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Measure the Growth of Your eCommerce Business With These 5 Key Metrics

BUSINESS TIPS  |  August 4, 2021

There is more to running an eCommerce business than sales. To improve profit margins, it is important to keep track of data and metrics. After all, data informs business decisions. It is a crucial part of determining your marketing strategy as well as choosing the right products for your niche.

As a business owner operating in the information age, the number of possible indicators is overwhelming. It is easy to get lost in eCommerce metrics, however, not all indicators are valuable. As with most business decisions, the choice of KPI depends on your business’ specific goals. Likewise, your choice of KPI isn’t static – it should grow with your company.

This article explores key performance indicators for eCommerce. Aside from the basic definitions, it also contains popular choices of KPIs for you to choose from.

What is a KPI?

Key Performance Indicators or KPIs are data points used to gauge the performance of an eCommerce business against a specific goal or the industry standard. KPIs are often used to assess the effectiveness of a marketing campaign, the performance of a specific product, or the conversions of a website.

What KPI Best Fits Your Business?

When it comes to KPIs, there is no one-size-fits-all. The KPI that you choose should be determined by the goals that you have for your eCommerce operation. Nevertheless, here are basic indicators that you should consider:

  • Average Order Value
    The average order value or AOV refers to the average amount a customer spends on every order. This KPI is vital in identifying the customers that spend the most on a single transaction. Marketing efforts, like email blasts, can be directed towards these individuals.
  • Conversion Rate
    The conversion rate indicates the number of people that make a purchase after visiting your website. Tracking this metric allows you to assess whether or not your website is friendly to potential clients.
  • Shopping Cart Abandonment
    Cart abandonment is the percentage of customers that leave items in their online cart without making a purchase. Reducing cart abandonment rate is a goal for most eCommerce operations.
  • Gross Margin
    Growing your business is hinged on the operation’s gross margin. This metric refers to the total profit after subtracting the cost of the inventory and procurement.
  • Cost Per Conversion
    Otherwise known as cost per acquisition, cost per conversion is the amount that you spend to gain a customer. The costs include advertising, discounts, and free shipping afforded to the customer. This KPI is crucial to understanding your cash in and cash out.


At the end of the day, it is important to know where the finish line is before you start running. Setting goals and determining your KPIs should be one of the first few things that you do as an eCommerce business owner. The information that you get from the KPIs that you select is crucial to your future business decisions.

Still confused about the KPIs that are right for your business? Our experts at Dojo PH can help you grow and scale your business. Reach out to us today!