Veracend

Why is my ad ROAS higher than my actual sales, and how do I check real ROAS?

Short answer

Recalculate it from Shopify: divide the revenue of Shopify orders that came from the platform (by UTM or referrer, without test, cancelled or refunded orders) by that platform’s spend for the same dates. If that number is far below the ROAS in Ads Manager, the reported ROAS is counting sales your store never made or sales other channels also claim.

By , founder of Veracend · Updated

Why it happens

  • Every platform counts its own sales. Meta, Google and TikTok each credit themselves for any sale they can tie to an ad, so their ROAS figures overlap and add up to more than your revenue.
  • View-through sales. Sales after someone only saw an ad count toward reported ROAS by default on some platforms.
  • Doubled or stray Purchase events. A pixel that loads twice, or a Purchase event outside checkout, inflates reported revenue without any extra orders.
  • Revenue, not profit. ROAS uses revenue. A 3x ROAS can still lose money once product cost, shipping, fees and refunds come out.

How to fix it

  1. Tag every adAdd UTM parameters (utm_source, utm_campaign) to every ad so Shopify can tell which orders came from which platform.
  2. Pull the real revenueIn Shopify Analytics, report sales by UTM source or referrer for 30 days. Leave out test, cancelled and refunded orders.
  3. Divide by spendReal ROAS = that revenue ÷ the platform’s spend for the same 30 days and time zone.
  4. Compare with Ads ManagerPut real ROAS next to reported ROAS (on click-only attribution). A steady ratio is normal attribution overlap; a ratio that jumps from one date is a tracking problem.
  5. Find your break-evenBreak-even ROAS = 1 ÷ your gross margin after shipping and fees. With a 40% margin that is 2.5. Judge real ROAS against it, not against the platform’s figure.

Check it worked

Your weekly report should show spend, reported ROAS, real ROAS from Shopify orders and break-even ROAS for each platform.

Common questions

Why is Shopify’s ROAS always lower than Ads Manager?

Shopify can only credit orders where the visit carried the platform’s tag. Shoppers who come back through Google, email or a typed address aren’t credited, and view-through sales never show. Some gap is normal; a sudden change in it is not.

What is a good ROAS for a Shopify store?

There is no single figure. It depends on your margin: any real ROAS above your break-even ROAS is making money on the first order.

Should I use blended ROAS instead?

Blended ROAS (all revenue ÷ all ad spend) is a useful check that can’t be inflated by attribution, but it can’t tell you which platform or campaign is working.

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