CAC
Category: E-commerce
Also searched as: Customer acquisition cost
Definition (plain English)
Customer acquisition cost is the sales and marketing spend required to win a new customer for a defined channel or campaign.
Why it matters commercially
CAC determines whether ecommerce or marketplace orders still make money after product cost, freight, payment fees, fulfillment, returns, and repeat purchase assumptions.
Example
A snack brand paused paid ads because CAC consumed the entire first-order contribution margin unless customers reordered twice.
Common mistake
Counting ad spend only and ignoring agency fees, discounts, sample costs, marketplace promos, and low repeat purchase.
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