What Is a Good Walmart ROAS?

Walmart sellers often ask what a good Return on Ad Spend is. The answer is not as simple as naming one number. Walmart Connect uses both online and in-store data to measure the impact of your ads, so ROAS can look very different from what you see on other marketplaces. A strong Walmart ROAS depends on your category, margins, price point, and the role those ads play in your full funnel.

If you want to grow your market share or increase visibility, your ROAS target may look different from a seller focused only on profit. When you understand how Walmart measures attributed sales and how your campaigns influence shopper behavior, you can set realistic goals and spend your budget with confidence.

This guide breaks down what ROAS means on Walmart, what most sellers can expect, and how to find the right target for your business.

If you want to see how real brands improved their ROAS and scaled their Walmart performance, check out our Success Stories. They show the strategies behind the results and how Trellis helps sellers grow with confidence.

Key Insights

• A good Walmart ROAS usually falls between 3x and 5x for most sellers, while 6x to 10x is strong and anything above 10x is excellent. The right target depends on your category, margins, and campaign goals.
• Walmart ROAS includes both online and in-store attributed sales, which often leads to higher reported performance compared to other marketplaces. This closed loop measurement gives you a clearer view of how ads influence the full shopper journey.
• Your ideal ROAS should support long-term growth. Strong product content, price competitiveness, and smart bidding all help improve conversion rates, share of voice, and your overall advertising efficiency.

What Is Walmart ROAS?

Walmart ROAS, or Return on Ad Spend, shows how much revenue your ads generate for every dollar you spend on Walmart Connect. It is one of the most important performance metrics for Walmart sellers because it helps you understand if your campaigns are driving efficient sales.

Walmart Connect uses closed loop measurement, which means it attributes both online and in-store sales to your ads when a shopper sees or clicks them. A customer might see your Sponsored Product while browsing Walmart.com and then buy that item in a physical store. Walmart can connect that purchase back to your campaign. This gives you a more complete picture of how your ads influence shopper behavior across the entire journey.

Because omnichannel sales are included, Walmart ROAS can look higher than what you might see on Amazon or other platforms. It also means that ROAS on Walmart should be viewed in context. Your results depend on factors like product price, competition, listing quality, and where your item sits in the funnel.

When you understand how Walmart calculates attributed sales, it becomes easier to set realistic goals and plan budgets that support long-term growth.

How to Calculate ROAS on Walmart

Walmart calculates ROAS by comparing your attributed revenue to your ad spend. The formula is simple, but the way Walmart measures attributed sales makes the metric more powerful than it might seem. Because Walmart Connect tracks both online and in-store purchases, your ROAS can reflect the full path a shopper takes after seeing your ad. This helps you understand the true impact of your campaigns and how they support your sales goals.

Read more: What is a Good Amazon RoAS?

Walmart ROAS Formula Explained

ROAS is calculated using a basic formula:

ROAS = Attributed Revenue ÷ Ad Spend

Attributed revenue includes all sales that Walmart Connect ties to your ads. This may come from clicks, views, online orders, store purchases, or repeat visits within the attribution window. Ad spend includes the total cost of your impressions or clicks during the same time period. When you divide revenue by spend, you see how much return you earned for every dollar invested.

Example ROAS Calculation

If you spend 200 dollars on ads and generate 800 dollars in attributed sales, your ROAS is:

800 ÷ 200 = 4

This means you earned four dollars for every dollar spent. If your margins support it, this can be considered a healthy ROAS. If you need more cushion to stay profitable, you might aim higher. Simple calculations like this help you track efficiency as you optimize bids, keywords, and product content.

Where to Find ROAS in Walmart Connect

You can view ROAS inside your Walmart Connect reporting dashboard. ROAS appears in campaign-level, ad group-level, and item-level reports. You will see attributed revenue separated into online and in-store sales so you can understand which channels are driving results. Tracking this metric over time helps you spot trends, adjust bids, and plan budget shifts with more confidence.

Walmart ROAS Benchmarks by Category and Ad Type

Walmart ROAS can vary a lot depending on what you sell and how you advertise. Category behavior, shopper intent, and ad format all play a major role. These points can help you understand what to expect and how to judge your results.

Read more: AI vs. Rule-Based Bidding: When to Use Each for Maximum ROAS

Category Benchmarks

• Lower priced, fast moving items often see higher ROAS because shoppers buy them more often. This includes grocery, household goods, pet supplies, and personal care.
• Higher priced categories, like electronics or outdoor gear, may see lower ROAS since shoppers need more time to decide. These campaigns can still be profitable even with a lower return.
• Seasonal categories can swing up or down based on demand spikes, competitive pressure, and inventory strength.

Ad Type Benchmarks

• Sponsored Products usually deliver the strongest ROAS since they reach high intent shoppers who are already searching for related items.
• Sponsored Brands often show moderate ROAS, but they help build visibility and support mid funnel growth.
• Onsite Display and Offsite Display focus on awareness and new customers, so ROAS is often lower in the short term. They work best when paired with stronger conversion-focused formats.

Branded vs Non-Branded

• Branded targeting often shows higher ROAS because shoppers already know your products.
• Non branded targeting expands your reach and can bring in new customers, but ROAS is usually lower because costs are higher and intent is broader.

Break-Even ROAS: How to Know Your Minimum Target

Break-even ROAS shows the lowest return you can accept before your ads start to lose money. It is built around your product margins, fees, and operating costs. Knowing this number helps you decide when a campaign is performing well and when it needs adjustments.

To find your break-even ROAS, start by calculating your profit margin after all costs. Include product cost, Walmart fees, shipping, and any overhead that affects your bottom line. Once you know your true margin, you can use a simple formula:

Break-even ROAS = 1 ÷ Profit Margin

If your profit margin is 25 percent, your break-even ROAS is:

1 ÷ 0.25 = 4

This means you need a ROAS of at least 4 to avoid losing money. If your ROAS is below that, you may need to improve your product content, adjust your bids, or revisit your price point. If your ROAS is above that, your campaign is contributing to healthy growth.

Break-even ROAS is a helpful guardrail, but it is not the only metric that matters. Your ideal target should support the stage your product is in. New items may run closer to break-even while they build rank and reviews. Mature items often need stronger ROAS to stay profitable at scale. By knowing your minimum threshold, you can make smarter decisions and manage your budgets with more confidence.

Is High ROAS Always the Goal?

A high ROAS looks great on paper, but it does not always mean your campaigns are working in the way your business needs. Many sellers aim for the highest ROAS possible and then miss out on growth opportunities that sit outside this one metric. Your ROAS target should match your goals, margin structure, and the stage your product is in.

If you want to improve visibility or expand market share, you may need to accept a lower ROAS while your item gains rank, reviews, and repeat customers. This is common for new product launches or items entering competitive categories. These early investments often pay off once your organic placement improves and conversion rates rise.

Focusing only on high ROAS can also lead to narrow targeting. You may spend most of your budget on branded searches or repeat buyers. These groups convert easily, but they do not help you reach new customers. Balancing branded and non branded traffic gives you a stronger path to long-term growth.

Upper funnel formats like Sponsored Brands, Onsite Display, and Offsite Display may return lower ROAS because they focus on awareness. Even so, they play an important role in helping shoppers discover your catalog. When combined with strong product content, competitive pricing, and clear value, these campaigns support future conversions and healthier performance across your account.

A good ROAS supports your strategy. It does not replace it. When you look at ROAS alongside market share, catalog productivity, and customer behavior, you get a clearer picture of how your ads contribute to sustainable growth.

Factors That Impact Walmart ROAS

Many elements influence Walmart ROAS, and understanding them helps you make smarter decisions about bidding, budgets, and product strategy. These factors also explain why ROAS varies across items and campaigns. Here are the most common drivers to watch.

Category competitiveness: Some categories have more sellers, higher CPCs, or stronger brand loyalty. Competitive spaces often see lower ROAS because shoppers have more choices and ads cost more.

Pricing strength: A competitive price improves conversion rates and helps your ads perform better. Even small pricing gaps can push shoppers to choose another item, which lowers ROAS.

Promotions and discounts: Rollbacks and deals can lift conversion rates, which improves ROAS. Promos also help new items gain momentum when entering crowded categories.

Listing and content quality: Clear images, strong titles, and helpful descriptions improve shopper confidence. Better content leads to higher conversion rates and more efficient ad spend.

Ratings and reviews: Higher ratings and a strong review count increase trust. Products with weak reviews often struggle to convert, even with strong targeting.

Inventory health: Low inventory or slow fulfillment can hurt your placement and limit impressions. This may reduce sales and drive ROAS down.

Seasonality: Demand spikes or drops affect performance across the catalog. Peak seasons often deliver stronger ROAS because shopper intent is higher.

Keyword and placement targeting: Broad targeting can reach new shoppers but may lower ROAS. More refined targeting improves efficiency and helps you control spend.

Bid strategy: Underbidding can limit impressions. Overbidding can drive up CPCs. Finding the right middle ground helps you balance volume and efficiency.

How to Improve Your Walmart ROAS

Improving your Walmart ROAS starts with a strong foundation. Your product content, pricing, and targeting all influence how shoppers interact with your ads. When these elements work together, your campaigns become more efficient and your return grows. The tips below focus on practical changes you can make to lift performance and support long-term growth.

Optimize Your Product Pages

Your product page is one of the biggest drivers of ROAS because it determines whether a shopper converts after clicking your ad.

• Use clear, high quality images that show the product from multiple angles.
• Write titles and descriptions that highlight key features and use relevant keywords.
• Keep your bullets concise and easy to scan.
• Improve your rating and review count by encouraging customer feedback.
• Make sure your content is complete, accurate, and aligned with shopper expectations.

Higher conversion rates help lower your cost per sale, which strengthens your ROAS across every campaign.

Strengthen Your Bidding and Targeting Strategy

Smart bid management helps you compete for the right traffic at the right cost.

• Combine automatic and manual campaigns to find strong keywords and refine your targeting.
• Use suggested bids as a guide but adjust based on your category and goals.
• Add negative keywords to reduce wasted spend from low intent searches.
• Test different match types to understand which search terms drive the highest return.
• Monitor your CPC and shift budget to ad groups that consistently convert.

Steady optimization helps your ads reach shoppers who are more likely to buy, which improves your return.

Align Pricing, Promotions, and Ads

Your price and promotions influence how well your ads convert. When your price is competitive and your value is clear, shoppers are more likely to complete a purchase.

• Review competitor pricing and adjust when needed to stay aligned with market expectations.
• Use rollbacks or limited promotions to boost visibility and support new product launches.
• Avoid large pricing swings that may confuse shoppers or disrupt your performance history.
• Pair promotions with strong ads to build momentum and increase attributed sales.

When your pricing strategy supports your ads, your ROAS improves and your catalog gains healthier lift across the funnel.

Walmart ROAS vs ROI: Do Both Matter?

ROAS and ROI sound similar, but they measure different parts of your performance. ROAS focuses on revenue generated from your ad spend. ROI measures profit after all costs. Both metrics are important because they help you understand how your campaigns support growth and long-term profitability.

ROAS answers the question, “How much revenue did my ads bring in for every dollar spent?” It helps you judge efficiency and compare performance across campaigns, ad types, and items. A strong ROAS usually means your ads are reaching the right shoppers and converting well.

ROI goes a step further by looking at profit. It includes product cost, shipping, Walmart fees, and any overhead tied to your operations. A campaign can have a high ROAS but still show weak ROI if margins are low. The opposite can also happen. Some campaigns return a modest ROAS but deliver healthy profit because the product has strong margins.

Using ROAS and ROI together gives you a more complete view of your business. It helps you make informed budgeting decisions and avoid focusing on metrics that do not reflect true performance. When you consider both revenue and profit, you can set targets that support steady, sustainable growth across your catalog.

Check how strong your product pages are with our free Listing Quality Check. A stronger listing can improve conversion rate and boost your ROAS.

Common ROAS Mistakes Walmart Sellers Make

Many sellers focus on ROAS without looking at the full picture. This can lead to decisions that limit growth or increase costs over time. Here are common mistakes to watch for and how they affect performance.

Read more: Why Sell on Walmart Marketplace in 2026? The Ultimate Guide

Setting unrealistic ROAS targets: Some sellers expect high ROAS right away, even in competitive categories. Targets that are too high can restrict traffic and stall momentum.

Ignoring product content quality: Weak titles, unclear images, and thin descriptions lower conversion rates. Even strong targeting cannot overcome a poor product page.

Relying too much on branded keywords: Branded searches often deliver high ROAS, but they do not help you reach new shoppers. Over-reliance can slow long-term growth.

Cutting budgets too early: Pausing campaigns after a few days may stop you from seeing how performance stabilizes. Some campaigns need time to optimize and collect data.

Overlooking omnichannel behavior: Walmart includes in-store sales in its attribution. Sellers who only evaluate online performance may misread campaign value.

Not segmenting campaigns: Mixing branded, non branded, and category targeting in one ad group makes it hard to understand what is working. Segmentation improves clarity and control.

Underestimating pricing and competition: Even strong ads may struggle if your price is out of sync with the market. Competitor moves can quickly shift demand and impact ROAS.

How Trellis Can Help With Walmart ROAS

Trellis gives you a clear path to improving Walmart ROAS by connecting your pricing, advertising, and product content in one platform. AI-powered bidding helps you reach the right shoppers at the right cost, while dynamic pricing supports higher conversion rates and stronger margins. Trellis also gives you full-funnel analytics so you can track online and in-store performance, understand shopper behavior, and make informed decisions faster.

With the right insights and automation, you can guide your catalog upward and unlock more profitable growth across Walmart Marketplace.

If you want to see how Trellis can support your goals, book a demo to get started.

Long-Term Considerations: Beyond ROAS Alone

ROAS is an important metric, but it should not be the only way you measure success on Walmart. Long-term growth comes from understanding how ads support your business over time, not just in the moment.

• Customer lifetime value: Some campaigns bring in shoppers who return and buy again. A lower ROAS may still be worthwhile if it leads to repeat purchases.
• Catalog productivity: Ads can lift multiple items in your assortment by increasing brand visibility and storefront traffic, even if one item shows modest ROAS.
• Market share and visibility: In competitive categories, accepting a lower ROAS can help you protect placement, gain share of voice, and support future organic growth.
• Seasonality: Performance naturally shifts throughout the year. Lower ROAS during off-peak periods may be expected and should be viewed in context.

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In Summary

A good Walmart ROAS depends on your category, margins, and long-term goals. While many sellers aim for a return between 3x and 5x, the right target is the one that supports healthy growth and aligns with where your products sit in the shopper journey. Some campaigns will focus on efficiency. Others will focus on visibility and market share. Both can be valuable depending on your strategy.

Strong ROAS comes from more than bidding alone. Product content, pricing, reviews, and inventory health all influence how well your ads convert. When these elements work together, your campaigns become more efficient and your catalog gains steady lift.

As you track ROAS, look at the full picture. Consider your break-even point, customer behavior, and the role each campaign plays in your broader plan. With the right mix of insight and optimization, you can guide your business upward and build a strong foundation for sustainable growth.

If you want help turning Walmart ROAS insights into real, scalable results, book a demo with Trellis to see how AI-powered advertising, pricing, and analytics can support your growth.