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Profit Analytics Blog

Read expert articles with insights about e-commerce profitability from analyzing thousands of e-commerce businesses' data.
AllProfit OptimizationProfit CalculationBusiness Metrics
The 4 Main E-commerce Business Models for Building a Successful Online Store
Business metrics

August 7, 2023

The 4 Main E-commerce Business Models for Building a Successful Online StoreRunning your own online business can be highly profitable, but it is not as simple as building a store and hoping for the best. You still need to have a set of business goals that will make your e-com
You can ensure you're not missing out on sales or revenue with the right ratio.
Business metrics

June 9, 2023

5 Easy Ways to Calculate Shipping Cost to Sales RatioShipping rates can have a significant impact on e-commerce sales and profits. Consider that online retailers often have to allocate around 70% of an average order value (AOV) just to cover the costs o
You can adjust the CPO formula to include other costs.
Business metrics

May 13, 2023

Average Cost Per Order (CPO): Definition, Formula & ExampleOnline shopping is growing rapidly. In fact, Statista estimates that 20.8% of retail sales will be online in 2023 and can increase to 24% by 2026. This means that e-commerce sellers should make the mo
blocks on a page
Business metrics

May 5, 2023

Customer Acquisition Cost in E-Commerce: How to Find YoursEvery business needs customers to survive and grow. Customer acquisition costs (CAC), or what it takes to acquire a customer, can vary greatly depending on the type of industry and size of your busine
CTR impacts conversion rates and ultimately profits.
Business metrics

May 5, 2023

CTR Manipulation: 5 Expert Tools & TechniquesDepending on the industry or ad and site type, the click-through rate (CTR) can differ drastically. For example, Wordstream reports that arts and entertainment have an average CTR of 16.29%, but furni
A woman looking at an infographic of CTR effects
Business metrics

May 5, 2023

Calculating CTR For Beginners: Formulas, Guides & ExamplesClick-through rate (CTR) is an essential metric that can help businesses evaluate their advertising campaigns' performances. Depending on the industry and platform, CTR averages can vary. For example,
A man using a calculator by a laptop and documents
Business metrics

May 4, 2023

5 Expert Ways to Lower Your CPA Through Ad SpendWith global ad expenditure at $822,756 million, digital advertising is at the forefront of businesses' strategies. Specifically, cost per acquisition (CPA) can make or break your profitability. The lo
Four blocks with images of full carts on them and one block with an up-trend graph
Business metrics

May 4, 2023

AOV Beginner's Guide: What Does It Mean For Your E-commerce Business?For an e-commerce business, conversion rates and average order value (AOV) go hand in hand. While these can differ between industries and market sizes, recent statistics show that the average conversi
A woman smiling as she works on her tablet in her office, which features a laptop, stack of notebooks, whiteboard on the wall, as well as a book case containing various ring binder files.
Business metrics

May 3, 2023

Revenue vs. Product Revenue Discrepancy in GA4—Resolved Are you, like many others, having a tough time understanding the difference between "revenue" and "product revenue" in Google Analytics 4 (GA4)? It may seem like these two metrics report on the same t