Buying and Planning

Question 1

Sales per transaction formula

Answer 1

Net sales / number of transactions

Question 2

Average order value formula

Answer 2

total revenue / number of orders= $

Question 3

conversion rate formula

Answer 3

number of sales / number of visits x 100

Question 4

cart abandonment formula

Answer 4

number of users who don’t complete checkout / number of users who complete purchases x 100

Question 5

Return Rate Formula

Answer 5

total returns / total sales x 100

Question 6

bounce rate formula

Answer 6

number of bounces / number of sessions x 100

Question 7

what is net sales

Answer 7

total revenue from sales expenses

Question 8

what is gross sales

Answer 8

total sales before deductions

Question 9

what are four ways to set up KPI’s?

Answer 9

planning, historical data, external benchmarks, internal benchmarks

Question 10

What is cost of goods sold? (COGS)

Answer 10

how much a product or good costs to make

Question 11

Sales per employee hour formula?

Answer 11

net sales / employee work hours

Question 12

sales per square foot of gross space formula

Answer 12

sales / square foot of space

Question 13

Penetration Percent Formula

Answer 13

part/ Whole x 100

Question 14

What is sell-through percent?

Answer 14

Units sold/ units owned

Question 15

why do we need to know sales per transaction

Answer 15

-can help you understand your customers,
-improve your sales strategies,
-optimize your revenue management

Question 16

why do we need to know average order value

Answer 16

-it helps them understand their customers’ buying habits
- improve their business performance

Question 17

why do we need to know conversion rate

Answer 17

A business can use conversion rates to optimize their strategies and maximize their return on investment

Question 18

why do we need to know cart abandonment formula

Answer 18

crucial for e-commerce businesses because it allows them to measure the percentage of customers who start the checkout process but don’t complete a purchase

Question 19

why do we need to know Return Rate Formula

Answer 19

helps you understand the profitability of an investment, including its cost and risk
help you make better decisions about future investments

Question 20

why do we need to know bounce rate formula

Answer 20

helps you understand how well your website is performing and how to improve it

Question 21

why do we need to know Sales per employee hour formula?

Answer 21

it allows businesses to measure how much revenue each employee generates per hour worked, providing insight into their overall staff productivity, helping them identify areas for improvement

Question 22

why do we need to know sales per square foot of gross space formula

Answer 22

it allows retailers to measure how efficiently they are using their physical store space

Question 23

why do we need to know Penetration Percent Formula

Answer 23

it allows companies to compare where they are currently, where they have been, where they want to be, and how their competitors are performing.

Question 24

why do we need to know sell-through percent?

Answer 24

it helps merchants understand how quickly products from certain manufacturers sell