What Is the Average ROI for Google Ads eCommerce Sites? (2024 Insights)
One of the most common questions in eCommerce advertising is:
“What’s the average ROI for Google Ads?”
Like many things in marketing, the answer is: it depends. But let’s break it down and then get to the real question—how to maximize your ROI.
What Affects ROI in Google Ads for eCommerce?
Several core variables impact your ROI:
1. Profit Margin
- The higher your margin, the higher your ROI can be.
- If your margin is thin, even strong campaign performance might not look great in terms of percentage ROI.
2. Competition
- Google Ads is an auction model.
- More competition = higher cost-per-click = lower ROI.
- Less competition = better ROI potential.
3. Volume
- As you scale, ROI tends to decline.
- You start reaching broader, less-qualified audiences.
- Even though total profit might increase, percentage ROI usually drops as you go wide.
These are fundamental laws of PPC and eCommerce scaling.
A Better Question: How Do You Maximize ROI?
Let’s shift the question from “what is average” to “how can I get better than average?”
Step 1: Use Google Ads Effectively
- Target relevant traffic with long-tail keywords
- Use your ads to qualify the right customers (and filter out the wrong ones)
Step 2: Minimize Wasted Spend
- Use match types strategically (don’t rely only on broad match)
- Block irrelevant terms with negative keywords
- Qualify aggressively in your ad copy
Step 3: Maintain ROI as You Scale
- Start lean and focused
- Use search term reports to monitor quality
- As you scale, keep tightening your targeting to maintain efficiency
Final Thoughts
So, what is the average ROI for eCommerce on Google Ads?
It varies—but a healthy account might expect:
- 3x to 5x ROAS (300–500%) as a baseline
- Higher margins or niche markets can go above that
- Highly competitive, low-margin markets might dip below
But the most important takeaway is this:
Maximizing ROI isn’t about hitting a number—it’s about controlling your traffic and spend with precision.