What is the customer acquisition cost for an e-commerce platform?

October 22, 2025

Understanding the customer acquisition cost (CAC) is crucial for any new e-commerce platform. This metric helps measure how much you are spending to acquire new customers, which is essential to ensuring profitability and long-term sustainability. Below, we'll break down how to calculate CAC and what to consider when evaluating this important business metric.

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Customer Acquisition Cost (CAC) is a critical metric for any new e-commerce business. It shows how much you’re investing in marketing and sales efforts to gain new customers. The calculation depends on your total marketing spend, the channels you use, and the number of new customers acquired.

To calculate CAC, you'll first need to sum your marketing costs, including paid ads, influencer partnerships, and organic initiatives. Then, divide that total by the number of new customers acquired during the same period. This simple formula provides insight into how efficient your marketing efforts are at bringing in new business.

The CAC should be compared to the average customer lifetime value (CLTV) to ensure your customer acquisition strategy is sustainable.

What is the total marketing spend across all channels in the past month?

Total marketing spend typically ranges from 7-12% of your e-commerce revenue, with high-growth companies spending up to 15%. This budget covers all marketing efforts including digital ads, content marketing, social media, and partnerships.

For example, a business with $100,000 in revenue might allocate between $7,000 and $12,000 to marketing activities, depending on its growth stage. The marketing budget should be flexible to allow for testing different strategies, particularly when starting out.

What proportion of that spend is allocated to paid advertising compared to organic initiatives?

Paid advertising often takes up a significant portion of the marketing budget, ranging from 40% to 60%, while the remaining budget is dedicated to organic channels like SEO, content, and social media. This balance may vary depending on your business goals and the effectiveness of your organic efforts.

For fast-growing platforms, a higher investment in paid channels might be necessary initially to gain traction, with organic channels contributing more as brand awareness grows.

How many new customers were acquired during the same time period?

The number of new customers acquired is directly tied to the effectiveness of your marketing campaigns. This can range from a handful for a new platform to thousands for established ones. Tracking customer acquisition helps assess the success of each channel and optimize marketing spend.

Knowing how many new customers you acquired allows you to calculate your CAC accurately and adjust strategies accordingly.

What is the average order value of these newly acquired customers?

The average order value (AOV) refers to the average amount spent by new customers per transaction. For example, a new customer may spend around $107 in Southeast Asia, depending on the market.

Understanding AOV helps you estimate revenue potential and evaluate if your CAC is reasonable in relation to customer spending patterns.

What percentage of new customers came from each acquisition channel?

Customer acquisition channels are typically divided into paid advertising, organic search, social media, influencer marketing, and direct referrals. On average, paid search and organic search each contribute around 23-26% and 26-53%, respectively, of new customers.

Acquisition Channel	Percentage of New Customers	Notes
Paid Search/PPC	23-26%	Paid ads drive a significant amount of traffic, especially in the early stages.
Organic Search	26-53%	SEO and organic search contribute heavily once the site gains visibility.
Social Media	8-15%	Social media ads and posts attract a smaller, but still important, portion of new customers.
Influencers/Affiliates	Up to 20%	Partnerships with influencers or affiliates can significantly boost customer acquisition.
Direct Referrals	Balance	Customers gained from word-of-mouth or referral programs.

What is the conversion rate from website visitors to paying customers?

On average, conversion rates from visitors to paying customers are around 2.5% for new visitors. The rate may increase for returning customers who are more familiar with your brand and products.

Improving conversion rates through optimized website design and targeted campaigns can help lower CAC.

What is the average cost per click or impression for each paid advertising channel?

Cost-per-click (CPC) varies by platform. On Google, the average CPC is around $1.16, while social platforms like Facebook and Instagram have CPCs ranging from $0.51 to $1.29. These costs fluctuate based on competition and the target audience.

Tracking CPC helps assess the efficiency of paid advertising and ensures it aligns with your overall CAC goals.

How much is being spent on customer acquisition through influencer partnerships or affiliates?

Influencer and affiliate marketing can account for 10-20% of paid marketing spend, especially for fast-growing e-commerce platforms. These partnerships can offer a more personalized approach and generate high-quality leads.

Analyzing the effectiveness of such collaborations helps optimize future spending on influencers and affiliates.

What is the average lifetime value of a customer on the platform?

The average customer lifetime value (CLTV) varies depending on the niche, but typically it is 5-8 times the value of the first purchase. A strong CLTV can make higher CACs more sustainable over time.

Knowing your CLTV helps you determine a healthy CAC threshold and assess whether your marketing efforts are profitable in the long term.

What is the churn rate of customers within the first 90 days?

Churn rates vary by industry and retention strategies. On average, churn within the first 90 days is between 20% and 45%. High churn rates indicate that customer retention strategies need improvement.

Working to reduce churn is crucial for improving profitability and sustaining customer acquisition investments.

What is the average payback period to recover customer acquisition costs?

The payback period refers to how long it takes to recoup the costs spent on acquiring a customer. For most e-commerce businesses, this is typically 2-4 months. This period is essential for cash flow management and business sustainability.

Reducing the payback period can significantly improve profitability, especially in the early stages of an e-commerce business.

How do these customer acquisition costs compare against industry benchmarks for e-commerce platforms?

The industry benchmark for customer acquisition cost (CAC) for e-commerce platforms typically ranges from $68 to $78 per customer. If your CAC is much higher, you may need to revisit your marketing strategy to ensure long-term profitability.

Comparing your CAC to industry benchmarks allows you to gauge how efficiently you're acquiring customers and whether you're spending too much on marketing.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.