Running an ecommerce store is a thrill ride – new products, engaged customers,
and (hopefully) overflowing sales. But with that excitement comes a constant barrage of data: website traffic, conversion rates, customer reviews…it’s enough to make anyone dizzy.
The problem? Not all data is created equal. Focusing on the wrong metrics can leave you chasing shadows, while crucial insights slip through the cracks. So, how do you cut through the noise and identify the KPIs that truly matter for your ecommerce success in 2024?
This guide unveils the top 50 ecommerce metrics and KPIs you should be tracking, from sales conversions to customer satisfaction. We’ll break down what each metric means, why it’s important, and most importantly, how to use it to reach your online business goals.
What is a Key Performance Indicator
A Key Performance Indicator (KPI) is basically a measurable target that tells you how well your business is doing on the way to achieving its goals. It’s like a scorecard that tracks progress and helps you identify areas to improve.
Key Qualities of E-commerce KPIs
As an e-commerce entrepreneur, it’s important to keep a close eye on different metrics to ensure the growth of your business. But, the real challenge lies in determining which metrics are the most important to track. How can you be sure that you’ve chosen the right ones?
To be truly insightful, effective KPIs should have these four key characteristics:
- They must have a significant effect.
- You should be able to measure them accurately.
- They must provide data in real-time.
- They should be actionable so that you can make improvements.
Another important thing is, you need to include a combination of leading and lagging indicators in your ecommerce website KPIs.
- Lagging indicators – such as “sales” and “revenue”, measure past performance of your website.
- Leading indicators – such as “website traffic” and “social media engagement” that provide insights into future outcomes.
Categories
We’ve grouped the Ecommerce KPIs into these main categories:
- Sales
- Marketing
- Customer service
- Manufacturing
- Performance Management
Why are KPIs important?
KPIs, or Key Performance Indicators, play a crucial role in the success of ecommerce businesses. These metrics are more than just superficial numbers; they provide valuable insights into the effectiveness of your marketing campaign efforts, the ability of your website to turn visitors into customers, and the customers satisfaction.
By keeping an eye on KPIs such as conversion rates, customer lifetime value, and customer acquisition costs, you can identify areas that need improvement and make your online store more successful. It’s like having a continuous feedback system that helps you make informed decisions based on data.
List of Top 50 Ecommerce KPIs to track in 2024
Here is a list of 50 important ecommerce KPIs (key performance indicators) that can help you grow your business with ease.
Sales Measurement KPIs :
1. Average Order Value (AOV)
This metric reveals the average amount customers spend per order. A higher AOV indicates customers are buying more or choosing higher-priced items.
AOV = Total Revenue / Number of orders.
2. Gross Profit
This is the difference between your revenue (total sales) and the cost of goods sold (what it costs you to make or acquire your products). It reflects your profitability before accounting for operating expenses.
Gross Profit = Total Cost of Goods Sold – Total amount of sales.
3. Conversion Rate (CR)
This is the percentage of visitors to your website who take a desired action, like making a purchase or signing up for your email list. It shows how effective you are at converting website traffic into customers.
Conversion Rate = (Total Number of Visitors / Total Number of Conversions) x 100
4. Shopping Cart Abandonment Rate (CAR)
This metric tracks the percentage of customers who add items to their cart but don’t complete the purchase. A high CAR indicates potential issues with checkout process, shipping costs, or lack of trust.
CAR = 1 – (Total Number of Completed Transactions / Total
Number of Shopping Carts) x 100
5. Shopping Cart Conversion Rate (CCR)
This is the flip side of CAR, it measures the percentage of shopping carts that actually turn into completed orders. It helps identify how well your website is optimized for the final buying decision.
CCR = (Total Conversions / Total Number of Visitors) x 100
6. Cost of Goods Sold (COGS)
This reflects the direct cost of producing the goods you sell. It includes raw materials, labor, and manufacturing expenses. A healthy COGS allows you to price competitively and maintain profitability.
COGS = Beginning Inventory Costs (of the year) + Additional Inventory Costs (purchased during the year) – Ending Inventory (at the end of the year)
7. Customer Lifetime Value (CLV)
This metric estimates the total revenue a customer generates throughout their relationship with your store. It considers factors like average order value, purchase frequency, and customer lifespan. A high CLV indicates loyal, profitable customers.
CLV = (Customer’s Annual Profit Contribution x Average
Number of Year as Customer) – Cost of Customer Acquisition
8. Churn Rate
This measures the percentage of customers who stop doing business with you within a specific period. It helps identify areas for improvement in customer retention strategies. A low churn rate indicates a healthy customer base.
Formula : To find the annual churn rate, start by subtracting the number of customers left at the end of the month from the number of customers at the beginning of that month. Then, divide this difference by the initial number of customers. Multiply the result by 100 to get the percentage, and finally, multiply that by twelve to calculate the annual churn rate.
9. Customer Acquisition Cost (CAC)
his reflects the average cost of acquiring a new customer. It includes marketing and sales expenses divided by the number of customers acquired. A low CAC helps ensure your business model is sustainable.
CAC = Costs Spent on Acquiring Customers / Number of Customers Acquired
10. Repeat Purchase Rate (RPR)
This measures the percentage of customers who make multiple purchases from your store. A high RPR indicates customer loyalty and satisfaction, leading to higher revenue and lower customer acquisition costs.
RPR = Purchases from Repeat Customers / Total Purchase
11. Average Profit Margin
This metric reveals the average profit you earn on each sale. A healthy profit margin indicates your pricing strategy is effectively covering your costs.
Average Profit Margin : Gross Profit / Revenue
12. Revenue per Click (RPC)
This metric tracks the average revenue generated from each click on your paid advertising campaigns. It helps you assess the effectiveness of your ad spend and identify which channels deliver the most valuable clicks.
Revenue per Click : Revenue/ Total Number of Click
13. Purchase Frequency
It shows how often, on average, a customer makes a purchase at your store within a specific timeframe. A higher purchase frequency indicates strong customer loyalty and repeat business.
Purchase Frequency = Total Number of Orders / Total Number of Unique Customers
14. Time Between Purchases
This metric, also known as repurchase cycle time, reveals the average time it takes for a customer to return and make another purchase.
Time Between Purchases = Purchase Frequency / 365
15. Inventory Turnover
You can use to figure out how many times your inventory is sold in a year. It helps you determine if your business has too much inventory compared to its overall sales.
Inventory Turnover = Net Sales / Average Inventory at Selling Price
16. Holding Inventory Ratio
This ratio helps calculate the average expense of keeping inventory until it is sold. Holding costs typically include storage, labor, security, and the equipment used for storing inventory. Generally, holding costs range from 25-30% of the inventory’s value.
Holding Inventory Ratio = Holding Costs/ Average Inventory Value
17. Revenue Per Visitor
This KPI reveals how much revenue you generate from each website visitor. A higher RPV indicates your marketing efforts are attracting potential buyers and your website is effectively converting them into paying customers.
Revenue per visitor = Total income / Number of visitors over a specific period of time
18. Net Profit Margin
This metric goes beyond just sales. It shows the actual profit you earn after accounting for all your business expenses. Tracking this KPI helps you identify areas to cut costs or increase prices to maximize your bottom line.
Net profit margin = (Revenue – cost)/ Revenue
Marketing Measurement KPIs
19. Website Traffic
It measures the total number of visitors who come to your website, giving you a sense of your overall reach. A steady increase in traffic indicates growing brand awareness and potential customer interest.
20. Average Session on the Website
It reflects how long visitors typically stay on your site. A higher average session duration suggests they’re finding your content valuable and exploring further
Avg. Sessions = Total Session Duration / Total Number of Session
21. Pageviews per Session
It reveals how many pages the average visitor browses during a single session.
Pageviews per Session = Total Number of Pageviews / Total Number of Visitors
22. Bounce Rate
This reflects the percentage of visitors who leave your website after viewing just one page. A high bounce rate might indicate irrelevant content, confusing navigation, or technical issues.
Bounce Rate = Total Number of One-page Visits / Total Number of Entries to a Website
23. Email List Growth Rate
This metric tracks the rate at which your email list expands. A healthy growth rate signifies successful lead generation strategies, allowing you to build a loyal customer base and drive future sales.
Email List Growth Rate = [(Total Number of New Subscribers – Total Number of Unsubscribes) / Total Subscribers ] x 100
24. Email Bounce Rate
It reflects the percentage of emails that couldn’t be delivered, often due to invalid addresses or full inboxes.
Email Bounce Rate = (Total Number of Emails that Bounced / Total Number of Emails Sent) x 100
25. Email Open Rate
It shows the percentage of recipients who actually opened your email.
Email Open Rate = (Total Number of Unique Open / Number of
Total Emails Sent Successfully) x 100
26. Email Click-Through Rate (CTR)
This metric reveals how many recipients clicked on a link within your email.
CTR = (Total Number of Individuals Clicks / Total Number of Email Opens) x 100
27. Email Conversion Rate
It measures the percentage of email recipients who clicked on a link in your email and ultimately converted into a paying customer.
Email Conversion Rate = (Total Number of Conversions from Emails / Total Number of Emails Sent) x 100
28. Average CTR
It shows the percentage of people who see your ad or post and actually click on it. A high CTR indicates your content is grabbing attention and driving traffic to your store.
Average CTR = Total Number of Clicks That an Ad Receives / Total Number of Impressions
29. Social Media Engagement
It encompasses all interactions on your social media platforms, including comments, mentions, and clicks on links in your bio or posts.
30. Subscriber Growth Rate
This tracks how quickly your email list is expanding. A healthy growth rate indicates your email marketing efforts are attracting the right audience.
Subscriber Growth Rate = [(Current Subscribers – Past Subscribers) / Past Subscribers ] x 100
31. Pay-Per-Click (PPC)
This refers to the advertising model where you pay a fee each time someone clicks on your ad. Understanding your average PPC cost helps you determine if your campaigns are generating enough revenue to justify the investment.
PPC = Total Advertising Cost / Total Number of Ads Clicked
32. Cost Per Conversion (CPC)
This metric takes PPC a step further. It measures the total cost you incur for each conversion (e.g., a sale) generated through your PPC ads.
CPC = Total Cost for Generating the Traffic / Total Number of Conversions
33. Referral Sources
This KPI identifies where your customers are coming from – social media, influencer marketing, or even word-of-mouth referrals.
34. Customer Retention Rate
This metric tracks how well you keep existing customers coming back.
Customer Retention Rate = [(Number of Customers at the End of a Period – Total Number of New Customers during That Period) / Total Number of Customers at the Start of That Period] x 100
35. Conversion by Device Type
This KPI reveals how customers engage with your store on different devices (desktop, mobile, tablet).
36. Marketing revenue attribution
This goes beyond just knowing your marketing spend. It tells you which marketing channels (email campaigns, social media ads) are directly generating revenue.
37. Traffic to Lead Ratio
This KPI measures how efficiently your website converts website visitors into potential customers (leads).
38. Lead to Customer Ratio
This metric tracks how many leads ultimately convert into paying customers. A low ratio might indicate issues with your sales funnel or lead nurturing process.
Customer Service Measurement KPIs
39. Customer satisfaction (CSAT) Score
To measure this crucial ecommerce KPI, you can gather valuable information from customers by conducting surveys. For example, you can ask questions such as, “How happy are you with your overall experience?” and let people rate their experience using a scale of numbers from 1 to 5 or 1 to 10.
CSAT = Sum of all Scores / Total Number of Respondents
40. Net Promoter Score (NPS)
This Key Performance Indicator (KPI) provides information about your customer relationships by telling you how likely your customers are to recommend your brand to people they know.
NPS = % of Promoters – % of Detractors.
41. Customer Service Email Count
This tracks the number of emails your support team receives.
42. Average Complaint Resolution Time
This measures how quickly your team resolves customer issues.
Avg. Complaint Resolution Time = (Number of Customer Service Requests – Total Number of Unresolved Request) / Total Number of Requests Received
43. Refund/Return Rate (RR)
This reflects the percentage of orders customers return or seek refunds for. High RR can indicate product issues, unclear descriptions, or a poor return policy.
RR = [(Current Value – Original Value) / Original Value] x 100
Manufacturing Measurement KPIs
44. Cycle Time
This tracks the total time it takes to complete an order, from purchase to delivery. Lower cycle time means faster fulfillment and happier customers.
45. Overall Equipment Effectiveness (OEE)
This key performance indicator (KPI) gives us information about the effectiveness of manufacturing equipment.
46. Overall Labor Effectiveness (OLE)
This Key Performance Indicator (KPI) holds the same level of significance as OEE. It offers valuable information and understanding about your machinery. The Overall Labor Efficiency (OLE) will provide you with insights into the productivity of your staff members who operate the machines.
47. Yield
Yield is a simple measure in ecommerce manufacturing that tells you the total number of products you have made.
48. First Time Yield (FTY) & First Time Through (FTT)
FTY, or First Pass Yield, is a quality measure used in ecommerce. It helps determine how efficient your production process is by indicating the amount of waste generated.
FTY = Divide the Total Number of Successfully Manufactured Units / Total Number of Units That Started the Process
49. Number of Non-Compliance Events or Incidents
This tracks instances where a process or product doesn’t meet quality or safety standards.
Performance Management
50. Hours Worked
Tracks the total time employees spend on tasks related to any particular project.
51. Budget
The total amount of money allocated for your ecommerce store.
52. Return on Investment (ROI)
This key performance indicator (KPI) shows you the amount of profit your online business has made in relation to your expenses. It takes into account all the money you have spent and the money you have earned.
53. Cost Variance
The difference between the actual amount spent on your store and the budgeted amount.
54. Cost Performance Index (CPI)
Analyzes how efficiently you’re using your budget.
CPI = Earned Value / Actual Costs
By using these valuable insights, you can improve your store, increase conversions, and take your business to new levels of success.
FAQ
How do you track KPIs and measure ecommerce success?
Think of KPIs as your scorecard. Many free and paid analytics tools like Google Analytics can track website traffic, sales, and customer behavior.
What is a KPI chart?
A KPI chart is a visual representation of your KPI data. It could be a graph, line chart, or pie chart that shows how your KPIs are performing over time or against set goals.
What is KPI in sales?
In sales, KPIs are metrics that measure the effectiveness of your sales team and strategies. Common sales KPIs include conversion rates, lead generation cost, and average deal size.
What is a KRA in ecommerce?
Key result areas(KRA) refers to the broad areas of your ecommerce business that are critical for success. These are your long-term goals, like increasing sales or improving customer satisfaction.
