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Performance & profit

Make your data ready for profit decisions

Capture the costs and definitions that a revenue-only view leaves out.

Article2 min readPractical
What you’ll walk away with

A reviewed cost inventory and a shared definition of the result being measured.

01

Agree on the definition

Write down whether the reported revenue includes tax, shipping, discounts and refunds. Use a consistent period and currency. Define the contribution or profit measure your team intends to use before comparing products or campaigns.

ROAS describes a revenue-to-ad-spend relationship. It does not by itself account for the full cost of fulfilling an order or operating the business.

02

Build the cost inventory

Review product costs, shipping and fulfillment, payment fees, refunds, advertising and other relevant expenses. Keep the source and effective date of each cost. Separate per-unit, per-order and period costs so you can spot double counting.

  • Check cost coverage for the products actually sold in the period.
  • Record creative production and creator fees when reviewing campaign economics.
  • Document estimates and revisit them when actual amounts arrive.
03

Reconcile a sample before scaling

Choose a small set of orders and compare source records with the report. Include a discount, a refund and a multi-item order if they are relevant. Resolve unexpected differences before interpreting the totals.

A reported profitable period does not guarantee that additional spend will perform the same way. Use the reviewed figures as an input to a bounded test, and monitor how results change.

Put it into practice

Your next steps

Use this checklist as you work through the guide.