17 Important KPIs For eCommerce


"*" indicates required fields

Got Questions?

This field is for validation purposes and should be left unchanged.

A book depicting important KPIs for eCommerce

A book depicting important KPIs for eCommerce

Generating more revenue from your eCommerce store involves different factors. Here, it’s best to get help from an experienced digital marketing agency.

If you want to do this on your own, try finding out the KPIs to track and measure at all times. 

There are lots of metrics to watch out for with your online store, but we’ll zero in on the ones that have a profound impact on your bottom line. 

This way, you’ll be able to monitor the performance of your eCommerce site and scale its growth.

1. Site Traffic

Someone viewing a graph depicting website traffic on a laptop.

Site traffic directly correlates to your sales and business goals. Your eCommerce business’s revenue hinges on how many visitors your website is attracting. The more people coming to your site, the more chances they’ll become your customer.

To fetch this data, you need to install the tracking code from Google Analytics onto your site. 

From here, you can parse down the data to different subcategories like organic search, bounce rate, time on site, and others.

2. Conversion Rate

This metric refers to the percentage of users who bought something on your site. You can compute for it by dividing the total number of visitors by the number of buyers.

The conversion rate in eCommerce depends on the industry you’re in.

A graph depicting conversion rate. It is an important KPI for eCommerce

Source: IRP Commerce

Use the figures above as benchmarks when you start measuring your conversion rate and work your way into improving them.

3. Revenue Per Visitor

To know how much money a visitor generates for your business, you must compute its RPV. You can do this by dividing the total revenue generated over time by the total visitors your site received in the same time frame.

Having a low RPV means there’s something wrong with your site that’s keeping visitors from placing an order, convincing them to buy from you, or both.

4. Average Order Value

Someone calculating the average order value from their eCommerce site's data

This metric shows you how much each order costs on average. You can compute this by dividing your revenue by the number of sales.

Using AOV, you can gain insights into which products sold well. If your AOV is closer to your more expensive products, more people are buying those than the cheaper ones.

Increasing your AOV also helps boost your revenue. 

You can use the profit to spend on your marketing and positioning efforts to scale your business.

5. Purchase Frequency

As the name suggests, it gives you the number of times a customer purchases from you over a period. To get this figure, divide the number of unique orders by the number of customers at a specific time.

The purpose of knowing your customers’ purchase frequency is to increase the times they shop at your store. This measure is vital, especially if your products have high item value.

6. Cost Per Acquisition

CPA helps determine your marketing campaigns’ effectiveness to generate new customers for your eCommerce business. You can compute for it by dividing the total campaign cost by conversions.

The lower the CPA, the more reason you must double-down on these campaigns because you spend less to acquire these customers. On the other hand, consider tweaking those with high CPA or abandoning them, at least for now.

7. Cost of Goods Sold

Someone holding a clipboard that reads "cost of goods sold"

This data refers to how much you spend on producing your products for sale.

To compute for COGS, add the starting or remaining inventory from the previous time to the inventory you purchased, then subtract the ending stock remaining this time from the sum.

Getting your COGS allows you to understand how much revenue the products are bringing in and how much you should price them.

8. Repeat Customer Rate

To get this figure, divide the number of your repeat customers, i.e., those who have made at least two purchases from your store, by the total number of customers and multiply it by 100.

This rate is useful because getting repeat customers to buy again from your site is cheaper than acquiring new ones. You can then focus on marketing towards them instead of launching more costly acquisition campaigns.

9. Rate of Investment

A chart showing rate of investment

This metric shows the profitability of a marketing campaign for your eCommerce brand.

You can compute this by subtracting investment from profit, dividing the difference by investment, and multiplying by 100.

Using ROI, you can determine which campaigns like SEO, paid ads, and affiliates are getting you the most sales. 

However, this metric’s flaw is it doesn’t factor in potential customers the campaign yields over time. Thus, it’s best to consider ROI with customer lifetime value.

10. Inventory Turnover

You want to move your products promptly to avoid shortages and surpluses of supplies. To find this out, you must compute for their respective inventory turnovers. 

You can do this by dividing the average inventory for the period over the cost of goods sold.

The turnover rate is dependent on the industry you’re in.

If the turnover rate is high for a particular product compared to the average, you must consider restocking the inventory soon or increasing its prices.

On the other hand, a low turnover rate runs the risk of overstocking for that product. You should also think about lowering its price to help hike up its sales.

11. Competitive Pricing

Sheets that compare competitor pricing

Once you’ve determined your product’s retail price, you must compare its pricing strategy with the top five similar products in the market. Doing so helps you gain insights on how you can further improve your revenue.

For instance, your pricing is lower than your competitors, but their product sells much better than yours. Using this information, the problem could lie in your product quality, marketing strategy, suppliers, or other factors.

The insights will depend on the competitor research you’ve gathered. But it should be clear that competitive pricing is a good place to start gauging your eCommerce performance.

12. Email CTR

If you’re building your email list and sending out newsletters and automated emails to clients, you need to monitor the email click-through rate of each campaign.

To get this figure, divide the number of people clicking on the link in your email by the number of people who receive the email. Then, multiply it by 100.

Numerous factors affect the CTR of your emails, such as link placement, use of button or text for the link, call to action, and others.

To improve the rate, you need to isolate these factors and run an A/B campaign for each. This way, you can squeeze out more sales from your subscribers.

13. Cart Abandonment Rate

The abandonment rate tells you the percentage of your eCommerce users who didn’t check out their cart. To compute for this, divide shopping carts initiated by transactions completed, subtract the quotient from 1, and multiply the difference by 100.

There are numerous reasons why they don’t push through with buying your products.

A graph depicting cart abandonment, and important KPI for eCommerce.

Source: Statista

Determine which among the reasons above are the causes for high cart abandonment and fix them.

14. Churn Rate

This figure tells you the percentage of customers who left your brand. I.e., repeat customers don’t buy again, some canceled their subscription from your services, etc.

Compute for this by subtracting the customers who left from the total customers you have from the start, dividing the difference by the actual customers you have from the beginning, and multiplying it by 100.

A high churn rate could mean many things, so it’s best to know what those are so you can stop your business from bleeding customers.

15. Customer Retention Rate

Unlike churn rate, this refers to the percentage of customers who keep buying from your site over time.

To get your retention rate, subtract new customers over time from the total customers at the same period. Then divide the number of customers you had at the start by the difference.

This rate gives you a general idea of how many of your customers have stuck with you.

16. Customer Lifetime Value

A chart depicting customer lifetime value

CLV refers to the value each customer brings to your business based on the amount of money they spent over the past 12-24 years (which is considered a “lifetime”). 

First, compute the customer value by multiplying the average purchase value with the average purchase frequency rate. Then multiply the dividend to the average customer lifespan to get the CLV.

This number is arguably the next most important eCommerce KPI after conversion rate. Optimizing your business for this metric helps you sustain your eCommerce site in the foreseeable future.

17. Net Promoter Score

Also known as the NPS, this eCommerce KPI allows you to measure and analyze customer loyalty towards your business.

The net promoter score asks a single question to customers: How likely are you to recommend our business to your family and friends?

These are answered using a scale of 1 to 10 (10 being the highest). People who entered 9-10 are promoters, while those who answered 0-6 are detractors. Those who answered 7-8 are passive

You can then compute the NPS by subtracting the percentage of detractors from the percentage of promoters.

If you received a negative score, you must find ways on how to improve customer satisfaction.

Wrapping It Up

Boxes with shopping carts on a laptop indicating eCommerce.

As you can see, there are lots of KPIs you must worry about for your eCommerce site.

It’s not just selling as many products as you can. It’s also about understanding how every facet of your business affects your ability to generate revenue.

And we haven’t even touched upon KPIs for marketing, customer service, project management, and others!

You can still track and measure all these by yourself. But as mentioned earlier, you may need help from an agency with a known track record for producing stellar results for eCommerce businesses alike.

In that case, we at Romainberg are your team. We specialize in generating traffic and conversions for your business, which is exactly what your eCommerce site needs.

To learn more about how we can help you, fill out this contact form, and we’ll get back to you shortly.

About the Author

Sam Romain

Sam Romain

Digital marketing expert, data interpreter, and adventurous entrepreneur empowering businesses while fearlessly embracing the wild frontiers of fatherhood and community engagement.

On May 24, 2024, Governor Walz signed the Minnesota Consumer Data Privacy Act (MCDPA) into...
Explore the nuances of choosing between .com and .org for your website. Learn how Romain...
Discover how SEO transforms real estate marketing, with insights from expert Romain Berg. Learn the...
Learn the true timeline of SEO impact with our in-depth article, highlighting the importance of...
Discover the powerful capabilities of Link Whisper in our review, highlighting its AI-driven internal linking...
Discover essential restaurant SEO strategies for enhancing your online presence. Learn how to leverage reviews,...
Discover how to leverage Help A Reporter Out (HARO) to elevate your brand with Romain...
Discover how analytics and tracking elevate pest control SEO, using platforms like Google Analytics to...
Discover the top SEO podcasts for actionable insights and strategies: The SEO Playbook, SEO Unmasked,...
Discover expert strategies to enhance your website's Domain Authority, including acquiring high-quality backlinks, optimizing site...