3PD Basic Terms

2 min. readlast update: 10.14.2026

Reported ROI

Return Over Investment = marketing sales ÷ marketing spend.

Every order a campaign touched counts in full, even when another campaign also paid for that order. So when promos overlap, the same order is counted twice and the ROI looks better than it is.

Attributed ROI

Attributed ROI is Loop ai's corrected version. It removes the double-counted orders so each order's sales are credited only once.

Double-dip Rate

Double-dip rate is the share of a campaign's orders that also carried spend from another campaign.

For example, a customer clicks a Sponsored Listing and then uses a BOGO. The higher it is, the more ROI is inflated.

Organic sales 

Organic Sales = total delivery sales − promo- ad-driven sales.

Delivery sales from orders that had no promo or ad attached; customers who paid full price on their own.

Cost per New Customer

Cost New Customer = promo spend ÷ new customers acquired

What Dog Haus paid to win one first-time customer.

Cost per Incremental Order

Cost Per Incremental Order = promo spend ÷ (promo orders − orders that would have happened anyway).

What Dog Haus paid for each order that happened only because of the promo.

Profit after Commission

Profit After Commission = order value − marketplace commission − promo cost − food & packaging cost

What Dog Haus keeps from a promo order after the app’s cut, the promo cost and the food cost.

Cannibalization

Promo sales rise while organic sales fall.

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