SCF

Marketing & Advertising

Shopping Campaign Funnel Calculator

Estimate paid-shopping traffic and orders, reduce sales for returns, calculate media and product cost, and show contribution, cost per approved order, and break-even conversion rate.

Paid shopping clicks-
Raw shopping orders-
Approved orders after returns-
Shopping media spend-
Gross sales before returns-
Approved sales after returns-
Product cost on approved sales-
Gross profit on approved sales-
Media plus feed-management cost-
Approved gross profit after campaign cost-
Approved revenue ROAS-
Campaign cost per approved order-
Purchase rate required to cover CPC before fixed cost-

Decision view

Shopping shelf, approved orders and contribution

Shopping shelf, approved orders and contributionProduct impressions become paid clicks and orders, then returns, product cost, media spend and feed cost reconcile to approved campaign contribution.
Exact scenario comparisonClick-to-order rate (%) changes while all other entered assumptions remain constant.
Click-to-order rate (%)Paid shopping clicksRaw shopping ordersApproved orders after returnsShopping media spendGross sales before returnsApproved sales after returnsProduct cost on approved salesGross profit on approved salesMedia plus feed-management costApproved gross profit after campaign costApproved revenue ROASCampaign cost per approved orderPurchase rate required to cover CPC before fixed cost

Period-by-period detail

Shopping conversion-rate cases

Click-to-order rate changes while impressions, CTR, CPC, returns, order value, product cost and feed-management cost remain fixed.

How to use Shopping Campaign Funnel Calculator

  1. Use product-ad impressions and clicks from the same campaign scope.
  2. Apply returns to orders and revenue consistently.
  3. Use realized product margin after discounts.

Calculator guide

Understanding Shopping Campaign Funnel Calculator

Shopping-campaign economics connects product impressions, clicks, purchases, returns, cost of goods, media cost, and merchant contribution.

Clicks create cost immediately Orders must generate enough margin to recover CPC spend.
Returns reverse value Raw revenue can overstate approved contribution.
Product mix matters One blended margin can hide weak SKUs.

Calculation method

How the calculation works

Move shopping impressions into paid clicks, raw orders and approved orders before reconciling returns, product cost, media and feed-management expense. Product impressions generate paid clicks through CTR; clicks generate raw orders; the return rate reduces approved orders and net sales before gross margin and click cost are reconciled.

Product shelf

Move product impressions through cart economics

A product-card path shows impressions, clicks, raw orders, approved orders, net sales, and contribution after media cost.

Product visibility Shopping impressions served.
Paid traffic Clicks purchased at the entered CPC.
Approved demand Orders retained after returns.
Contribution Approved gross profit less media spend.

Worked situations

Practical examples

  • A high-CTR product can still lose money when conversion is weak.
  • Return-heavy categories need approved-order economics.
  • Feed improvements can raise click quality without increasing bids.

Better inputs

Useful tips

  • Segment by product margin.
  • Separate branded and non-branded shopping traffic.
  • Monitor search terms and feed disapprovals.

Before relying on the result

Limitations and common mistakes

  • Auction changes, product mix, shipping, tax, promotion, attribution lag, cross-device conversion, cancellations, and feed quality are simplified.
  • Average CPC and margin can hide unprofitable products.
  • The output is not a bidding recommendation.

Reference

Key terms

Approved order
Purchase remaining after modeled returns or cancellations.
Product feed
Structured catalog data used to create shopping ads.
Break-even conversion rate
Click-to-order rate required for modeled gross profit to cover media cost.

Important note

Calculated from the entered campaign values. Validate attribution, incrementality, lag, margin, and observed source data before making decisions.

Frequently asked questions

Should shipping revenue be included?

Include it only when its related fulfillment cost is also modeled.

Why use approved orders?

They align spend with purchases that remain economically valid.

Can the break-even rate set bids?

It is a screening reference, not a complete bidding strategy.