MER (Net Sales) measures what percentage of your net order sales is spent on advertising—marketing efficiency after discounts and refunds.
MER (Net Sales) = ( Total Ad Spend ÷ Net Order Sales ) × 100
| Metric | Definition |
|---|
| Total Ad Spend | Combined spend across all advertising platforms |
| Net Revenue | Order revenue after discounts and refunds |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify, Meta Ads, Google Ads |
| Aggregation | Ratio |
Example
Your Shopify store spent $20,000 on ads and generated $160,000 in net sales.
| Component | Value | Calculation |
|---|
| Ad Spend | $20,000 | Total advertising |
| Net Sales | $160,000 | After discounts/refunds |
| MER (Net) | 12.5% | $20,000 ÷ $160,000 × 100 |
How It Works
MER (Net Sales) uses net revenue after discounts and refunds. This is the most conservative MER calculation, showing efficiency against actual realized revenue. Higher discounts and refunds will increase your net MER versus gross MER.
When to Use
| Scenario | Action |
|---|
| Conservative efficiency tracking | Use net MER for realistic marketing efficiency |
| Measuring discount impact | Compare net MER to gross MER to see discount effect |
| Profitability planning | Net MER aligns closer with true revenue |
| Setting efficiency targets | Use net MER for conservative budget planning |
| Metric | Relationship |
|---|
| MER | MER using total revenue |
| MER (Gross Sales) | MER using gross revenue |
| Net Revenue | Revenue base for calculation |
