E-commerce Glossary

Net Margin

Percentage of final profit after all expenses.

Net margin is the percentage of revenue that remains as profit after all expenses (COGS, marketing, salaries, rent, taxes). Formula: Net Margin = Net Profit / Revenue x 100. A 10% net margin on $500,000 in revenue represents $50,000 in profit. In e-commerce, net margins typically range from 5% to 20%. It's the ultimate indicator of your business's financial health.

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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