How Shopify Benchmarks are Calculated

In general, Varos pulls benchmark metrics directly from the Shopify API, meaning that metrics are normalized across all accounts to ensure accurate benchmarks.

Here's how each one is calculated:

Metric	Definition
Repeating Orders Ratio	The percentage of orders that came from people who have previously purchased in your store.
Cohort Analysis - Purchase Frequency by Month	Average cumulative number of orders per customer after normalizing all initial purchases to month 1. Test orders are excluded. Only customers who first purchased at least 12 months ago are counted towards this metric. Use this to understand health of your customer retention and to find specific drop-off points in retention (relative to others) to initiate timely retargeting campaigns.
Discount Rate	The percent of total cart value that gets discounted in the given period. For example, if the total cart value from all your customers was $100, and they cumulatively got $10 off, then the discount rate would be 10% for the selected period.
Abandoned Checkout Rate	The percent of customers who add something to their cart and don't ultimately purchase. Since today's abandoned checkouts can be recovered tomorrow, you should expect recent days/weeks' abandoned checkout % to decrease over time. For example, if 4 out of 10 checkouts were abandoned and not recovered in January, then you'd see a 40% abandoned checkout rate when checking the dashboard on February 1st. But if you recovered one of those orders during February, then the January numbers would update to show a 30% abandoned checkout rate.
Refunds as % of Orders	The total refunded orders over total orders. Test orders are excluded. Orders and refunds are counted as of the "processed_at" date of the order.
Revenue Growth	The growth rate of your Shopify store revenue, each number is being compared to the previous period. We pull this from the Shopify field "total_price" which is the sum of all line item prices, discounts, shipping, taxes, and tips converted to $USD.
AOV	Total revenue divided by total number of orders.
Cohort analysis - Revenue after X months of customer lifetime	Average cumulative revenue per customer after normalizing all initial purchases to month 1. Only customers who first purchased at least 12 months ago are counted towards this metric. We pull revenue from the Shopify field "total_price" which is the sum of all line item prices, discounts, shipping, taxes, and tips converted to $USD.
Cohort analysis - AOV by X months after First Purchase	Average order value per customer after normalizing all initial pruchases to month 1. Only customers who purchased in each additional month are counted. Only customers who first purchased at least 6 months ago are counted towards this metric.
Conversion Cohort analysis - % of Unique Customers who Repeated a Purchase by X months after First Purchase	Average percent of customers who purchase for the second time over total customers. All customers are normalized to month 1. Only customers who first purchased at least 12 months ago are counted towards this metric.