Ad Sales Attribution: by default, ad sales are attributed up to 7 days after clicking on an ad. This is in line with the Seller Central definition
Breakeven ACoS: This is the maximum ACoS one can afford in order to breakeven on the first order by a customer and therefore provides a solid line between a profitable advertising campaign and a loss-making advertising campaign.
If your campaign ACoS is lower than the breakeven ACoS, your ad strategy is profitable, if it isn’t, you need to reassess.
It's calculated as follows:
(Average selling price of an ASIN - COGS - all Amazon fees such as referral fees, FBA, etc.) / selling price of an ASIN
When calculating the breakeven ACoS for a longer time period, say 6 months, this will be the 6 month customer lifetime value / average price per unit sold over 6 months.
CAC (customer acquisition cost): the average advertising cost to acquire a new to brand customer for a given period.
It's calculated as:
Total ad spend per ASIN / # new to brand customers acquired for a given period.
Where total ad spend = sponsored products + sponsored brands + sponsored brands video + sponsored display
CLV (customer lifetime value): CLV is the accumulated pre-advertising profit per customer over a customer's entire relationship with a Seller.
For each order a customer places, we add up the profit (i.e. we subtract out the COGS) for each ASIN ordered and accumulate it over the entire time that customer is a customer. It includes all ASINs bought (i.e. it does not have to be the same ASIN bought again) and if a customer purchases two ASINs in the same order, both are taken into account.
A CLV is typically used to answer a fundamental question of how much you can afford to spend to acquire a new-to-brand customer and is used in conjunction with the customer acquisition cost metric to compare whether you're profitable.
COGS (cost of goods sold): The costs of manufacturing the ASIN, getting it to a warehouse and all Amazon related fees (referral fees, FBA, etc.) on a per unit basis.
New-to-brand (NTB) customer: A NTB is a customer who placed an order from you from you for the very first in the last 24 months. The NTB numbers are aggregated and are therefore not broken out into those customers acquired via advertising vs organic.
Repeat purchase rate ("R"): This is the number of customers who bought at least twice in a given time period.
Subscribe and Save (SnS) customer: A customer who placed at least one SnS order from a brand. Note that they could have placed a SNS order before and/or after the SnS order too.
TACoS (total ACoS): ad spend / total sales
Total sales: all sales from both ad and organic. This includes all shipped orders, including those that have transformed from "pending" to "shipped". Total sales are adjusted to reflect the local timezone of the customer. Whilst sales are updated daily within Nozzle, Amazon may re-state the sales numbers up to 72 hours after the order occurred.