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.

===
🚀 FREE Google Ads training: https://scale.simplyconverting.com/google-shopping

📈 Apply to work with us: https://scale.simplyconverting.com/survey
Follow Simply Converting Online:
https://www.simplyconverting.com/

https://www.facebook.com/simplyconverting