10 Key Ecommerce Metrics to Track for Success

Your e-commerce website is launched — but are you sure it's actually working? That's where metrics and KPIs come into play. Metrics provide you with raw data (such as sales figures), whereas KPIs indicate to what extent you're achieving target goals (such as reaching $100K/month in sales). Collectively, they reveal to you what works, and what doesn't, and how to do better.

Why monitor them?

Monitoring ecommerce metrics enables you to:

1. Understand customer behavior
2. Enhance conversions and retention
3. Optimise marketing spend
4. Plan for long-term growth

Now, let's consider the 10 most significant e-commerce metrics every company must monitor.

1. Conversion Rate - % of visitors who make a purchase.

Objective: Boost by streamlining checkout, enhancing design, and fixing barriers such as shipping fee.

Formula: Conversions ÷ Total Visitors.

2. Bounce Rate - % of visitors who depart after one page.

Objective: Maintain low with compelling content, enhanced CTAs, and excellent product photography.

Formula: Single-page visits ÷ Total visits.

3. Customer Acquisition Cost (CAC) - What you pay to bring in each customer.

Aim: Reduce it through more effective targeting, automation, and personalized marketing.

Formula: Marketing Spend ÷ New Customers.

4. Customer Lifetime Value (LTV) - What a customer spends during their relationship with you.

Aim: Increase through loyalty schemes and personalized offers.

Formula: (Avg. Order Value × Purchase Frequency) × Customer Lifespan.

5. Retention Rate - % of return customers.

Goal: Grow with excellent service, quality products, and reward programs.

Formula: (End Customers – New Customers) ÷ Start Customers.

6. Add-to-Cart Rate - % of carting visitors.

Goal: Enhance with intuitive CTAs, competitive prices, and swift carts.

Formula: Add-to-carts ÷ Total Visitors.

7. Cart Abandonment Rate - % of buyers who add to cart but fail to purchase.

Goal: Lower by streamlining checkout and reducing surprise fees.

Formula: (Carts – Purchases) ÷ Carts.

8. Average Order Value (AOV) - Avg spend per order.

Target: Increase with bundles, cross-sells, and free shipping thresholds.

Calculation: Revenue ÷ Orders.

9. Return/Refund Rate - % of returned products.

Target: Decrease with correct product information, AR/VR previews, and improved quality checks.

Calculation: Returns ÷ Total Sold.

10. Website Traffic - Number of people visiting your site.

Target: Increase organic traffic with SEO while balancing paid campaigns.

Calculation: Compare month-to-month visit growth.