A 25% sitewide discount does not cut margin by 25%. Full US apparel math: $27.80 to $9.52 per order, and why a $105,000 sale week ended at minus $7,260 after returns.
Tag: contribution margin
Why Your Store Has Great ROAS But Still Loses Money
By Ashish Rai, CEO, Purple Circle · Updated August 2026 · 11 min read Short answer: ROAS measures revenue against ad spend. It knows nothing about your product cost, shipping, payment fees, discounts, or returns. A store can report a 3.6 ROAS on Meta, run a 53% contribution margin, and still lose money every month… Continue reading Why Your Store Has Great ROAS But Still Loses Money
Why Your Breakeven ROAS Is Higher Than Your US Competitors’, and What to Do About It
Your breakeven ROAS is one divided by your contribution margin. Here is why non-US D2C brands need a higher ROAS to break even, and four levers to fix it.
ROAS vs MER vs Blended ROAS: Which One Actually Predicts Your Bank Balance
Platform ROAS, blended ROAS and MER measure three different things — and only one tracks your bank account. A full worked example for US DTC and apparel brands.
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