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Average Order Composition

How do I read the Average Order Composition Dashboard and what insights can I gain from it.

Valentine Strunz-Happe avatar
Written by Valentine Strunz-Happe
Updated over a year ago

tl;dr

The Average Order Composition Dashboard allows you to:

  • Understand you margin structure broken down to a per order level.

  • Slice and dice your orders across different dimensions like customer type and shipping country.

  • Understand what kind of products are contributing to your profitability across dimensions

What can I use this for:

The best operators always exactly know their margin structure.

Our profitability report already does a great job to help you understand this, but looking at totals can be a bit abstract. Plus, you want to be able to understand you margin structure across different dimension, as small changes can have a big impact.

It's all about the detail.

Our Average Order Composition is built for that. Understanding you margin structure per order in detail and across different dimension.

Dimension Breakdown:

Instead of just looking at single average P&L, you can break it out into different dimension:

  • Customer Type - New vs Repeat Customers

  • Channel Name, Group or Category - last-click marketing channel of the order.

  • Shipping Country - where was the order shipped to.

Understanding differences across customer type, channel and country allows you to better understand where you generate a profit and therefore educate where you want to investment more resources.

Eg. Fulfilment cost and taxes are likely going to differ from one country to another. Small changes can have a big impact here.

Product Type

Each KPI can be broken down by product dimension by clicking the toggle next to it. That will reveal a sub-table with the product that are contributing to the total allowing you do understand differences in product mix across different breakout dimensions.

You can select between:

  • Product Type

  • Product Title

  • Units per Order - Avg number of units per order before returns

  • Avg GMV per Unit - The average price, before discount and vouchers, of a unit within an order.

  • Avg GMV per Order - Units per Order x Avg GMV per Unit

  • Discount Value - The total value of discounts (not vouchers) of all product sold.

  • Voucher Value - The total price reduction through voucher code and cart rules.

  • Shipping Revenue - The revenue made from shipping charges excl. discount.

  • % of Order with Delivery Fee - The percentage of orders in which the customer had to pay for delivery

  • Gross AOV - Revenue after discounts but before taxes and refunds

  • Return Value - The Net Revenue of all items that were refunded.

  • Taxes - The VAT you need to pay.

  • Net AOV - Revenue excluding discounts, returns and taxes

  • Cost of Goods Sold - The landed product costs of all items sold.

  • Contribution Margin 1 - Net Revenue - COGS

  • CM1 as a % of Net Revenue - Contribution Margin 1 / Net AOV

  • Logistics Costs - Costs for Shipping, Picking, Returns etc. of sold items.

  • Transaction Costs - Costs incurred from Payment Providers

  • Contribution Margin 2 - Net Revenue - COGS - Logistic Costs - Transaction Costs

  • CM2 as a % of Net Revenue - Contribution Margin 2 / Net AOV

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