Amazon Metrics Glossary
In this post:
1. Metrics in Dashboard
1.1 Overview Section
1.2 Cost Section
1.3 Others Section
1.4 Order Summary Section
1.5 Ads Spend Section
2. Metrics in P&L Report
3. Metrics in Order Analytics
4. Metrics in Product Analytics
Dashboard
Overview Section
| Metrics | Definitions | Formulas |
|---|---|---|
| Gross Sale | The total unadjusted sales of your business within a set time period. Also known as Items Total Sync in Amazon. | |
| Revenue | The final money you receive from customers, also known as Total sales in Amazon. | Revenue = Gross Sales - Discounts - Refunds |
| Gross Profit | Gross profit is calculated by subtracting the cost of goods sold (COGS) from the total revenues. | Gross profit = Revenue - Total COGS |
| Net Profit | Your total income after deducting all costs. | Net Profit = Revenue - Total Cost |
| Net Margin (%) | Your business's profitability when comparing net income to sales revenue. The higher the margin rate, the more profitable you are for each dollar spent. | Net margin = (Net profit / Revenue)*100 |
| Gross Margin (%) | Your business's profitability when comparing gross income to sales revenue. The higher the margin rate, the more profitable you are for each dollar spent. | Gross margin = (Gross profit / Revenue)*100 |
| Units Sold | The total number of units sold by your store within a time period |
Cost Section
| Metrics | Definitions | Formulas |
|---|---|---|
| Cost of Goods Sold | Cost of goods sold (COGS) is the direct cost of manufacturing your products. | |
| Ad Spend | Total cost for advertising pulled from ads platforms. TrueProfit currently supports: Facebook, Google Ads, Bing, Amazon, Tiktok, Pinterest, Snapchat. | |
| Custom Cost | Other expenses such as software/apps, influencers, rent, salary, Amazon subscription, and taxes. | |
| Amazon Fees | The costs charged by Amazon when fulfilling orders. | Referral fees: Charged for each item sold, depending on the product category (Most referral fees are between 8% and 15%) + FBA Fees: The cost to ship your orders when you use Fulfillment by Amazon (FBA). |
| Total Cost | The sum of all expenses occurring during the operation of your business. | Total cost = Cost of goods sold + Amazon Fees + Ad Spend + Custom Spend |
Others Section
| Metrics | Definitions |
|---|---|
| Taxes | Taxes are what your customers are obliged to pay when checking out on your Amazon store. The default sale tax rates are calculated and updated regularly by Amazon. This tax data is pulled in from your Amazon store. |
| Marketplace Withheld Tax | Marketplace Facilitator Tax is a tax collected and remitted by Amazon on your behalf, due to agreements with specific states in the USA or other countries (Canada, etc.). This metric is automatically pulled into TrueProfit. |
| Gift Wrap | The service fee when buyers send an item as a gift. This metric is automatically pulled into TrueProfit. |
| Refund Cost | The fees when a buyer refunds their order. The refund cost consists of: Refunded Amount (The money refunded to your customer), Refunded Referral Fee (The Referral Fee you get back from Amazon), Refunded Commission (the fee for processing the refund, charged by Amazon) |
Order Summary Section
| Metrics | Definitions | Formulas |
|---|---|---|
| Average Order Value | The average revenue you earn from one order. | Revenue / Total orders |
| Average Order Cost | The average cost you pay for one order. | Total cost / Total orders |
| Average Order Profit | The average profit you earn from one order. | Average order profit = Profit / Total orders |
| Ad spend per Order | The average amount of ad spent to acquire an order. | Ad spend / Total orders |
| Purchase Frequency | The average number of times your customers make a purchase in a certain period. | Total Orders / Total Customers |
| New Customers Per Order | The percentage of new customers in the total number of orders in a certain period. | Number of New Customers / Total Orders |
Ad Spend Section
| Metrics | Definitions | Formulas |
|---|---|---|
| ROAS | Return on ad spend (ROAS) measures the amount of revenue your business earns for each dollar spent on advertising platforms. | Revenue/Total Ads Spend |
| POAS | Profit on Ad Spend (POAS) measures the amount of profit your business earns for each dollar spent on advertising platforms. | Gross Profit/Total Ad Spend |
| NcROAS | This metric measures the amount of revenue from new customers your business earns for each dollar spent on advertising platforms. | Total New Customers Revenue/Total Ad Spend |
Metrics in P&L Report
| Metrics | Definitions | Formulas |
|---|---|---|
| Revenue | The final money you receive from customers, also known as Total sales in Amazon. | Revenue = Gross Sales - Discounts - Refunds + Taxes + Shipping Charge + Gift Wrap |
| Net Profit | Your total income after deducting all costs. | Net profit = Revenue - Total Cost - Marketplace Withheld Tax |
| Net Profit Margin (%) | Your business's profitability when comparing net income to sales revenue. The higher the margin rate, the more profitable you are for each dollar spent. | Net margin = (Net profit / Revenue)*100 |
| Orders | The total number of orders placed within a selected time period. | |
| Units Sold | The total number of units sold within a selected time period. | |
| Cost of Goods Sold | Cost of goods sold (COGS) is the direct cost of manufacturing your products. | |
| Advertising Cost | Consist of: Amazon Ads, Promotions, Coupon Redemption Fee. | |
| Returned Units | The total number of units returned | |
| Refund Cost | The fees when a buyer refunds their order. The refund cost consists of: Refunded Amount (The money refunded to your customer), Refunded Referral Fee (The Referral Fee you get back from Amazon), Refunded Commission (the fee for processing the refund, charged by Amazon) | |
| Inventory Fees | Consist of: Storage Fees and Inbound Transportation (the fee for transporting your products between Amazon's fulfillment centers) | |
| Amazon Plan | Amazon's subscription fee. The Individual plan costs $0.99 per unit sold, and the Professional plan costs $39.99 per month no matter how many units you sell. | |
| Return Rate | Return Rate = (Returned Units/ Units) * 100 | |
| %Sellable returns | Sellable return rate | %Sellable returns = (number of sellable returns / number of all returns (units)) * 100 |
| ROI | Return on Investment | (Net Profit / Cost of Goods Sold) * 100 |
Metrics in Order Analytics
| Metrics | Definitions | Formulas |
|---|---|---|
| Purchase Date | Equals to the Order Date in Amazon's Manage Order | |
| Product details | Consist of the product's Thumbnail, Title, ASIN, SKU, Item Subtotal, and Quantity | |
| Sales | The order's total revenue in a certain period. All refunded units have Sales counted as 0. | |
| Units | The order's total units in a certain period. All refunded units have Units counted as 0. | |
| Returned Units | The total number of units returned | |
| Sellable returns | The total refunded units that qualified for resale | |
| Amazon fees | The costs charged by Amazon when fulfilling orders. | Amazon fees = FBA fulfillment + Referral fee |
| Advertising cost | The total cost of Amazon Ads for that order | |
| Cost of Goods Sold | Cost of goods sold (COGS) is the direct cost of manufacturing your products. | |
| Profit | Your income after deducting costs | Profit = Sales - Amazon fees - Advertising cost - COGS - Gift Wrap - Marketplace Withheld Tax |
| Profit (Refunded Orders) | Profit = 0 - Advertising Cost - Gift Wrap - Refund Commission + Referral Fee + Marketplace Withheld Tax | |
| Profit Margin | Profit Margin = (Profit / Sales) * 100 (Doesn't show in refunded orders) |
Metrics in Product Analytics
| Metrics | Definitions | Formulas |
|---|---|---|
| Product Details | Consist of the product's Thumbnail, Title, ASIN, SKU, Price, COGS per Unit and Available Inventory | |
| Sales | The product's total revenue in a certain period. | |
| Units Sold | The product's total units sold in a certain period. | |
| Returned Units | The total number of units returned | |
| Return Rate | Return Rate = (Returned Units/ Units) * 100 | |
| Sellable Returns | The total returned units that qualify for resale | |
| Amazon Fees | The costs charged by Amazon when fulfilling orders. | Amazon fees = FBA fulfillment + Referral fee |
| Advertising Cost | The total cost of Amazon Ads for that product | |
| Cost of Goods Sold | Cost of goods sold (COGS) is the direct cost of manufacturing your products. | COGS per Unit * Units Sold |
| Profit | Your income after deducting costs | Sales - Amazon fees - Advertising cost - COGS - Gift Wrap - Marketplace Withheld Tax |
| Profit Margin | Profit Margin = (Profit / Sales) * 100 |
Updated on: 16/05/2023
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