Metrics & KPIs

MER

Marketing Efficiency Ratio — total revenue divided by total ad spend across every channel. Identical to blended ROAS; the term preferred by finance-minded operators.

MER is total revenue ÷ total marketing spend across all channels — mathematically the same as blended ROAS, just named differently (typically by operators with a finance background or DTC veterans).

Why MER matters more than platform ROAS: at scale, different channels take credit for the same sale. Meta says 4x, Google says 3x, TikTok says 2x — but the store only did enough revenue for a 2.6x across all spend. MER cuts through that self-reporting by anchoring to the bank account.

Healthy MER benchmarks for a growing dropshipping store: 2.5-3.5x is typical once you're spending real money across multiple channels. Below 2x is usually unprofitable after COGS and overhead; above 4x often means you're under-spending and leaving growth on the table.

Related terms in Metrics & KPIs
AOV
Average Order Value — the average dollar amount a customer spends per transaction. Total revenue divided by number of orders.
AOV Lift
The increase in Average Order Value produced by a specific tactic — bundles, upsells, order bumps, quantity discounts. Every dollar of AOV lift compounds against ad spend.
ATC
Add to Cart — the tracked event when a visitor adds an item to their cart. ATC-to-purchase ratio is a powerful diagnostic of checkout friction.
Attach Rate
The percentage of orders that include a secondary item — typically an upsell, bundle, or order bump. Every 10% of attach rate is ~4-6% of AOV lift.
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