Glossary

What is ROI in Flipkart ads?

ROI in Flipkart ads is the revenue attributed to your ads divided by what you spent on them, shown as a plain multiple: ₹40,000 of ad revenue on ₹5,000 of spend is an ROI of 8. Despite the name, it is return on ad spend rather than net profit, because it ignores product cost, commission and returns.

Formula
ad revenue / ad spend (shown as a multiple, not a %)
Worked example
₹40,000 revenue / ₹5,000 spend = ROI 8
ACoS equivalent
ROI 8 = ACoS 12.5%
Where it appears
Flipkart Ads Manager campaign and FSN reports; Smart ROI campaign target

How Flipkart calculates ROI

Flipkart takes the gross merchandise value of orders attributed to an ad click and divides it by the ad spend for the same period. If a PLA campaign spent ₹5,000 in a week and Flipkart attributed ₹40,000 of orders to it, the Ads Manager shows ROI 8. Flipkart does not display it as 800%; the multiple is the convention across the seller panel and in the Smart ROI campaign setting.

Because the numerator is revenue rather than profit, the same figure is what Amazon calls ROAS. To get the ACoS that Amazon sellers use, divide 1 by the ROI: 1 / 8 = 12.5%. An ROI of 4 is an ACoS of 25%; an ROI of 2 is 50%.

Blooprint's Flipkart ads guide on blooprint.in covers campaign setup. This page is about reading the number and knowing when it is good enough.

What a good ROI looks like

The honest answer is: above your break-even ROI, which is 1 divided by your margin. A product with a 25% margin after Flipkart commission, shipping and product cost breaks even at ROI 4. A product with a 15% margin needs ROI 6.7 just to stop losing money on ad orders.

Agencies quote 5x to 8x as a healthy ROI for established Flipkart accounts, 7x to 8x for FMCG where margins are thin, and 2x to 3x as acceptable for a new account in its first 30 to 45 days (reported by globalwebsters and adtorise, not Flipkart). Those ranges are a sanity check, not a target: your margin decides.

Remember that Flipkart's revenue figure is before returns. Fashion and footwear see high return rates, so a reported ROI of 6 can be closer to 4 on delivered orders.

How to improve ROI on Flipkart ads

  • Set a Smart ROI target only after the FSN has sales history; sellers report Flipkart needs a steady run of daily orders before it can hit a target, and a target set too high simply stops spend.
  • On CPC campaigns, lower bids on placements with a low ROI and raise them on search top slot when its ROI is above break-even.
  • Add non-converting search terms as negative keywords each week; every wasted click lowers ROI directly.
  • Fix the listing basics: price parity, stock across warehouses and images. Ads with a weak listing spend without converting.
  • Track ROI by FSN, not only by campaign. One hero SKU at ROI 10 can hide five at ROI 2 in the same campaign.

Related pages

Frequently asked questions

What does ROI mean in Flipkart ads?

ROI in Flipkart ads is ad-attributed revenue divided by ad spend, shown as a multiple. An ROI of 8 means ₹8 of sales for every ₹1 spent on ads. It is the same as ROAS on Amazon.

What is the ROI formula in Flipkart?

ROI = revenue from ad-attributed orders / ad spend. ₹40,000 of revenue on ₹5,000 spend gives ROI 8. To convert to ACoS, divide 1 by the ROI: 12.5%.

Is an ROI of 25 good on Flipkart?

Yes, unusually so. ROI 25 is an ACoS of 4%, which usually happens on branded keywords or a tiny spend. Check the spend is large enough for the number to mean anything before scaling it.

What is a good ROI for Flipkart ads?

Anything above 1 divided by your margin. At 20% margin you need ROI 5 to break even; agencies commonly quote 5x to 8x as healthy for established accounts.

Why does my ROI look good but I am not making money?

ROI uses gross revenue before commission, product cost and returns. Convert it to ACoS and compare with your break-even ACoS to see the real picture.

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