E-commerce Glossary

Net Revenue

Revenue after refunds, discounts, and returns.

Net Revenue subtracts all adjustments from gross revenue: product returns, refunds, coupons, and discounts. Formula: Net Revenue = Gross Revenue - Returns - Refunds - Discounts. If your gross revenue is $100,000 with $8,000 in returns and $2,000 in coupons, Net Revenue is $90,000. Operating on Net Revenue prevents overestimating your store's actual performance.

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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