What ratio of LTV to CAC is good for e-commerce?

The average CAC to LTV is 3:1 for e-commerce but it does differ from different products. If you have a lower ratio of maybe 2:1, it means that the cost of acquiring customers is higher than the LTV and you’re actually losing money with each customer you acquire.

According to eCommerce experts, an ideal LTV/CAC ratio for eCommerce is 3:1. Let's explore an example to make the concept clearer. You spend $100 on a customer, and that customer brings you a value of around $300. That is a good ratio. Experts suggest that a proportion of 1:1 means that you are spending more than enough. While a ratio of 5:1 indicates that you might be spending too little.