07/11/2025
GMV Ads – A Hidden Trap Many Don’t Realize
Many people are unaware of this issue and end up losing money in their business.
Read the explanation below to understand and avoid unnecessary losses.
When running GMV Ads, most sellers only focus on ROI. They think that if ROI looks good, then sales must be profitable. However, that is not always true.
Some businesses see a “high ROI” but still do not make profit because profit does not depend only on ROI — it depends on Cost Per Order (CPO).
Small Example for Better Understanding:
Ad Budget: RM100
Orders Received: 20 orders
Gross Revenue: RM200
ROI = 2 (looks good, right?)
But look at Cost Per Order:
RM100 / 20 orders = RM5 per order
If your product selling price is only RM10, your actual margin after product cost, packing, shipping, platform fees etc. may cause you to lose money even though ROI looked positive.
But if your product price is RM50, then RM5 cost per order is profitable and the ROI works in your favor.
So the real key to determine profit is not just ROI — it is Cost Per Order.
If your CPO is above $2 (≈ RM10), most of the time you are already losing money unless your product has very high margins.
✅ What You Should Do
Always check:
Cost Per Order > Is your product still profitable?
Not just:
“ROI looks good so must be profit.”
Need Help Running GMV Ads Properly?
If you want to run GMV ads in the correct and profitable way, we can help optimize your campaigns effectively.
Click the link below to contact us for guidance and support.
https://wa.link/1octtb
Comment Below:
Share your Cost Per Order in the comments, and we’ll help analyze whether you are profitable or losing.
