The average revenue per user is the metric used by eCommerce companies to estimate the revenue generating level by individual customers.
It is used to continually track a company’s annual growth.
ARPU is calculated as total revenue against the average customer/user.
ARPU = Total Revenue/ Average Customer
This metric is used by eCommerce companies to compare their sales or revenue performance with that of other competitors. It is used as a measure of profitability and to make investment forecasts.