11 Online Store KPI Metrics to Track and How to Calculate

Online stores that don’t properly track and analyze their Key Performance Indicators (KPIs) will inevitably fail. For this reason, it is essential to have systems in place that can measure the performance of your online store. Here are some of the most important KPIs for eCommerce websites:

1. Count online store visitors

The number of visitors or sessions is the total number of unique visitors to your store. This metric can be broken down into different segments, such as average daily and monthly visits.

You can calculate the number of visitors per day by taking the total number of visits for a specific period (week, month, or year) and dividing it by the number of days during that period.

For example: if there are 1000 visitors in a week and 7 days this week, there will be an average of 143 visitors per day (1k/7).

If you have a large store with thousands of visitors, it’s best to break down the number of visitors into different segments.

2. Online store conversion rate

Conversion rate (CR) is a measure of how many people who visit your online store make a purchase. It’s not just the number of sales, but it also includes abandoned carts and returns. To calculate the conversion rate, divide the number of total purchases by the total visitors to your site:

Conversion Rate = Total Purchases / Total Visitors * 100

A good conversion rate is 2% or more.

3. Number of orders

The number of orders is a key metric to track in an online store. It can be found in the sales section of your admin panel and can be broken down by product, category or date range.

The more orders you receive, the better it is for your business. This number gives you an idea of how your business is doing on a daily, weekly, and monthly basis – helping you determine if you need to change your pricing structure or add more products to the website.

The more orders you receive, the better it is for your business. This number gives you an idea of how your business is doing on a daily, weekly, and monthly basis – helping you determine if you need to change your pricing structure or add more products to the website. In order to get more orders, you must have a good product and price it correctly. You also need to provide your customers with excellent service and fast delivery times.

4. Average Order Value (AOV)

Average order value is the average amount spent by a customer per order. AOV can be calculated by dividing the total revenue for a given period by the number of orders received during that period.

AOV is also known as average order value, and it is an important metric for e-commerce businesses. This metric helps businesses understand how much they earn on each order and which products are the most profitable in their inventory.

A higher AOV is good, but it can also be dangerous if your pricing strategy is not in line with the value of what you are selling. It is important to ensure that your prices are fair and competitive while being profitable. If your AOV is too low, it may be time to raise prices or offer discounts on certain products.

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5. Customer Lifetime Value (LTV)

Customer Lifetime Value (LTV) is the average value of a customer over their lifetime. It is calculated by multiplying the average order value by the number of orders made by a customer.

You can use LTV to predict future revenue and compare different marketing channels.

It is important to note that LTV is not the same as CAC. CAC is how much it costs you to acquire a customer, while LTV is how much it is worth over time.

Understanding LTV is one of the most important things you can do as a business owner. This is how you measure the ROI of your marketing efforts and determine the most effective channels.

6. Customer Acquisition Cost

Customer acquisition cost is a metric that measures how much you spend to acquire a new customer. The math is simple: divide your total customer acquisition cost by the total number of customers acquired in a given time period.

For example, if your business spends ,000 on PPC ads and gets 10 new customers from them, its CAC would be 0 (,000 divided by 10).

You can use this metric to compare different marketing channels and make strategic decisions on where to focus time and money. You’ll also want to track it over time; Once you have enough data points for comparison, you can compare your previous months’ performance against current results for insight into customer acquisition cost trends across different campaigns or channels.

7. Repeat purchase rate

Repeat purchase rate is a measure of how often customers make repeat purchases. This metric is important to track because it indicates how well you are satisfying your customers and encouraging them to come back for more. It’s also a good indication of customer loyalty, which can help you identify areas for improvement and develop strategies to improve retention rates. You can calculate the repeat purchase rate by dividing the number of repeat orders from the total orders over time.

For example, if 30 out of 100 orders were repeat orders, 30% of your customers placed at least one repeat order in the last month. If this number seems low, there may be issues with your offer or service offering that need to be addressed before you can boost it significantly!

8. Return of Ad Spend (ROAS)

Return on Ad Spend (ROAS) is the ratio of revenue generated by an ad campaign divided by the total amount spent on that ad campaign. This is a key metric for online stores as it helps determine if the money spent on advertisements is worth it.

How to calculate Roas for e-commerce?

In order to calculate Roas for your e-commerce business, you must first determine the amount of revenue generated by the ad campaign. This can be done by adding up all the money spent on advertisements and dividing it by the total amount of sales made during that time period.

For example, if you spend ,000 on ads and make ,500 in sales during that time, your ROAS would be 2.5x. This means that for every dollar spent on ads, your e-commerce store earned .50 in revenue.

9. Gross Margin Percentage

Gross Margin Percentage is the difference between your cost of goods sold and your revenue. It is calculated by dividing gross profit by revenue. This metric is an indicator of profitability and can help you determine if you are charging enough for your product or service relative to its value.

For example, if a business has 0,000 in sales, ,000 in COG (cost of goods sold) and ,000 in net profit or profit; then its gross margin would be (0,000 – ,000) / 0,000 = 15%.

10. Percentage of net profit

Net profit percentage is the ratio of net profit to revenue. This shows how much of your revenue was profit compared to total revenue.

Net profit is the money left over after all deductions and expenses have been paid for a certain period of time. Net income is calculated by subtracting all expenses from income and then dividing by income.

To calculate the net profit percentage, divide your net profit by your total sales:

,000 / ,000 = 0.05 or 5%

11. Stock turnover

If you run an e-commerce business, then stock turnaround is a metric you should be tracking closely. It can give you insight into how your business is doing and help you make decisions about future growth strategies.

Inventory turn is simply the ratio of sales to average inventory on hand. This means that while it takes 10 days for each item to sell (the time between when an item arrives in your warehouse and when it leaves), your inventory turns over once every 10 days.

The more customers buy from your store per year, the more money they will spend with you – and understanding this relationship is key if you want to maximize revenue growth in every way possible.

Takeaway: There are a few key online KPI metrics to track in order to get the right insights

In this article, we’ve covered key online store KPIs to help you get a better idea of where your business stands. To calculate these measurements, use a spreadsheet like Google Sheets or Excel.

Remember that it’s important to track these metrics regularly and consistently so you can analyze them with each other and make decisions based on the data. These are just some of the most important online KPIs that will help you measure the performance of your online store.

Conclusion

Now that you know the important metrics to track, it’s time to start tracking them in your own business. You can use any of these metrics as part of your online store analysis, or just choose one to start with. To make it easier for you, we’ve created an Excel KPI tracker template that includes the nine key metrics listed above (and many more). Download the template here and start analyzing your online store data today!