Ecommerce profit vs profit margin: what is the difference
Ecommerce profit and profit margin are related, but one is a dollar amount and the other is a percentage.
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How to calculate ecommerce profit per order
Learn how to calculate ecommerce profit after product cost, shipping, fees, and ad cost.
How to price a product for ecommerce
Learn how to set product prices using costs, target margin, shipping, fees, and profit goals.
Product pricing vs markup: what should you use
Product pricing and markup are related, but target margin is often clearer for ecommerce decisions.
How to calculate a free shipping threshold
Learn how to set a free shipping threshold that encourages larger orders without destroying margin.
Average deal size vs average order value
Average deal size and average order value both measure revenue per transaction, but they fit different sales models.
How to calculate marketing efficiency ratio
Learn the MER formula, see a simple example, and understand how marketing efficiency ratio fits into blended performance reporting.
AOV vs LTV: how they work together
AOV and LTV measure different parts of customer value. Learn how average order value affects lifetime value and acquisition decisions.
How to calculate average order value
Learn the AOV formula, see a simple ecommerce example, and understand why average order value matters for marketing decisions.
How to calculate customer lifetime value
Learn a simple LTV formula, see an ecommerce example, and understand when to use revenue LTV or profit-based LTV.
How to calculate cost per acquisition
Learn the CPA formula, see a simple example, and understand how cost per acquisition fits into paid campaign reporting.
How to calculate conversion rate
Learn the conversion rate formula, see a simple example, and understand how to use conversion rate in marketing and ecommerce.