Ecommerce is all about numbers, and not just those sales figures either. There are a number of eCommerce metrics your need to get to grips with to run a successful eCommerce operation.
These metrics can give you a baseline from which to measure your progress and the data on which to base important decisions.
Here are twelve of the most important eCommerce metrics to start tracking now.
This is eCommerce 101, how much money is your business bringing in.
OK, so you know how many people buy from your site, but do you know home many people visit it in the first place. Your conversion rate is the total number of sales divided by the number of site visitors. Your activities need to concentrate on not only attracting visitors to the site but converting these visitors into paying customers.
How many transactions are you completing for various products? With high-priced items, a small number of transactions can still bring in a lot of revenue, whereas low-cost items need higher numbers of transactions in order to be considered a success.
AOV – Average Order Value
Do you know how much the average spend is per transaction on your site? Are people checking out with a single item or filling up their shopping cart? To arrive at this number, divide your revenue by the number of orders in a given period.
Most Popular Products
Do you know what your most popular product is right now? Has it always been a best seller or is it seasonal?
CAC – Customer Acquisition Cost
How much money do you spend attracting a customer to your site and converting them? By adding together marketing costs and costs of sales together and dividing that by the number of customers, you can calculate your CAC. The aim is to get this number as low as possible.
CRR – Customer Retention Rate
Do your customers keep coming back for more or do you part ways after a single transaction? Retaining customers is vital to the long-term success of a business. To calculate your retention rate divide your number of returning customers by the total number of customers (over a given period) and multiply the result by 100.
CLV – Customer Lifetime Value
From their very first purchase from you to their last, how much is a customer worth to your business. You want this number to be as high as possible, as it means that customers are buying from your over and over and spending more money. To find out this figure, take the average order total and multiply by the number of purchases, then multiply this by the average length of customer lifetime.
Abandoned Shopping Cart Rate
How often have you visited a website and added things to the shopping cart without checking out? It’s pretty common, but it’s a nightmare for an eCommerce business owner. Find out this rate by dividing the number of completed orders by the number of shopping carts created.
How much profit do you make off each item that you sell? To find out this figure, subtract your costs from your revenue and then divide by your total revenue.
Organic Search Performance
Organic search is key to doing well in your eCommerce business. But what are people searching for when they come across your site? By conducting a thorough SEO analysis, you’ll be able to pinpoint what your target market is looking for and place yours
When people visit your website, where have they come from? Have they clicked on an ad, types something into a search engine, or found you on social media. It’s important that you know this so you know where to direct your marketing resources. In some instances, you might want to put the budget behind your best-performing sources of traffic or use it to improve the underutilized ones.
We hope you found this run-down of important eCommerce metrics useful. At Shipjoy, we work with some amazing businesses, by helping them with their fulfillment and logistics needs. If you’d like to know more about the types of companies we work with, head over to our Facebook page and read some of the great reviews that our customers have left.
If you’d like to discuss how we can help you, then get in touch with a member of the team today.