Return on assets (ROA) is an important financial measure in e-commerce that provides insight into a company's efficiency in managing its assets to generate profits. It's a measure of profitability relative to a company's total assets.
Blended Customer Acquisition Cost (Blended CAC) is a key performance indicator (KPI) that provides eCommerce businesses with insight into the average cost to acquire a customer, regardless of the channel used.
Profit, a fundamental key performance indicator (KPI) in business, shows the overall financial health of a company. Part of the Profit & Loss category, it provides a clear snapshot of how effective a company is at converting revenue into tangible profits after all costs are deducted.
Operational costs, often referred to as operating expenses or OPEX, represent the necessary outflows an e-commerce business incurs to keep its virtual doors open.
Applications & Services Costs refer to the costs associated with marketing-related applications and services used by e-commerce businesses. These costs can include tools for email marketing, search engine optimization, customer relationship management, analytics, and other digital marketing tools.
Costs or expenses are critical Key Performance Indicators (KPIs) for any business, and especially for e-commerce ventures. They describe the cash outflow required to operate, maintain, and scale the business.
Custom Cost (CC) is a Key Performance Indicator (KPI) that helps e-commerce companies understand the total costs associated with customization, modification, or tailored services provided to their customers.
Agency costs refer to the expenses that companies incur when they work with marketing agencies. These costs can include a wide range of services provided by the agency, such as advertising, digital marketing, content creation, public relations, and more.
Understanding financial metrics is critical in the world of e-commerce. One important metric to consider is returns revenue, which measures the total revenue generated from customer returns.
In the ecommerce landscape, Cost of Goods Sold (COGS) is a key metric that directly impacts a company's financial health. Essentially, COGS is the total production or purchase cost of goods sold in a given period.
LTV x Days is a nuanced adaptation of the traditional Lifetime Value (LTV) metric. It's an integral revenue metric for ecommerce businesses that aims to determine the profit generated from a customer relationship over a specific period of time.
In the dynamic landscape of e-commerce, where generating profit is the ultimate goal, Accumulated Return on Investment (AccROI) emerges as a powerful and insightful metric. This financial indicator provides insight into the returns or profits generated by investments over a given period of time.
Gross profit, often referred to as gross income, is a paramount metric in the realm of revenue analysis. It is a testament to a company's financial health, showing the initial profitability of its operations before other costs come into play.
Net profit is a critical revenue metric that shows the true profitability of an e-commerce business after all expenses are taken into account. It takes into account all operating, interest and tax costs incurred during a given period.
Payback period is a fundamental revenue metric that calculates the time it takes for a business to recoup its customer acquisition cost (CAC). This metric is especially important for subscription-based or recurring revenue businesses.
Operating expenses are the costs associated with the day-to-day operations of a business, excluding the cost of goods sold. They are essential to the smooth functioning of any e-commerce platform.
The Operating Margin is a vital revenue metric for ecommerce businesses. It reveals the proportion of revenue remaining after deducting operating expenses from the gross profit.
Cost of Sales (COS) is a crucial revenue metric that reveals the direct costs associated with the products a company sells. Particularly used by retail or wholesale companies, it shows the amount these companies invest in purchasing products from suppliers for the purpose of resale.
