Pricing

14 terms

Average order value

The average-order-value formula, reporting scope, and limits of the metric.

The mechanics of buy-one-get-one offers, qualifying items, and reward items.

How cost of goods sold feeds gross profit and why cost scope matters.

How compare-at price works as a reference price rather than a coupon or MAP rule.

How ecommerce discounts differ from markdowns and what must be defined before launch.

How minimum-order free shipping works across eligibility, checkout, and progress messaging.

How gross margin connects net sales, cost of goods sold, and gross profit.

What the twice-cost shortcut produces in markup and margin.

How minimum advertised price differs from MSRP and the final selling price.

The margin formula, its selling-price denominator, and how it differs from markup.

How a markdown changes product price and differs from a conditional discount.

The markup formula, its cost denominator, and how it differs from margin.

How manufacturer suggested retail price differs from selling price and advertised-price rules.

The return-on-investment formula and the attribution choices needed before comparing results.