Ad Spend Secrets: eCommerce Marketing Strategies
This podcast explores eCommerce advertising, marketing, and lead-gen strategies — so you can leverage the secrets of profitable ads, to grow your eCommerce or Shopify store.
Your host, Luke Smith, has worked with a range of brands — from startups in the 'kids & parenting' e-commerce niche to titans of the industry like Tom Ford, Qantas, McDonald's, and more.
Tune in each week for actionable tips and insights from industry experts to help you get the most from your ad spend — to grow your eCommerce store.
Ad Spend Secrets: eCommerce Marketing Strategies
E-Commerce Profit Calculator (For Shopify Brands Running Google & Meta Ads)
Your average order value might be increasing while your actual profits are silently disappearing - a paradox that's bankrupting e-commerce stores every day.
In this episode of Ad Spend Secrets, Luke Smith shares the exact unit economics calculator his agency uses to pinpoint profitability and scalability for clients.
Using a real-world example, he reveals how seemingly minor factors - like items per order - can drastically impact the bottom line of your Shopify store.
Discover the common pitfall of confusing cost per item with cost per order, especially when running e-commerce promotions.
Luke also demonstrates how discounts can boost average order value (AOV) while squeezing profit margins if basket size increases.
You’ll learn to calculate crucial metrics like break-even CPA, minimum ROAS, net profit per order, and the LTV/CAC ratio to determine ad spend scalability.
Key Points:
00:01:00 The forecasting blueprint
00:02:32 Variable costs exposed
00:04:00 Basket size danger zone
00:06:00 Shipping margin impact
00:07:25 Calculate real profits
00:08:48 Master performance metrics
00:09:32 30-day LTV advantage
00:10:17 Know your break-even point
00:11:15 Double profits instantly
Ready to master your e-commerce unit economics?
Tune in now to access the forecasting tool Luke's agency uses - and uncover hidden profits within your existing sales. Let’s boost your e-commerce profitability today.
===
🚀 FREE Google Ads training: https://scale.simplyconverting.com/google-shopping
📈 Apply to work with us: https://scale.simplyconverting.com/survey
Follow Simply Converting Online:
https://www.simplyconverting.com/
