revenue on tiny margins. ROAS looked elite; profit did not exist. A per-order profit waterfall changed everything.

Store
WooCommerce
Ads
Google Ads
Duration
90 days

The challenge

With 900%+ ROAS on big-ticket electronics, leadership assumed ads were wildly profitable. But after COGS, warranty, payment fees, and shipping on bulky items, contribution margin was 2–6%. Scaling revenue was scaling near-zero profit.

Approach

  1. Mapped per-SKU COGS, warranty reserve, fees, and freight in WooCommerce.
  2. Built an AOV → costs → profit waterfall per order.
  3. Uploaded contribution-margin conversions to Google Ads.
  4. Excluded negative-margin SKUs with X labels.
  5. Concentrated budget on accessories and high-attach items.
Performance

Per-order profit waterfall (avg $520 order)

Profit Bid
A $520 order leaves ~$32 contribution. Bidding on the first bar burned budget; bidding on the last bar restored profit.
  • Contribution margin9.1%
    Mix shift to accessories
  • POAS (account)163%
    +55 pts
  • Negative-margin spend6%
    X exclusions

Results

Contribution margin

3.8%9.1%
Mix shift to accessories

POAS (account)

108%163%
+55 pts

Negative-margin spend

34%6%
X exclusions

Gross profit/mo

€21k€38k
Same ad budget

Our 900% ROAS was a mirage. The profit waterfall showed us we were one bad SKU mix away from losing money at scale.

Daniel R., Head of ecommerce, electronics retailer
Pricing

Run this playbook on your store — choose your plan

Select a plan and continue to secure checkout — POAS conversion upload included on every tier.

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