1. DTC – Direct-to-Consumer

Selling products directly to end customers, bypassing retailers or wholesalers. In this case, Shopify brands selling straight to buyers.

2. ARR – Annual Recurring Revenue

The yearly total of predictable subscription revenue (monthly fee × 12).

3. MOQ – Minimum Order Quantity

The smallest quantity a supplier or manufacturer will produce in one batch.

4. COGS – Cost of Goods Sold

All costs to make and deliver one product unit to your warehouse (materials + manufacturing + shipping + customs).

5. MSRP – Manufacturer’s Suggested Retail Price

The full selling price you intend to charge (before discounts).

6. AOV – Average Order Value

The average dollar amount a customer spends per order.

7. ICP – Ideal Customer Profile