In this article, you'll find a list of metrics used in TrueProfit Profit Analytics and Product Analytics. Quickly search for the term you want using Ctrl+F.

A. Metrics in Profit Analytics
1. Revenue
The final money you receive from customers, also known as Total sales in Shopify. 

Revenue = gross sales – discounts – refunds + taxes + shipping charges
Note: taxes and shipping are the money you charge customers.

2. Total cost
The sum of all expenses occurring during the operation of your business.

Total cost = Cost of goods sold + Shipping cost + Ad spend + Transaction fees + Custom spend

3. Net profit
The amount of money you gain after all costs are deducted. 

Net profit = Revenue - Total cost

4. Net profit margin (%)
The measurement of your business's profitability. The higher the number, the more profitable the company. A low profit margin might indicate a problem that is interfering with profitability potential such as unnecessarily high expenses.

Net profit margin = Net profit / Revenue

5. Ad spend
Total cost for advertising pulled from Facebook and Google Ads.

6. Ad spend per order
The average amount of ad spend to acquire an order.

Ad spend / Total orders

7. Average order value (AOV)
The average amount of money a customer spend in one order. Higher AOV often means higher profit margin, as most cost per order is fixed whether someone buys more or less.

Average Order Value = Revenue / Total orders

8. Average order profit
The average profit you earn from one order. 

Average order profit = Profit / Total orders

9. Cost of Goods Sold
Cost of Goods Sold (COGS) is how much the products cost you, as opposed to how much you charge customers (Sales price). For most dropshippers, COGS is the product prices you pay on AliExpress or CJ Dropshipping.

10. Shipping costs
Shipping costs are the costs you need to pay in order to deliver your products. This differs from Shipping charges (see below)

11. Shipping charged
The shipping charge is what your customers pay for shipping, whereas Shipping Cost is what you pay. This is set up in Shopify and automatically pulled into True Profit.

12. Custom cost
Other expenses such as software/app, influencers, rents, salary, Shopify plan, taxes. 

13. Transaction fee
The amount of money that your payment gateways (Paypal, Stripe, etc.) and Shopify charge for each of your order.

14. Taxes
Taxes are what your customers are obliged to pay when checking out on your Shopify store. The default sale tax rates are calculated and updated regularly by Shopify. True Profit displays these tax data pulled in from your Shopify Shop.

15. Tips
Online tipping enables your customers to add a tip to their order on the payment page when they check out. Tips are calculated either by a percentage of the order total or by a custom amount. This is set up in Shopify and automatically pulled into True Profit.

16. Handling Fees
This is the amount that covers all expenses regarding fulfillment, such as warehouse storage cost, shipment cost, and packing cost. If Handling fees are not added to True Profit, the default value of a product will be zero.

B. Metrics in Product Analytics
1. Views
The number of pageviews that the product received.

2. ATC (Adds to cart)
The number of times the product was added to the shopping cart.

3. ATC rate (Add-to-cart rate)
The percentage of sessions where the product was added to the shopping cart.

ATC rate = ATC / Views

4. Purchases
The number of times the product was purchased.

5. Conversion rate
The percentage of sessions where the product was purchased.

Conversion rate = Purchases / Views

6. Revenue
The total amount of money that the product has sold.

C. Metrics in Lifetime Value

1. Repurchase Rate
Repurchase Rate is the percentage rate of a cohort having placed another order within a certain period of time.

Repurchase Rate = Number of second-time customers / Number of first-time customers

2. LTV
Lifetime Value (LTV) is the average revenue that a customer will generate throughout their lifetime as a paying customer.

LTV = Total Revenue / Total Customers

3. CAC
Customer Acquisition Cost (CAC) is the total cost of sales and marketing efforts that are needed to acquire a customer.

CAC = Total Ad Spend / Number of Customers

4. LTV:CAC ratio
This ratio shows the value of a customer as compared to the cost of acquiring them. Depending on your business, you can interpret this ratio to mean that you may be spending too much on sales and marketing or not.

But the bottom line is a 1:1 ratio. This possibly means that you are spending all of your revenue into customer acquisition expenses. A greater ratio may be considered a good sign, meaning more value is creating (further analysis is required).

On the other hand, also watch out for more room to expand your sales and marketing activities when the ratio is too great.
Was this article helpful?
Cancel
Thank you!