Measure the profitability of a specific marketing channel.
For example: Let’s say you run ads on Google and you want to know the profit of each order that comes through Google.
Shipping Cost: $10
Profit Percentage: 22.53%
On average you profit $19.15 or 22.53%. By lowering your CPA, COGS or Shipping cost, you will increase your profit margin.
Or by increasing your AOV, you can increase your profit per order.
Try it for yourself!
Experiment lowering CPA, COGS or Shipping, to see how it will impact your profit margin.