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.
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.