What is BEROAS and why is it important for dropshipping?

BEROAS (Break-Even Return On Ad Spend) is the minimum ROAS your campaigns need to be profitable. It factors in product costs, shipping, and fees to show your true profitability threshold. For dropshipping, this is crucial because margins are typically tight - knowing your BEROAS helps you price products correctly and scale ads profitably.

What's the difference between ROAS and BEROAS?

ROAS shows revenue per ad dollar (e.g., $3 revenue per $1 ad spend), but doesn't account for product costs. BEROAS includes your costs to show the minimum ROAS needed to break even. If your ROAS is above your BEROAS, you're profitable!

How do I calculate BEROAS for my eCommerce store?

First, calculate BECPA: Selling Price - Product Cost. Then calculate BEROAS: Selling Price ÷ BECPA. For example, if you sell at $45 and costs are $15, BECPA = $30, so BEROAS = 45 ÷ 30 = 1.5. You need at least 1.5 ROAS to break even.

What is a good BEROAS for dropshipping products?

A good BEROAS is typically between 1.5-2.5 for most dropshipping products. Lower is better because it means you need less ROAS to be profitable. Products with BEROAS below 2.0 are generally easier to scale profitably with Facebook and TikTok ads.

How can I lower my BEROAS to improve profitability?

To lower BEROAS: 1) Increase your selling price (higher perceived value), 2) Reduce product costs (negotiate with suppliers, find cheaper alternatives), 3) Reduce shipping and processing fees, or 4) Bundle products to increase average order value.

Can I use this BEROAS calculator for Facebook Ads and TikTok Ads?

Yes! This calculator works for any advertising platform - Facebook Ads, TikTok Ads, Google Ads, Instagram Ads, etc. BEROAS is a universal metric that helps you understand profitability regardless of where you're running ads.

Ecomhunt - BEROAS Calculator - Free Break-Even ROAS Calculator

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