# 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.

Average Order Profit | The average profit you earn from one order. | Average Order Profit = Profit / Total Orders |

Ad Spend Per Order | The average ad spend needed to acquire an order. | Ad Spend per Order = Total Ad Spend / Order Count |

Purchase Frequency | The average number of times your customers make a purchase in the time period. | Purchase Frequency = Total 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 / Total Orders) * 100 |

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. True Profit displays these tax data pulled in from your Shopify Shop. | |

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 |

## A. Metrics in Dashboard

Metrics | Definitions | Formulas |
---|---|---|

Order Count | The total number of completed orders in the selected time range. | |

Units Sold | The total number of unit sold in the selected time range. | |

Revenue | The final income before any expenses are subtracted, 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 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 |

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 income 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 | The direct cost of manufacturing your products. Learn more | |

Handling Fees | This is the amount that covers all expenses regarding fulfillment, such as warehouse storage cost, shipment cost, and packing cost. If Handling fee is not set for a product, the default value will be zero. | |

Total Ad Spend | The total amount you spent on advertising pulled from ads platforms. TrueProfit currently supports: Facebook, Google Ads, Bing, Amazon, TikTok, Pinterest, Snapchat, and X. Learn more | |

Shipping Costs | The costs you need to pay in order to deliver your products. Learn more | |

Custom Cost | Other expenses such as software, app fees, influencers payments, rent, staff salary, Shopify plan, or more. Learn more | |

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 / Total Orders |

Average Order Cost | The average cost needed to acquire an order. | Average Order Cost = Total Cost / Order Count |

Average Order Profit | The average profit you earn from one order. | Average Order Profit = Profit / Total Orders |

Ad Spend Per Order | The average ad spend needed to acquire an order. | Ad Spend per Order = Total Ad Spend / Order Count |

Purchase Frequency | The average number of times your customers make a purchase in the time period. | Purchase Frequency = Total 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 / Total Orders) * 100 |

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. True Profit displays these tax data pulled in from your Shopify Shop. | |

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 |

## B. Metrics in Product Analytics

Metrics | Definitions | Formulas |
---|---|---|

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

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 cost for advertising pulled from ads platforms. The Ad Spend metric is reported with data tracking using TrueProfit's parameters. Learn more about our Parameter Generator Extension. | |

Total Cost | The total cost of the product. | 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 = Net Profit / Ad Spend | |

Gross Profit | Gross profit is revenue minus the cost of producing your goods. | |

Gross Profit Margin | 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. | |

Conversion Rate | The percentage of sessions where the product was purchased. | Conversion Rate = (Purchase / View) * 100 |

## C. Metrics in 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 = Number of second-time-purchase customers / Number of customer |

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 / Number of Acquired Customers |

LTV:CAC ratio | This ratio shows the Lifetime Value of a customer as compared to the cost of acquiring them. |

Updated on: 24/05/2024

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