E-Commerce CAC Explained: How to Lower Customer Acquisition Costs and Scale Profitably in 2025

You’re making sales. Traffic is flowing. Ads are running. But somehow, profits just aren’t showing up. 

Raise your hand if this has ever happened to you.

80% of e-commerce startups fail, and one of the major culprits is an out-of-control CAC.

Chances are, your Customer Acquisition Cost (CAC) is quietly eating into your margins, turning growth into a game of break-even. At doola, we’ve seen this story unfold too many times, and we’re here to help you flip the narrative.

In this e-commerce CAC explained guide, we’re breaking down everything you need to know about e-commerce CAC: how to calculate it, what benchmarks to watch, and most importantly, how to cut it without killing growth.

We’ll also unpack how your business structure, tax compliance, and backend operations can secretly impact CAC, and how doola helps founders stay lean, legit, and laser-focused on scaling.

What Is E-Commerce Customer Acquisition Cost (CAC)?

Customer Acquisition Cost (CAC) is the total amount you spend to acquire one paying customer. It’s not just Facebook ad spend; it includes everything from email marketing software, agency retainers, influencer fees, and even that TikTok creator you sent free products to.

Here’s a quick breakdown:

• CAC = cost per paying customer

• CPA (Cost Per Action) = cost per any conversion (e.g., email sign-up, app install)

Think of CAC as your marketing heartbeat: the ultimate indicator of how efficiently your funnel converts strangers into loyal buyers.

E-Commerce CAC Explained: How to Calculate With Examples

Customer Acquisition Cost (CAC) is one of the most vital metrics for e-commerce brands. It tells you how much you’re spending to acquire each new customer. 

But here’s the thing: most founders underestimate their CAC because they only count ad spend and ignore the true cost of acquisition.

Let’s fix that with a complete formula and real-world breakdown.

🔍 The Full CAC Formula

CAC = (Total Marketing & Sales Costs) ÷ (Number of New Customers Acquired)

This includes:

• Paid ads (Meta, Google, TikTok, etc.)

• Agency fees or freelancer costs

• Landing page design or CRO testing

• Team salaries (at least pro-rated for sales/marketing roles)

Let’s break it down with two examples:

Example 1: Basic Ads-Only Campaign (The Underestimate)

Let’s say you’re a DTC brand running a Shopify storefront. You just wrapped up a promising Meta (Facebook/Instagram) ad campaign.

Your topline numbers look like this:

• New Customers Acquired: 100

• Basic CAC: $1,500 ÷ 100 = $15 per customer

✅ Sounds like a growth win, right? Low CAC. High potential to scale. Clean ROAS.

But here’s the problem: that $15 doesn’t give away the complete picture.

This calculation only captures your media spend, the money poured directly into ads, and completely overlooks the engine behind the campaign. 

Then, what’s missing? To run that “$1,500” ad campaign, here’s what else you likely spent:

Cost Component	Breakdown	Amount
Creative Production	User Generated Content (UGC): videos, product photos	$300
Ad Platform Tools	Software like Triple Whale, etc.	$150
Freelance Media Buyer	Monthly retainer (prorated)	$400
Landing Page Build/Test	Design + CRO testing	$250
Email Capture Funnel	Klaviyo or similar (1-month use)	$100
Total Additional Costs		$1,200

So, your actual cost to run the campaign was:

• Additional Marketing Costs: $1,200

• Total Acquisition Costs: $2,700

• True CAC = $2,700 ÷ 100 = $27 per customer

That’s an 80% increase from your initial $15 estimate.

If your average order value (AOV) is $40 and your margins are 60%, you’re making $24 gross profit per sale, and spending $27 to acquire that sale.

That means you’re technically losing $3 per customer.

This is why underestimating CAC is not just inaccurate, it’s risky. It can lead to:

• Flawed LTV:CAC ratio projections

• Misleading ROI reporting to investors or stakeholders

The result? You end up drastically underestimating your true cost to acquire a customer, and that mistake can wreck your margins at scale.

⚡ doola Tip: Use “Fully Loaded CAC”

Always calculate CAC with fully loaded acquisition costs. Don’t just measure the media dollars. Measure the ecosystem around it. Every tool, freelancer, funnel, and photo shoot plays a role.

Example 2: Multi-Channel Campaign

Let’s say you’re scaling your e-commerce brand and running a multi-channel acquisition push: Meta ads, influencer shoutouts, email flows, and creative content all working in sync.

Here’s the full breakdown of your campaign spend:

• Meta + TikTok Ad Spend: $1,500

• Email Marketing Platform (e.g., Klaviyo): $200

• Influencer Sponsorships: $800

• Creative Production (design, video editing, UGC shoots): $500

• Performance Marketing Agency Fees: $1,000

Total Spend:

$1,500 + $200 + $800 + $500 + $1,000 = $4,000

New Customers Acquired: 150

📊 Real CAC Calculation:

CAC = $4,000 ÷ 150 = $26.67 per customer

Now, let’s break down what you’re really paying for:

Cost Component	Spend	% of Total
Paid Media (Ads)	$1,500	37.5%
Influencer Partnerships	$800	20%
Creative Assets	$500	12.5%
Email Infrastructure (Retention)	$200	5%
Agency Management	$1,000	25%

While your CAC here is higher than in the “ads-only” campaign, it’s also a truer reflection of the blended cost of customer acquisition in the real world.

Why? Because here’s what this setup does:

• Diversifies acquisition channels

• Builds long-term retention (email flows, influencer trust)

• Supports creative testing to improve ROAS over time

• Includes team or agency support, which scales better

⚡ doola Tip for Doers

An efficient CAC isn’t just about how low the number is. It’s about accuracy and sustainability. If you want to scale profitably, especially in B2B or global markets, you need to price in every layer of growth, not just the flashy front-end ad dollars.

Download our e-commerce growth playbook for expert tips on building a profitable store.

The Hidden Costs Inflating Your CAC (That Most Founders Miss)

While your ads may look like they’re driving efficient acquisition, there’s a suite of silent expenses quietly stacking up in the background.

These hidden CAC drivers don’t always show up in your marketing dashboard, but they hit your margins all the same:

1. Software Subscriptions: The Stack Behind the Strategy

From Klaviyo for e-mail automations to Hotjar for user behavior analytics, your martech stack keeps the engine running, but it isn’t free.

Add in A/B testing tools (like Google Optimize or Convert), landing page builders (e.g., Unbounce), or analytics dashboards, and you’re looking at hundreds to thousands per month.

These recurring costs must be amortized across new customer acquisition to understand the true CAC.

2. Product Seeding: The Cost of “Free”

Sending out free products to influencers, partners, or UGC creators may seem like a low-cost marketing play. But the real expense includes COGS, shipping, and opportunity cost (inventory not sold).

If you seed 50 units at $30 each (incl. shipping), that’s $1,500 baked into your CAC.

3. Agency Retainers & Freelancers: Growth Doesn’t Manage Itself

From media buyers to copywriters, growth strategists to UGC creators, your team isn’t always in-house. Agency retainers and freelance costs can easily cost $2,000–$10,000/month depending on scope.

Even if they support multiple initiatives, a portion of these expenses directly contributes to new customer acquisition and should be allocated into CAC calculations.

4. Discount Codes & Buyer Incentives: The Margin Killers

First-order discounts, free shipping, welcome bundles… all of these perks convert, but they chip away at your average order value (AOV). If your CAC is $25, but you’re giving $10 off + free shipping, you’re bleeding profitability from both ends.

Incentives drive conversions, but unless factored into CAC, they give a false sense of scale.

⚡ doola Insight for Founders

If you’re only measuring CAC using paid media spend, you’re flying blind.

Build a CAC model that includes all acquisition-layer costs, from strategy to software to samples, so you can price, scale, and forecast like a pro.

Helpful Tools to Track & Optimize Your True CAC

CAC is literally a living metric shaped by your tech stack. To calculate it accurately and improve it strategically, you need the right tools in place.

Each platform plays a different role in painting the full acquisition picture: from top-of-funnel traffic to post-purchase profitability.

Here’s a breakdown of must-have tools and what they’re best at:

Tool	What it does	Why it matters for CAC
Google Analytics	Tracks website traffic sources, user behavior, and conversion paths.	Helps understand which channels drive traffic that actually converts, not just clicks.
Meta Ads Manager	Offers granular performance insights across campaigns, ad sets, and creatives	Helps calculate paid CAC per campaign and run creative split tests to lower acquisition cost.
Shopify Reports	Provides order-level data, conversion reports, and marketing attribution.	Ties revenue and orders back to traffic sources, offering a real-world look at CAC vs. ROAS.
Triple Whale	Combines ad spend, CAC, LTV, and profit in one view across platforms	Provides a high-level overview of marketing efficiency along with customer-level profitability insights.
Lifetimely	Breaks down CAC, LTV, payback periods, and cohort performance	Helps measure how long it takes to recoup CAC; essential for scaling profitably with paid acquisition.

Note: Always use these tools together, not in isolation. For instance, compare Meta Ads CAC with Shopify’s attribution to detect over-reporting, or blend Google Analytics’ traffic data with Lifetimely’s cohort LTV to understand if your acquisition efforts are paying off long-term.

And remember: the more aligned your data is, the more confidently you can scale.

Industry Benchmarks: What’s a Good CAC in E-commerce?

A “good” CAC depends on your vertical, margins, and customer lifetime value (LTV). Here’s a quick snapshot of what it should look like across industries:

Industry	Low CAC	Moderate CAC	High CAC
Fashion/Apparel	<$20	$20–$50	$50+
Beauty/Wellness	<$30	$30–$60	$60+
Health Products	<$40	$40–$70	$70+
Subscription Boxes	<$25	$25–$50	$50+

Please note: While CAC is important, if you only focus on CAC and ignore retention or AOV (average order value), you’re leaving serious revenue and long-term success on the table.

Golden Rule: LTV:CAC Ratio Aim for at least a 3:1 ratio Example: If your customer’s lifetime value is $150, your CAC should ideally be under $50.

Top Reasons Your E-commerce CAC Might Be Too High

Most e-commerce founders struggle with rising CAC because of silent killers hiding in plain sight, from poorly targeted ads to unoptimized sites.

Here’s what might be driving your acquisition costs through the roof (and what to do about it):

🚫 You’re Targeting Everyone and Converting No One

Broad targeting + generic messaging = poor resonance. 

When you’re trying to appeal to everyone, your message lands with no one. Ad platforms might reward reach, but conversions come from relevance.

✔️ Solution: Niche it down.

Identify your highest-converting segment and dive deep. Build laser-targeted personas, write copy that speaks to their specific pain points, and use creative that mirrors their lifestyle or problem. 

Remember, riches are always in the niches.

🚫 Your Funnel Leaks Revenue at Every Stage

Does your funnel look like this? 1,000 clicks → 5 checkouts 

That’s not a traffic issue, it’s a conversion bottleneck. Most e-commerce stores burn through ad dollars because the path from ad to checkout is full of friction.  

✔️ Solution: Pressure-Test Every Step

Conduct a full-funnel audit. Are your product pages clear, compelling, and mobile-friendly? Is your checkout fast, secure, and friction-free?

Use tools like heatmaps, session replays, and exit-intent surveys to locate drop-off points. 

Fix the weak links before you pour more money into ads.

🚫 Your Creatives Just Don’t Convert

Low CTRs. High CPCs. Poor thumb-stop rate.

We hear you: those ads aren’t selling; they’re just sitting there, wasting top dollars. We’ve seen that before, and that’s mainly because your creatives aren’t pulling their weight, they aren’t “scroll-stopping” enough!

And every wasted impression drags your CAC higher.

✔️ Solution: Build a High-Output Creative Pipeline

Run weekly testing cycles. Incorporate lo-fi content, motion-first design, and personalized messaging.

Also, run creative sprints weekly and A/B test CTAs like your ROAS depends on it, because it does.

Track performance at the ad-set level and cut the underperformers ruthlessly. 

🚫 Your Website Lacks Appeal & Credibility 

No reviews, confusing layout, poor UX. 

Those are tell-tale signs of a website that isn’t necessarily authentic. No matter how strong your ad game is, those “first impressions” are costing you.

If your site lacks trust signals, has confusing UX, or feels “drop-shippy,” users won’t convert, even if they clicked with intent. 

All of it triggers instant distrust and raises your CAC.

✔️ Solution: Optimize for Trust & Flow

Use heatmaps to spot drop-off points. Place trust badges, testimonials, and UGC (user generated content) near CTAs.

Sharpen copy, streamline navigation, and avoid anything that feels like a knockoff. 

Realness always converts.

🚫 You’re not Retargeting or Segmenting

No Retargeting = High CAC, Low ROI

Every time you skip retargeting, you’re paying full price for attention you already earned. Cart abandoners, page lurkers, and email clickers are low-hanging fruit. Ignoring them sends your CAC soaring.

Ultimately, without follow-ups, even high-intent shoppers vanish, and you’re stuck chasing cold traffic with every dollar.

✔️ Solution: Build a Smarter Follow-Up Engine

The strategy is simple. Segment → Personalize → Convert

Group users by behavior (like abandoned carts or high-engagement sessions), then re-engage them with smart retargeting ads, tailored email flows, or well-timed SMS nudges. 

These warm prospects convert faster. And cheaper.

Done right, retargeting slashes CAC by up to 50% and stretches every ad dollar further. Layer in personalized creative, and watch your CAC shrink and LTV climb.

Run a CAC Self-Audit Before You Spend Another Dollar

Before you pour another cent into Meta ads or onboard that new agency, pause. Your CAC isn’t a mere number, it’s an indicator. A high CAC tells you something’s broken under the hood. 

And scaling a broken funnel only burns cash faster.

Use this self-audit checklist to pressure-test your acquisition strategy and spot the hidden leaks draining your ROI.

• Have you included all CAC-related costs (ads, tools, services)?

• Are you tracking LTV to contextualize CAC?

• Are you segmenting and retargeting your audiences?

• Does your site inspire trust (reviews, secure checkout, return policy)?

• Are you measuring CAC by channel for smarter allocation?

doola helps e-commerce founders go from guessing to scaling with streamlined business infrastructure, smart tools, and expert support. From LLC formation to tax-ready books and everything in between, we’ve got your back.

Book a free demo and turn your customer acquisition into a growth engine, not a money pit.

9 Proven Strategies to Lower Your E-Commerce CAC

Lowering Customer Acquisition Cost (CAC) isn’t just about slashing ad spend; it’s about making smarter, compounding moves across your entire funnel. 

From website optimization to better post-purchase flows, here are a few proven strategies to bring CAC down and ROAS up.

1. Improve Website Conversion Rates

If your site isn’t converting visitors, every click is money wasted. Use tools like Hotjar or Crazy Egg to visualize where users drop off via heatmaps and session recordings.

You don’t have a traffic problem, you have a conversion problem. 

Focus on three key areas:

• Mobile optimization: Over 70% of e-commerce traffic is mobile. Your checkout should feel native on a phone.

• Page speed: A 1-second delay can reduce conversions by 7%. Tools like GTmetrix or PageSpeed Insights can help optimize loading times.

• Clear CTAs: Swap vague buttons like “Learn More” for high-intent copy like “Get Yours Now.”

Example: When children’s footwear brand Wee Squeak experienced a surge in mobile traffic, from 50% to 80%, their mobile conversion rate still lagged at under 2%. 

To address this, they partnered with Blend Commerce to revamp their Shopify store with a mobile-first approach.

Through key enhancements such as thumb-friendly navigation, optimized product pages, and Klaviyo integration, they achieved a 26% boost in mobile conversion and 40% increase in revenue from mobile users. 

2. Double Down on Organic Channels

Organic growth, on the other hand, compounds over time. Start with an SEO-optimized blog that answers buyer-intent questions (e.g., “Best eco-friendly gym wear” for a fitness brand). 

Paid media scales fast, but eats margin.

Free tools like Ubersuggest or Google Keyword Planner can help you identify high-volume, low-competition topics.

On social, lean into micro-influencer UGC. These creators often charge <$250 per post and deliver better engagement than mega-influencers.

🧠 Did You Know? Brands using UGC see a 29% boost in conversion rates & 4x engagement on social platforms.

3. Increase Average Order Value (AOV)

If you want to offset your CAC efficiently, boost your customers’ average order value (AOV). Let’s break down the smartest ways to do that:

Strategy	Impact
Product bundles	Increases perceived value
Cross-sells at checkout	Boosts cart size by 15–30%
Free shipping thresholds (e.g., “Spend $50 more for free shipping”)	Encourages larger baskets

Example: If your CAC is $25 and AOV jumps from $50 to $75, your acquisition cost as a percentage of revenue drops from 50% to 33%.

4. Referral Programs and Loyalty Incentives

Loyalty programs = repeat buyers = CAC amortized over time

Your happiest customers are your best marketers. Launch a referral program that rewards both the referrer and the new customer, for example, $10 store credit or 15% off. 

Use tools like ReferralCandy or Smile.io to automate it.

Pair that with a loyalty program that rewards repeat purchases. Each return visit lowers your blended CAC because you’re not paying to reacquire the customer.

🧠 Did You Know? Increasing customer retention by just 5% can boost profits by up to 95% (Source: Bain & Co).

5. Smarter Ad Segmentation and Retargeting

If you’re targeting everyone, you’re converting no one. Segment your campaigns based on funnel stage and behavior:

• Abandoned carts → urgency-driven retargeting ads

• Product viewers → reviews and social proof ads

• Email openers → exclusive discount reminders

Use dynamic product ads with countdown timers or “Only X left in stock” for FOMO-driven results. 

Example: During Black Friday 2024, Nike’s FOMO-fueled retargeting strategy helped drive record conversions, with a 26% lower CAC and a 2.4x increase in ROAS, according to Smartly.io’s holiday campaign analysis.

By combining emotional pull, personalization, and urgency, Nike transformed passive scrollers into active buyers and cut acquisition costs while doing it.

6. Build Owned Channels Early (Email & SMS)

If you’re relying solely on paid ads to reach customers, you’re basically renting traffic, and that rent keeps going up.

Instead, invest early in building owned channels like email and SMS so you can directly engage your audience without paying every time you want their attention.

Start with Smart Lead Capture

Don’t just slap a boring “Sign up for our Newsletter” box in the footer and hope for conversions. Instead, entice visitors with interactive, value-driven entry points.

Here are a few top examples that convert:

• Gamified pop-ups (like spin-to-win discounts or scratch cards) make opt-ins feel fun.

• Personalized quizzes (e.g., “Find your perfect skincare routine” or “Build your own bundle”) create relevance and boost email/SMS sign-ups.

• Exit-intent popups can catch bounce-prone users with last-minute offers.

Example: Desert Does It, an interior accessories company for trucks and cars, boosted its email opt-in rate to 5.77% (nearly double the industry average) by launching a multi-step quiz pop-up.

The quiz captured user preferences, starting with a simple Yes/No and progressing to “personalized vehicle questions”, offering a 5% discount for email sign-up and 10% for SMS opt-in. 

As a result: 

85% of quiz subscribers converted, driving a 4.96% conversion rate.

✅ Nurture with High-Value Sequences

Once someone joins your list, your job isn’t done. Build trust and drive repeat touchpoints with automated sequences tailored to the buyer journey.

Here’s a breakdown:

Flow	Purpose	Example / Messaging
Welcome Flow	Make a strong first impression	Brand story, social proof, first-purchase discount
Educational Content	Build authority along with product understanding	How-tos, ingredient spotlights, styling tips
Exclusive Promos	Drive urgency and reward loyalty	“VIP 20% off this weekend only”
Cart Recovery Messages	Recapture lost sales	“You left this behind, and it’s almost gone!”

Each flow can be triggered based on user behavior and segment, making every message feel personalized, not spammy.

🧠 Did You Know? Email marketing delivers an average return of $36 for every $1 spent, making it one of the highest-ROI channels in all of e-commerce.

Why SMS Matters Too

Email is powerful, but SMS is immediate. Open rates hover around 98%, and most texts are read within 3 minutes.

Combine the two channels for maximum effect, like sending a reminder via SMS after a cart recovery email goes unopened.

Use SMS sparingly and strategically for:

• Birthday or loyalty rewards

⚡ doola Tip: Combine Email & SMS Marketing 

Note: Brands that combine email + SMS see up to a 20–30% lift in LTV from multi-channel engagement.

7. Leverage Bundles and Limited-Time Offers

Psychology drives purchase behavior, and smart bundling taps into it beautifully. When customers perceive they’re getting more value for less money, they’re far more likely to convert. 

Here are a few bundle tactics that lower CAC:

Bundle Category	Example	CAC Impact
Bestseller bundles	“Top 3 customer favorites in one curated kit”	Higher AOV = 20–30% CAC dilution per purchase
Buy More, Save More	“Buy 2, get 1 free” or “Buy 3, save 25%”	Drives bulk purchases, reducing repeat acquisition costs
Themed Kits	“Summer Essentials Kit” or “Starter Skincare Routine”	Easier entry point = higher first-time conversion rate = CAC reduction
Subscription Starter Packs	“First-month bundle at 40% off”	Converts trials to recurring customers = CAC amortized over time
Flash Sale Bundles	“This Weekend Only: Bundle & Save 35%” with a 48-hour timer	Urgency boosts CR by up to 27% (industry benchmark)
Surprise/Blind Box	“Mystery Bundle worth $80 – you pay $39”	Gamification increases conversion, especially on mobile and social platforms

⚡ doola Tip: Add Timers to Create Urgency

Add countdown timers to your product pages or bundle landing pages to increase urgency. According to OptinMonster, countdown timers can increase conversions by up to 14%.

8. Strengthen Customer Experience and Reviews 

How do you think doola grew from a bold idea into a platform trusted by over 10,000+ entrepreneurs worldwide? By consistently delivering value, earning trust, and putting customer success at the center of everything.

It wasn’t just smart tools; it was trust. And that trust was built on a foundation of glowing customer reviews and real, unfiltered testimonials that spoke louder than any ad ever could.

Here’s how you can level up your customer experience and turn feedback into fuel for sustainable growth:

• Automate and amplify: Use platforms like Loox or Judge.me to collect and showcase reviews seamlessly. A steady stream of user-generated content builds authenticity and nudges new buyers over the edge.

• Support that feels human: Real-time chat support, whether through tools like Zendesk or Gorgias, shows customers you’re not just a brand, you’re a partner. Fast, friendly responses create trust that drives conversion.

Brands that feature user reviews on product pages can see conversion rates increase by up to 270% and the CAC benefits are immediate.

Just like doola, invest in the customer experience now, and your growth will speak for itself.

9. Test New, Untapped Acquisition Channels

If you’re locked into just Facebook and Google, you’re playing in the most expensive sandbox. CAC has skyrocketed on these platforms due to fierce competition, tighter attribution windows, and rising CPMs. 

But you don’t have to fish in the same overcrowded pond as everyone else.

Testing emerging or alternative channels allows you to reach under-monetized audiences, stand out with less noise, and ultimately lower your CAC by reallocating budget to where attention is cheap but intent is high.

✔️ Real-World Example (Flink): Reddit Advertising → 24% drop in CAC

Flink, an online grocery delivery service, sought to expand its user base beyond traditional channels. By reallocating a portion of its advertising budget to Reddit, Flink targeted specific regions using interest and zip code targeting.

These were the key outcomes of the diversification:

• 24% reduction in CAC within the first three months.

• 33% improvement in Cost Per Install (CPI) through optimized targeting.

So yes, Meta and Google dominate, but they’re not the only game in town. Diversify your acquisition strategy by testing the following high-leverage channels:

Channel	Why try it	How it reduces CAC
TikTok Spark Ads	High virality potential + native UGC feel	Drives organic + paid exposure at once; lower creative cost
Reddit Ads	Laser-focused interest targeting + low CPMs	Reach passionate communities with intent-driven content
Podcasts	Deep trust + long-form context	High-intent conversions via trusted hosts
YouTube Shorts	Underpriced attention, great discovery engine	High organic reach → low CAC with strong storytelling
Influencer Whitelisting	Use creator’s profile to run paid ads	Leverages influencer trust to outperform brand ads

⚡ Download our e-commerce growth playbook for extra tips on building a profitable store.

🧠 Did You Know? Brands that diversify beyond Meta/Google often see CACs 20–30% lower from niche channels due to less competition.

Now, while these CAC-lowering strategies are highly effective, their impact is limited without a strong foundation. If your business structure is shaky, even the smartest campaigns can drain your budget, slow down your growth, and raise red flags for investors.

 It’s time to zoom out and strengthen the core of your business.

The Role of Business Structure & Compliance in Reducing CAC

Here’s a powerful truth most founders miss: 

Your business structure directly impacts your CAC.

Take a moment to picture this:

An e-commerce brand is scaling fast: sales are climbing, and ads are humming…until Shopify flags them for tax non-compliance. Suddenly, the store is frozen. Ad accounts are paused. Customers vanish. And their CAC becomes infinite.

Now compare that to a brand built on a solid foundation:

• Legit EIN and LLC = credibility → higher conversion rates

• Full compliance = no ad bans or account shutdowns

Even the most stunning Shopify store won’t convert if customers don’t trust you, especially if you’re an international founder selling into the US. A structured, compliant business isn’t just a legal box to check, it’s a CAC-reducing growth advantage.

Fortunately, doola’s full-service solutions got you covered.

How doola Helps E-commerce Entrepreneurs Scale Smarter

E-commerce founders using doola aren’t just saving on backend headaches, they’re reinvesting time and capital into smarter growth strategies.

With doola, e-commerce entrepreneurs aren’t stuck firefighting compliance issues or wasting ad dollars. Instead, they’re launching with confidence, staying compliant, and reinvesting energy into what matters: growth that compounds.

Here’s how we set you up to scale smarter and slash hidden CAC:

• Fast business formation: LLC, EIN, and more with “zero” paperwork headache

• US bank account setup: Yes, even if you’re international

• Ongoing filings: Keeps you in good standing with the IRS year-round

From LLC setup to bookkeeping to smart financial insights, we help e-commerce founders focus on scaling, not scrambling with compliance.

Ready to build lean, scale fast, and make every dollar count?

Schedule a free demo to get started today!

FAQs

How often should I monitor or update my CAC calculation?

At least monthly. Ideally, review CAC weekly by channel to spot red flags early.

Can CAC be negative or zero? What does that mean?

If customers are acquired purely through organic/referrals, CAC might be $0. Negative CAC isn’t realistic, but ROI on the first purchase can exceed spend.

What is a good LTV:CAC ratio in e-commerce?

3:1 is the standard. That means if your CAC is $50, your LTV should be $150.

How does organic traffic impact CAC?

Organic traffic reduces CAC significantly, the cost to acquire customers from SEO, social, or referrals is low or zero.

Can forming a US LLC help lower CAC for international sellers?

Absolutely. A US-based business builds trust, enables US banking, and avoids conversion-hurting issues like foreign checkout pages.

How do compliance costs affect my CAC and overall profitability?

Non-compliance can shut down channels, hurt customer trust, and increase churn, all of which inflate CAC and kill margins.