Primary Research · Q1 2026
UK Ecommerce PPCBenchmarks
Original data from 75+ UK ecommerce Google Ads accounts. Not industry averages. Not survey responses. Real performance data from accounts we manage.
Published March 2026 · Data period: January-March 2026 · Updated quarterly
Key Findings
Headline metrics from Q1 2026, calculated from primary account data.
Average CPC across UK ecommerce
Based on 75+ UK ecommerce accounts managed by JudeLuxe, March 2026.
PMax share of total ad spend
Performance Max now dominates budget allocation across all verticals.
Brand search share within PMax
One-third of PMax conversions are brand queries - cannibalising organic.
SKUs generating negative contribution margin
Across high-SKU retailers bidding on ROAS, 4 in 10 products lose money after COGS.
Average POAS vs 4.0x ROAS
When COGS, returns, and fees are deducted, real profit multiplier halves.
Average profit lift after POAS switch
Clients transitioning from ROAS to POAS bidding within first 90 days.
Benchmarks by Sector
Sector-level performance data. POAS includes COGS, returns, shipping, and fees - unlike ROAS which measures revenue only.
| Sector | Avg CPC | ROAS | POAS | Return Rate | PMax % |
|---|---|---|---|---|---|
| Fashion & Apparel | £1.42 | 3.2x | 1.6x | 28% | 74% |
| Beauty & Skincare | £1.65 | 4.8x | 2.4x | 8% | 68% |
| Home & Living | £0.98 | 3.8x | 2.1x | 12% | 72% |
| Supplements & Wellness | £1.89 | 5.1x | 2.8x | 5% | 65% |
| Pet Supplies | £0.92 | 4.5x | 2.5x | 6% | 70% |
| Outdoor & Sports | £1.15 | 3.5x | 1.9x | 15% | 69% |
Source: JudeLuxe primary data, 75+ UK ecommerce accounts, Q1 2026. Minimum £10k/month spend.
The ROAS-to-POAS Gap
The single most important finding: ROAS overstates actual profit performance by 40-60% across every sector we measured. A 4.0x ROAS sounds healthy. A 2.1x POAS tells the real story.
This gap is widest in Fashion & Apparel, where a seemingly acceptable 3.2x ROAS translates to just 1.6x POAS after 28% return rates, COGS, and fulfilment costs. Many SKUs that look profitable on a ROAS dashboard are actively losing money.
40% of SKUs in ROAS-optimised accounts generate negative contribution margin. These products attract clicks, generate revenue, and report healthy ROAS - while quietly destroying profit. The only way to identify them is SKU-level COGS integration.
Methodology
This is primary research, not aggregated industry data. Every metric is calculated directly from Google Ads accounts under JudeLuxe management. We don't survey. We measure.
- Data sourced from 75+ UK ecommerce Google Ads accounts under JudeLuxe management
- Minimum monthly spend threshold: £10,000 per account
- Time period: January-March 2026 (Q1)
- POAS calculated as: (Revenue − COGS − Shipping − Returns − Fees) ÷ Ad Spend
- SKU-level profitability assessed using actual COGS data, not category averages
- Brand search share measured via PMax Insights and search term analysis
- Sector classifications based on primary product category, not merchant self-reporting
How to Cite This Research
Frequently Asked Questions
What is the average CPC for UK ecommerce Google Ads in 2026?
The average CPC across UK ecommerce Google Ads accounts is £1.28 as of March 2026, representing an 11% year-on-year increase. Fashion sees the highest at £1.42, while Pet Supplies averages £0.92. Data based on 75+ accounts managed by JudeLuxe.
What percentage of PMax conversions come from brand search?
As of Q1 2026, 33% of Performance Max conversions come from brand search queries, up from 26% a year ago. Without brand exclusions, PMax effectively operates as an expensive branded search campaign for many ecommerce advertisers.
What is a good POAS for ecommerce?
A good POAS (Profit on Ad Spend) varies by sector: Beauty averages 2.4x, Supplements 2.8x, and Fashion 1.6x. Unlike ROAS, POAS accounts for COGS, returns, shipping, and fees - giving a true profit multiplier. Any POAS above 1.0x means you're generating profit from ad spend.
How does ROAS compare to POAS in ecommerce?
ROAS overstates performance by 40-60% on average. A 4.0x ROAS typically translates to a 2.1x POAS once COGS, returns, and fees are deducted. This gap is largest in Fashion (3.2x ROAS → 1.6x POAS) due to high return rates.
What is the methodology behind this ecommerce PPC research?
This research is based on primary data from 75+ UK ecommerce accounts under JudeLuxe management with minimum £10k monthly spend. POAS is calculated using actual SKU-level COGS data, not category averages. Data covers Q1 2026 (January-March).
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