5 Key Metrics for Measuring E-Commerce Success

5 Key Metrics for Measuring E-Commerce Success

The capacity to collect and analyse ecommerce metrics is critical for running a successful online store. Changes in important indicators might alert you to circumstances that require rapid response.

In this section, we’ll go over the ten ecommerce KPIs that any ecommerce marketing manager should be concerned about. We’ll go over what these metrics indicate and why they’re important in developing your marketing approach.

5 Key Metrics To Consider:-

  1. Cost Of Customer Acquisition (CAC)

Customer Acquisition Cost is the overall amount you usually spend to acquire a new customer. This statistic is sometimes known as the “startup killer” because many new businesses begin with considerable sales/marketing expense to get new leads, with a very low number of leads converting, resulting in a highly high CAC. This measure is computed by dividing your overall sales and marketing costs for a certain time period by the amount of fresh customers gained during that time period. Which sales and marketing expenses do you factor in?

  1. Order Value On Average (AOV)

The average order value on your e-commerce site relates to the average transaction. As customer loyalty builds, merchants should seek ways to boost their AOV over time, resulting in increased client lifetime value.

Average order value is a very helpful metric when it comes to measuring your Ecommerce success. Customer loyalty programs, upselling/cross-selling, and internet sales, for example, are all excellent ways to enhance AOV. This is far more cost effective than attempting to acquire new customers or persuade existing ones to buy more frequently.

  1. Bounce Rate

The bounce rate of a website is the percentage of visitors who leave the site (or “bounce”) after seeing only one page. It is closely connected to the cart abandonment rate. Ecommerce has a comparatively high average bounce rate of 45.7 percent. If your website has an exceptionally high bounce rate, it may suggest a number of major issues with your user experience.

The bounce rate is determined by dividing the overall number of one-page visits by the total number of webpage entries.

  1. Rate Of Shopping Cart Abandonment

It’s upsetting to see potential customers load up a shopping basket only to abandon it before making a purchase. There are several plausible explanations for this, the most prevalent of which are:-

Unexpected charges or excessive shipping costs.

A lengthy checkout procedure that goes beyond a single page.

Concerns about payment security.

Overall, the user experience is inadequately structured.

To compute cart abandonment, divide the total number of carts loaded during a given period by the number of completed cart check-outs, then multiply the result by 100.

  1. Conversion Rate 

A conversion rate is the percentage of users who execute a specific action. Conversion rates are derived by taking the entire number of ‘converting’ users, dividing it by the total size of the audience, and translating that amount into a percentage. For example;

  • Clicking on an advertisement.
  • Opening sent emails.
  • Buying products.
  • Filling out questionnaires or forms.
  • Participating in giveaways and quizzes.


The right ecommerce success indicators are those that help your firm achieve its objectives. Depending on your company’s needs, the metrics mix will be slightly different. It’s also normal for your KPIs to change based on where you’re focusing your resources and what’s going on in your business at the time.

The importance  of running an ecommerce business smoothly and measuring its success are equally relevant for an owner. By this the owner gets a perfect view of its business and the future forecast. It is also important that these key metrics are used properly and simultaneously so that, if there are any chances that the business is going down then the actions should be taken immediately.