The numbers of a sale
Beginners’ number one mistake is thinking: “I buy it for €10 and sell it for €30, I make €20”. Let’s see what really happens with each sale.
Example 1: you sell it for €29.95
Price €29.95 (VAT included)
− VAT 21%: €5.20 → you have €24.75 left
− Product + supplier shipping: €10.00
− Customs and fees for the parcel: €5.00
− Payment fee (2.1% + €0.30): €0.93
− Ads per sale: €12.00
− Reserve for returns: €1.50
= −€4.68 per sale. The more you sell, the more you lose.
− VAT 21%: €5.20 → you have €24.75 left
− Product + supplier shipping: €10.00
− Customs and fees for the parcel: €5.00
− Payment fee (2.1% + €0.30): €0.93
− Ads per sale: €12.00
− Reserve for returns: €1.50
= −€4.68 per sale. The more you sell, the more you lose.
Example 2: the same product at €39.95
You keep about €3.38 per sale. And you haven’t paid the fixed costs yet: Shopify (about €32 a month), apps, domain and, if you’re self-employed, the contribution (€80 a month in the first year with the flat rate). With about €130 of fixed costs you need around 39 sales a month just to break even.
The figures you need to know
CPA (cost per sale)What it costs you in ads to get one sale. It’s the number that decides whether you win or lose.
ROASSales ÷ ad spend. ROAS 3 = for every euro in ads you sell €3. Selling €3 doesn’t mean earning €2.
Break-even ROASThe minimum ROAS so you don’t lose money. If your margin is small, you need a very high ROAS, and that’s hard.
Average order valueWhat each customer spends on average. Raising it (bundles, “buy 2”) is one of the easiest ways to improve your margin.
Do your own numbers
Change the values and see what happens. Try lowering the price or raising the ad cost.
Payment fee included: 2.1% + €0.30 (card via Shopify Payments, Basic plan).
Rule of thumb: if the product can’t be sold for 3-4 times what it costs you delivered to the customer, the numbers almost never work with paid ads.