The TikTok Shop ROAS Blind Spot in Refund Windows

In this episode of Performance Marketing with Fexingo, Lucas and Luna dig into a TikTok Shop ROAS blind spot that most DTC brands overlook in 2026: the refund window. They explain how TikTok Shop's 30-day return policy creates a 'phantom revenue' effect, where ad spend looks profitable on day one but the true cost of returns only shows up weeks later. Using a concrete example of a $50 product with a 15% return rate, they show how a seemingly healthy 3.6 ROAS can drop to a barely break-even 2.1 once returns, processing fees, and lost ad efficiency are factored in. They also discuss the difference between Amazon's return window and TikTok Shop's, why TikTok's younger audience returns more, and practical fixes like adjusting ROAS targets, using holdback periods in reporting, and testing shorter return windows. If you're running TikTok Shop ads and wondering why your profitability never matches the dashboard, this episode gives you the number to watch and the tools to fix it. #TikTokShop #ROAS #Returns #DTC #PerformanceMarketing #AdSpend #Ecommerce #MarketingPodcast #Business #RefundWindow #PhantomRevenue #ReturnRate #TikTokAds #Attribution #Profitability #FexingoBusiness #BusinessPodcast #Marketing Keep every episode free: buymeacoffee.com/fexingo