Which metrics factor in Returns, Shipping and Taxes?
Peel factors in returns, shipping, and taxes differently for each metric based on what data we are able to collect from Shopify or Amazon.
LTV metrics are based on Net Sales minus Costs. This metric does include Returns but it does not include Taxes or Shipping.
However with Total Sales, we sum all Revenue information we can collect which includes Shipping and Taxes but Costs are not factored in.
Net Sales equates to Gross Sales - Discounts - Returns. Net sales do not include Shipping charges or Taxes. It will be a positive number for a sale on the date that an order was placed and a negative number for a return on the date that an order was refunded.
Net Sales = Sum of all Price per unit * quantity (including discounts and returns)
Total Sales = Net Sales + shipping + taxes
LTV = Sum (per cohort) of Net Sales - costs (input COGS required*)
Updated 10 months ago