Ecommerce Playbook: Numbers, Struggles & Growth cover image

The Ecommerce Diagnostic Toolkit

Ecommerce Playbook: Numbers, Struggles & Growth

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The Relationship Between First Order Value and New End Cap Ratio

As you grow, the first order value to new end cap ratio is going to kind of approach zero. That can be an indicator of a good thing, which is that your brand is growing and you're more able to float those costs. The best scenario is that 30% gain in LTV or greater over 60 days is enough to make sure that you break even on that first sale. You want to aggressively fund every dollar that produces a return in excess of your hurdle rates.

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