Assume you are an online retailer of t-shirt. You purchase the t-shirt from the wholesaler for...

 

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Assume you are an online retailer of t-shirt. You purchase the t-shirt from the wholesaler for $10 each and sell it online for $35. The shipping fee, which costs $5, is free to your customers. If your target profit is $5 per sale, then 1. What should be your target CPA (cost per acquisition/conversion: cost of getting a customer)? 2. If the CPC is $0.5, how many clicks do you expect to receive before reaching a sale? 3. Then, what should be your target conversion rate? Assume you are an online retailer of t-shirt. You purchase the t-shirt from the wholesaler for $10 each and sell it online for $35. The shipping fee, which costs $5, is free to your customers. If your target profit is $5 per sale, then 1. What should be your target CPA (cost per acquisition/conversion: cost of getting a customer)? 2. If the CPC is $0.5, how many clicks do you expect to receive before reaching a sale? 3. Then, what should be your target conversion rate?

Answer rating: 100% (QA)

1 To calculate the target CPA Cost Per Acquisition we need to consider the total cost per sale and t... View the full answer