Metrics & money

The numbers that tell you how the store is doing.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

Average Order Value (AOV)

"Average order value" — the average amount a customer spends in a single order.

C

What Is Churn Rate? Churn rate is most associated with subscriptions, but a store without one can adapt…

Click-Through Rate (CTR)

What Is Click-Through Rate? CTR measures how compelling an ad is at the moment someone sees it, before…

Conversion rate

The share of visitors who complete the action you wanted — usually a purchase.

Cost of Goods Sold (COGS)

What Is Cost of Goods Sold? In dropshipping, COGS is mostly the supplier’s per-unit price, sometimes including their…

Cost Per Click (CPC)

What Is Cost Per Click? CPC affects how far a test budget stretches. The same $100 budget buys…

Customer Acquisition Cost (CAC)

What Is Customer Acquisition Cost? CAC takes your total marketing spend over a period and divides it by…

Customer Lifetime Value (LTV)

What Is Customer Lifetime Value? LTV looks past the first sale to estimate what a customer is worth…

G

What Is Gross Profit? If a product sells for $50 and costs $20 to source, the gross profit…

M

The share of a product's price that is left as profit once all costs are subtracted.

N

What Is Net Profit? Net profit accounts for everything: product cost, shipping, ad spend, software subscriptions, payment fees,…

P

What Is Profit Margin? For example, if an item sells for $50 and costs $20 to source and…

R

Return on Ad Spend (ROAS)

What Is ROAS? ROAS is usually written as a ratio, like 4:1, meaning $4 of revenue for every…

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