This article explains how common pricing, profitability, and sales performance metrics are calculated in PriceShape

Gross Profit shows the amount remaining from the sales price after deducting the cost price.

Formula:

Sales price excl. VAT − Cost price excl. VAT

Gross Margin shows your gross profit as a percentage of the sales price.

Formula:

((Sales price excl. VAT − Cost price excl. VAT) / Sales price excl. VAT) × 100

Average Price shows the average price across the vendors available for a product.

Formula:

Sum of vendor prices / Number of vendors

Revenue is the total value of products sold during a given period.

Formula:

Price × Items sold

Revenue can be calculated including or excluding VAT, depending on the price value used.

Days on Hand estimates how many days your current inventory will last based on the average sales rate from the selected period.

This can help you understand how long you can continue selling at the current pace before the product is expected to run out of stock.

Formula:

Stock quantity / Average items sold during the period

Conversion Rate shows the percentage of product page views that resulted in a unique sale.

Formula:

(Unique sales / Page views) × 100

The Average Conversion Rate for a selected period is calculated using the total number of unique sales and page views during that period.

Formula:

(Sum of unique sales / Sum of page views) × 100

Cart Conversion Rate shows the percentage of customers who added a product to their cart and then completed a purchase.

Formula:

(Unique sales / Items added to cart) × 100