30+ Ecommerce KPIs To Track Your Online Business 2023
Updated on November 14, 2022 in Ecommerce by Nishant Shrimali
An eCommerce KPI stands for Key Performance Indicator of eCommerce, which simply means it is an indicator to measure the growth or the decline of a particular performance sector.
To understand an eCommerce KPI, let us understand why eCommerce KPIs are important.
Why are KPIs important in the first place?
If you are running an eCommerce business offline or online you have various things to take care of. Talking about eCommerce, you shall see the number of visitors, number of clicks, how many sales have happened and the list goes on.
In order to narrow down the overall indicators to see if or not the eCommerce is achieving its daily, weekly, monthly, or yearly goal we use Key Performance Indicators to measure the growth or decline of the eCommerce.
What are the KPIs to measure eCommerce?
There can be ‘n’ numbers of the KPIs to measure eCommerce success. Hence in order for you to understand every indicator in a much better way we have divided them into four categories. You can free jump to your respective category but we would recommend you to learn every eCommerce KPIs as we go along.
KPIs to measure sales
You can use the following KPIs to measure eCommerce
1. Average Order Value
The Average Order Value or AOV shows on average how much a customer would spend on one single order on your eCommerce.
| AOV = Total Revenue / Number of orders. |
2. Gross Profit
It is the actual profit of the eCommerce after the deduction of the cost, hence it is among very important KPIs for eCommerce.
| Gross Profit = Total Revenue generated – Cost of the Goods Sold |
3. Conversion Rate
This determines how much percentage of visitors on your site have actually bought from your eCommerce and have become your customer.
| Conversion Rate = (Total number of conversions/ Total Number of Clicks or Visitors on Website) x 100 |
4. Cart Abandonment Rate
This eCommerce KPI determines the percentage of visitors who have added the product to the cart for buying but for some reason left without making a purchase.
| CAR = (Total number of Transactions completed / Total Number of items that were added to cart) x 100 |
5. Cart Conversion Rate
This eCommerce KPI shows you the percentage of visitors who actually completed the checkout process by purchasing something from your eCommerce.
| CCR = (Total Conversion/Total number of visitor) x 100 |
6. Cost of Goods Sold
This tells you the amount you are spending in order to sell a product. This includes manufacturing cost, transportation cost, etc.
| COGS = Cost of production + costs of Beginning an Inventory (for the year) + Cost of Additional Inventory |
7. Customer Lifetime Value
This eCommerce KPI determines how much have a customer has been worth to you. Knowing this will allow you to focus on your valuable customer and increase the number of them by running customer loyalty programs such as Amazon Prime.
| CLV = (Annual profit contribution of a customer x Average Number of Year as Customer) – the Initial Cost of Customer Acquisition |
8. Customer Acquisition Cost
This tells you how much you are spending to get one customer. This allows you to judge your marketing efforts and work on it.
| CAC = Costs Spent on Acquiring Customers / Number of Customer Acquired |
9. Repeat Purchase Rate
It tells you the rate at which the customers returned to your site again after making a purchase to make a purchase.
| RPR = Number of purchases from repeating customer / Total number of Purchases |
10. Average Profit Margin
It is used to calculate your profit margin over a specific period of time.
| Average Profit Margin = Gross Profit / Revenue |
11. Revenue Per Click
This eCommerce KPI is the average revenue for each click. It is used in pay-per-click to determine the value.
| RPC = Revenue / Total Number of Clicks |
12. Purchase Frequency
Purchase frequency is an eCommerce KPI that tells you at what rate a customer has purchased from you in a particular time frame.
| Purchase Frequency = Total Number of Orders / Total Number of Unique Customer |
13. Time Between Purchases
This is an extension to Purchase frequency to calculate how long a customer goes before making another purchase.
| Time Between Purchases = 365 / Purchase Frequency |
KPIs to measure marketing
1. Website Traffic
This eCommerce KPI tells you about the total number of users visiting your website.
2. Average Session on the Website
It is the average amount of time that a visitor spends on your site in a single visit.
| Average Sessions = Total Session Duration / Total Number of Sessions |
3. Pageviews per Session
This KPI tells you the average number of website pages that your visitor viewed during each visit. If it tackles too many pages for a visitor to find the right product, then it is a negative signal.
| Pageview per Session = Total Number of Pageviews / Total Number of sessions |
5. Average CTR
It is the total click count divided by the total impression amount. If CTR is low you need to improve your Title and Meta Tag.
| Average CTR = Total Number of Clicks / Total number of Impressions |
6. Email List Growth Rate
The Following eCommerce KPI tells you about the growth of your email list, depending on the subscribed and the unsubscribed emails.
| Email List Growth Rate = {(Total Number of New Email Subscribers – Total Number of Email id’s who Unsubscribed) / Total Subscribers } x 100 |
7. Email Bounce Rate
It shows you the percentage of emails sent which were unsuccessful, i.e. not delivered successfully to the recipient’s inbox.
| Email Bounce Rate = (Total Number of Emails that Bounced / Total Number of Emails Sent) x 100 |
8. Email Open Rate
The percentage of the recipient who opened your email. If this is low, either your mails are going to spam or you need to improve your subject line.
| Email Open Rate = {Number of Unique open / Total Number of emails that were successfully sent) x 100 |
9. Email CTR
This is the percentage of the email recipients who clicked on the links which you have added to your email. If it’s high, your campaign was successful.
| CTR = (Total Number of Clicks individually / Total Number of Email that was Open) x 100 |
10. Subscribe Growth Rate
The percentage at which your email subscriber list is growing.
| Subscriber Growth Rate = [(Number of Current Subscribers – Number of Past Subscribers) / Number of Past Subscribers ] x 100 |
11. Pay-per-Click
If you are running an ad on a search engine or social media, it shows you how much you are spending per click.
| PPC = Total Cost of Advertising / Total Number of Clicks that the ad got |
12. Cost Per Conversion
The cost that you are paying to convert one visitor into a customer.
| CPC = Total Cost To Generate the Traffic / Total Number of Conversions that happened through that traffic |
13. Customer Retention Rate
The following eCommerce KPI shows you the percentage of returning customers who visited your site and bought something.
Customer Retention Rate = [(Total Number of Customers That were at the End of a Particular Period – Total Number of New Customers during During That Same Period) / Total Number of Customers that were at the Start of That Particular Period] x 100
14. Bounce Rate
Another very important eCommerce KPI would be Bounce Rate, this shows you the rate at which people clicked on your page but left without even reading it or even before it loaded. The goal should be to keep the bounce rate low.
| Bounce Rate = one-page visits [landing page] / Total website visit |
KPIs to measure Customer Service
In eCommerce, when you take the reviews from your customer it helps you to see how well the site is performing for the clients. In order to make it streamline you can use a rating process and use the following eCommerce KPIs to measure your success.
1. Customer satisfaction
This shows you how satisfied your customers are, based on the ratings that they have given.
| CSAT = Addition of all Scores out the ratings / Total Number of Ratings you got |
2. Net Promoter Score
This firmly shows you how many of the customers who rated you are going to promote you. Most preferably you can dissect the rating in the following segments.
- Promoters = People who responded by giving 9 or 10 Score
- Passive = People who responded by giving 7 or 8 Score
- Detractor (who might accuse you) = People who responded by giving 0 or 7 Score
3. Customer Service Email Count
It is the total number of emails that your customer support team received from your customers.
4. Average Complaint Resolution Time
It is the average time taken by the customer support team to resolve a problem.
5. Refund Return Rate
The percentage at which your eCommerce has to refund or accept the Reuters from the customer. This directly means you are unable to fulfill the customer expectations.
| RR = [(Current Value of the product – Original Value of the product) / Original Value of the product] x 100 |
How to use KPIs to measure eCommerce success
All the eCommerce KPIs that we have discussed above play a very important role in mapping your road to success. But in saying so, you have a bulk of options that might just confuse you if not used.
Hence it is very important for you to use KPIs in a beneficial way. Here’s how you shall use the KPIs to measure eCommerce success.
1. Choose only Relevant KPIs
As said, you have a bunch of KPIs. So this becomes very essential to prioritize the few important KPIs that you would be tracking.
Now that you are running an eCommerce, your KPIs will be dependent on the Sales, Cost, and return. Moreover, the marketing would broadly depend on the Impressions, CTR, Bounce Rate, etc.
All this will surely be hand-in-hand, but in order to have a better idea of your growth rate, you need to pick only a few and work on improving them.
2. Measure your KPIs accurately
The worst possible mistake that you can do is not measuring your eCommerce KPI right. Firstly, you would find most of the calculations are already done. You need not have to take on this extra work.
But if you have to perform some calculations, do bookmark this article and cultural the eCommerce KPI, the way we discussed.
3. Set a Goal
If you are measuring the eCommerce KPI, you do need to have a goal that you are working towards. Not only will it bind your team but would also direct them towards the steps they need to carry out in order to achieve that goal.
And with this, we conclude this ultimate eCommerce KPI that you can to grow your eCommerce. If you are looking for more regular insights in your inbox, subscribe to PixelPhant free newsletter below.
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