Attribution & Analytics
How Refunds Affect Your True Advertising ROAS
Ad platforms usually report conversion value when the purchase happens. If the order is refunded later and that adjustment does not flow back into the same reporting, platform ROAS can overstate retained revenue.
Example
Ads spend: $10,000.
Attributed purchase revenue: $50,000.
Platform ROAS: 5.0x.
If $8,000 of those orders are later refunded, retained revenue is $42,000 before considering attribution overlap.
Net revenue ROAS: 4.2x.
Returns vary by product and campaign
A clothing campaign attracting poor-fit customers may have higher refund rates than a repeat purchase campaign. Product-level ROAS without return behaviour can promote the wrong SKU.
Use contribution after expected refunds
For target-setting, include a realistic return/refund allowance based on historical data.
Track creative quality too
Overpromising ads can increase conversion and returns simultaneously. A high-purchase campaign with high refund rate is not a winner.
Want to know what the number actually means?
If platform ROAS looks strong but Shopify refunds materially reduce what the business keeps, send us an inquiry. We can build more realistic net performance reporting.