Ecommerce

Revenue

Also called sales.

Revenue is the sum of transaction values in the period, before or after refunds as you define it. It is money counted, not money kept.

How it is measured

Add the values of recorded transactions in the period. Then decide whether tax, shipping and payment fees are inside or outside, and which currency you report in. A single note beside the number removes most arguments.

Tarsier does not know your prices. Revenue comes from the amount you pass in event data, which you add up yourself or in a spreadsheet.

Worked example

A course creator sells 140 courses at 90 and 30 bundles at 200 in a month, so 12,600 plus 6,000 gives 18,600. Payment fees take 3 percent, and 14 percent of sales include VAT.

The accountant reports 18,600 gross and about 15,600 after tax and fees. The creator learns that the number to plan from is the second one.

How it differs

Revenue is the sum. A transaction is one order inside it. Average order value divides it by their count. A refund subtracts from it. Revenue is also not profit, which subtracts costs.

Common errors

Mixing currencies in one total. Including tax without saying so. Ignoring refunds. Counting pending orders as paid. Confusing revenue with profit.

In practice

Write beside every revenue figure whether it is gross or net, with or without tax, and in which currency.

See also

Transaction, Average order value, Return on ad spend

Sources

Count this on a real site.

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