Glossary

What is a good ROAS on Amazon (and Flipkart)?

A good ROAS, return on ad spend, is any ROAS above your break-even ROAS, which is 1 divided by your profit margin before ads. At a 25% margin break-even is 4, so a ROAS of 5 or more makes money on the ad order. Indian agency posts quote 4 to 6x as typical on Amazon and 5 to 8x on Flipkart, but those are observations, not targets.

Formula
ROAS = ad sales / ad spend; break-even ROAS = 1 / margin
Worked example
₹12,000 sales / ₹3,000 spend = 4x; at 35% margin break-even is 2.86
Amazon India (agency figure)
4 to 6x typical
Flipkart (agency figure)
5 to 8x; new accounts 2 to 3x for the first month
Equivalent
ROAS 4 = ACoS 25% = Flipkart ROI 4

Break-even ROAS comes first

ROAS is ad sales divided by ad spend, written as a multiple. Spend ₹3,000 and get ₹12,000 of attributed sales and the ROAS is 4. Whether 4 is good depends on margin. Worked example: a ₹999 product with ₹400 of cost and ₹250 of fees has a 35% margin, so break-even ROAS is 1 / 0.35 = 2.86. A ROAS of 4 on that product earns ₹100 per ad order. A product with a 20% margin has a break-even ROAS of 5, and the same ROAS of 4 loses money on every ad order.

So the honest answer to 'what is a good ROAS' is a number you calculate, not one you look up. Blooprint's ROAS glossary on blooprint.in covers the metric; the ROAS calculator here does the arithmetic.

Amazon shows ROAS in campaign manager and Flipkart shows the same number as ROI; Myntra, Blinkit and noon all report a ROAS. It is the one metric that reads the same on every platform, which makes it the right one for a cross-marketplace dashboard.

What Indian sellers actually see

PlatformReported typical ROASSource type
Amazon India, Sponsored Products4 to 6x (forum: mature SP 7 to 10x)Agency table, Seller Central thread
Flipkart PLA5 to 8x; FMCG needs 7 to 8x; new accounts 2 to 3xAgency posts
Myntra PLA3 to 5x new, 4 to 8x established, before returnsAgency posts
Blinkit, Zepto, InstamartDashboard 3 to 4x; 1 to 2.5x after commissionAgency posts
noonNot published; agencies quote general UAE 4 to 8xAgency claim

Every row is a report of what sellers see, not what is profitable. A 6x ROAS on Blinkit computed on MRP can be 2.5x on the price actually paid; a 5x on Myntra before returns can be 3x after.

Using ROAS as a target

  • Compute break-even ROAS per product and set the target one to two points above it to cover returns.
  • Filter keywords by ROAS against the product's target, and cut bids on those below it with enough clicks to judge.
  • Recompute quick commerce and Myntra ROAS on net realised value before comparing with Amazon.
  • Accept a ROAS below break-even during a launch, with an end date.
  • Pair ROAS with TACoS; total sales growth is the point of the spend.

Related pages

Frequently asked questions

What does a good ROAS mean?

It means a return on ad spend above your break-even ROAS, which is 1 divided by profit margin before ads. At a 25% margin break-even is 4, so a ROAS of 5 leaves profit on each ad order.

What is a good ROAS for Amazon in India?

Agency tables put typical Amazon India ROAS at 4 to 6x, and a Seller Central thread reports mature Sponsored Products at 7 to 10x. Whether yours is good depends on margin: compute 1 divided by margin and aim above it.

What is the ROAS formula?

ROAS = ad sales / ad spend. ₹12,000 of attributed sales on ₹3,000 of spend is a ROAS of 4. It is the inverse of ACoS: ROAS 4 equals ACoS 25%.

Is a good ROAS on Flipkart different from Amazon?

The rule is the same, but Flipkart calls it ROI and agency posts quote 5 to 8x as good, with FMCG needing 7 to 8x and new accounts sitting at 2 to 3x for the first month.

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