Topic guide
Pricing
Every glossary term attached to Pricing, with the one-line answer for each.
Average order valueLearn the AOV formula, see a worked calculation, and understand why revenue scope makes two tools report different results.BOGOThe mechanics of buy-one-get-one offers, qualifying items, and reward items.Cost of goods soldHow cost of goods sold feeds gross profit and why cost scope matters.Compare-at priceLearn how compare-at price drives Shopify sale display, why the reference must be genuine, and how it differs from MSRP and MAP.DiscountHow ecommerce discounts differ from markdowns and what must be defined before launch.Free shipping thresholdLearn how a free shipping threshold trades delivery cost against checkout friction, how to choose an amount, and how it compares with always-free or paid shipping.Gross marginHow gross margin connects net sales, cost of goods sold, and gross profit.Keystone pricingWhat the twice-cost shortcut produces in markup and margin.Minimum advertised priceHow minimum advertised price differs from MSRP and the final selling price.MarginThe margin formula, its selling-price denominator, and how it differs from markup.MarkdownHow a markdown changes product price and differs from a conditional discount.MarkupThe markup formula, its cost denominator, and how it differs from margin.MSRPHow manufacturer suggested retail price differs from selling price and advertised-price rules.ROIThe return-on-investment formula and the attribution choices needed before comparing results.
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