Shopify
Shopify CAC Guide for Ecommerce Sellers
Customer acquisition cost is the average advertising cost required to generate one order or one new customer. Shopify sellers should compare CAC against contribution margin, not just against revenue.
Break-even CAC
Break-even CAC is the amount left after product cost, fulfillment, payment fees, discounts and expected return costs. If your average CAC is higher than this number, first-order profit is negative.
AOV matters
Improving average order value can make the same CAC profitable. Bundles, quantity breaks and post-purchase upsells can increase contribution profit without needing cheaper traffic.
When negative CAC can be acceptable
Some brands accept first-order losses when repeat purchase rate is strong. New stores should be careful with this assumption until retention data exists.