The Revenue Equation

By Rumen Dimitrov • 1 min read

You may get money from your Shopify store every month in your bank account, but do you know what influences that number?

The basic formula for calculating your monthly revenue is this:

traffic x CR% x AOV = total revenue

To increase the total revenue you have to positively influence the variables on the left side of the equation.

Let’s look at what they are in more detail:

Are these familiar to you? These are the numbers I mentioned as important in “Know Your Numbers—Part 2”. The numbers that you should always be aware of, as they measure the pulse of your Shopify store.

Next we’ll take a look at how changing these numbers influence your revenue.

Rumen Dimitrov