5 eCommerce Metrics to Track for Analyzing the Performance of Your Business

  • author-img Kamlesh
  • 2 years
5 eCommerce Metrics to Track Business Performance

Launching an eCommerce business is tough but scaling it is tougher. Especially if you don’t know what works in the eCommerce industry and how you should measure the performance of your business.

It is crucial to analyze the eCommerce business performance over time so as to drive growth but it is even important to determine and scrutinize the right metrics.

No doubt, it can be overwhelming for online retailers to find and analyze everything while managing an online business. Thus, in this article, we will list the most-important eCommerce metrics that can help you improve your conversion rate and grow sales. So, let’s get started.

eCommerce Metrics to Analyze for Growth

Doesn’t matter how big or small your business is, everybody’s ultimate objective is growth for which you need a complete overview of your business.

The eCommerce KPIs listed below will help you see the overall picture of where your business stands so that you can focus on improving the right thing and ignore the one that isn’t doing anything good.

1. Conversion Rate

This is the most important eCommerce metrics to track as it will have a direct impact on the revenue your business generates.

With eCommerce becoming a highly competitive industry, it is tedious to attract qualified leads that result in conversions. No doubt why cart abandonment is becoming a huge problem for online sellers. They get tons of traffic each day but no sales.

As a result, the conversion rate for eCommerce is less than 5% in all industries, as per Statista.


Here is a formula to calculate the conversion rate of your online store:

Conversion Rate = Total number of customers/Total website visitors * 100

Every retailer must calculate the conversion rate their eCommerce website is generating to have an idea of what return they are getting if they are spending money on marketing.

Check out our guide to improving conversion rates of your eCommerce website. Hope it helps!

2. Average Order Value (AOV)

Another eCommerce metric that impacts business growth is average order value. It is defined as the average amount of money spent on each order of your store.

There are various effective ways to improve these metrics but it is crucial to calculate it in the first place. Higher AOV means more sales and profits. And here is how you calculate AOV:


If you persuade your customers to add more items to their cart before finalizing the purchase, you will have a higher AOV that will lead to money. Plus, you will save on customer acquisition costs.

You can increase average order value by integrating a robust product recommendation engine on your eStore, implementing loyalty programs, and providing free delivery on products above a certain price (your AOV).

3. Shopping Cart Abandonment Rate

It is also known as the biggest problem of online retailers. Cart Abandonment is defined as customers leaving their carts without completing the purchase. Any product that is added to the cart but never makes it to the purchase is considered “abandoned” by customers.

In simple words, it is how much sales you are losing. On average, over 75% of customers abandon their carts and leave an online store without completing the purchase.


You can calculate the shopping cart abandonment rate by dividing the total number of orders that are completed by the total number of orders that were initiated. It is essential to optimize your shopping cart abandonment rate as it usually goes higher when your website has any technical or UX-related problem which is not at all acceptable in the eCommerce industry.

4. Customer Retention Rate

Nothing is more rewarding than a repeat customer in the eCommerce industry. You spend nothing on the acquisition and they make purchases, which results in increased revenue. Customer retention rate is the number of shoppers who return to your store after a purchase to buy something else.

It can be calculated as:

Customer Retention Rate = (Total number of shoppers with more than one order / Total number of shoppers) * 100

The key to increasing your customer retention rate is customer satisfaction. If customers like the experience on your website and the overall deal, they will surely come back. Also, you need to establish trust in your brand for getting repeat customers. You can build trust by turning your eCommerce business into a brand.

5. Gross Margin

It is the exact profit you make on top of the actual cost of products you sell. Gross margin means what you earn when you sell a product. Knowing details about your profits is essential to grow and scale your eCommerce business. Thus, you must calculate the gross margin for every product you sell so as to not spend your time and other resources on selling what does not give you a considerable amount of revenue.

Wrapping Up

There is no doubt in saying that eCommerce is a highly competitive industry. And to run a business seamlessly, you will have to keep track of each of the above-mentioned eCommerce metrics carefully. If you are looking to multiply your eCommerce growth, get in touch with experts at Envision eCommerce.

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