Your ROAS is fine and you are still losing money
Return on ad spend ignores fees, returns and product cost. The number that decides which campaigns to scale is contribution after everything.
A healthy return on ad spend can still lose money. ROAS counts revenue against ad cost and stops there. It does not see referral fees, returns, or the cost of the product, so a 4x campaign on a thin-margin SKU can sell more and bank less.
Margin after ads, not revenue after ads
The number that matters is contribution after every variable cost, including the ad. Rank SKUs by that, and the campaigns you would have scaled often swap places with the ones you would have paused.
None of this needs new tooling. It needs the ad report and the settlement report read against each other, per SKU, for one month.
- Ads
- Margin
- Amazon