Two ROAS numbers, not one
📦 For the COD operators here, this one is short and worth acting on.
Your dashboard says ROAS 3. You are running 40 percent RTO. What is your actual ROAS?
Most brands have never run that calculation. They report the number Meta gives them, book it as a good month, and then spend December explaining why the dashboard and the bank account disagree.
Vishnu’s point is to track two metrics instead of one. Reported ROAS, which is what the platform shows you, and ROAS after RTO, which is what you were actually paid. At 30 to 40 percent RTO those are not two readings of the same number, they are two different businesses. One says scale. The other might be telling you the campaign has never been profitable and you have been funding its growth for six months.
The reason it compounds is that every decision downstream inherits the error. Budget allocation, which creative wins, which audience gets scaled, which product gets more inventory. If the metric at the top is inflated by returns you were never paid for, everything built on it tilts the same way.
And it is not uniform. Some SKUs return at 15 percent and some at 50. Some audiences are far worse than others. A blended RTO number hides all of that, which is why a flat haircut across the account is not a substitute for measuring it properly.
Watch the full video: https://youtu.be/cMp7ooZ_V80
Featuring Shalini and Vishnu.
Question for the group: do you report ROAS after RTO to your founder, or just the dashboard number? And for those who switched, how big was the gap the first time you saw both columns together?
#RTO #CODOrders #ROAS #1PDOps #EcommerceMarketing