14 Crucial Ecommerce KPIs You Need to Track | Flowspace

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Do you know which ecommerce KPIs are the most important for your business?

If not, you're not alone. Many ecommerce brands track the wrong KPIs, or they don't track them at all. This can lead to missed opportunities and poor decision-making. Ecommerce businesses need to track a variety of key performance indicators (KPIs) in order to measure their success and make informed decisions about their marketing and operations. This blog will look at 14 of the most crucial ecommerce KPIs for brands to track.

Most Essential Ecommerce KPIs

Some of the most essential ecommerce KPIs include conversion rate, average order value (AOV), customer lifetime value (CLTV), net profit, and customer acquisition cost (CAC).

Conversion Rate

Conversion rate is the percentage of website visitors who take a desired action, such as making a purchase. It is a critical KPI for ecommerce businesses because it shows how effective their marketing and sales strategies are. Conversion rate can be calculated by dividing the number of conversions by the number of website visitors. For example, if a website has 100 visitors and 5 of them make a purchase, the conversion rate would be 5%. Conversion rate is important for ecommerce success because it is a direct measure of the effectiveness of a business's marketing and sales efforts.

Average Order Value (AOV)

Average order value (AOV) is the average amount of money that customers spend per order. It is a valuable sales KPI for an ecommerce business because it can help them understand how much they are making from each customer. AOV can be calculated by dividing the total number of sales by the number of orders. For example, if a business has $10,000 in sales and 100 orders, the AOV would be $100. AOV is important because it can help businesses understand how much they are making from each customer.

Customer Lifetime Value (CLTV)

Customer lifetime value (CLTV) is the total amount of money that a customer is expected to spend with a business over their lifetime. CLTV can be calculated by dividing the total revenue from a customer by the number of years that they have been a customer. For example, if a customer has spent $1,000 over 5 years, their CLTV would be $200. CLTV is important because it can help businesses understand how much money they can expect to make from each customer over their lifetime.

Net Profit

Net profit is the amount of money that a business makes after all expenses have been taken into account. It is the most important ecommerce key performance indicator for businesses because it measures the overall health of the business. Net profit can be calculated by subtracting all expenses from the total revenue. For example, if a business has $100,000 in revenue and $50,000 in expenses, their net profit would be $50,000.

Customer Acquisition Cost (CAC)

Customer acquisition cost (CAC) is the cost of acquiring a new customer. It is a valuable metric for ecommerce brands because it can help them understand how much they are spending to acquire new customers. CAC can be calculated by dividing the total cost of acquiring new customers by the number of new customers acquired. For example, if a business’ ad spend is $10,000 to acquire 1,000 new customers, their CAC would be $10.

Additional Important Ecommerce KPIs

There are a number of other important KPIs that ecommerce brands should track.

Cost per Acquisition (CPA)

Cost per acquisition (CPA) is the average amount of money that an ecommerce store spends to acquire a new customer.

Cost of Goods Sold (COGS)

Cost of goods sold (COGS) is the direct cost of producing the products that an ecommerce business sells.

Return on Ad Spend (ROAS)

Return on ad spend (ROAS) is the amount of revenue that an ecommerce business generates from each dollar spent on advertising.

Shopping Cart Abandonment Rate (SCAR)

Shopping cart abandonment rate (SCAR) is the percentage of shoppers who add items to their shopping cart but do not complete the checkout process.

Product Performance KPIs

Product performance KPIs track the performance of individual products, including sales and revenue.

Basket Level Performance

Basket level performance tracks the composition of customers' online shopping carts.

Net Promoter Score (NPS)

Net promoter score (NPS) is a customer satisfaction metric that measures how likely customers are to recommend a business to others.

Non-Branded Product Performance

Non-branded product performance tracks the performance of products that are not the business's own brand.

Device of Choice

Device of choice tracks the devices that customers are using to shop online.

Optimize Your Ecommerce KPIs with Flowspace

Flowspace helps ecommerce businesses improve their KPIs with best-in-class fulfillment management solutions. Flowspace provides scalable ecommerce logistics services and software, real-time visibility and analytics, and a flexible, nationwide network of top-notch warehouse and fulfillment facilities. Contact Flowspace today to learn more about how we can help you improve your ecommerce KPIs!

Last Updated

September 28, 2023