Skip to main content

If you’re a Shopify merchant, there are a few important terms that you should know. Here’s a quick rundown of some of the most important ones:


This stands for “return on ad spend.” It’s a metric that tells you how much money you make for every dollar you spend on advertising. The higher your ROAS, the more efficient your ad spending is.


“Customer acquisition cost” is the amount of money you have to spend to acquire each new customer. Obviously, the lower your CAC, the better.


“Lifetime value” is the total amount of revenue that a customer will generate over their lifetime. Obviously, the higher your LTV, the more valuable each customer is to your business.


“Cost per click” is the amount you pay for each click on your ad. The lower your CPC, the more efficient your ad spending is.


“Click-through rate” is the percentage of people who see your ad and click on it. The higher your CTR, the more effective your ad is.

Conversion rate

This is the percentage of people who take the desired action after seeing your ad (e.g., make a purchase, sign up for a newsletter, etc.). Obviously, the higher your conversion rate, the better.

A Helping Hand from ShopFox

There are lots of other important terms out there for Shopify merchants, but these are some of the most important ones. Knowing and understanding these terms will help you make better decisions about your ad spending and overall marketing strategy.

Contact us today to learn more about how ShopFox can help your online store build trust and get more sales.

Proofer Proof Management – That extra pair of hands you always needed for your customised products.

FraudBlock – A Shopify Fraud Prevention App – Goodbye fraud and refund fees, hello more free time!

AutoSync for Square – Automation for your Shopify and Square inventories. Simple.