Profit & costs
Profit by channel
Ad channels (/channels) shows contribution profit per channel: revenue minus product cost and platform fees, then minus ad spend. A channel is only profitable when that number is positive.
Beyond ROAS
A 3x ROAS sounds healthy. But if your gross margin is 40% and platform fees are 3%, you need a ROAS above 2.7x just to break even before counting ad spend. The Ad channels view (/channels) shows the contribution profit column so you can see which channels are actually making money.
The formula: contribution profit = (revenue x gross margin%) - (revenue x fee%) - ad spend. A positive number means the channel paid for itself and contributed to covering fixed costs. A negative number means it is burning more than it earns after product cost.
Break-even ROAS per channel
Vibel also shows the break-even ROAS for each channel. This is the minimum ROAS where ad spend equals the contribution margin left after product cost and fees. The formula is 100 / (grossMarginPct - feePct). Your current ROAS needs to beat this number for a channel to be profitable.
Set your costs for exact numbers
The blended margin figure Vibel uses when you have not entered costs is a DTC default. For accurate contribution profit numbers, enter your product costs in Settings > Costs and cost groups. Once costs are set, every channel row reflects your real economics.
Good to know
- Coach (/coach) surfaces unprofitable channels as high-priority actions automatically. You do not have to check the channels view to find them.
- The break-even ROAS shown on /channels is also what drives the KILL/SCALE verdicts on the Product testing board for dropshipping stores.
More in Profit & costs
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