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Calculating Actual Cost in E-Commerce: Definition, Formula & Example
Profit calculationCalculating Actual Cost in E-Commerce: Definition, Formula & ExampleMany e-commerce store owners rely on trend monitoring and estimates to forecast their business costs. The unfortunate reality is that this won't give you a true indication of the actual costs involved when it comes to work that has been performed. Why? Because you need to see the bigger picture so that you don't lose out on important business insights. Actual Cost Your "Actual Cost" is the actual amount of money you spent to purchase an asset or assets. It's made up of the total of the supplier-invoiced expense, plus other direct and indirect costs. In other words, it's the cost of an asset when it's first recorded as a fixed asset on your financial statements. Some examples in the context of an e-commerce store include: The total amount you spent on the delivery.The total amount it cost to set up.The cost of testing the asset. Formula Actual Cost = (Direct Costs + Indirect Costs + Fixed Costs + Variable Costs + Sunk Costs) Components The following is an explanation of each component plus an e-commerce-related example: Direct Costs These are the costs included in directly manufacturing your product or service, or buying a wholesale product for reselling on your e-commerce store. Example: Let's say you resell shoes. The invoice you receive for the shoes you purchase from the wholesale outlet will be your direct costs. Indirect Costs Indirect costs extend beyond the expenses you incur when you "create" a product. In other words, the costs incurred for running and maintaining your e-commerce store. Example: You're still a shoe reseller. Your indirect costs would include computer technology, delivery costs, storage costs, packaging costs, etc. Fixed Costs This includes all your business expenses that don't change based on sales or no sales. They are set expenses that you have committed to. Example: As a shoe reseller, your fixed costs would be rent, Wi-Fi, security, salaries and wages, etc. Variable Costs These costs vary depending on your e-commerce store's income, i.e., the costs increase as you sell more and decrease during quiet times. Example: As a shoe reseller, you would pay more for fuel to deliver packages during high sales times. Sunk Costs These are costs you paid for and there is no potential for recovery. In other words, you've committed resources to these costs. Example: As a shoe reseller, you purchase packaging that gets damaged in transit. Since you've spent the money (or committed to honoring the invoice) and your employees are responsible for the damage, these costs would be sunk costs. Example Let's continue with the shoe reseller example. Actual Cost = Direct Costs: Your shipment of shoes that you received from your wholesaler amounted to $2,000.Indirect Costs: Your computer technology, delivery costs, storage costs, and packaging costs came to a total of $1,000.Fixed Costs: Your rent, Wi-Fi, security, and salaries and wages came to a total of $2,000.Variable Costs: Since you had a very successful Black Friday, selling out on the shoes you had on sale, your variable costs amounted to $1,000.Sunk Costs: In the mayhem of selling out your Black Friday stock, you ended up with sunk costs of $200 for packaging damaged by your employees in an unfortunate accident in your storage facility. The calculation would look as follows: Actual Cost = ($2000 + $1000 + $2000 + $1000 + $200) = $6200 As you can see, the formula is quite easy to use. The challenge lies in listing all your expenses to make sure you have included everything, then categorizing them to make sure each expense fits into the correct category for future use. Conclusion Knowing what your Actual Cost is in e-commerce will provide you with a bigger and more accurate view of your business, allowing you to conduct more in-depth analysis and take appropriate action. If you still feel like this formula and its related costs are too complex to compute, there is light at the end of the tunnel. BeProfit's profit calculator app can make calculating actual costs easy and uncomplicated by letting you customize your dashboard and tracking all the costs associated with actual cost. » Curious about BeProfit's app? Book a demo
How to View WooCommerce Sales Report by Payment Method
Business data analysisHow to View WooCommerce Sales Report by Payment Method Paying attention to your sales reports is essential to managing your WooCommerce store and gaining insights into marketing effectiveness. WooCommerce provides a built-in sales reporting dashboard for free and paid members, allowing you to view reports on orders, customers, stock, and taxes. However, there is no option to view your sales reports via payment method. The ability to view your sales report via payment method will help streamline sales and order reconciliation and give you deeper insight into which payment channels are favored. You can achieve this by adding extensive code or installing a plugin. There are various free and paid plugins that can be installed such as UserInsights and Woocommerce Advanced Reporting and Statistics. » Need more help with sales reports? Discover the best sales report plugins for WooCommerce 1. Download the Plugin Tip: You will first need to purchase the UserInsight plugin from the UserInsight website. Once you've purchased a UserInsight plan, an email will be sent to you with a link allowing you to download the plugin. This email will also include your product license key which will be used for registration later on. 2. Install and Activate the Plugin To install the plugin, navigate to your WordPress Dashboard > Plugins > Add new. From here you can browse for and upload the zip. file that you downloaded from your email. Tip: If the link in your email has expired you can find the folder in the "Account" section of your website. Remember to activate the app once installed. 3. Register With License Key Next, you'll need to register the plugin with the license key provided in the email you received after purchasing the product. Copy the key and paste it into the setting section by navigating to WordPress Dashboard > Users Insights > Settings > Users Insights License > Settings section. 4. Activate Modules and View Reports To view different reports, you will need to activate the modules you require under User Insights> Settings. Once modules have been activated, they can be viewed under the reports section. Reports can also be filtered in the top right-hand corner. Conclusion As different payment gateways have different fees, viewing sales reports via payment method will help you better understand your profit margins and build a successful sales funnel. For an in-depth look into your store's performance such as profit-related calculations and sales gate-way reports, plugins such as BeProfit offer raw data analysis and profit calculation. » Need to brush up on analytics basics? Follow this beginner's guide to WooCommerce analytics
Wix vs. Shopify for Dropshipping: Which Is Better?
BusinessWix vs. Shopify for Dropshipping: Which Is Better?The dropshipping business model is a popular strategy for small businesses. It eliminates the need to care for inventory and completely neutralizes the expenses of a brick-and-mortar store. Maintaining a physical store is expensive and time-consuming. Dropshipping eases these burdens by facilitating a competitive advantage over physical stores, primarily by minimizing upfront and ongoing costs. For instance, a third-party fulfillment company handles the ordering, shipping, and the rest—eliminating inventory and warehousing costs. The question then becomes which website builder offers the best dropshipping features. Both platforms allow e-commerce entrepreneurs to operate their online store, but when it comes to dropshipping, the two have some key differences that you'll want to consider before making your final decision. » Is dropshipping profitable? Discover dropshipping challenges and best practices Pros and Cons of Wix Pros Recently added dropshipping options Wix has recently added a ton of dropshipping functionalities to its platform. Most notably, merchants can now connect their stores to the Modalyst marketplace, where they'll access vetted suppliers and an infinite range of products. 2 business plans with built-in dropshipping Wix now offers 2 business plans that boast dropshipping integrations. Inbuilt SEO Wix's pre-configured search engine optimization capabilities are a significant advantage when it comes to SEO. Easy to use Wix is an easy-to-use platform with intuitive features and a user-friendly interface. Lots of customization Wix's website builder works from a drag-and-drop interface, offering lots of templates, themes, and visual templates to choose from. Cons Expensive to list lots of products Wix's compatible dropshipping plans can get quite expensive for larger lists of products. Modalyst fees Although Modalyst is a great dropshipping marketplace, it charges merchants a 5% transaction fee for each purchase. Pros and Cons of Shopify Pros Extensive range of e-commerce features Shopify offers a variety of features that allow you to upload your products and sell them directly to your customers. Limitless growth, flexibility, and scalability You can easily scale your operation and increase your business by adding more products, growing your customer base, and even hiring Shopify experts to help along the way. Complete control over your inventory There are no restrictions over how many products you can sell using the platform. Social media integrations You can easily reach a large customer base and increase sales by adding your products to social media like Facebook, Twitter, and Instagram. Great shipping options Shopify offers international shipping, allowing you to ship products to your customers in over 190 countries. Cons Ethically questionable Shopify has been criticized for not being as transparent as they should be on their terms and conditions. Less affordable Shopify starts at $29/month; however, the costs rise quickly after that. Limited flexibility Shopify isn't as customizable as other e-commerce CMS platforms with limited themes. » Looking for a Shopify dropshipping app? Compare the best Shopify dropshipping apps Cost of Dropshipping Depending on which dropshipping marketplace merchants connect to their Wix or Shopify store, prices will vary. For instance, Wix and Shopify are both compatible with Modalyst, Spocket, Salehoo, AliExpress, and many more. Both platforms charge additional fees for dropshipping suppliers and targeted ad expenses, which is an average monthly cost of $79. There are 2 main pricing considerations for selling products on Wix: Platform plan: $17-35/monthWebsite domain hosting: $5-20/year Dropshipping with Shopify is the same in this regard: Platform plan: $29-299/monthWebsite domain hosting: starting at $14/year The Final Verdict: Which Platform Should You Use? Dropshipping through Shopify offers merchants more options, but Wix is also a great option to use. With the choice, you should consider how complex your business is and what sort of features you need. Shopify is very flexible when it comes to dropshipping as it has a wide variety of e-commerce dropshipping-based features. While, year after year, Wix's platform is becoming more and more dropshipping friendly, adding functionalities that are sure to benefit most dropshipping entrepreneurs who would like more customization options. » Want to try dropshipping on other platforms? Here's all you need to know about dropshipping on Amazon
Email Marketing Best Practices—How to Improve Your ROI
MarketingEmail Marketing Best Practices—How to Improve Your ROIEmail marketing takes some skill – if you aren’t doing it right, you actually may be doing more harm than good. Of course, it doesn’t take a computer genius to figure out what it takes to be a successful email marketer. What’s the secret to B2C marketing? Join us as we take a deep dive into the world of email marketing best practices, just below. Not sure if your business focus should be B2C or B2B? Read our guide to the four main types of e-commerce business models. Different Types of B2C Email Marketing Campaigns The first step to developing a successful B2C email marketing campaign (EMK for short) is to decide on which type of EMK is best fit for your intended audience and specific goals. Are you looking to resolve online shopping cart abandonment? Trying to up-sell by targeting first-time customers? Are you asking for feedback from your regular customers? Maybe you just want to stay in touch with your customers so they don’t forget about you! Whatever the reason or audience is for your B2C email marketing campaign, there’s a type of EMK that will fit your needs and goals. Here are just a few examples: Newsletter A key characteristic of a successful SEO strategy is to create a blog and publish articles on a consistent basis. While the targeting of keywords will help improve your search engine rankings, that’s not the only way for you to use your unique content. Keep your customers engaged with your website by drawing them in with weekly, bi-weekly, or monthly newsletters that provide a summary of your recent blog articles. There’s really no rule or limit as to the type of newsletters you can potentially send out – find creative ways to give your readers a reason to stay tuned for the next newsletter. Ideally, a continuous interest in what you have to say will eventually turn those readers into repeat customers. Cart Abandonment The issue of online shopping cart abandonment in the e-commerce industry is one that all online sellers should pay serious attention to. Why? Because close to 90% of all online shopping orders worldwide were abandoned in March 2020, which makes it clear how important it is for online businesses to tackle this problem head-on. Cart abandonment emails might seem like a somewhat passive way of reaching out to clients, but they’re actually a remarkably effective way of bringing ‘abandoners’ back to complete their purchases. In fact, more than 40% of cart abandonment emails are opened, and more than 8% of abandoners end up making the buy. Cart abandonment might be unavoidable, but it can be addressed by using B2C email marketing. More than 40% of cart abandonment emails are opened, and more than 8% of abandoners end up making the buy. Cart abandonment might be unavoidable, but it can be addressed by using B2C email marketing. —Click to tweet Loyalty Program If publishing newsletters isn’t the way you want to go, creating a loyalty program can be an alternative way of using business email lists to keep customers coming back to your online store. This email strategy makes use of the classic principle of ‘you scratch my back and I scratch yours’. Try sending email alerts to your current regular customers giving them unique coupon codes (which will also make them feel special!). To encourage your first-time or not-so-regular customers to come back again and become regular shoppers, you can send emails informing them of your store’s loyalty program. Or, you can give them a ‘sample’ discount and tell them the discount is higher for return customers. Again, creativity is a powerful tool when it comes to B2C email marketing! Announcements Introducing a new product to your store? Bringing back a classic item that everyone loved? Launching a brand new feature to make the user experience more exciting? Whatever the announcement is, it’s almost always a good excuse to reach out to your customers and keep them in the loop. Granted, you don’t want to make a mountain out of every mole hill your business comes across – be somewhat selective. Ultimately, the goal of announcement emails is to share some energy with your customers and draw them in to take part in this “new and exciting” event taking place on your website. Your business email lists can be split up so that you can test different sorts of announcements to see which get the best engagement. Sales Make the customers on your business email lists eager for your next email by making special sales part of what they can expect to get from your online store. You can launch season-ending sales campaigns that will help you empty your inventory of items that won’t be in demand the next season. Make the most of holidays. And, of course, be prepared for Black Friday! Another way that using sales can be incorporated into your email marketing best practices is to raise your prices a bit and then offer an exclusive sale for a limited time to encourage your customers to purchase some of your more profitable items. This isn’t to ‘trick’ the customer – the products should be priced fairly so as not to be taking advantage of anybody. But there are ways to weave sales into your business’s broader emailing marketing and pricing strategies. Personalized emails Who doesn’t enjoy feeling like a VIP? Thanks to the power of technology, you can make your customers feel special with very little effort. There are plenty of apps and plugins you can add to your online store and use to pull customer data such as names, birthdates, locations, device use, and much more. With that data, you can create B2C email campaigns that have a personal touch to them. Address customers by their first name to sound more friendly. Automatically send out happy birthday promotions to put a smile on your customers’ faces. Target certain products for customers in specific geographic locations to increase sales (e.g. swimsuits for customers in Florida, winter gear for customers in the Mid-West, etc.). As with the other email marketing best practices, personalized emails depend on a fair bit of creativity to really pack a punch. Don’t be afraid to try something new. Prioritize Email Marketing for Better ROI Business email lists and B2C email campaigns aren’t the only ways to market your e-commerce business (far from it!). Other e-commerce advertising strategies include: Pay per click (PPC)Affiliate marketingSocial media marketingContent marketingEtc. So why all the fuss about email marketing? It turns out that email marketing has continued to rank as the most cost-effective form of digital marketing for quite some time, with a median ROI of roughly 122%. That’s an impressive figure, particularly when you consider the fact that no other form of digital marketing has such a high return on investment. These stats serve as a pretty clear reason for you to prioritize email marketing! Yes, a diversified marketing strategy will work best – but just make sure that you don’t underestimate the importance of keeping emails as a key component. Note: If your email marketing strategy is working well, but you need some extra cash to get started with a new e-commerce marketing strategy, consider using an e-commerce business loan to bridge the financial gap. E-commerce businesses have had a notoriously difficult time finding funding in the past, but BeProfit's online lending marketplace is changing that. Analyze Data of Email Marketing Campaigns Having tons of data about your customers and the performance of your B2C email campaigns doesn’t serve much of a purpose unless you learn how to analyze that data to come up with useful insights. What are ‘useful insights’? Any patterns that you find in the way that your customers engage with your email campaigns that can ultimately be used to improve that engagement. Okay, that’s a little vague – let’s use an example to make this point more concrete. Let’s say you’ve sent out a number of emails to your customers over the past few weeks, and you notice that the highest open rates for all emails were among customers between the ages of 25 and 35 years. You can use that insight in several ways – for one, you can create different email templates to draw more engagement from customers in older age groups in order to increase their open rates. On the other hand, you could seek out ways to further capitalize on the high email open rates you already have – perhaps by adding special offers for products more targeted at younger customers. The bottom line: If your goal is to create the best email marketing campaigns you possibly can, then analyzing data from your EMKs is an absolutely essential part of the process! Klaviyo is a great example of an Email Marketing platform that takes analytics seriously. Its proprietary data analytics software makes use of machine learning to provide statistics with accurate predictive insights; metrics include predicted date of next purchase, number of upcoming purchases, CLV calculations, average time between orders, probability of churn, and more. Responsive Email Marketing Responsive email marketing is a simple idea – your emails should include a special form of coding that will allow it to display properly across all sorts of devices. After all, nobody likes to open an email and have to play around with the zooming, or read paragraphs that are broken up into weird pieces, and so on. The visual attractiveness of an email (or lack thereof) may sound like a petty way to make a decision to give business to a company, but more than 1-in-5 people say their biggest turnoff with mobile email is when emails are poorly formatted. Combine that with the fact that more than half (60%) of all email opens are made on a mobile device or tablet, and it becomes very clear why responsive email marketing is crucial. Customer-Centric Email Marketing A customer-centric approach to email marketing is one that is characterized by a focus on the defining traits of the customer(s) and what makes them unique. From that humanistic perspective, marketing teams then try to find the best ways to engage with customers through emails based on those defining traits. For example, emails make be different for iPhone users as opposed to predominantly desktop-using customers. Or the tone or CTA in the email may differ depending on the customer’s age group. Other parts of the customer-centric approach to email marketing include: Giving customers the ability to customize the types of emails they will receiveAllowing customers to choose the frequency at which they receive emails from youProviding customers with the ability to respond to your emails with questions or commentsAnd so on The customer-centric approach is contrasted with the content-centric approach to email marketing which emphasizes a focus on the emails themselves as well as metrics such as the number of email recipients, open rates, click rates and so on. Both types of email marketing campaigns are useful in their own right, so it’s best to think critically about how each strategy matches with your audience, your business type, and your broader business goals. Email Marketing Tips In case you missed any details above, we wrap things up for you nicely with this short-and-sweet list of email marketing best practices. Scroll down and have a look! 1. Emphasize a Sense of Urgency It’s always good to keep your customers feeling that the clock is ticking and time is running short. Try encouraging them to purchase when you have limited stock, or have the sale last only for a given period of time, or even make a one-time offer such as a discount on any item in your store for example. The important thing is that your customers understand that your great deals will only be available to them for a set amount of time – and that time is running lower by the minute! 2. Try Not to Use ‘No-Reply’ in Your Business’s Outbound Email Address Don’t get confused, you can still ask your customers not to reply to those emails. The point here is that when customers see an email in their inbox, they’ll see your company name or even a representative’s name. When customers see ‘no-reply’, it can create a sense of distance and coldness as if they’re not important enough for you to hear their reply. Avoid this bad practice. 3. Keep the Typeface in Your Emails Consistent Part of establishing a brand is consistency. Sometimes, a company’s font can become so iconic that the script can say something different but the shape of the letters will still remind customers of the company. Think about companies like Disney, Netflix, Adidas, Facebook, and so on. The same concept can and should be applied to your B2C email campaigns – choose a font that fits your liking and stick to it. Try not to stray too far from the base font by messing around with italics, boldness, or size too much. 4. Finish Your Emails With a Signature Even for the most popular, big-name, recognizable companies, signing an email is a standard procedure. It could be signed by a representative’s name or even just your company name and the word ‘team’ (for example here we sign some of our emails as ‘Team BeProfit’). Including some sort of signature is better than nothing at all – receiving an email from an unspecified person or group may raise some suspicions for online shoppers and cause them to avoid doing business with your online store. 5. Run a Quick Test Before Sending Emails Out Don’t get caught in a sticky situation as a result of laziness. It takes a simple matter of minutes to forward a copy of your proposed email marketing campaign to a friend or business associate for review prior to distributing to real customers. Check that your friend or coworker can quickly identify the call to action in the email. If they can, then you’re in good shape. If not, keep making adjustments until you get where you need to be. You’ve Got Mail Or at least your customers do! Email may be one of the oldest forms of online communication, but that hasn’t made it any less effective as a form of marketing. It’s never too late – get started with email marketing best practices today and use the information above to keep your B2C email campaigns on the right track. Disclaimer: The information contained in this article is provided for informational purposes only, should not be construed as legal advice on any subject matter and should not be relied upon as such. The author accepts no responsibility for any consequences whatsoever arising from the use of such information.
How to Calculate Revenue in Excel (Simple Formulas + Templates)
Profit calculationHow to Calculate Revenue in Excel (Simple Formulas + Templates)Every seasoned business owner knows the value of calculating revenue. They understand that it helps you calculate your profit, perform financial analysis, and do forecasting. This article aims to equip you with easy-to-follow formulas and templates that you can use to calculate your revenue if your business is showing solid growth. » Want to know how profitable your store is? Learn how to perform an e-commerce profitability analysis Incremental Revenue Incremental revenue is the profit a business receives from a certain increase in sales. This can refer to the additional revenue received from releasing a new product or service, or trying new marketing strategies. Therefore, the original revenue that would have been generated before the additional product or service was introduced in that time period must be subtracted from the adjusted revenue that includes the new product or service. Formula A formula can therefore be constructed as follows: Adjusted revenue (number of units sold x selling price) - Original revenue (number of units sold x selling price) In Excel, the calculation can be set up as follows: Original Revenue and Adjusted Revenue are listed separately.Incremental Revenue is calculated by subtracting the totals (=D3-D2). Average Revenue Average revenue is the revenue earned for each unit, product, or service that you're selling. People also refer to it as Average Revenue Per Unit or Per User (ARPU). Formula Average revenue is calculated by dividing the total revenue by the quantity sold: AR=TR / Q Average Revenue = Total Revenue / Quantity So, if the total revenue of a company is $5 000 and the quantity sold is 1 000, then the average revenue per unit is $5 000 ÷ 1 000 = $5. In Excel, the calculation can be set up as follows: Gross Revenue Your gross revenue is the total amount of money made by your company before expenses are deducted. This includes the sale of shares, property, and equipment as well as interest and exchange rates. Knowing your gross revenue will help you analyze your financial statements, track your sales volumes, and identify high-impact revenue channels, all to understand how well your business is doing. Formula You can calculate your gross revenue in two ways: Product revenue = the number of units sold x average priceService revenue = the number of customers x average price of service In Excel, the calculation can be set up as follows: Products and services are listed separately.Quantities sold, prices, and any discounts provided are used to calculate the final total selling price of each product and service.Total Revenue is calculated by adding the final totals of products and services (E6 + E10) Quarterly Revenue Quarterly revenue measures the increase in your sales from one quarter to the next. You would use it to review the sales of successive quarterly periods or compare the sales of the same quarter in different years. It's important to note that quarterly revenue can be influenced by seasonal sales. For example, if the Olympics is hosted in a certain country, it may skew quarterly results and give you an inaccurate view of your company's quarterly revenue. Formula You can calculate quarterly revenue growth as follows: Q2 - Q1 / Q1 x 100 In Excel, the calculation can be set up as follows: Q1 and Q2 sales are listed separately.The formula is applied at the bottom before it's converted to a percentage. Marginal Revenue Marginal revenue is the increase in revenue that you get from the sale of each extra unit of output. While marginal revenue can stay constant over a certain level of output, it follows the law of diminishing returns and will eventually slow down as your output level increases. As a business owner, you can use historical marginal revenue data to analyze your customer demand for your products as well as determine your most efficient and effective prices. Finally, this calculation helps you to understand your forecasts because it determines future production planning and schedules. Formula This is the formula you can use to calculate your marginal revenue: Change in Revenue / Change in Quantity (Total Revenue - Old Revenue) / (Total Quantity - Old Quantity) ​ Let's look at a quick example: Your company sells its first 100 products for $1 000. You sell the next products for $8. This means that your marginal revenue for product number 101 is $8. It's important to note that marginal revenue disregards the previous average price of $10. This is because it only analyzes incremental change. If you sell 115 units for $1 100, your marginal revenue for products 101 through to 115 is $100, or $6.67 per unit. In Excel, the calculation can be set up as follows: Conclusion There are profit calculation mistakes to avoid if you're going to use the formulas and spreadsheets provided in this article. If you're not confident to do these calculations by yourself, BeProfit offers an accurate and easy-to-use tool that will remove all the stress and strain from trying to do it yourself. Why not give it a try?
Calculate Your Amazon ROAS With This Simple Formula
Profit calculationCalculate Your Amazon ROAS With This Simple FormulaAre you keeping track of your Return on Ad Spend (ROAS)? If your answer is "no", you may be one of many business owners who find working with formulas daunting and complicated—in the end, making a loss without even knowing about it. A good e-commerce ROAS is critical to the success of your business, because it ensures your advertising efforts and the consequent results are not mismatched. In this short article, we'll take you through the formula, with an accompanying example, so that you can start evaluating the success of your advertising campaigns. » Looking for new advertising strategies? Follow these steps to profitable Amazon product bundling Formula By following this straightforward formula, you'll easily be able to calculate your business's ROAS: ROAS = Revenue from Ad Spend / Cost of Ad Spend Revenue from Ad Spend—The amount of money you made (revenue) from an advertising campaign.Cost of Ad Spend—The total cost of the advertising campaign. Example Let's say you have an e-commerce sneaker store, and you've just launched a new brand of sneakers. You spent $2,000 on your launch advertising campaign and it resulted in $6,000 in revenue. Your ROAS would be calculated as follows: ROAS = $6,000 / $2,000 = 3x ROAS can also be referred to as $3 or 300%. It represents a 3:1 ratio which means that for every dollar you allocated to your advertising campaign, you generated $3 in revenue. » Curious about other Amazon metrics? Use these steps to check Amazon sales data In Closing... In general, an Amazon ROAS of 3 or more is seen as good. However, this is simply a benchmark and depends on other factors too, like your industry and profit margin. If you have a higher profit margin, then you can operate with a lower ROAS. Similarly, a small profit margin needs a higher ROAS, so you keep advertising costs down. The good news is that there are many techniques for optimizing your ROAS. With the BeProfit solution, you'll be able to streamline your tracking analysis process to get to the root of what is working for your business and what is not. These key insights will help you develop more effective advertising campaigns over time, and as a result, boost sales and revenue. » Want to explore BeProfit's features? Schedule a demo
Revenue vs. Product Revenue Discrepancy in GA4—Resolved
Business metricsRevenue 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 thing—but they don't. In fact, these two metrics, used in tandem, will give you a deeper and clearer understanding of the financial health of your business. » Need more insight into generating revenue? Learn how to perfect your sales funnel with GA4 Revenue in Google Analytics Revenue is the aggregated metric from your web e-commerce or in-app stores. This is the value that's used most frequently in reporting, because it aims to give you an overall picture. Revenue represents the value of an entire purchase or cart. Therefore, it can include tax and shipping costs as well as discounts, because these values are applied to the entire purchase and not individually to each item. Let's look at an example. Let's say a customer buys a T-shirt from Joe's Tees (an online e-commerce store). Here is an example of the code that's generated for the revenue metric. Take special note of the bold, underlined coding: ga('ecommerce:addTransaction', { 'id': '5678', // Transaction ID. Required. 'affiliation': 'Joes Tees', // Affiliation or store name. 'revenue': '5.99', // Grand Total. 'shipping': '1', // Shipping. 'tax': '0.50' // Tax. }); This code highlights the grand total, and includes shipping and tax in the final revenue report. Product Revenue in Google Analytics Product revenue focuses on the value that individual products contribute to the total revenue. It looks at each product's value and quantity in the cart separately. Therefore, you may have situations where the values of revenue and product revenue don't correspond, even though you're analyzing the same products in the same cart. Here's another example so that you can compare the coding. Sticking with Joe's Tees, have a look at the bold, underlined section: ga('ecommerce:addItem', { 'id': '1234', // Transaction ID. Required. 'name': 'Black Rambo T-shirt', // Product name. Required. 'sku': 'AA12345', // SKU/code. 'category': 'Rambo Range T-shirts', // Category or variation. 'price': '5.99', // Unit price. 'quantity': '1' // Quantity. }); The value of the revenue is $7.49, while the product revenue is $5.99 because revenue also calculates tax and shipping. » Worried about product performance? Use these tricks to analyze your products with GA4 Final Takeaway So, revenue will provide you with a baseline of your overall performance, while product revenue will show you the weight of each individual product's contribution. This is good for determining which products are your bestsellers and which need a marketing boost or should just be discontinued. If you're still struggling to understand the difference between these metrics, you can call on BeProfit. Their solution will demystify all the GA4 discrepancies. The bottom line is that the success of your business depends on accurately understanding the metrics and data you can extract from GA4. » Want to see what BeProfit has to offer? Schedule a demo
5 Quick Steps to Check Amazon Sales Data (+ Helpful Shortcuts)
Business metrics5 Quick Steps to Check Amazon Sales Data (+ Helpful Shortcuts)If you're new to Amazon, you may not know that the platform provides comprehensive data reports to all its sellers. This data can unlock important insights into your sales, prices, and rank, which can help you make predictions about a product's future performance. Using these five easy steps, you will tap into a gold mine of information that you can use to increase sales and send your business soaring. » Need extra help boosting your Amazon sales? Learn how to use Google Analytics to track and boost Amazon sales 1. Log In to Your Amazon Seller Central Account Firstly, you need to log into your Amazon Seller Central Account. You'll need to complete the fields by entering your email address and your password. Once you're in, click on the Sales Summary tab, followed by the View more of your sales statistics tab. 2. Review the Sales Dashboard Now, the sales dashboard may seem overwhelming and difficult to understand at first. But don't get spooked! Just keep reading and we'll take you through all the important features. Once you're in the dashboard, you'll see three main sections: Sales Snapshot The Sales Snapshot gives you a handy summary of: Your total orders for the dayHow many units you've sold The sales revenue you’ve generated for the day 'Compare Sales' Graph Just below the Sales Snapshot, you'll see a Compare Sales Graph. This feature allows you to compare sales from different days. Handy tip: You can remove one or more of the comparison graph lines by unchecking the box next to that sales day. That way, you'll only see the statistics you want to see. Menu Bar You'll find the menu bar on the left-hand side of the dashboard. The Business Reports tab is where you'll get all your sales statistics. 3. Select the Method of Organization You can access different types of sales data and reports using the method of organization. It all depends on your choice of categorization and report type. You can arrange your statistics in three ways: By Date: there are three report options that offer various statistics that have been arranged into columns. By ASIN: this is the Amazon Standard Identification Number (ASIN)—a 10-character alphanumeric unique identifier assigned by Amazon.com and its partners within Amazon.Other: this includes "sales and orders by month", "listings with missing information", and "inventory in stock". 4. Select the Type of Report The method of organization you choose will give you access to a different set of sales and business reports. Some of the more useful reports include: Page views: the number of visits to your e-commerce store.Sessions: the number of unique customer views on your site.Units ordered: the total amount of units ordered for the specified period.Total sales: the total amount of sales made for a specified period.Order session percentage: a percentage of the number of orders over the number of sessions.Buy Box percentage: the recurrence of your products appearing in your customer’s Buy Box as a percentage. Handy tip: You can customize these reports by adding or removing data or changing the data range on the graphs. You can also change data so that it reflects as columns by clicking on Columns Customization. 5. Download Your Sales Report Once you're ready to download a report, follow these steps: Step 1: On your dashboard, click on Reports. Step 2: Select Business Reports. Step 3: Choose your date period: day, week, or month.Step 4: You will see a download link: choose either a TSV or XML format. Step 5: If you choose TSV, once downloaded it will open in Microsoft Notepad. Select all the information, then copy and paste it into a new Excel file. Handy tip: You can integrate the data from the reports with other reports which will help you with forecasting and strategic planning. » Worried about your Amazon sales? Find out how to promote your Amazon products for better sales Seller Central Shortcuts For ease of reference, here are some quick shortcuts to help you navigate to these important metrics and reports in seconds flat: Items Sold: Reports > Business Reports > Detail Page Sales and Traffic By Child ItemSales History: Reports > Business Reports > Sales Dashboard. Change the date range to custom and select your business start date.Sales Volume: Reports > Business Reports > Sales and Orders by Month.Seller Performance: Reports > Business Reports > Seller Performance Final Words... Now that you've successfully navigated through the steps to access your sales data, you're ready for the next crucial step in the process: calculating your profit. The good news is that BeProfit has a nifty profit calculation app that makes tracking profits and calculations on Amazon FBA a walk in the park. This app will give you detailed analyses using all your own raw data. It's exactly what you need to take your business to the next level! » Curious about BeProfit? Schedule a demo
TikTok vs. Facebook Ads for e-Commerce (2023): Which is Best?
MarketingTikTok vs. Facebook Ads for e-Commerce (2023): Which is Best?You may be wondering: is it worth it to invest in TikTok ads as part of e-commerce marketing in the upcoming year? Or maybe you were thinking of running some Facebook ads to get more customers to visit your e-commerce store. Marketing is more than just running ads—your business and products will perform much better when viewed by an audience on a channel aligned with your brand's values and offerings. » New to e-commerce ads? Browse this ultimate guide to effective e-commerce ads Comparing Key Metrics The first thing a marketer needs to know about a marketing channel is the performance metrics listed below. This will give them the information they need to determine whether it's the right choice. » What are the most important metrics for TikTok ads? Discover which TikTok metrics e-commerce sellers should keep an eye on CPM CPM (cost per mille) is the cost charged by the channel per 1,000 ad impressions. TikTok ads were inexpensive at launch in 2019 with a CPM of $1, but that number has since climbed to an average CPM of $10. Facebook's CPM depends on your audience and advertisement settings, ranging between $7 and $20 in the past year. CPC Every time someone clicks on your TikTok ad, you'll pay an average of $1 cost per click (CPC) depending on the ad format used. Facebook ads are generally less expensive, costing between $0.60 to $1.50 per click. Average ROAS The average return on advertisement spend (ROAS) on TikTok is usually around $1.20 to $3 per $1 spent, with ROAS increasing as more ads and formats are used. Facebook ads aren't as lucrative as other platforms, bringing only an average of $2 ROAS (often under $1 for B2C e-commerce ads). Average CTR CTR (click-through rate) is the ratio of impressions to clicks. Because TikTok is more exclusive with less advertisement saturation, its CTR is 1% to 5% for in-feed ads, 7% to 10% for brand take-over ads, and 16% for top-view ads. Facebook CTR sits at 0.5% to 1.6% depending on your industry, with most e-commerce campaigns around 1% CTR. Average Conversion Rate Average Conversion Rate (ACR) is the king of ad metrics, comparing clicks to conversions. It's difficult to find reliable data on TikTok ads' ACR, but you can expect an ACR of 1.5% to 3%. Facebook ad ACR ranges widely from 2% to 15%, with an average of 4% for e-commerce ads. Facebook Ads Considerations Benefits Detailed targeting Facebook has built up an advanced advertising algorithm that can target the exact market you want at the click of a button. Post-campaign, Facebook will suggest more demographics to help you hone your Facebook ads strategies as an e-commerce store.Large user base With over nearly 3 billion monthly active users (MAU), Facebook can expose your e-commerce business to more potential customers than any other social media platform. Parent company Meta also owns Instagram, giving you easy cross-advertising capabilities to another 2 billion MAU platform.Built-in A/B testing Within the Meta Ads Manager and without any extra tools, you can perform A/B testing to see what works and get instant, real-world results.Exceptional tracking and analytics tools Facebook gives you some of the most powerful tracking and analytics tools available backed by decades of experience. » Should you use Facebook's campaign budget optimization? Learn how your campaigns can benefit from CBO Drawbacks Time-consuming at the beginning Facebook is notoriously difficult for new marketers to learn. It also requires a lot of manual work to get your ad campaigns going at the start.Not preferred by many marketing agencies While they definitely won't ignore the platform because of its vast user base, many agencies prefer working on other platforms with more intuitive advertising dashboards and different audiences. » How do ads on other platforms compare? Discover if Pinterest vs Facebook ads are better TikTok Ads Considerations Benefits Largely untapped audience Countries where Facebook and Instagram have typically been less popular are often a breeding ground for TikTok users, giving advertisers access to an untapped audience.Younger and more receptive audience TikTok is immensely popular among younger generations. If an online business can create ads that are relatable and engaging to this young audience, it will find them more receptive and responsive than older audiences.Influencer marketing opportunities Like Instagram, TikTok lets you work with influencers to engage their audience directly. » How do you compile an influencer marketing strategy? Consider these expert tips for your e-commerce store Drawbacks Lacking guides and info Because TikTok is a relatively new platform, there isn't much information available online to help you get started or if you get stuck. Limited formats In-feed ads, brand take-over ads, top views, spark ads, and hashtag challenges are the only ad formats available on TikTok. Other platforms like Facebook offer a wider variety of ad formats and media types.Basic analytics Because its ad platform is still relatively new and growing, TikTok doesn't provide as powerful analytical insights as Facebook does. » Struggling to create the perfect TikTok ads? Follow this guide to TikTok ads for online store owners The Verdict When advertising e-commerce products, you will need to consider the pros and cons of all available options given your business objectives to decide what is the best for you. If you need help making data-driven decisions to better optimize your marketing strategies, take a look at BeProfit, the most accurate profit calculator and data analytics dashboard for e-commerce businesses, and start reaping the benefits of online marketing. » Interested in BeProfit's offering? Schedule a demo