How it works
The same as ROAS, only on profit instead of revenue. It answers the question ROAS cannot get around: did the shop earn on this advertising, or just churn the money.
It is only counted where the cost of goods is known. The portal does not know it — so POAS is counted on the shop’s side, and we supply the raw numbers for it.
Formula
Profit from orders ÷ spend
Example
The tableware shop: revenue of 180,000 at a 35% markup gives a profit of 63,000, spend 40,000.
POAS = 63,000 ÷ 40,000 = 1.6. At a ROAS of 4.5 the advertising is still in the black — but the room is far smaller than ROAS makes it look.