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The average amount a customer spends per order. This metric is critical for understanding the potential revenue generated from each purchase.
The direct costs associated with producing the goods sold by your store, including materials and labor.
The expenses associated with delivering the product to the customer. This can significantly impact profit margins, especially for businesses with physical products.
The average discount you offer to customers. Discounts reduce the AOV, so it's crucial to consider their impact on profitability.
The number of ad clicks your campaign receives. This input helps determine the total ad spend and potential customer reach.
The percentage of visitors who complete a purchase after clicking on your ad. A higher conversion rate indicates a more effective ad campaign.
The total cost of your advertising campaign, calculated by multiplying the number of clicks by the average bid price.
A metric that measures the revenue generated for every dollar spent on advertising. It is expressed as a multiplier (e.g., 2x).
A metric that calculates the net profit as a percentage of the total ad spend, giving a clearer picture of overall profitability.
The total profit after accounting for all costs, including ad spend, COGS, shipping, and discounts.
It is the minimum ROAS required to avoid losses (includes all costs) and is expressed as a multiplier (e.g., 1.5x).
