5 Ecommerce Metrics That You Need To Be Tracking

In the 90s, you could throw up a random Ecommerce shop, stuff the product description with a few related keywords, and traffic will come itself. Sadly, those days are over. Every store owner must be as data-driven as possible and monitor their metrics closely.
Below are 5 Ecommerce metrics that you need to be tracking.

Site Traffic


This is the bread and butter to all websites on the internet. Not getting any sales? Are you getting any site traffic in the first place? You want to know exactly how many users visit your store on a daily basis and how many of those visitors convert into a paying customer. In addition to just knowing your store’s traffic numbers, you should also know where the traffic is coming from. You want to know exactly how many people are coming to your store from that Facebook campaign you recently launched or those Google ads that you have been running.

The best way to monitor your site’s traffic would be to use a simple tool like Google Analytics. Google Analytics can give you a full detailed overview of your site’s data.

Bounce Rate


The Bounce rate is the rate at which new visitors visit your site and immediately click away without doing anything (very low time spent and no interactions). A high bounce rate can mean several things, including weak or irrelevant sources of traffic and landing pages that aren’t optimized for conversion (have a poor design, low usability or high load times).

One good way to lower bounce rate is to improve your product listing descriptions as well as encourage existing customers to write good reviews about your product. That increases engagement and will result in a lower bounce rate.



Cost per acquisition or cost per conversion is another extremely important metric. You want to know the cost it takes for you to acquire a new customer. If your average profit per customer is about $10, then it wouldn’t make sense for you to spend more than $11 on ads just to acquire one customer.

The best way to determine this would be to take your overall profit and divide it by your ad/cost spending to see if it works out to something that makes sense.

Average Order Value

Average Order Value, also referred to as AOV and sometimes average ticket, is a metric representing the value of an average order within a period of time. It is quite simply calculated by dividing Revenue by Number of Orders in a specific Period of Time, as follows:

Revenue ÷ Number of Orders = Average Order Value
e.g. $100,000 ÷ 2,000 = $50

This is an important and key metrics in the ecommerce/retailer world. This allows you to determine the average amount a customer is willing to spend on your shop per visit.

Customer LifeTime Value

Customer Lifetime Value (CLV): At its most basic, CLV, or Lifetime Value (LTV), is a measure of what a customer is worth. It’s the total net profit your business makes from any given customer.

CLV can be calculated historically, over specific time periods, or it can be predictive. Each of these calculations serve different purposes. But, predictive CLV is the most powerful way to not only understand what a customer is worth to you now, but also how their value will change overtime.

The most straightforward way to calculate CLV is to take the revenue you earn from a customer and subtract out the money spent on acquiring and serving them.

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