Case Study: Why a $30k Month Still Lost Money
A cautionary breakdown of low order values, slow shipping, and chargebacks — and how they compound.
The numbers
The store sold a $29 phone accessory. Ad cost per purchase averaged $16, product and shipping $9, and fees about $1.20. On paper that's under $3 profit per order — before refunds.
What went wrong
Shipping averaged 18 days. 'Where is my order' emails turned into disputes, the dispute rate crossed 1.5%, and the payment processor held a portion of payouts. With refunds and chargeback fees included, the month closed at a 6% loss.
Watch your dispute rate weekly in Shopify Payments. Rising disputes are an early warning, not a lagging one.
What would have helped
Bundling to raise AOV above $45, a faster-shipping supplier, honest delivery estimates on the product page, and proactive tracking emails.