Clear definitions, formulas, and worked examples for the metrics that matter most to Shopify merchants. No jargon, no fluff — just what you need to know.
Cost of Goods Sold (COGS) is the total direct cost of producing or purchasing the products you sell during a specific pe...
Read full definition →Profit margin is the percentage of revenue that remains as profit after subtracting costs. It measures how efficiently y...
Read full definition →Gross margin is the percentage of revenue remaining after subtracting the cost of goods sold. It shows how much money is...
Read full definition →Net profit is the amount of money remaining after all costs have been deducted from revenue, including COGS, operating e...
Read full definition →The break-even point is the number of units you need to sell, or the revenue you need to generate, before your total rev...
Read full definition →Contribution margin is the amount each unit sold contributes towards covering fixed costs and generating profit. It is c...
Read full definition →Shipping margin is the difference between what you charge customers for shipping and what it actually costs you to ship ...
Read full definition →A Profit and Loss statement (P&L) is a financial report that summarises your revenue, costs, and expenses over a specifi...
Read full definition →Average Order Value (AOV) is the average amount a customer spends per transaction in your store. It is calculated by div...
Read full definition →Customer Lifetime Value (LTV) is the total revenue a customer is expected to generate over their entire relationship wit...
Read full definition →Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer, calculated by dividing your total marketi...
Read full definition →Conversion rate is the percentage of website visitors who complete a desired action, typically making a purchase. It is ...
Read full definition →Return on Ad Spend (ROAS) measures the revenue generated for every pound spent on advertising. A ROAS of 4x means you ea...
Read full definition →Cost Per Click (CPC) is the amount you pay each time someone clicks on one of your paid advertisements. It's determined ...
Read full definition →Click-Through Rate (CTR) is the percentage of people who click on your ad, link, or call-to-action after seeing it. It m...
Read full definition →Google Shopping is an advertising platform that displays product listings with images, prices, and store names directly ...
Read full definition →A chargeback occurs when a customer disputes a transaction with their bank or credit card company, reversing the payment...
Read full definition →Chargeback rate is the percentage of your total transactions that result in chargebacks. Card networks like Visa and Mas...
Read full definition →Return rate is the percentage of sold items that customers send back for a refund or exchange. It measures product satis...
Read full definition →Order fulfillment is the complete process from receiving a customer's order to delivering it to their door. It includes ...
Read full definition →A SKU (Stock Keeping Unit) is a unique alphanumeric code you assign to each product variant in your inventory. It identi...
Read full definition →Dead stock is inventory that hasn't sold within a reasonable timeframe and is unlikely to sell at full price. It ties up...
Read full definition →Sell-through rate is the percentage of inventory sold compared to the amount received during a specific period. It measu...
Read full definition →Dropshipping is a retail fulfillment method where you sell products without holding inventory. When a customer places an...
Read full definition →Print on Demand (POD) is a fulfillment model where custom products like t-shirts, mugs, and posters are only printed and...
Read full definition →Stop calculating in spreadsheets. StoreLyst gives you real-time analytics for your Shopify store.