New Metrics to Influence What Products to Dropship

Dropshipping has been a hot topic in the e-commerce scene for a few years now. And while it’s a great way to get your business off the ground, it can be tough to know which products to dropship.

That’s where new metrics come in. By measuring and tracking these new metrics, you can make data-driven decisions about which products to dropship and increase your chances of success.

In this article, we’ll cover four new metrics that you should be measuring: Customer Lifetime Value (CLV), Cost per Acquisition (CPA), Average Order Value (AOV), and Gross Margin (GM).

Tracking lifetime value

Lifetime Value (CLV) is one of the most critical metrics in the dropshipping game. It tells you how long your customers keep coming back to you. And it’s the best way to determine which products to drop ship.

When you drop ship, you don’t have to worry about whether or not your customers will buy a product again. All you have to do is keep getting them to come back to you.

And the best way to do that is by increasing your customer lifetime value (CLV).This is done by keeping an eye on which products have the highest CLV.

Cost per Acquisition (CPA)

It’s really important to know how much you’re spending on acquiring a customer. It might sound simple, but in reality, it’s a bit more complicated.

There’s a lot of factors that can influence your CPA. This is why it’s really important to have data and analytics at your disposal. By tracking and measuring these factors, you can make more informed decisions about how to optimize your CPA. One of the best ways to gain this data is by tracking your Cost per Acquisition (CPA).

Average Order Value (AOV)

This is the average net price of the products you sell. Once you have this data, you can determine which products you want to drop ship.

The reason why this is important is because it allows you to compare the average net price of your products to other products you might be considering dropshipping.

One of the most important metrics to look at is your Average Order Value (AOV). This is the average net price of each order your customer makes.

If your average order value is low, then you’re missing out on the opportunity to make money. This is why it’s important to look at your AOV on a regular basis.

Gross Margin (GM)

Gross margin is the percentage of product price you’re making after you’ve paid for all the costs associated with producing the product. This is the profit you make on each order your customer makes. If you want to make more money, you’re going to need to look at your GM.

If you are making a loss, then your gross margin is probably the lowest in the industry.

By tracking your GM, you can see how your sales are converting into profits.

Conclusion

The key thing to remember about these new metrics is that they should not be your only metric. You should also be looking at other metrics like conversion rates, customer retention, and churn.

Once you have all this data, you can make data-driven decisions about which products to drop ship.