Merchant Metrics Glossary

Revenue generated for every $1 of ad spend, on a single campaign or channel.

Total revenue divided by total ad spend across every channel.

Total revenue as a multiple of total marketing spend — your whole-engine efficiency.

Amazon ad spend as a percentage of the revenue those ads produced.

Amazon ad spend as a percentage of total Amazon revenue, organic included.

The ROAS at which a campaign exactly covers its costs — no profit, no loss.

The most you can pay to acquire an order before it stops making money.

The average cost to win one order or conversion from advertising.

What each sale contributes after the costs that scale with volume.

Profit left after the cost of goods, as a percentage of revenue.

What's actually left after every cost — the true bottom line.

How much you add to cost to set price — not the same as margin.

The average revenue per order over a period.

The share of visitors who place an order.

Average revenue generated by each visitor — conversion and order value combined.

The profit a customer generates over their whole relationship with you.

The average cost to acquire one new customer.

Lifetime value divided by acquisition cost — the core unit-economics health check.

How many days your current stock will last at your real sales pace.

The stock level that should trigger a new purchase order.

Buffer inventory held to absorb demand spikes and supplier delays.

How fast a product sells — units per day, week or month.