5 KPIs You Should be Tracking for Your eCommerce Store



Starting email marketing strategies, being active on social media, blogging, starting PPC campaigns, good customer service experience, shipping packages on time, and individual Branding are few tactics you could implement for a healthy eCommerce business. 

Constant optimization of site architecture, continuous iteration of content by adding high value links, keyword optimization, and leveraging networking partnerships can improve your organic traffic. eCommerce stores and online stores within that vertical have to find their own visibility approach and marketing strategies to stand out from the masses and grow exponentially. 

How can you be sure the strategies you implemented are right? This can be measured by establishing KPI. Tracking KPIs helps to make data-driven business decisions, aligned with your business objectives. It understands your customers in a better way and makes eCommerce businesses profitable.

What is a KPI?

KPI is a type of metric that evaluates the performance and success of an implemented strategy or tactics. It stands for a key performance indicator. These are the basic numbers that you track for the growth of an eCommerce business. In this case, could be how your email marketing strategy or logistics are performing. 

By consistently monitoring and measuring these indicators consistently, sites can make recommendations for improvement based on real, actual data. A KPI dashboard showcases how a specific KPI is performing compared to your target, but also your leading indicators and for you to pay attention and take some action.

eCommerce websites’ KPI could be tracked via one of the commonly known tools called Google Analytics. Website performance indicators give you unique, relevant data and insights that can fine-tune your business for a better user experience and profits. The right eCommerce KPI tracking for your business depends on your business needs & factors like the company’s objective & company’s growth stage. Depending on the structure of your eCommerce store and the type of customers these handfuls of critically important KPI’s to be evaluated.

1. Website Tracking 

Website traffic is one of most important key performance indicators, eCommerce businesses should track. The more traffic your site gets,  you have the better chance you have at turning those visitors into paying customers. Most eCommerce goal towards increasing their visibility and traffic but also generating awareness.

eCommerce businesses practice various marketing strategies to increase traffic. Majority of the traffic comes from organic and paid research.Other channels like social and emails also drive decent amounts of traffic. You can measure your traffic through Google Analytics,  you see exactly how well these methods are working. 

To discover your website traffic performance, proceed to  Audience > Overview in GoogleAnalytics:


Here, you can measure the number of users, Page Views, Sessions, Number of pages per session. Emphasize on bounce rate which directs to the percentage of visitors that leave without viewing your second page. Try to lower the percentage of bounce rate.

To measure the traffic performance of your website head to Acquisition > All Traffic > Channels in Google Analytics

Here you can compare traffic performance sources against other elements like bounce rate and goal completions (Conversion). 

Referral traffic determines the sources which attracts majority of visitors to your site. Research more on what’s working and what’s not working. This information can be extremely valuable in determining where you should invest more time and budget on organic search or Paid search like Display ads. Referral traffic is one of the most KPI for successful eCommerce business. 

If an eCommerce store’s traffic from a particular blog from your site is because of positive reviews from a blogger on one of your products or services and linked to your website in the post. Then you should partner with similar influencers and nurture relationships with them to create more opportunities to build more links in future. Or if a particular blog is getting lesser page page views then you may have to tweak your content strategy and optimize your keywords to generate more traffic.


For instance, if you see a lot of traffic that comes from social media, then you can double your social media marketing efforts to gain more visitors.

You need to focus on what isn’t working. If you are putting a lot of efforts in your SEO strategy but it does not drive as much organic traffic as you have imagined. This means you need to tweak your SEO strategy. Try to experiment with other acquisition channels. Consistently monitor your traffic and optimize your website with high quality content.  For example, You can opt for a Google Shopping Ads or increase your marketing budget. The strategy is to consistently monitor where traffic comes from and update  your strategy accordingly.

2. Cart Abandonment Rate

This is another significant KPI to track for eCommerce stores. This KPI refers to the rate at which users add items to their cart, but leave without making a purchase

Instead, shoppers abandon their carts due to long complicated check out process with multiple steps, compulsory signing up for an account, hich price of products, high shipping added cost, payment method or other errors like (incorrect card number of users), website errors, 

By tracking this KPI, you can measure these loopholes with your checkout process before they start creating barriers to purchase. As a result, this online KPI is especially important toward the end of the sales funnel.

For instance, add guest check out options, if the registering an account is scaring customers. Lower down the shipping rates and or offer free shipping above a specific amount if the majority of customers are abandoning your cart upon seeing your shipping rates. You can also add promo codes and discount coupons to a specific limit of purchase to lower your abandonment rate. 

Use an exit-intent pop-up tactic to increase the chances of conversions, this strategy is generally sending reminders to users who have selected a few items in the cart but left behind. Strategize cart abandonment popups timely to convince more visitors to stay on your site for a longer period, collect warm leads, gather valuable insights, and increase your sales. You can also send abandonment reminder emails to encourage revisit their carts and check out their left out items again.

You can enable enhanced eCommerce in Google Analytics to track your cart abandonment rate. Do this in Admin > View > E-commerce Settings.

Once you have it enabled, head to Conversions > eCommerce > Shopping Behavior. Here you will find your cart abandonment rate and checkout abandonment rate

3. Average Order Value

Average order value is the average order size or the average market basket or the amount spent per customer. For instance, if you increase this order value then your business could be profitable without acquiring new customers.

For any eCommerce stores Average order KPI can be calculated as

AOV = Total Revenue/No.of Orders

For instance, if your eCommerce store generates a revenue of Rs.50000 in sales of 50 orders then your AOV would be Rs. 1000.

Every eCommerce store should be tracking the AOV KPI, for making improvements in their budget to set up marketing and advertising strategies, to set a baseline for their AOV and develop strategies to increase the AOV and measure and analyse the success of AOV improvements.

For improving your AOV you need to optimize your site consistently.

Up-sell  : One of the super effective methods to increase your AOV is to upsell  products on your site which typically involves offering a better or upgraded version of what’s being purchased at a higher price. Avoid recommending a product  that is more expensive than the product being purchased. eCommerce stores should emphasize on the customer’s needs and how the value-added offer will help meet those needs. Understanding how to upsell effectively can generate additional income, but doing it the wrong way could alienate the customer.

For example: An online book retailer offers the printed or e-book with a discount coupon during the checkout process. An online tool or resource is available in basic version for free, but with unlocking premium features, desired features require paying a minimal fee

Crossell: Another way to increase AOV would be to cross-sell items. This is when you recommend related products or add-ons to increase the overall spend. Amazon reportedly attributes as much as 35 percent of its sales to cross-selling through its “customers who bought this item also bought” and “frequently bought together” options on every product page. That approach allows a retailer to prompt a shopper to buy a compatible or necessary product. For example : An eCommerce site allows the customer to add a popular related product or a required accessory not included in the product being purchased during the checkout process.

  1. Create product bundles with discounts: We can attract customers by creating product bundles with tons of accessories for your shoppers. With this strategy, you can entice consumers to enhance their product experience by offering them promo codes or discount coupons
  2. Offer free shipping or minimum order value discounts: When a customer spends a specific threshold amount, launch minimum order value discounts, such as $10 off on a purchase of minimum $50 order or free shipping for orders over $100.
  3. Provide personalised product recommendations: After analyzing the browsing history and their shopping behaviour. We can provide personalised product recommendations tailored to their lifestyles, shopping style, color themes, and more to shoppers. You can offer these via email, when users view their shopping cart.
  4. Test these AOV strategies one by one to measure what works best for your business. Before you launch your strategies, engage your customers and ask for their opinions.   If you implement these strategies and manage to increase AOV, you can get the most out of every customer that buys from you.

4. Conversions

One of the significant KPI’s for eCommerce stores is increasing conversions. However it is difficult to achieve. Conversion rate is the rate at which potential customers, site visitors convert into actual customers. High conversion rate indicates that you have persuaded the site visitors to purchase your products. A lower conversion rate signifies that the site visitors are not convinced enough to buy your products and the traffic rate of the site is significantly low

For instance, if you’ve made 20 sales and had 200 visitors to your site, your average sales conversion rate is 20%.

By tracking conversion rates, you can analyse how your marketing strategies and sales tactics are working overall. It helps you to measure increased eCommerce performance by showing patterns so you can more effectively target site visitors in the sales funnel.You can track conversions from the e-commerce section of Google Analytics. This includes revenue, conversion rate, product performance, sales performance and more.

google analytics data

You can also set up and track specific conversion goals. In Analytics go to Admin- View -Goals and click-New Goal. You’ll then see a list of ready-made templates:

If your objective is to boost sales then you’d choose “Make a payment” or set up a custom goal. Alternatively, you could monitor micro-conversions, such as email signups or registering for an account.

Once you have your goal set up you will be able to see how all of your metrics relate to your conversion goals within Analytics. So, not only do you get an idea of your business performance, but you can dig deeper into what drives sales. For instance, you could check which landing pages or acquisition channels get the most goal conversions. Of course, you’d then use this information to your advantage.

However every online store tries different strategies to improve their conversion rate Some have a goal of 4% conversion rate or others aim at 20% conversion rate depending on their marketing budget.

One of the effective strategies to improve conversion rate is by analysing the average.  Industrial conversion rate, the cost of the product or complicated check out process.

1. Quality Content: Driving more organic traffic to your site and consistently publishing good quality content 

2. Blogging: blogging and site optimization to rank higher on search engines.

3. Competitive Analysis: Studying similar products in your niche and having competitive pricing of products.

4.  Chatbots/AI: Many online stores now use chatbots/AI to enhance the shopping experience and help customers to browse the products in a convenient way and buy them straight from personal assistant 24×7. Hatcher is one of the effective AI assistants to increase your eCommerce sales. 

5. Discounts/Coupons: providing free shipping or promo codes are some of the common well known strategies to increase conversion rate.

6. Voice search : Another latest trend is optimizing your eCommerce store for voice search. This strategy lets your products pop up first in search results when consumers ask for “Hey Google”.

However other KPI’s are interlinked with conversion rate. More website traffic means more potential customers; lower abandoned cart rate, which means more conversions and so on. 

Try and test with new sales strategies and tweak your existing strategies to be at the cutting edge at staying competitive But pay more attention to the latest e-commerce trends. Consistently monitor your conversion rate.

5. Customer Lifetime Value

Another significant KPI is customer lifetime value (CLV). Customer Lifetime Value is the revenue earned from a customer throughout their lifetime journey associated with your brand. eCommerce stores entice loyal existing customers to visit their online stores for more. The longer their relationship with a brand, the greater would be their Customer Lifetime Value . Understanding the lifetime value of your clients reap rewards and strengthen your marketing and acquisition strategy.

Google Analytics provides a lifetime value report. Head to Audience > Lifetime Value.

You just need to set the parameters to see revenue per customer during a specific period of time. This Report helps you to know which marketing channels bring the highest value customers and where you should invest more.

Compare the value of a customer with the cost of acquiring them to inform your acquisition strategy. For instance, if optimizing SEO  drives minimal revenue  then you can invest your resources in other channels that create more valuable customers.

The best way to increase CLV is to emphasize on customer experience and customer retention. Happy customers that had good experiences with your brand will come back for more. Pay attention to customer service. Address their queries and complaints across multiple channels in a timely manner.

While brainstorming new strategies to retain your valuable customers, consider your audience and products. You can create product bundles to entice customers. But if the product line up already consists of high priced items, bundling may not make sense. Try to engage your customers by sending them regular emails and entice them with product popups based on their purchase history. Try to show them that they are gaining value by associating with your brand. Streamline the purchase journey for customers. Improve product listings regularly with high quality images and content. Create loyalty perks, exclusive offers to your returning customers. 

All in all, CLV is certainly worth paying attention to. If you can increase CLV, then you raise your total revenue.

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