Revenue Metrics
These metrics show how revenue evolves from gross to net, including the impact of discounts, returns, and other items, with calculations to help you understand your final net profit.
Metric Name | Calculation | Definition |
Gross Sales |
| Full order value before any deductions (discounts, returns, or taxes). |
Order Revenue |
| Customer-paid revenue including returns, still includes discounts and taxes. |
Total Sales |
| Amount paid by customer, incl. taxes – actual money received. |
Net Revenue |
| Revenue after tax removal – amount kept before other cost deductions. |
Net Sales |
| Revenue from products only – excluding taxes, shipping and other non-product income. |
Cost Metrics
These metrics show what’s included in total costs, covering all key cost categories like Product, Order Processing, Marketing and Other.
Metric Name | Calculation | Definition |
Total Costs |
| Sum of all major cost categories. |
Product Costs |
| Product-related costs, such as purchase cost of the product. |
Order Processing Costs |
|
|
Marketing Costs |
|
|
Other Costs |
|
|
Profit Metrics
These metrics show how profit is calculated by gradually subtracting cost categories from Net Revenue.
Metric Name | Calculation | Definition |
CM1 |
| Shows how much margin remains after covering product costs. It reflects product-level profitability. |
CM2 |
| Accounts for additional costs tied to fulfilling the order. Useful for evaluating order-level profitability. |
CM3 Contribution Margin |
| Also includes marketing expenses. Indicates profitability after direct costs needed to acquire and fulfill a sale. |
CM4 |
| Key for overall business performance tracking and financial planning. Reflects if the entire operation is profitable. |
Performance Metrics
Metric Name | Calculation | Definition |
AOV | ( | Average order value. |
RCR |
| Returning Customer Rate. |