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What is LTV?

Finance

In plain English: Everything a customer spends with you over time, not just the first order. A $28 first order plus reorders can make a 'losing' $60 CAC profitable.

Lifetime Value. Total revenue a customer generates across all purchases, tracked over 30, 60, 90, 180 days. Most dropshippers track AOV but ignore LTV, limiting them to single-transaction math that understates the real value of each customer.

Learn this in practice → Cash Flow Basics

Related Finance Terms

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