What is the average CAC for e-commerce?

The average Customer Acquisition Cost (CAC) varies from different industries, and for the e-commerce industry, its average CAC is around $45. It also varies in the various e-commerce industries, where some have a higher CAC than others. CAC helps you know whether your marketing strategies are working and the best strategies to get maximum ROI.

CAC is the amount spent to acquire new customers. For e-commerce, it is difficult to determine customer acquisition costs as it depends upon the industry, turn-over, and repeated sales rate. Also, it is guarded information and not generally disclosed.

Small businesses tend to spend 20$ per customer while larger businesses like Amazon and eBay spend good customer acquisition costs, somewhere between $120 to $160. If the customer lifetime value and CAC cost ratio are three or greater, spending CAC is worth it.

Customer acquisition cost or CAC refers to the cost of acquiring customers in e-commerce. The average CAC for e-commerce differs from industry to industry as various factors are considered when calculating CAC, like industry turnover, margin, and repeat sales.

Below is the breakdown of customer acquisition costs by industry:

• Arts and entertainment: $21
• Health and beauty: $127
• Business and industrial: $533

The E-commerce CAC benchmark differs from brand to brand. An excellent way to analyze your CAC is by comparing it with your CLV customer lifetime value.

Customer Acquisition Cost (CAC) is the amount you will spend to acquire new customers. When setting up your marketing strategy, you must ensure that the CAC is not too high, or your profit margins will fall below par.

The CAC benchmark is highly variable, subjective to the industry and the type of service or products sold. It can be as low as $20 if you implement the right strategies. For some top industries, the average CAC looks like this:

• Ecommerce: $45
• Consumer Goods: $22
• Travel: $7
• Retail: $10

The e-commerce business comprises various industries like fashion, beauty, health, business, and many others. Therefore, it can't have one solid average CAC (Customer Acquisition Cost) because it'll vary with the industry e.g:

Software: $395

Finance & Insurance: $81.93

Health & Medical: $78.09

Consumer Goods: $22