Solved: Low ROAS on Google Ads for Subscription Box Business

Hi there,

Thanks for reaching out. Happy to give you some initial thoughts and guidance based on what you've shared about your sustainable crafting subscription box business and the Google Ads performance you're seeing.

Getting a ROAS (return on ad spend) under 1.0x on Google Search and Shopping ads is definitely tough, and you're right, it means you're loseing money on each acquisition. It sounds like you've got a good handle on the basic math – that average order value doesn't help if the ad cost eats up the profit.

The good news is that with Search and Shopping campaigns, you're generally reaching people who are actively looking for products or services like yours. So, the traffic quality itself is likely pretty good, especially compared to, say, cold social media traffic.

We'll need to look at traffic quality and your website...

When you're getting relevant clicks from Search and Shopping but the ROAS is below 1x, it usually strongly suggests the problem isn't just with the ads getting teh wrong people, but with what happens *after* they click and land on your website. We've seen this time and time again with eCommerce clients. People land, but they just don't convert into buyers at a high enough rate to make the ad spend profitable.

You need to really dig into your website analytics and your conversion funnel. Where are people dropping off? Are they hitting the homepage and leaving immediately? Are they getting to product pages but not adding to cart? Are they adding to cart but abandoning before checkout? Each stage points to different potential issues on your site.

Based on our experience with other eCommerce businesses, especially those selling physical goods and subscriptions, there are some common culprits for low website conversion rates:

• -> Website speed and design: Is your site fast? Is it easy to navigate? A cluttered or slow loading site makes people bounce immediately. For a crafting box, visually appealing design and clear presentation are crucial.
• -> Product presentation: Since it's a subscription box, people are buying something they haven't physically seen yet. You need excellent, clear photos and ideally videos showing exactly what's inside a typical box, teh quality of the materials, and maybe even examples of finished crafts. Vague or low-quality images won't cut it. We've advised other ecom clients on getting proper photography or even simple videos to improve conversion.
• -> Product descriptions and persuasive copy: Are you clearly explaining the value proposition? What makes your *sustainable* crafting box special? What will people *do* with the materials? What skills will they learn? You need compelling copy that speaks to your ideal customer's desires and addresses their potential hesitations, especially around sustainability.
• -> Lack of trust signals: This is huge, particularly for an online store you might not be familiar with and for a recurring subscription. Do you have customer reviews or testimonials prominently displayed? Links to social media where people can see engagement? Information about your company, contact details, and clear returns/cancellation policies? People need to feel comfortable and confident giving you their payment information. Adding trust badges, mentions in publications, or links to other platforms where you sell (if any) can really help build credibility. We've seen adding things like reviews significantly boost conversion rates for other stores.
• -> The Offer Itself: Is the subscription model clear? What are the benefits of subscribing versus buying materials individually? Is there an incentive to sign up now? Sometimes a special introductory offer or discount can drastically improve initial conversion rates.

For a subscription box, getting the first conversion is just the start. You mentioned profitability *after* all costs, including ad costs. This touches on something crucial: Customer Lifetime Value (CLTV). While you need to be profitable on the first box sale eventually (or have a clear path to profitability very quickly after the first couple of boxes), the real value in subscriptions is in how long people stay subscribed. An agency that understands this will factor in your CLTV when calculating a target ROAS or Cost Per Acquisition (CPA). If a customer stays subscribed for, say, 6 months, their total value to you is much higher than that initial $65 order. You can afford a higher initial CPA if you know customers stick around and are profitable long-term.

I'd say you need to give it more time...

Optimising for profitability takes time and iteration, especially when fixing website issues. It's not just about tweaking keywords or bids. You need to systematically test changes on your website and in your ad campaigns to see what moves the needle on conversion rates and, ultimately, ROAS. Three months and $5k isn't a huge amount of time or budget in the grand scheme of things for figuring this all out, but it's enough to show that the current setup isn't working and needs significant changes, likely starting with the website.

As for finding an agency...

You're asking exactly the right questions. It's absolutely vital not to hire someone who just knows the buttons and levers in Google Ads but doesn't understand your business model, your profit margins, or the importance of CLTV for a subscription business. You need a partner who sees the full picture, from the initial ad click right through to a customer becoming a repeat buyer and staying subscribed.

When evaluating agencies, definitely ask them:

• -> How do they measure success? If they talk about clicks, impressions, or even just conversions without asking about *the value* of those conversions and your target ROAS/CPA for profitability, be cautious.
• -> Do they ask about your business's unit economics? Do they want to know your average order value, profit margin per box, and estimated customer lifetime value? A good agency will need this data to set realistic, profitable targets.
• -> Can they provide case studies or examples of how they've helped similar eCommerce or subscription businesses improve profitability, not just traffic? We've worked with subscription boxes ourselves and focused heavily on achieving a strong ROAS (like that 1000% ROAS mentioned in one case) by improving both ad targeting *and* the on-site experience and offer.
• -> What is their process for understanding your target customer and ensuring the ad creatives and landing pages resonate? It's not just about finding people searching for 'craft box', it's about attracting people interested in *sustainable* crafting and getting them excited about *your* specific offering.

You want someone who views your ad budget as an investment that needs to generate a specific return, not just money to be spent. They should be focused on driving profitable sales, not just traffic or conversions at any cost.

Here's a quick overview of the areas I'd focus on fixing first:

Tackling these points systematically should start to improve your website's conversion rate, which is the leverage point you need to fix that sub 1x ROAS and get towards your target of 2.5x or higher.

It sounds like you're at a point where getting expert help could accelerate things significantly. Identifying the specific website bottlenecks, redesigning key pages, writing high-converting copy, and then aligning the ad strategy perfectly with your improved funnel and business economics (like CLTV) requires quite a bit of specialised knowledge and experience across both conversion rate optimisation and paid advertising. Someone who has experience with eCommerce and subscription models will understand the unique challenges and opportunities.

We'd be happy to jump on a free consultation call to discuss your specific situation in more detail, look at your site (if you're comfortable sharing), and give you some more tailored initial thoughts on the fastest path to turning your ad spend into profitable growth. No pressure at all, just happy to help where we can.

Hope that helps!

Regards,
Team @ Lukas Holschuh