Define your numbers, keep the comparison consistent and turn a weekly review into one practical next step.
Agree the definitions before the targets
A key performance indicator, or KPI, is a measure you use to judge progress toward a specific goal. Before setting a target, record the location, sales channel, date range, timezone and source report. Keep those choices consistent when comparing periods. These examples are illustrative calculations, not recommended targets or a promise that every report is available in Taply.
The conventions below use merchandise sales excluding tax, shipping, tips and gift-card issuance. Net merchandise sales means gross merchandise sales less discounts and the merchandise value of returns. Identify how your source assigns returns to periods, and whether cancelled or test transactions are excluded. If a denominator is zero, label the result unavailable rather than reporting zero performance.
Net merchandise sales
For this worksheet: net merchandise sales = gross merchandise sales - discounts - merchandise returns. If gross sales are $12,000, discounts are $400 and returns are $600, net merchandise sales are $11,000. Use the same inclusions in each period.
Compare the result with a relevant previous period, then separate changes in transaction count from changes in basket size. Record events such as closures, promotions or additional opening hours. Sales are not the same as bank deposits or profit, so keep those reviews separate.
Average transaction value and units per transaction
For a consistent checkout view, use completed purchase transactions in the period, excluding return-only events. Average transaction value = their merchandise value after discounts, before returns and tax, divided by their count. For example, $9,600 across 240 purchases gives $40 per purchase. This convention deliberately differs from net sales divided by transactions; label it clearly in your report.
Units per transaction = merchandise units sold in those same purchases divided by the same count. If 600 units were sold in 240 purchases, the result is 2.5 units. Define whether a multipack counts as one selling unit. Review basket value and units together: a higher average price and more items are different explanations for growth.
Merchandise return value rate
For a period-based operational signal, divide merchandise return value recorded in the period by merchandise sales after discounts and before returns recorded in the same period, then multiply by 100. Returns of $480 against $9,600 give 5%. Some returns may relate to earlier purchases, so this is not the percentage of this period's purchases that came back.
For a purchase-cohort return rate, follow the same original purchases through an agreed return window instead. Keep the two approaches separate. Review reason codes, product families and fit or description issues before deciding on an action.
Sell-through and weeks of stock cover
For a simple batch with no replenishment, returns or transfers, sell-through = units sold from the batch divided by units initially available, multiplied by 100. Selling 30 of 100 units gives 30%. If stock moves during the period, agree how receipts, returns and transfers enter the calculation before comparing reports. Follow the same product or batch over the same length of time.
A simple cover estimate = current sellable units divided by average weekly units sold. If 80 units remain and the recent average is 20 units per week, that is four weeks of cover. This is a scenario estimate, not a demand forecast. Flag stockouts, seasonality, promotions and supplier lead times; if recent sales are zero, investigate instead of dividing by zero.
Gross margin and purchase conversion
Gross margin percentage = (net merchandise sales - matched cost of goods sold) divided by net merchandise sales, multiplied by 100. If net sales are $11,000 and matched cost is $6,600, the result is 40%. Match the cost and sales scope, including the treatment of returned goods. Missing product costs make the result incomplete. Gross margin does not deduct every operating expense and is not net profit.
For a defined store visit measure, purchase conversion = completed purchase transactions divided by eligible visits, multiplied by 100. If 120 purchases follow 600 eligible visits, the result is 20%. Document how visits are counted and how staff, repeat entries or group visits are treated. If you do not have reliable visit data, leave conversion unavailable. Do not combine website sessions with physical footfall.
Give the weekly review one owner and one action
Choose two or three measures tied to this month's question. Save the source and definition alongside each result. Compare like periods, check unexpected changes against the underlying records and write down one explanation to investigate.
Assign a small action, its owner and a review date. For example, inspect the descriptions of a frequently returned product, then review its return reasons over the next agreed period. Keep previous definitions and notes so a change in measurement is not mistaken for a change in the business.
