eCommerce Tips & Trends

7 eCommerce Metrics You Should Be Tracking

Taking the time to monitor certain eCommerce metrics can give you good insights into the overall health of your business. Here are 7 metrics every seller should pay attention to!
7 eCommerce Metrics You Should Be Tracking

By Jules


September 14, 2018

eCommerce metrics are the standards of measuring the progress of your eCommerce business. You can evaluate where you stand and when you should expand your business.

You can also evaluate where you have gone wrong and which aspects of your business need your attention. eCommerce KPIs (or Key Performance Indicators) are for the same purpose as well. Without these indicators, you cannot understand if you are performing well or if you need to work more on one aspect of your business.

There are similar evaluation standards for retail as well. Retail metrics are different from eCommerce metrics as the business processes differ. But the basic concept is that it's an evaluation of performance to measure success and make decisions accordingly.

How to evaluate eCommerce metrics and website KPIs

Website KPIs and eCommerce metrics can be evaluated by using many tools. The most popular tool is Google Analytics, but there are many other alternatives as well.

Alternatives include: SE Ranking, Matomo (formerly Piwik), Kissmetrics, and Woopra.

Key performance metrics you should keep track of

When running an eCommerce store, it's advised to constantly keep track of the following metrics to ensure you are going in the right direction:


The most basic metric - all online stores need site traffic to make sales.  Traffic is measured as the number of people visiting your website.

It is important to track the traffic of your website because you should know if your traffic is organic, referral, or through social media campaigns that you run. This would guide you into channeling your efforts to increase traffic.

Site traffic can be increased by doing the following:

  • Starting a referral program
  • Advertising more
  • Using social media
  • Starting a blog

Conversion Rate

Getting a lot of traffic is exciting, but it won’t be useful if it's not converting into purchases. This is where the conversion rate comes in. You need to know how many visitors actually buy, and if they don’t, then why.

You should check how many visitors add products to carts, how many of those reach the checkout, and how many actually make the purchase. These metrics will enable you to understand how and why they drop at each step.

You can improve your conversion rate by doing the following:

  • Make the process as easy as possible by keeping the number of fields that need to be filled in at a minimum
  • Add a guarantee (such as a good return policy) to build trust
  • Keep your product description clear, easy to understand, and with testimonials to win the customer's confidence

Average Order Value (AOV)

This eCommerce metric calculates the average amount of money spent by each customer per purchase through your eCommerce store. It is important because it lets you monitor the performance of the items by customer order.

You can easily calculate it by dividing sales revenue by the number of orders for each item.

You can increase the average order value by offering product bundles, coupons, and cross-selling.

Customer Acquisition Cost (CAC)

The customer acquisition cost is how much it costs to acquire a new customer, based on your marketing spend. This is important so you can evaluate if your marketing spend is paying off. This metric will also guide your overall marketing strategy and plan.

You can reduce the customer acquisition cost by doing the following:

  • Work on increasing your website conversion rate
  • Be aware about where you spend your money, as your marketing budget is an investment
  • Be specific and precise about targeting markets and buyers

Customer Lifetime Value (LTV)

Customer lifetime value (or LTV) is the profit that you earn from a single customer. It's an important metric because it will give you insights about which customers will bring you the maximum revenue, allowing you to focus your attention towards them.

You can easily estimate this by calculating the average order made by a customer, the customer return rate, and the cost of customer acquisition.

You can improve customer lifetime value by re-engaging with the customer, giving personalized service and good communication.

Total Sales

Total sales are calculated by counting the amount of revenue you earn against your total expenses. This eCommerce metric is very important as it shows the overall health of business.

To increase your total sales figure, focus on the following:

  • Increase the number of customers or conversions
  • Increase the frequency of purchase made by each customer
  • Increase average order value

Cart Abandonment Rate

Your cart abandonment rate is the number of times visitors start to make a purchase but change their mind and leave without making a payment.

There are a few aspects that affect cart abandonment, and the most common one is shipping. Many times, unexpected shipping costs is the main reason customers choose not to complete their purpose.

You can offer free shipping or flat rates, though long term this is not sustainable for small businesses.

Instead, consider implementing a dynamic checkout that shows calculated rates based on the location of the customer. Easyship's Rates at Checkoutplugin can offer this feature, in addition to showing duty, tax, and additional fees for full transparency on pricing.

You can also work on decreasing cart abandonment by providing a guest checkout option, or using cart abandonment emails to encourage customers to complete their purchase.

What are the eCommerce metrics that you consider important? Let us know in the comments below!