Revenue vs Profit in Ecommerce Ads (Why Most Brands Lose Money)

Revenue vs Profit in Ecommerce Ads (Why Most Brands Lose Money)

From Winning With Shopify by Winning With Shopify

March 31, 2026 · 23 min · Episode 31

About this episode

Nick discusses the critical difference between revenue and profit in ecommerce advertising and shares strategies to improve margins and scale profitably.

Most ecommerce brands focus on revenue and ROAS… but ignore the one thing that actually matters: Profit. In this episode, Nick breaks down the critical difference between revenue vs profit in advertising, and why so many brands are unknowingly losing money. If you're running Google Ads, Meta Ads, or any paid traffic, this is essential listening. You’ll learn: • Why a flat ROAS target doesn’t work • How product margins impact your ad performance • Why some products should NEVER be scaled • The hidden reason most brands lose money on ads • How to structure campaigns based on profitability Nick also shares practical strategies to improve your margins and scale profitably: • Lowering product costs (without sacrificing quality) • Increasing prices (without killing conversions) • Boosting average order value (AOV) • Leveraging lifetime value (LTV) for growth If you run a Shopify store, manage ecommerce ads, or want to scale profitably - this episode will change how you look at your numbers. Because the truth is simple: Revenue looks good. Profit builds businesses. Follow us on socials: ⁠https://www.instagram.com/winningwithshopifypodcast ⁠⁠https://www.tiktok.com/@winningwithshopify⁠⁠…

People in this episode

Host: Nick

Topics covered

  • ecommerce
  • advertising
  • profitability
  • Google Ads
  • Meta Ads

Keywords

  • ROAS
  • product margins
  • campaign structure
  • average order value
  • lifetime value

Mentioned in this episode

Products: Meta Ads, Shopify

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