Key Metrics Every E-commerce Business Should Track

Why is metrication important in a business operation? It is only by using key metrics in e-commerce that you can assess if your business is succeeding or not. What do you need to measure in your e-commerce operations to ensure that you are doing it right? There are several aspects of your online business that you need to measure to increase ROI. Read on to see the most important facets of your e-commerce operation that you must regularly watch out for.

Income or Revenue Growth

The very first key metric of your e-commerce operation is revenue growth. An increase in revenue from the day you started means you are on the right track. Although that is just one consideration, it is a very important one. You’re in business to make money. Therefore if money is coming in, you must be doing something right.

However, it is not enough to know that you are getting revenue. If you really want your e-commerce to succeed, you need to understand where and how your revenues are coming in. In this regard, there are several things you must assess in your revenue streams.  

  • Income per product – if you have several products in your line-up, you need to know which one sales the most and which one is producing the greatest profit. Most often, these products are not the same. Knowing this detail will help you decide as to which product you must concentrate on and which product you need to put in the back-burner.
  • Income per device – most modern consumers use electronic devices, i.e. laptops, PCs, mobile phones, tablets, etc. when using e-commerce sites to buy their needs. Which of these gadgets do your buyers use when buying your products?
  • Income by source of traffic – what are the channels used by your buyers in ordering your products? Which of these traffic sources are producing the most income?  
  • Income by promotional campaigns – are you conducting different marketing campaigns in promoting your products? Which one produces the most gain?
  • Overall Income – to get the overall picture of your success in e-commerce, you need to gather all these sources of income and you will see if you are making money or not.

Average Order Value

The AOV will help you see where you need to divert your marketing efforts to ensure the growth of your e-commerce business. This metric will also help you assess a customer’s lifetime value. If you are using good analytics, you will also be able to differentiate your company’s AOV by promotion or by channel. This will help you see which of the two is producing the most sales. You will also be able to design your marketing strategies through careful analysis of your AOV.

Search Performance in Google

Like it or not, all roads lead to Google. More likely than not, new customers were able to find your company or your product through a Google search. So, how is your product performing in Google searches? This is one metric that you should use because it shows how effective your SEO is.

There are certain keywords and key phrases that you must use to land in the top slots of any Google search regarding your line of products. Here are some things that you need to consider:

  • Number of clicks – how many people clicked on the links directing to your website?
  • Number of impressions – how many times did your website showed up in Google searches?

Customer Acquisition Cost

CAC is very important because it shows you how much you spent in acquiring your customers. By dividing the total amount that you spent in your marketing campaign by the total number of customers that you were able to acquire during the campaign period, you will be able to arrive at your CAC. This will help you see if your marketing campaign is expensive or not.

Sales Conversion Rate

You need to know your SCR to determine if your website or marketing campaigns are effective or not. SCR is calculated by the number of customers who ordered your products by the actual number of visitors in your website. But if those additional visitors don’t sign up for orders, then your campaign is not successful.

Number of Transactions

You must have a tracking system that will record the number of transactions in your website every hour, every day, every week and every month throughout the year. This will show you the trends in customer sales that you can take advantage of.

Retention Rate of Customers

You should also know how many customers you are able to retain over a period of time. There are three types of customers, regular users, one-time user and non-user. If the data shows a higher percentage of regular users of your products, then you are doing it right.


Tracking these key metrics in your e-commerce business is very important, regardless of its size. If you have this information, you will be able to take advantage of the trends that you may uncover. Knowing these trends will therefore help you improve your overall revenue.

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