How ECommerce KPI Metrics Reflect Your Business Health ConnectPOS Content Creator September 23, 2023

How ECommerce KPI Metrics Reflect Your Business Health

ECommerce KPI Metrics

In order to run businesses effectively without any drawbacks or hindrances, retailers should measure every aspect of the business field. In the same way, ECommerce KPI Metrics should be taken into account as a necessary factor supporting retailers to gain more revenue and profits.  

Yet, before thinking of increasing revenue, let’s first learn what metric and KPI are.

What are Metric and KPI?

Metric is a measurable aspect of the website performance such as google analytics, online stores, homepages and product pages, shopping carts, social media etc.

KPI (Key Performance Indicator) is a metric itself, which precisely measures how businesses are successfully implementing the key component or developing. For instance, orders are KPIs used to evaluate critically important figures.

Main key differences between the Metrics and KPIs


  • Track the status of a business process.
  • Be extracted and organised by the process.
  • Can be viewed historically, but do not identify further actions.
  • Be static, once extracted and do not change.


  • Provide information whether retailers have achieved a predefined business target.
  • Be initiated by high-level decision makers.
  • Include goals and objectives.
  • Can be evaluated and reset over time using SMART methodology.

Retail businesses should track and measure eCommerce KPI Metrics in order to greatly understand how well the business is doing. This also helps businesses to spot performance changes over a period of time. Ecommerce KPI Metrics Calculation is important to keep retailers aware of the product problems. As a result, retailers can explore and fix the underlying root cause in advance.

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How often should retail businesses check eCommerce KPI Metrics?

ECommerce Analysis is conducted on a timely basis to keep close track of strategic business goals

  • Weekly:  check on a weekly basis,  based on social media engagement and website traffic.
  • Bi-Weekly: check within weeks, based on figures like shopping cart abandonment. 
  • Monthly: check within months based on marketing patterns, email open rate, multichannel engagement.
  • Quarterly: measure long-time activities such as subscription rate, customer lifetime value etc.

Some Valuable ECommerce KPI Metrics

Here are a few eCommerce KPI Metrics retailers need to track when running a business.

  • Shopping Cart Abandonment Rate

This figure details how many people added something to their cart before leaving the site without making a purchase. Shopping Cart Abandonment Rate can be measured in several ways to check for any troubleshoots in the site or cart process before the checkout process.

  • Conversion Rate

The conversion illustrates how well stores convert visitors into paying customers. Conversation of sales is also very important for determining how much traffic is required to generate the target sales.

Retailers can put this eCommerce KPI Metrics in comparison to determining problems and how to improve 

Conversation rate

  • Cost of Customer Acquisition

Retailers have to invest a certain amount on email campaigns as well as other marketing efforts, in order to drive more traffic and sales. In order word, this amount is for acquiring customers. But if the cost of campaigns exceeds the total profit, then it’s not a good sign.

  • Customer Lifetime Value

Certainly, retailers earn a significant proportion of revenue from royal customers. As a result, it is a must that retail businesses take this value into account.

  • Average Order Value
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This value is the average price that customers pay for their products. And it is also related to the measurement of marketing efficiency. This KPI Metrics can be increased by selling add-ons, loyalty programs etc.

  • Gross Profit Margin

Gross Profit Margin

All in All

ECommerce KPI Metrics support retailers to track the profit margin and illustrate how well you have managed your costs. Gross profit margin is the difference between the price of a product and the Costs of Goods Sold (COGS). By calculating this, retail businesses will be noticed mindful of unprofitable pricing and sourcing strategies. In short, eCommerce KPI Metrics help retailers quantify the most crucial and essential aspects of their businesses in order to gain a decent turnover in your business.

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