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Definition and Formula

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0% found this document useful (0 votes)
6 views3 pages

Definition and Formula

Uploaded by

yashpathakapp1
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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09/10/2024, 23:33 ChatGPT

ChatGPT
chatgpt.com

1. On-shelf Availability (OSA)


Definition: OSA refers to the percentage of items that are available on the shelf compared to the total
number of items that should be available. It reflects how well a retailer manages inventory.

Formula:
Number of Items on Shelf
OSA = ( ) × 100OSA=(Total Number of Items ExpectedNumber of Items on Shelf​
Total Number of Items Expected
)×100

2. Dormancy (Merchandise Ageing)

Definition: Dormancy in retail refers to the length of time a product remains unsold on the shelf. It
indicates how long inventory has been inactive, which can affect stock turnover and freshness.

Formula:
Dormancy = Current Date − Date of Last SaleDormancy=Current Date−Date of Last Sale

3. Comparable Store Sales

Definition: This metric compares the sales of stores that have been open for a specific period (usually a
year or more) to the previous period, providing insight into performance without the impact of new store
openings.

Formula:
Sales of Comparable Stores this Year−Sales of Comparable Stores Last Year
Comparable Store Sales Growth = ( ) × 100
Sales of Comparable Stores Last Year
Comparable Store Sales Growth=
(Sales of Comparable Stores Last YearSales of Comparable Stores this Year−Sales of Comparable Stores Last Year
)×100

4. Shelf Space Share


Definition: Shelf Space Share indicates the proportion of shelf space occupied by a particular product or
brand relative to total shelf space. It reflects the product’s visibility and potential sales.

Formula:
Shelf Space for Product
Shelf Space Share = ( ) × 100Shelf Space Share=
Total Shelf Space
(Total Shelf SpaceShelf Space for Product​)×100

5. Occupancy Rate per Store Section

Definition: This measures the percentage of available space in a particular section of a store that is
occupied by products. It helps assess the effectiveness of space utilization.

Formula:
Occupied Space
Occupancy Rate = ( ) × 100Occupancy Rate=(Total Available SpaceOccupied Space​
Total Available Space
)×100

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09/10/2024, 23:33 ChatGPT

6. Backorder Rate
Definition: The backorder rate measures the percentage of orders that cannot be filled at the time of
purchase and are instead placed on backorder.

Formula:
Number of Backorders
Backorder Rate = ( ) × 100Backorder Rate=(Total OrdersNumber of Backorders​)×100
Total Orders

7. Order Status
Definition: Order status refers to the current stage of an order in the fulfillment process, such as
pending, shipped, delivered, or canceled. It helps in tracking and managing customer orders.

8. Perfect Order Rate

Definition: This metric evaluates the percentage of orders that are delivered without any issues (on time,
complete, and undamaged).

Formula:
Number of Perfect Orders
Perfect Order Rate = ( ) × 100Perfect Order Rate=
Total Orders
(Total OrdersNumber of Perfect Orders​)×100

9. Product Detail Views

Definition: This metric counts the number of times product detail pages are viewed by customers,
indicating interest and potential for conversion.

10. Basket to Detail Rate (Cart to Detail Rate) and Buy-to-Detail Rate
Definitions:

Basket to Detail Rate: The percentage of users who add a product to their cart after viewing its
detail page.
Buy-to-Detail Rate: The percentage of users who purchase a product after viewing its detail page.

Formulas:

Basket to Detail Rate:


Add to Cart Actions
Basket to Detail Rate = ( ) × 100Basket to Detail Rate=
Product Detail Views
(Product Detail ViewsAdd to Cart Actions​)×100

Buy-to-Detail Rate:
Purchases
Buy-to-Detail Rate = ( ) × 100Buy-to-Detail Rate=(Product Detail ViewsPurchases​
Product Detail Views
)×100

11. Cart Abandonment Rate


Definition: This metric represents the percentage of shopping carts that are created but not completed
with a purchase.

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09/10/2024, 23:33 ChatGPT

Formula:
Carts Created−Completed Purchases
Cart Abandonment Rate = ( ) × 100Cart Abandonment Rate=
Carts Created
(Carts CreatedCarts Created−Completed Purchases​)×100

12. Product List Performance Report

Definition: A report that evaluates how well a list of products (e.g., in a category or collection) is
performing in terms of views, clicks, and conversions.

13. Click-Through Rate (CTR)


Definition: CTR measures the percentage of users who click on a specific link out of the total users who
view a page, email, or advertisement.

Formula:
Number of Clicks
CTR = ( ) × 100CTR=(Number of ImpressionsNumber of Clicks​)×100
Number of Impressions

14. Customer Retention and Positive Reviews


Definitions:

Customer Retention: The percentage of customers who continue to do business with a company
over a given period.
Positive Reviews: Reviews that reflect a favorable opinion about a product or service, contributing
to customer trust and brand reputation.

Formula for Customer Retention Rate:


Customers at End of Period−New Customers
Customer Retention Rate = ( ) × 100Customer Retention Rate=
Customers at Start of Period
(Customers at Start of PeriodCustomers at End of Period−New Customers​)×100

15. Shopper Dwell Time

Definition: Shopper dwell time is the amount of time a customer spends in a store or on a specific
product page, indicating engagement and interest.

These definitions and formulas should provide a comprehensive understanding of each term related to
retail and e-commerce metrics!

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