Filed under

break-even ROAS

A pale three-column ledger shows a tall gross-margin block, four thin slabs removed, a short remainder marked as ad spend per order, and a short order left with nothing.

Brand operations

No gross margin tells you a product can afford paid ads

A positive gross-margin percentage does not say whether a product can take paid acquisition. A margin of zero or below leaves no cash for ads, so there is no break-even ROAS to aim at. Where cash remains after the order's variable costs, that cash limits ad spend per order.