E-commerce Glossary

CPA (Cost Per Acquisition)

Advertising cost to achieve a specific conversion.

CPA measures the cost paid per desired action (purchase, signup, lead). Formula: CPA = Ad Spend / Number of Conversions. With $2,000 spent for 80 purchases, the CPA is $25. CPA differs from CAC because it can apply to any conversion, not just new customer acquisition. Optimizing CPA by channel helps allocate budget to the most efficient sources.

Related terms

AOV (Average Order Value)Average amount spent per order in your store.See definition ARPU (Average Revenue Per User)Average revenue generated per user over a given period.See definition Blended CACAverage acquisition cost including all marketing channels.See definition Blended ROASOverall return on all advertising spend combined.See definition CAC (Customer Acquisition Cost)Total cost to acquire a new customer.See definition Churn RatePercentage of customers lost over a given period.See definition

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