Full glossary of leading metrics, formulas and desired outcomes
| Metric | BeProfit Formula | What is it good for | How to use it |
| Costs | Refunds + Fulfillment Costs + Taxes + Transaction Fees + COGS + Marketing Costs | Analyzing comprehensive expenditure, ensuring all costs are considered | Monitor and control budget allocation, identify areas for cost optimization. |
| AOV | Orders Revenue / Order Count | Assessing the average value of each order | Identify trends in customer spending behavior, strategize for upselling or bundling opportunities. |
| Orders Revenue | Gross Sales - Discounts | Measuring revenue from sales after accounting for discounts | Understand the actual revenue generated, track the impact of promotional activities. |
| Gross Sales | Revenue from Sales + Sales Taxes + Shipping Revenue/Charged | Calculating total sales revenue before deductions | Evaluate overall sales performance, consider the holistic revenue picture. |
| Total Gross Revenue | Revenue from Sales + Sales Taxes + Shipping Revenue/Charged | Summing up all aspects of gross revenue | Gain a comprehensive view of total revenue before any deductions or returns. |
| Total Sales | Total Gross Revenue - Discounts - Returns/Refunds | Assessing net sales after accounting for discounts and returns | Understand the actual sales income received by the business. |
| Net Sales | Total Sales - Sales Taxes | Calculating net sales revenue | Evaluate sales income after deducting applicable taxes. |
| Fulfillment Costs | Shipping Cost + Handling + Duties | Determining the cost of order fulfillment | Optimize shipping strategies, control fulfillment expenses. |
| Product Costs | COGS | Calculating the cost of goods sold | Assess the direct costs associated with producing goods, inform pricing strategies. |
| Gross Profit | Net Sales - Transaction Fees - Fulfillment Costs - Product Costs | Evaluating overall profit after accounting for direct costs | Measure profitability after considering all direct expenses. |
| Gross Margin | Gross Profit / (Total Sales - Sales Taxes) * 100 | Assessing the profitability percentage | Understand the profit margin as a percentage of total sales. |
| Contribution Profit | Gross Profit - Marketing Costs | Evaluating profit after deducting marketing expenses | Analyze the impact of marketing efforts on overall profitability. |
| Contribution Margin | Contribution Profit / (Total Sales - Sales Taxes) * 100 | ||
| Net Profit | Contribution Profit - Operating Expenses | Evaluating overall profit after deducting operating expenses | Assess the business's net profitability after considering all expenses. |
| Net Margin | Net Profit / (Total Sales - Sales Taxes) * 100 |
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