Why the Egyptian number is higher
The platform counts orders, you get paid for deliveries. When a customer refuses the parcel, the ad platform still counted that purchase and its value.
Shipping is paid twice on a refusal. Once to send the parcel, often again to bring it back.
So the ROAS you need on the platform is higher than the textbook one. The textbook break-even is 1 ÷ margin. With cash on delivery it is closer to 1 ÷ (margin × delivery rate), before return shipping.
Check your own break-even in four steps
- Find your margin
Selling price minus product cost and outbound shipping, divided by the selling price. A 500 EGP product that costs you 300 EGP to buy and ship has a 40% margin.
- Find your delivery rate
Delivered and paid orders divided by all orders, over the last four weeks. Take it from the courier, not from the store dashboard.
- Calculate the break-even ROAS
1 ÷ (margin × delivery rate). With a 40% margin and 70% delivered: 1 ÷ (0.40 × 0.70) ≈ 3.6.
- Compare with the platform
Below your break-even, every extra pound of ad spend loses money. Between break-even and around 6 you are making a thin profit. Around 6 to 8 there is room to scale.
Example: the same 10,000 EGP, two results (40% margin, 70% delivered, before return shipping)
| Platform ROAS 2 | Platform revenue 20,000 EGP → delivered 14,000 EGP → margin 5,600 EGP → after ad spend: −4,400 EGP |
|---|---|
| Platform ROAS 7 | Platform revenue 70,000 EGP → delivered 49,000 EGP → margin 19,600 EGP → after ad spend: +9,600 EGP |
When 6 to 8 is not the right target
Products with a very high margin (cosmetics you make yourself, digital courses) can be profitable well below 6. Low-margin products (electronics, resold brands) may need more than 8. The average is a reference; your break-even is the rule.
Clinics, gyms and other booking businesses are measured differently, by cost per booking that shows up, because the revenue does not pass through the ad platform at all.
Raise the real ROAS without touching the ads
Every point of delivery rate you win raises the ROAS that matters. Fast order confirmation, the full price including delivery on the page and a clear arrival window often move profit more than a new campaign does.
The one number to watch
Cost per delivered order: ad spend divided by the orders that were delivered and paid. If it is below the profit you make on one delivered order, the campaign pays for itself.