20 Essential Ecommerce Metrics to Track in 2024

What are ecommerce metrics and KPIs?

Ecommerce metrics and KPIs, or key performance indicators, are measurable values that indicate the success of an ecommerce business in reaching its objectives. These metrics help ecommerce businesses track their performance and make data-driven decisions.

20 important ecommerce metrics to track

1. Sales conversion rate

The sales conversion rate is the percentage of website visitors who make a purchase. It is calculated by dividing the number of conversions by the total number of visitors and multiplying by 100.

2. Average order value

The average order value is the average amount of money spent each time a customer places an order on the website. It is calculated by dividing the total revenue by the number of orders.

3. Customer lifetime value

The customer lifetime value is the predicted net profit attributed to the entire future relationship with a customer. It helps in understanding how much revenue a single customer is expected to generate over time.

4. Customer acquisition costs

Customer acquisition cost is the cost associated with convincing a customer to buy a product or service. It is calculated by dividing the total costs associated with acquisition by the number of new customers.

5. Shopping cart abandonment rate

The shopping cart abandonment rate is the percentage of online shoppers who add items to their cart but then leave the website without completing the purchase. It is calculated by dividing the number of completed purchases by the number of carts created and multiplying by 100.

6. Returning customer rate

The returning customer rate is the percentage of customers who have made a repeat purchase. It is calculated by dividing the number of customers who have made more than one purchase by the total number of customers and multiplying by 100.

7. Bounce rate

The bounce rate is the percentage of visitors who navigate away from the site after viewing only one page. It is an indicator of the quality of the website’s traffic and the user experience.

8. Impressions

Impressions are the number of times a product or ad is displayed on a screen.

9. Reach

Reach is the total number of unique users who saw your product or ad.

10. Engagement

Engagement measures how users interact with the website, such as likes, shares, comments, and clicks.

11. Net Promoter Score

The Net Promoter Score measures the willingness of customers to recommend a company’s products or services to others. It is used as a proxy for gauging the customer’s overall satisfaction with a company’s product or service and the customer’s loyalty to the brand.

12. Click-through rate

The click-through rate is the percentage of people who click on a specific link compared to the number of total users who view a page, email, or advertisement.

13. Store sessions by traffic source

Store sessions by traffic source shows where your website visitors are coming from, such as organic search, paid search, social media, or direct traffic.

14. Store sessions by device type

Store sessions by device type shows the devices your customers are using to access your website, such as desktop, mobile, or tablet.

15. Store sessions by location

Store sessions by location shows where your website visitors are located geographically.

16. Top products by units sold

The top products by units sold metric shows which products are the best sellers in terms of quantity.

17. Month-end inventory snapshot

The month-end inventory snapshot shows the total amount of inventory at the end of each month.

18. Average inventory sold per day

The average inventory sold per day metric shows the average amount of inventory sold per day.

19. Refund and return rate

The refund and return rate measures the percentage of orders that are returned by customers.

20. Churn rate

The churn rate is the percentage of customers who stop using a product or service within a given time period.

How often should I check my ecommerce metrics?

It’s important to track ecommerce metrics regularly to identify trends and make informed decisions. The frequency of tracking depends on the specific metric and the needs of the business. Some metrics should be monitored daily, while others can be reviewed weekly, monthly, or quarterly/annually.

Importance of ecommerce metrics for your business

Understand performance

Ecommerce metrics provide valuable insights into the performance of your online store, allowing you to identify areas of improvement and optimize your strategies.

Improve forecasting

By tracking ecommerce metrics, you can make more accurate sales forecasts and inventory management decisions, leading to improved efficiency and profitability.

Understand website engagement

Ecommerce metrics help you understand how users engage with your website, which is crucial for optimizing the user experience and increasing conversion rates.

Use analytics tools to track key ecommerce metrics

There are various analytics tools available to track and analyze ecommerce metrics, such as Google Analytics, Adobe Analytics, and Shopify Analytics. These tools provide valuable insights into customer behavior, website performance, and marketing effectiveness.

Ecommerce metrics FAQ

What are KPIs in ecommerce?

KPIs, or key performance indicators, in ecommerce are specific metrics that help businesses evaluate their success in reaching their goals and objectives. These metrics are crucial for monitoring performance and making data-driven decisions.

What are KPIs for ecommerce platforms?

KPIs for ecommerce platforms include metrics related to sales, customer acquisition, customer retention, website traffic, and user engagement. These metrics help ecommerce businesses understand their performance and identify areas for improvement.

What are KPIs for ecommerce profitability?

KPIs for ecommerce profitability include metrics such as average order value, customer lifetime value, customer acquisition cost, and refund and return rate. These metrics help businesses measure their profitability and identify opportunities to increase revenue and reduce costs.