Top 15 eCommerce KPIs to track for your Business Growth

Do you spend your advertising budget wisely? Are you overspending on new customer acquisitions? Are your customers devoted to you? Tracking the right Ecommerce KPIs provides you with the data you need to answer these questions confidently. This article will make you aware of important KPIs of the eCommerce industry and their role in making your business successful. 

What is eCommerce KPIs?

Ecommerce KPIs assess how well an online business owner or company performs about its goals and objectives. Keeping track of the right KPIs allows online merchants to make more informed decisions about conversions and revenue. They also help decide on marketing, customer service, and operations of your business.

How to Select the Best Ecommerce KPIs for Your Company?

There are numerous KPIs to track, but not every KPI is critical to the success of your eCommerce store. As a result, when selecting KPIs, you should concentrate on:

  • Your company’s objectives: Choose KPIs that directly impact your bottom line (i.e., net income/net profit) and support your business goals and performance.
  • KPIs that can be easily measured: Choose quantifiable KPIs and provide you and your team with unique insights into the progress and results of your business.
  • Your company’s growth stage: Choose KPIs based on your company’s development stage. Also, some KPIs like growth, maturity, and renewal phase are more important. 
  • KPIs that reflect your reality: It is critical to select metrics based on what is most relevant to your business at the time rather than what is trending.
  • Keep it brief and to the point: Less is more. It’s pointless to track many KPIs that will only confuse you. The best business KPIs provide actionable insights.

15 Most Important Ecommerce KPIs for Growing Your Business


1. Customer Lifetime Value (CLV)

The most important KPI to track is customer lifetime value. It is the sole metric that accurately reflects the overall health of an eCommerce business. CLTV also accounts for conversion rate, average order value, and return customer rate. 

Building a brand connection with a customer is the key to a successful eCommerce business. When you concentrate on CLTV, you shift your attention to increasing the value of each customer by improving their interaction with the brand. Consequently, knowing the extent of revenue generation by a customer for their relationship can help you invest in the right channels.

2. Customer Retention Rate

You can not deny the importance of growing a business and reaching new customers. Companies frequently attribute their long-term success to their customer retention rate. Customers returning for more is a sure sign that your eCommerce efforts are not being wasted. 

It is because repeat customers often refer to new customers. Therefore, companies must monitor their customer retention rates to see if consumers are coming back. It also helps determine what’s driving them to stay or pushing them to leave. In turn, this will naturally affect the interest of new consumers. 

3. Conversion Rate

Without a doubt, the conversion rate is the top KPI for eCommerce websites. The conversion rate is the number of action-taking visitors on your website divided by the total number of visitors. That action could be a sign up, inquiry, account creation, sale, etc. 

Your conversion rate reflects how successful all of your business strategies are in attracting visitors to your eCommerce website. It will also provide you with the strategies that work best for your company and which do not. Hence, a reasonable conversion rate for an eCommerce business is between 1-4%. 

4. Return on Investment (ROI)

If your product generates a positive ROI, you can reinvest your profits in growth, traffic, ads, and conversion rate optimization to scale. Hence, you can continue to improve your conversion rate while decreasing your lead costs to achieve a positive ROI.

5. Annual Repurchase Rate

The annual repurchase rate is the most important eCommerce KPI to monitor. If most of your customers return year after year, you can concentrate on product quality and loyalty. You must have an acquisition-driven business if you have to rebuild your customer file every year. 

If customers keep returning, it means you’re doing something right. According to some experts, a company with loyal customers is more valuable.

6. Average Order Value (AOV)

The average order value is the amount of money spent by a customer per transaction. It’s a critical KPI because it measures how well you capitalize on cross-selling and upselling opportunities. Hence, the most effective way to boost your eCommerce revenue is to increase your average order value.

The greater your AOV, the more money you can spend on acquiring a new customer. Acquisition costs can be incurred through performance, brand marketing, or other means. As a result, you can reach more customers if you increase your AOV.

7. Net Profit

Turning a profit indicates that your foundation is sound, giving you breathing room and allowing you to invest in long-term growth. Through aggressive discounting, digital marketing, and free shipping offers, conversations can be easily increased. However, the bottom line remains the bottom line.

8. Cart Abandonment Rate

Lowering your cart abandonment rate quickly generates more revenue. Consider cart abandonment to be a source of resistance. The page may also appear heavy if there is too much product information, and the product feels less valuable if it has too few features or poor photography. 

Users become impatient when pages take too long to load, or there are too many checkout steps. Hence, users become frustrated and leave when checkout processes are inflexible or problematic. Thus, monitoring each point of friction can aid in the checkout process. They are usually simple fixes that result in quick wins, less abandonment, and more completed sales.

9. Add to Cart Rate

The add-to-cart rate indicates how many of your visitors added a product to their shopping carts. It is significant because it reveals whether you are attracting the right audience. Your business will also benefit if your visitors come to your site with a specific goal in mind.

Also, your products and prices meet the expectations of your target consumers. There is also another metric called shopping cart abandonment rate. 

10. Orders Per Active Customers

Orders per active customer measure the average number of orders that active customers make during a specific period of time. It indicates whether or not a business attracts repeat customers and is directly related to growth and revenue.

11. Return on Ad Spend (ROAS)

Return on advertising spend is an essential metric for eCommerce businesses that use online advertising. It lets you assess how effective an ad campaign is, determining what adjustments you need to make for any given advertising campaign. You can easily track this metric using e-commerce sales dashboard software.

12. Return on Marketing Investment

It defines the culmination of the expenses on labor, tools, and advertising spent across your entire organization versus your revenue. The primary goal of any eCommerce operation should be to maintain a healthy ratio of marketing resources expended versus revenue received. 

13. Average Profit Per Customer

The most important eCommerce KPI is the average profit per customer. The more profit you can make from a customer, the more money you can spend on acquiring that customer. 

For example, if each customer is worth $1,000 to you on average, you can afford to spend less than $1,000 and still be profitable. If a competitor’s average profit is only $200 for every user, they can’t pay anything more than that. But you can pay because each customer experience is worth more.

14. Time on Site

The most crucial  KPI depends on your marketing strategy. It identifies the time required in the manufacturing of a single product. This  KPI allows you to improve production efficiency with valuable insights.

15. Bounce Rate

An important KPI of eCommerce is bounce rate. If many users are quickly leaving a page, you should investigate why. Are they not seeing the desired price or there not enough product images? Are there no reviews or reasons to believe the site? 

The visitors will become more familiar with your company by spending more time on your website. Consequently increasing the chances of a purchase.

Final Words 

Overall we can say that eCommerce KPIs play a very significant role in the success of any business. So, one should invest in an eCommerce dashboard to manage all these KPIs.

Thinklytics will guide you in creating the best eCommerce sales analytics dashboard for resolving your business development queries. 

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