How to read these toys & games numbers
A 42% gross margin is the single most important figure here, because it sets the floor on your ads: break-even ROAS is 1 divided by margin, about 2.4x for toys & games. With an average order around $85 and a typical CAC near $60, the question is whether the gross profit per order (42% of $85 is about $36) covers acquisition with room left for overhead and profit. Repeat rate (around 22%) is what lets toys & games brands spend above first-order break-even and still win.
Frequently asked questions
What is a good profit margin for toys & games brands?+
Gross margins for toys & games typically run about 30% to 55%, around 42% at the median, before the full cost stack (shipping, fees, returns). Net margins land near 7%. These vary widely by price point and stage; treat them as directional.
What ROAS do toys & games brands need?+
Break-even ROAS is roughly 1 divided by your gross margin. At a 42% margin that is about 2.4x, so any campaign reporting below that loses money before overhead. Your target sits above it. Work out your exact number in the Target ROAS calculator.
What is a typical CAC and AOV for toys & games?+
Average order value clusters around $85 (roughly $55 to $130), and customer acquisition cost around $60. What matters is the gap between them after margin, not either number alone.
Drop in one toys & games product and get the exact ROAS and ad budget per sale it needs to profit.