Data Snacks Video — Cost Per Order (CPO)

Jeremy dives into another essential eCommerce KPI — Cost Per Order (CPO). In this short video, learn what it is, why it matters, and how to track it correctly.

What is Cost Per Order in eCommerce?

Cost per order is the total marketing dollars needed to drive any purchase to your store. Therefore, it includes both new and returning customers. Cost per order is sometimes confused with cost per acquisition, which you can learn about here.

How do you calculate cost per order?

To calculate cost per order, you divide your brand's variable marketing cost by the number of orders.

cost per order formula: to calculate cost per order, divide variable marketing cost (over a time period) by number of orders (over the same period)
When calculating cost per order, and other metrics (such as cost per acquisition), it is crucial to use data from one time period.

Tracking Cost Per Order over Time

It's vital to check your brand's cost per order at the same time every week. Because so many factors influence your cost per order, checking at the same time will allow you to pick up on patterns around when changes occur and the metric increases or decreases.

For even more information about cost per order (and related metrics), head over here.