Article

Why D2C Brands in India Must Switch from ROAS to POAS

Nurdd Free Intermediate India

The single most India specific resource on this list: it shows how COD and RTO, returns to origin running 25 to 30% of failed orders in Indian D2C, turn a 3.3x ROAS campaign into a negative 33% actual return, and gives the formula to catch it before you scale.

  • Defines POAS as gross profit from a campaign divided by ad spend, where gross profit strips out COGS, shipping, RTO, and platform fees.
  • Cites RTO at roughly 25 to 30% of failed orders across mid size Indian D2C brands, costing 180 to 240 rupees in reverse logistics per failed COD order for zero revenue.
  • A worked example shows 3.3x reported ROAS, 10 lakh revenue on 3 lakh spend, actually netting a negative 33% return once real costs are applied, recommending a POAS target above 1.1 before scaling.
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The question it answers

  1. Which Meta Ads Manager metrics actually matter, and how do I read them?

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