The success of your e-commerce business begins with a clear understanding of your revenue. The Total Revenue metric is the fundamental starting point for evaluating your business's financial health.
What is Total Revenue?
Total Revenue, or Total Sales on your Cifra dashboard, represents the total sum of money generated from all your sales over a specific period, before any expenses are deducted.
How to Interpret this Metric
Monitoring your total revenue allows you to answer key questions about your business's performance:
Is my business growing? An upward trend in total revenue over time is the clearest signal of growth.
Were my marketing campaigns successful? You can correlate peaks in total revenue with your advertising campaign periods to measure their impact.
However, total revenue alone doesn't tell the whole story. It's crucial to analyze it along with other metrics to get a complete picture of profitability:
Total Sales vs. Gross Profit: While Total Sales shows how much money is coming in, Gross Profit shows how much is left after subtracting the Cost of Goods. An increase in total revenue does not necessarily mean your business is more profitable if the cost of goods is also rising.