Metrics Glossary
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.
Dashboard
| Metrics | Definitions | Formulas |
|---|---|---|
| Orders | The total number of orders in the selected time range. | |
| Units Sold | The total number of units sold in the selected time range. | |
| Revenue | The total amount of money generated from sales of products or services before any expenses are deducted, also known as Total sales in Shopify. | Revenue = Gross Sales – Discounts – Returns + Taxes Collected + Shipping Charged |
| Total Cost | The sum of all expenses in the selected time range. | Total Cost = Cost of Goods Sold + Handling Fees + Shipping Cost + Ad Spend + Transaction Fees + Custom Spend + Taxes Paid |
| Net Profit | The profit you make after deducting all costs in your store. | Net Profit = Revenue + Tips + Gift Card Sales - Total Cost - Taxes Collected |
| Net Profit Margin (%) | Your business's profitability when comparing net profit to sales revenue. The higher the margin rate, the more profitable you are for each dollar spent. | Net Profit Margin = (Net Profit / Revenue) * 100 |
| Gross Sales | Gross sales is pulled from your Shopify store data. The product price for this equation is the price before taxes, shipping, discounts, and returns. | |
| Gross Profit | The profit you make after subtracting the costs of producing and distributing your products. | Gross Profit = Revenue + Tips + Gift Card Sales - COGS - Shipping Cost - Transaction Fees - Handling Fees |
| Gross Profit Margin (%) | Your business's profitability when comparing gross profit to sales revenue. The higher the margin rate, the more profitable you are for each dollar spent. | Gross Profit Margin = (Gross Profit / Revenue) * 100 |
| Discounts | Discounts are created using discount codes in your Shopify admin's Discounts section. | |
| Cost of Goods Sold (COGS) | The direct cost of manufacturing your products. See how to set up COGS in the app | |
| Handling Fees | This is the amount that covers all expenses regarding fulfillment, such as warehouse storage cost, shipment cost, and packing cost. This fee is set up in the Cost of Good setting and applied per product. | |
| Total Ad Spend | The total amount you spent on advertising pulled from ads platforms. TrueProfit currently supports: Facebook, Google Ads, Microsoft, Amazon, TikTok, Taboola, Pinterest, Snapchat, and X. Learn more | |
| Shipping Costs | The costs you need to pay in order to deliver your products. See how to set up shipping costs in the app | |
| Custom Cost | Other expenses such as software, app fees, influencers payments, rent, staff salary, Shopify plan, or more. This cost can be configured in the Custom cost setting | |
| Transaction Fees | The amount of money that your payment gateways (PayPal, Stripe, etc.) and Shopify charge for each of your order. Learn more | |
| Taxes Paid | Taxes Paid are what your business have to pay the government. The Taxes Paid expenses are set up manually in the Taxes page. This metric is calculated as a cost for your store. | |
| Average Order Value (AOV) | The average amount each customer spends in one order. Higher AOV often means higher profit margin, because most cost per order is fixed whether someone buys more or less. | Average Order Value = Revenue / Orders |
| Average Order Cost | The average cost needed to acquire an order. | Average Order Cost = Total Cost / Orders |
| Average Order Profit | The average profit you earn from one order. | Average Order Profit = Net Profit / Orders |
| Ad Spend Per Order | The average ad spend needed to acquire an order. | Ad Spend per Order = Total Ad Spend / Orders |
| Purchase Frequency | The average number of times your customers make a purchase in the time period. | Purchase Frequency = Orders / Total Customers |
| New Customers Per Order | The percentage of new customers in total orders in the time period. | New Customers Per Order = (Number of New Customers / Orders) * 100 |
| Repurchase Rate | Repurchase Rate measures the percentage of customers who make a repeat purchase after their initial purchase, indicating customer loyalty and satisfaction with a store or product. | Repurchase Rate = [Second-time-purchase Customers / Total Customers] * 100 |
| New Customer | New Customers in the app includes all first customers, whether they have an order or not. You can compare this in the Customer List section in Shopify store admin. | |
| Shipping Charged | The amount you charge your customers when shipping their orders. This is set up in Shopify and automatically pulled into TrueProfit as an income for your store. | |
| Taxes Collected | Taxes Collected 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. TrueProfit automatically syncs this metric as an income for your store. | |
| 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 TrueProfit. | |
| ROAS | Return on Ad Spend (ROAS) measures the amount of revenue your business earns for each dollar spent on advertising platforms. | ROAS = Revenue / Total Ad Spend |
| POAS | Profit on Ad Spend (POAS) measures the amount of profit your business earns for each dollar spent on advertising platforms. | POAS = Gross Profit / Total Ad Spend |
| ncROAS | Return on ad spend from new customers (ncROAS) measures the amount of revenue from new customers your business earns for each dollar it spends on advertising platform. | Return on Ad Spend from New Customers = Total New Customers Revenue / Total Ad Spend |
Product Analytics
| Metrics | Definitions | Formulas |
|---|---|---|
| Revenue | The income before any expenses are subtracted | |
| Units Sold | The total number of individual items sold of a product. | |
| Cost of Goods Sold | Cost of goods sold (COGS) is the direct cost of manufacturing your products. Learn more | |
| Ad Spend | Total ad spend per product pulled from UTM parameters. To get accurate data for this metric, make sure you've set up TrueProfit's parameters. Learn more about our Parameter Generator Extension. | |
| Total Costs | The total costs of the product in the selected period. | Total Cost = COGS + Transaction Fee + Handling Fee + Shipping Costs + Ad Spend |
| Net Profit | The amount of money you gain after all costs are deducted. | Net Profit = Revenue - Total Cost |
| 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 Profit Margin = (Net Profit / Revenue)*100 |
| Net Profit on Ad Spend | Net Profit on Ad Spend quantifies the efficiency of marketing expenses by calculating the amount of net profit generated for each dollar spent on advertising. | Net Profit on Ad Spend = Net Profit / Ad Spend |
| Gross Profit | Gross profit is revenue minus the cost of producing your goods. | |
| Gross Profit Margin | Your business's profitability when comparing gross profit to sales revenue. The higher the margin rate, the more profitable you are for each dollar spent. | Gross Profit Margin = (Gross Profit / Revenue) * 100 |
| Views | The number of page views that the product received. | |
| Adds to Cart | The number of times the product was added to the shopping cart. | |
| Add to Cart Rate | The percentage of sessions where the product was added to the shopping cart. | Add to Cart Rate = (Add to Cart / View) * 100 |
| Purchases | How many times the product has been purchased successfully. Calculated based on the number of orders containing the product. | |
| Conversion Rate | The percentage of sessions where the product was purchased. | Conversion Rate = (Purchase / View) * 100 |
Orders Report
| Metrics | Definitions | Formulas | |
|---|---|---|---|
| Revenue | The total amount of money generated from sales of products or services before any expenses are deducted. | ||
| Shipping Costs | The costs you need to pay in order to deliver your products. This cost is synced from any connected integrations (Shipping Providers/Shopify Shipping/Dropshipping Platforms), or calculated based on your Shipping Cost settings. | ||
| Total COGS | The total COGS of all items sold in each order. This cost is synced from any connected integrations (Dropshipping Platforms), or calculated based on your Cost of Goods settings | ||
| Transaction Fees | The amount of money that your payment gateways (PayPal, Stripe, etc.) and Shopify charge for each order. Learn more | Your business's profitability when comparing gross profit to sales revenue. The higher the margin rate, the more profitable you are for each dollar spent. |
Customer Lifetime Value
| Metrics | Definitions | Formulas |
|---|---|---|
| Repurchase Rate | Repurchase Rate is the percentage rate of customers having placed another order within a certain period of time. | Repurchase Rate = (Second-time-purchase Customers / Total Customers) * 100 |
| 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 |
| 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 + Total Custom Costs with LTV:CAC / New Customers (Number of first customers) |
| LTV:CAC ratio | This ratio shows the Lifetime Value of a customer as compared to the cost of acquiring them. |
Updated on: 20/12/2024
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