TLDR Tech / Marketing
The 11x ROAS account that lost money on every order
An account reporting an 11x return on ad spend was losing money on every order once returns, VAT, cost of goods, and fulfillment came out of what the platform called conversion value. Much of that 11x came from brand campaigns near 18x, largely shoppers who had already decided to buy, blended with a real nonbrand return closer to 3x. Correcting for margin alone created a second problem, since bidding purely for efficiency starved an apparel SKU of volume, leaving more stock to mark down below cost at season's end. The fix was rebuilding conversion values around actual contribution and giving each SKU one deliberate job, for profit, for volume, or for cash back before the season closed.
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