--- tytul: "ROAS Is Dead: How to Measure Real E-commerce Profit" opis: "ROAS is dead when real profit is what counts. Discover POAS, the MER metric and Profit Analytics: a new approach to profitability. See how it works." adres: https://justidea.agency/en/blog/roas-is-dead-real-ecommerce-profit/ serwis: "JustIdea Agency" jezyk: pl zrodlo: automatyczny odpowiednik strony HTML, generowany przy każdym buildzie --- Article # ROAS Is Dead: How to Measure Real E-commerce Profitability ROAS is dead when real profit is what counts. Discover POAS, the MER metric and Profit Analytics: a new approach to profitability. See how it works. [![Mateusz Haber](https://justidea.agency/obrazy/mateuszhab-ea59408f.webp) Mateusz Haber CEO / Marketing & E-Commerce Specialist](https://justidea.agency/en/author/mateusz-haber/) 8 July 2025 5 min read 13 sections ![ROAS Is Dead: How to Measure Real E-commerce Profitability](https://justidea.agency/_astro/roas-is-dead-f3ed8dc0.C55WKf7P.webp) Marketing Trusted by ![LPP](https://justidea.agency/obrazy/lpp-logo-2-b64d3a02.svg) ![House](https://justidea.agency/obrazy/logo-house-c706eeae.svg) ![Toyota](https://justidea.agency/obrazy/toyota2-1-63c6570a.webp) ![Fame MMA](https://justidea.agency/obrazy/fame-ffb4e0d0.webp) ![Surf Inc.](https://justidea.agency/obrazy/surfinc-91e5b73d.webp) ![LyoFood](https://justidea.agency/obrazy/lyo-cb899d46.webp) ![ExpertSender](https://justidea.agency/obrazy/expert-ca00548d.webp) ![Purinova](https://justidea.agency/obrazy/purinova-217da6ab.webp) ![Mennica Gdańska](https://justidea.agency/obrazy/mennica-98166c12.webp) ![Group IB](https://justidea.agency/obrazy/group-ib-b711171e.webp) ![Smart Kids Planet](https://justidea.agency/obrazy/smart-kids-151311c5.webp) ![SuperSonic](https://justidea.agency/obrazy/supersonic-a35404fe.webp) ![Wierzynek](https://justidea.agency/obrazy/wierzynek-1-d027e7cc.webp) ![RegoBis](https://justidea.agency/obrazy/regobis-a8b446e3.webp) **In this article** 1. 01Let's Start With a Simple Question: How Much Did You Earn Today? 2. 02What Is Profit? 3. 03Why Has ROAS Stopped Being Enough? 4. 04POAS: ROAS's Smarter Sibling 5. 05A Problem With the Data? Welcome to the World of Modelling 6. 06MER: Common Sense in Numbers 7. 07Google Analytics? Not Quite 8. 08Excel Isn't Enough 9. 09Profit Analytics: A New Era for E-commerce 10. 10Example Dashboards: 11. 11To Finish 12. 12Want to Implement Profit Analytics in Your Shop? 13. 13Also Check Out: Share I've been working in e-commerce and performance marketing for over 10 years. Day to day, I run **JustIdea agency**, where we help scale [online shops](https://justidea.agency/en/services/e-commerce/), effectively and profitably. But I don't just advise: I'm also a practitioner. I run several of my own online shops, including the Surf Inc. brand, which grew 4x in just 5 months. Today I'll show you why that happened and what was key: not [ROAS](https://justidea.agency/en/services/marketing-agency/google-ads/), but Profit. ## Let's Start With a Simple Question: How Much Did You Earn Today? I'm not asking about turnover from Google Analytics. I'm asking: how much money has actually stayed in your account? Today I'll introduce you to "profit-first" thinking: based not on marketing metrics, but on real profit. Because if you don't know how much you're earning, how do you expect to scale effectively? ## What Is Profit? Profit is second-degree margin: revenue minus: - returns, - ad costs, - COGS (cost of goods sold), - packaging and shipping costs, - payment processing fees, - influencer costs, - fulfilment, - and other correlated costs. What's left at the end is real profit. Unfortunately, most shops find out about it too late, usually from their accountant, on the 20th of the following month. In the meantime, performance marketing agencies operate on data that says nothing about the profitability of their activities. ![what makes up profit](https://justidea.agency/_astro/co-sklada-sie-na-profit-4584ea72.6_8q8dBn_wGXAB.webp) what makes up profit ## Why Has ROAS Stopped Being Enough? ROAS is the ratio of campaign revenue to ad spend. It helps you compare campaigns on a micro scale, but it's an incomplete metric. If you have a wide product range with different production costs, returns and payment methods, ROAS can be misleading. A product with a high ROAS can end up making a loss. ![Why has ROAS stopped being enough?](https://justidea.agency/_astro/profit-z-czego-sie-sklada-c066ec5b.DJmnVNo8_Z1PRkwK.webp) Why has ROAS stopped being enough? Let's say we sell two products: heavy combat-style boots and a simple T-shirt. Both can have similar ROAS figures, because they both generate sales, but their real profitability is completely different. Why? Correlated costs. - The boots have a high production cost, high shipping cost (they're heavy and go abroad), and the payment was in instalments: in total, high costs. - The T-shirt is cheap to produce, low delivery cost, paid by card: minimal costs. Even though **the boots had a higher ROAS than the T-shirt**, once all the costs were deducted, they turned out to make a loss of €12, while the T-shirt generated a **profit** of €7. This proves that **ROAS can be an illusion** if you don't analyse the whole cost structure. ## POAS: ROAS's Smarter Sibling This is where POAS (Profit on Ad Spend) comes in: the ratio of net profit to ad spend. **POAS < 100%: you're losing money,POAS > 100%: you're making money.** Simple. Practical. Effective. It's harder to measure at the micro level, but on a macro scale it's perfect for analysing campaign effectiveness. ![POAS: ROAS's smarter sibling](https://justidea.agency/_astro/poas-lepszy-brat-roas-4991d49c.r3-dlrFH_Z1569Mp.webp) POAS: ROAS's smarter sibling ## A Problem With the Data? Welcome to the World of Modelling Since iOS 14, GDPR regulations and browsers blocking cookies, Facebook and Google model data. They attribute conversions to campaigns that didn't necessarily influence them. The result? Inflated ROAS figures, double-counted conversions, and inconsistent data between the ad platforms and reality. ## MER: Common Sense in Numbers MER (Marketing Efficiency Ratio) = total revenue / ad spend. One metric, one truth. Regardless of platforms and attribution errors. ## Google Analytics? Not Quite GA4 doesn't let you: - view profits, - factor in COGS, - analyse real profit. Facebook makes measuring traffic even harder (in-app browser). Multi-device? Modelled data again. GDPR? No consent given equals no data. ## Excel Isn't Enough Manual calculations in Excel? One day's delay and the data is already out of date. ## Profit Analytics: A New Era for E-commerce ![Profit Analytics: a new era for e-commerce](https://justidea.agency/_astro/profit-analytics-0c3e4a88.Ctib4KXC_20aHCm.webp) Profit Analytics: a new era for e-commerce The solution is a data warehouse. Specifically: Profit Analytics, a system we're building at JustIdea. We collect data from: - the shop (e.g. [PrestaShop](https://justidea.agency/en/services/e-commerce/prestashop-stores/)), - ERP (e.g. Comarch Optima), - marketplaces (Zalando), - BaseLinker, - Google Ads, Facebook Ads, GA, GSC. We merge it all in BigQuery and present it in Looker Studio. Everything in real time ![data warehouse](https://justidea.agency/_astro/data-werehouse-hurtownia-danych-b446f371.DzpuGl17_1HlTLK.webp) data warehouse ## Example Dashboards: ### Daily Profit: Profit, Revenue and Returns Day by Day. ![Daily profit: profit, revenue and returns day by day.](https://justidea.agency/_astro/profit-dzienny-a0fddca4.mMtxxD_R_ZhC76m.webp) Daily profit: profit, revenue and returns day by day. ### International Expansion: Profit and Efficiency by Country. ![International expansion: profit and efficiency by country.](https://justidea.agency/_astro/ekspansja-zagraniczna-150beeed.BgA_PDCQ_Z23oA3R.webp) International expansion: profit and efficiency by country. ### Stock Levels: Value of Goods in Stock vs. Sales. ### Bestsellers: Sorted Not by Units Sold, but by Profit. ![Warehouse and Bestseller](https://justidea.agency/_astro/magazyn-and-betseller-1024x575-c17cc4ee.9VYwD6Uy_gSVOi.webp) Warehouse and Bestseller **The November Paradox: When "Accounting" Gets Reality Wrong** November: €230k in turnover, with €115k in returns in December. December: €45k in sales, with €70k in returns from November. On the books: December is in the red. In reality: November was the weaker month. We know this from experience: at Surf Inc. we deal with it every year. On Black Friday we make huge sales, but we know some of it will come back. If we analysed the data on an accounting basis, we'd draw the wrong conclusions. **The solution?** Attribute returns to the day of purchase, not the day the return is processed. **Key Takeaways** ![Key takeaways](https://justidea.agency/_astro/profit-is-king-kluczowe-wnioski-e1fcb5cf.CaH6MXJz_Z1sO7LQ.webp) Key takeaways - ROAS is a myth. - POAS is the new reality. - Profit is the true currency of e-commerce. - MER gives you the macro picture. - A data warehouse is a necessity. ## To Finish If you want to scale your e-commerce business effectively, stop living the illusion of advertising metrics. Start analysing real profit. Profit doesn't lie. And that's exactly what gives you the edge that lets you win in the market. Building our own products and brands across different e-commerce segments, we've repeatedly seen how much data can change our original assumptions about sales potential. Data doesn't just correct us: it also helps us understand our customers better. And that's the key to growth. ## Want to Implement Profit Analytics in Your Shop? [Get in touch with us at JustIdea](https://justidea.agency/en/contact/): we'll build you a system that shows the truth, not an illusion. ![Mateusz Haber - Profit is king](https://justidea.agency/_astro/mateusz-haber-profit-is-king-be403ece.DmX9s63b_Z2ta7DW.webp) Mateusz Haber - Profit is king ## Also Check Out: - [How We Scaled an Online Shop to €320k in Monthly Turnover Thanks to a DATA WAREHOUSE](https://justidea.agency/en/blog/how-to-increase-sales-in-your-online-shop/) - [Talk: Mateusz Haber at Ecommerce.pl: ROAS is DEAD, PROFIT is KING](https://justidea.agency/en/blog/roas-is-dead-profit-is-king/) - [Talk: Mateusz Haber at Ecommerce.pl: Why Do 9 Out of 10 E-commerce Businesses Fail?](https://justidea.agency/en/blog/why-9-in-10-ecommerce-stores-fail/) ![Mateusz Haber](https://justidea.agency/obrazy/mateuszhab-ea59408f.webp) Written by [Mateusz Haber](https://justidea.agency/en/author/mateusz-haber/) CEO / Marketing & E-Commerce Specialist Have a question about this article? Write to us. Want this in your business ## Let's turn this knowledge into results in your store 30 minutes about your numbers. The call starts with someone from sales, and we bring in the channel specialist once we get into the details. The call is free of charge. Book a call about your numbers [See what we do in marketing](https://justidea.agency/en/services/digital-marketing-agency/) Client reviews ## Ratings of the agency that runs this blog Clients gave them after working with us, and you can read each one on the site where it was posted. They cover the work of the whole agency, not this one article. 4.96 / 5 weighted average of 224 reviews across three platforms [Read the reviews](https://justidea.agency/en/justidea-reviews/) [![Google](https://justidea.agency/assets/logo-google.svg) 4.97 / 5 156 reviews on our Google Business Profile](https://www.google.com/search?q=JustIdea+Agency+Krak%C3%B3w+opinie)[![Facebook](https://justidea.agency/assets/logo-facebook.svg) 5.0 / 5 33 reviews on our Facebook page](https://www.facebook.com/justidea.agency/reviews)[![Clutch](https://justidea.agency/assets/logo-clutch.svg) 4.9 / 5 35 B2B reviews, each verified in a call with the client](https://clutch.co/profile/justidea-agency) Statuses awarded by the platforms: PrestaShop Expert ★★★, Google Premier Partner 2025, Meta Business Partner, Microsoft Advertising Elite Partner 2025. [All certificates and awards](https://justidea.agency/en/our-awards/) Read on ## See also [SEO 18 May 2026 TikTok Shop in Poland: how will it change e-commerce in 2026? Małgorzata Walo](https://justidea.agency/en/blog/tiktok-shop-poland-ecommerce-2026/)[SEO 5 August 2026 E-commerce Seasonality: How to Plan SEO in Advance Małgorzata Walo](https://justidea.agency/en/blog/ecommerce-seasonality-seo-planning/)[Marketing 16 April 2024 How to increase conversion in an online shop? Paweł Seruga](https://justidea.agency/en/blog/how-to-increase-conversion-rate-online-shop/) Contact ## A conversation about your numbers: 30 minutes The call is led by a new business specialist. When we get into the details of an account, the specialist for that channel joins in. We reply within one business day. A quick review of your tracking and campaignsThree priorities for the next quarterA written summary that stays with you Before the meeting we review your website, your visibility and what your campaigns show from the outside. We will not open with “so, what does your company do?”. [4.96 224 reviews](https://justidea.agency/en/justidea-reviews/) What happens after you send it 01 within 1 business day ### We reply to your email The reply comes from the same new business specialist who will run the call. No qualification form and no call from an unknown number. 02 this week ### A 30-minute conversation We go through your numbers and your questions. If it turns out we are not the right fit, we will tell you straight away.