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Cost Per Order

Cost per order (CPO) is the pricing model that drives a mobile app’s user acquisition and sales. CPO differs from cost per acquisition (CPA), because it includes both new and returning customers. The cost per order calculation is:

(marketing costs over a certain time period / (orders over the same time period)

The marketing costs are just costs on a specific platform, like Facebook or Google. To keep costs per order down, it’s best to both understand previous spending and estimate future spending, setting clear, informed targets. When estimating future cost per order, companies often overlook the operations costs like shipping.

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