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Expert guides, analysis and tool comparisons on Decoded: E-Commerce from the kurums.com Decoded desk — written for business decision-makers and updated as the market moves.
Net 30 is a common payment term on invoices meaning the full amount is due within 30 days, usually counted from the invoice date. It is a form of short-term credit between businesses: the seller delivers first and waits to be paid, while the buyer gets a month to use the goods or service before the cash leaves.
A supply chain is the full network of companies, people, activities and transport involved in getting a product from raw materials to the final customer. It usually includes suppliers, manufacturers, warehouses, shipping companies and retailers, along with the flow of information and money that keeps all of those steps coordinated.
Inventory turnover is a measure of how many times a business sells and replaces its stock over a period, usually a year. It is commonly calculated as cost of goods sold divided by average inventory. A higher number generally means stock moves quickly; a lower number means goods sit on shelves or in warehouses for longer.
Break-even is the point where total revenue exactly covers total costs, so the business makes neither a profit nor a loss. It is usually measured in units sold or in sales value. The basic formula is fixed costs divided by the contribution per unit, which is the selling price minus the variable cost of each unit.
NPS, or Net Promoter Score, is a customer loyalty metric based on one question: how likely are you to recommend us to a friend or colleague, from 0 to 10? People who answer 9 or 10 are promoters, 7 or 8 are passives, and 0 to 6 are detractors. NPS equals the percentage of promoters minus the percentage of detractors.
Unit economics is the revenue and cost of a single unit of your business, such as one product sold, one order delivered or one customer over their lifetime. It shows whether each unit makes or loses money before fixed costs like rent and head office salaries, and whether growing bigger will make the business healthier or simply lose money faster.
Working capital is the money a business has available to run its daily operations. It is usually calculated as current assets (cash, money customers owe you, stock) minus current liabilities (bills and short-term debts due within about a year). Positive working capital means you can cover near-term obligations; negative means you may struggle to.
Acquisition is everything a company does to win new customers. Retention is everything it does to keep existing ones buying. Both drive growth, but they cost very different amounts and need different tactics, so companies have to decide how to split their effort between them.
CTR (click-through rate) is the percentage of people who saw an ad or link and clicked it. CPM (cost per mille) is what an advertiser pays for every thousand times the ad is shown. Together they tell you how expensive attention is and how well your ad turns attention into action.
An A/B test shows two versions of something (a headline, a button, a price, an email) to two random groups of users at the same time, then measures which version performs better on one chosen metric. It replaces opinions with evidence.
A funnel is the path people take from first hearing about a product to buying it, drawn as stages that get narrower: awareness, interest, consideration, purchase. Each stage loses people, and the funnel shows where and how many.
CAC (customer acquisition cost) is the total sales and marketing spend needed to win one new customer. LTV (lifetime value) is the total profit that customer brings over the time they stay. The ratio between them tells you whether a business is buying customers at a profit or at a loss.
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