> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# MER (Gross Sales): Marketing Efficiency on Gross Revenue

> Track MER using gross sales for your Shopify store. Measure marketing efficiency before discounts and refunds.

<Tip>
  MER (Gross Sales) measures what percentage of your gross order sales is spent on advertising—marketing efficiency before discounts and refunds.
</Tip>

## Formula

<Info>
  **MER (Gross Sales)** = ( **Total Ad Spend** ÷ **Gross Order Sales** ) × 100
</Info>

### Formula Components

| Metric                                                               | Definition                                      |
| -------------------------------------------------------------------- | ----------------------------------------------- |
| **Total Ad Spend**                                                   | Combined spend across all advertising platforms |
| [**Gross Revenue**](/reference/metrics/orders/revenue/gross-revenue) | Order revenue before discounts and refunds      |

| Metadata        |                                                                                                   |
| --------------- | ------------------------------------------------------------------------------------------------- |
| **Type**        | Percentage                                                                                        |
| **Data Source** | [Shopify](/sources/shopify), [Meta Ads](/sources/facebook-ads), [Google Ads](/sources/google-ads) |
| **Aggregation** | Ratio                                                                                             |

***

## Example

Your Shopify store spent **\$20,000** on ads and generated **\$200,000** in gross sales.

| Component       | Value     | Calculation                |
| --------------- | --------- | -------------------------- |
| Ad Spend        | \$20,000  | Total advertising          |
| Gross Sales     | \$200,000 | Before discounts           |
| **MER (Gross)** | **10%**   | \$20,000 ÷ \$200,000 × 100 |

***

## How It Works

MER (Gross Sales) uses gross revenue before discounts and refunds are applied. This shows marketing efficiency against your top-line sales number. Lower is better—a 10% MER means you spend 10 cents to generate every dollar of gross sales.

***

## When to Use

| Scenario                     | Action                                          |
| ---------------------------- | ----------------------------------------------- |
| Tracking top-line efficiency | Monitor MER against gross revenue               |
| Comparing to net MER         | See how discounts impact efficiency             |
| Benchmarking                 | Compare against industry gross MER standards    |
| Budget planning              | Set spend limits based on gross revenue targets |

***

## Related Metrics

| Metric                                                           | Relationship                 |
| ---------------------------------------------------------------- | ---------------------------- |
| [MER](/reference/metrics/orders/performance/mer)                 | MER using total revenue      |
| [MER (Net Sales)](/reference/metrics/orders/performance/net-mer) | MER using net revenue        |
| [Gross Revenue](/reference/metrics/orders/revenue/gross-revenue) | Revenue base for calculation |

[See all Performance metrics →](/reference/metrics/orders/performance)