E-Commerce Flashcards
Site Traffic
visitors
Conversation Rate
% who place an order
Bounce Rate
Those who leave without viewing other pages
Order
A single checkout (may be multiple items)
Churn Rate
% of customers who stop using the site
Organic Search
How many users find you on search engines
Paid Search
Paid search
Affiliates
Paid traffic from another site
Active Customers
customers who have ordered over the past 12 months
Average Order Value (AOV)
The number of items per order * price per item
Life Time Value (LTV)
Net present value of contribution margin per customer
Customer Acquisition Cost (CAC)
Cost to acquire a new customer
Total Addressable Market (TAM)
The annual value of all the goods and services in a market
Average Revenue Per User (ARPU)
Revenue / # users
Net Promoter Score (NPS)
Survey of how likely a customer is recommend
Gross Merchandise Value
The value of all goods sold on the site
Gross Profit / Margin
some companies include shipping
Sell Through Rate
the percent of inventory sold over time
EV / Active Customers
(Equity + Net Debt) / # active customers
EV / Revenue
(Equity + Net Debt) / Revenue
EV / Gross Profit
(Equity + Net Debt / Gross Profit
EV / EBIDA
…
LTV / CAC
Contribution per Cust
Churn
The number of customers who have dropped off over 12 months
