Ecommerce glossary
Profit per order
Profit per order is the revenue of an order minus its product cost, shipping, payment fees, returns allowance and its share of ad spend.
Formula
Profit per order = Order revenue − Product cost − Shipping − Fees − Ad spend per order
Example
$50 order − $20 product cost − $5 shipping − $1 fees − $12.50 ad spend per order = $11.50 profit per order.
In Analify
Analify can break Blended Profit down to orders, products and campaigns, using connected order, cost, shipping and ad data.
Questions
How is ad spend split per order?
Commonly total ad spend divided by orders for the period, or by campaign where the order’s campaign is known.
Why track profit per order?
It shows whether growth adds profit or just more orders.
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