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Do the metrics factor in returns, shipping and tax?

Peel factors in returns, shipping, and taxes differently in each metrics.

LTV metrics are based on net sales minus costs. They do include returns but they do not include taxes and shipping. The same goes for Net Sales.

However, in Total Sales, we sum all revenue including shipping and taxes since costs are not factored in.

Net Sales -- Equates to gross sales - discounts - returns. Net sales does not include shipping charges or taxes. It will be a positive number for a sale on the date that an order was placed, and a negative number for a return on the date that an order was refunded.

Net Sales = Sum of all Price per unit * quantity (including discounts and returns)

Total Sales = Net Sales + shipping + taxes

LTV = Sum (per cohort) of Net Sales - costs (if input under COGS)

Updated 2 months ago

Do the metrics factor in returns, shipping and tax?


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