ROAS (Return On Ad Spend)
Revenue generated per dollar of ad spend.
ROAS = revenue from ads ÷ ad spend. A ROAS of 3.0 means $3 returned for every $1 spent. Break-even ROAS depends on your margin: a product with 40% gross margin needs ROAS ≥ 2.5 just to break even on ad cost. Always calculate your target ROAS as 1 ÷ contribution margin.
In dropshipping with Morocco-fulfilled COD orders, real (delivered) ROAS is typically 60–75% of reported ROAS because of refused-delivery losses. Use net ROAS, not platform ROAS.