Average Return on Ad Spend (ROAS) and Marketing Efficiency Ratio (MER) benchmarks across industries. Based on data from 500+ Shopify brands and industry research.
• Platform ROAS is inflated: Meta/Google over-report by 10-40% due to attribution overlap
• MER is more reliable: Total Revenue ÷ Total Marketing Spend (not affected by attribution)
• Benchmarks vary by: Business model, margins, AOV, LTV, and attribution window
• ROAS ≠ Profitability: A 3.0 ROAS with 40% margins = only 20% profit (1.2 POAS)
| Industry | ROAS Range | MER Range | Notes |
|---|---|---|---|
| E-commerce (General) | 3.0-4.0 | 2.5-3.5 | Highly competitive, 30-40% margins typical |
| Beauty & Cosmetics | 3.8-4.5 | 3.0-3.8 | High repeat purchase rate, strong LTV |
| Fashion & Apparel | 2.5-3.5 | 2.0-3.0 | Seasonal fluctuations, high return rates |
| Home & Garden | 3.5-5.0 | 3.0-4.0 | Higher AOV, longer consideration cycle |
| Electronics | 2.0-3.0 | 1.8-2.5 | Low margins (10-20%), high competition |
| Health & Wellness | 4.0-5.5 | 3.5-4.5 | Subscription models, high LTV |
| Jewelry & Accessories | 3.0-4.0 | 2.5-3.5 | High margins (50-70%), impulse purchases |
| Home Services | 6.0-10.0 | 5.0-8.0 | High-ticket, local targeting, low competition |
| B2B SaaS | 3.0-5.0 | 2.5-4.0 | Long sales cycles, high LTV, attribution challenges |
Platform-reported ROAS is inflated by attribution overlap. Calculate your MER (Total Shopify Revenue ÷ Total Marketing Spend) and compare that to the MER benchmarks. This gives you an accurate picture of your marketing efficiency.
A "good" ROAS depends entirely on your margins. If you have 40% margins, you need at least 2.5 ROAS to break even (1 ÷ 0.4 = 2.5). Electronics brands with 15% margins need 6.7 ROAS just to break even. Always calculate your break-even ROAS before comparing to benchmarks.
Subscription businesses and high-LTV products can afford lower ROAS because of repeat purchases. One-time purchase businesses need higher ROAS to be profitable. Factor in your customer lifetime value when evaluating performance against benchmarks.
These benchmarks assume 7-day click attribution. If you're using 1-day click (more conservative), expect 10-20% lower ROAS. If you're using 30-day click, expect 15-30% higher ROAS. Longer windows capture more conversions but increase attribution overlap.
If your MER is below industry benchmarks, here are the most common causes and fixes:
20-40% of conversions are lost to iOS 14+ restrictions. Implement server-side tracking (CAPI) to recover 10-20% of lost conversions. This alone can boost your ROAS by 15-25%.
Test 10+ creative variations per month. Winning creatives can have 2-3x better ROAS than losing ones. Use static images, UGC videos, and testimonials—not just product shots.
Broad targeting works for brands with product-market fit and proven creative. If you're below benchmark, tighten targeting to warm audiences (website visitors, email lists, lookalikes) until you find winners.
If your click-through rate is good but ROAS is low, the problem is likely your landing page or checkout flow. Industry average conversion rate is 2-3%. Below 1.5%? Fix your site before spending more on ads.