One of the key aspects of running an online store isn’t about generating money. Any business can earn lots of revenue, it is about earning more profit from your investments. There are several ways that you can build profits on Shopify, but you need to look at investments you’re making and ensuring they’re cost-effective.

If you advertise on Google and Bing Ads, this is one area where many shop owners fail to consider cost-effectiveness. 2025 statistics showed that Google Ads had an average cost per conversion of between $45-$70. However, the average transaction for online shopping is between $144-$180. Therefore, the best case scenarios suggest that online advertising can actually be more expensive than a sale’s transaction.

If you’re lucky, before costs of goods and delivery, your profit margins on a sale could be less than 55%.

Therefore, you need to look at ways to optimize your Google and Bing Ads.

Key Takeaways
1
Track performance across Google and Bing Ads to understand costs and revenue per sale.
2
Use session recorders to identify and remove conversion barriers on your Shopify site.
3
Optimize adverts and website design, including shipping terms, to enhance customer conversion.

ROAS Calculator (Return on Ad Spend)

ROAS (Return on Ad Spend) measures the effectiveness of your advertising by showing how much revenue you generate for every dollar spent on ads. It’s calculated by dividing the revenue earned from an ad campaign by the cost of the campaign:

ROAS = Revenue from Ads / Cost of Ads

For example, if you spend $100 on an ad campaign and generate $500 in sales from it, your ROAS is 5, meaning you made $5 for every $1 spent.

Here’s why knowing your ROAS is important:

  1. Evaluate ad performance: ROAS helps you quickly see which ad campaigns are making money and which aren’t. The higher the ROAS, the more efficient your ads are at driving sales.
  2. Optimize budget allocation: Knowing your ROAS allows you to allocate your budget to the campaigns with the best return. This ensures you’re investing in ads that actually deliver profits.
  3. Improve profitability: By focusing on campaigns with high ROAS, you can maximize your profit from advertising. If a campaign isn’t performing, you can adjust or stop it before wasting more money.
  4. Guide marketing strategy: ROAS shows you which strategies, platforms, or products are driving the most revenue. You can use this information to refine your marketing approach and target more profitable channels.
  5. Control ad spending: Tracking ROAS ensures you’re not overspending on ads that don’t bring in enough sales. It helps you make smarter decisions about scaling campaigns.
  6. Assess overall business growth: ROAS reflects how well your business is leveraging ads to grow revenue. A consistently high ROAS is a strong indicator of a sustainable and scalable business model.

ROAS Calculator - Try it out!



Yes
No


Step 1 - Tracking

The first thing that you need to do is to track your performance across Google and Bing Ads. To do this, you can install apps like this one here. Or install tracking codes yourself to check your benchmarks.

On-page optimization plays a crucial role in improving your advertising ROI. Tracking is very important if you want to know what the costs are for your advertising and how much money you’re making per sale from traffic generated by online advertising.

Step 2 - Screen Recorder

Now you need to have a session recorder on your website. This enables you to look at what people are doing on your website and what is stopping them from converting. There are numerous screen recorders that can be used on Shopify stores, and they can help you find obstacles you didn’t know about.

Step 3 - Analyze

Now you need to analyze the results of your website. You want to start putting money into adverts that are generating higher profits than others. You can adjust certain adverts if you want to, but if customers aren’t buying a certain product from an advert, then you might want to consider the product rather than the advert.

Step 4 - Edit Website Design

You might find that there are barriers on your website that are preventing a sale. For instance, customers might read your shipping terms and conditions and not like something there. Therefore, you can change your website’s shipping terms to something that customers might prefer. This could be the length it might take for your customers to get their products.

Step 5 - Abandoned Carts

Sometimes you can’t help someone abandoning your cart. About 70% of visitors will abandon a cart on your website. However, you want to increase the number of recovered carts. Therefore, you should look at installing some cart recovery apps. These are easy to install and use.