Table of contents

Metrics vs KPIs1. Conversion rate2. Abandonment rate3. Email subscriptions4. Return rate5. Customer rate6. CLV7. AOV8. CAC9. CSAT or NPS10. Profit marginCore KPIsHow to take actionSite performance ties everything Getting startedHosting optionsAdditional resources

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Ecommerce metrics and KPIs: The complete guide

Understanding which numbers truly move your ecommerce business lets you focus on what matters—not just on vanity stats. Let’s break down essential metrics and KPIs, how to measure them, and what actions to take based on the data. Ready to turn your numbers into growth?

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Ecommerce success metrics vs KPIs

Success metrics show how well your ecommerce business is performing overall. They track growth, revenue, customer loyalty, and operational efficiency. KPIs (key performance indicators) are specific data points that support those success metrics.

For example, “conversion rate” might be a success metric, while “email open rate” or “average session duration” are KPIs that influence it.

Top success metrics every store should track

These high-level metrics give you a snapshot of business health and show where to optimize.

1. Sales conversion rate

What it is: The percentage of visitors who complete a purchase.

Why it matters: It’s the most important signal of how well your store turns interest into revenue.

How to calculate it: (Total orders ÷ Total visitors) × 100

A good conversion rate is usually between 1% and 5%, depending on the industry and traffic source.

2. Shopping cart abandonment rate

What it is: The percentage of shoppers who add products to their cart but don’t complete the purchase.

Why it matters: High abandonment rates often indicate friction during checkout or lack of purchase motivation.

How to calculate it: (Abandoned carts ÷ Carts created) × 100

Reducing this metric directly boosts sales with no extra traffic needed.

3. Email subscriptions

What it is: The number of new email opt-ins over time.

Why it matters: Email is one of the most profitable marketing channels, and your list size impacts long-term customer value.

How to calculate it: New subscribers per day/week/month, tracked through your email platform or lead capture tool

Focus on both quantity and lead quality. Engaged subscribers are more valuable than large inactive lists.

4. Product return rate

What it is: What it is: The percentage of purchased products that are returned by customers.

Why it matters: Returns eat into profit margins and often point to poor product fit or unclear descriptions.

How to calculate it: (Returned orders ÷ Total orders) × 100

Improving product pages, sizing tools, and customer education can reduce return rates.

5. Loyal customer rate

What it is: The percentage of customers who make more than one purchase over a specific timeframe.

Why it matters: Repeat customers are cheaper to retain and more likely to convert than first-time buyers.

How to calculate it: (Repeat customers ÷ Total customers) × 100

Customer loyalty programs and personalized follow-ups can boost this rate.

6. Customer lifetime value (CLV)

What it is: The total revenue you can expect from a customer over the duration of their relationship with your brand.

Why it matters: Knowing CLV helps you decide how much you can afford to spend on customer acquisition.

How to calculate it: Average order value × Purchase frequency × Average customer lifespan

A high CLV means your business can outspend competitors on ads and retention.

7. Average order value (AOV)

What it is: The average dollar amount a customer spends per order.

Why it matters: Increasing AOV boosts revenue without increasing traffic or conversion.

How to calculate it: Total revenue ÷ Number of orders

Upsells, bundles, and free shipping thresholds are common tactics to raise AOV.

8. Customer acquisition cost (CAC)

What it is: The average cost of acquiring a new customer.

Why it matters: It helps you assess marketing efficiency and profitability.

How to calculate it: Total marketing spend ÷ Number of new customers

Lowering CAC while maintaining revenue leads to higher margins.

9. Customer satisfaction score (CSAT) or Net Promoter Score (NPS)

What it is: A direct measure of how satisfied or loyal your customers are.

Why it matters: These survey-based metrics offer early warnings about churn or product issues.

How to calculate it:

CSAT: % of customers who rate their experience as “satisfactory” or higher
NPS: % of promoters (9–10 rating) minus % of detractors (0–6 rating)

Regularly surveying your customers keeps your finger on the pulse of brand sentiment.

10. Profit margin

What it is: The percentage of revenue that remains after all costs are deducted.

Why it matters: This is your real bottom line. High sales with low margins can still result in poor business health.

How to calculate it: (Gross profit ÷ Revenue) × 100

Track both gross and net profit margins for a full financial picture.

Core KPIs broken down by area

Let’s look at KPIs grouped by department or function so your team can focus on what’s actionable.

Sales performance KPIs

Average order value (AOV): Tracks upsell success and bundling effectiveness
Conversion rate: Measures overall purchase efficiency
Average deal size / win rate: Especially relevant for wholesale or B2B stores

Customer experience and retention KPIs

Customer acquisition cost (CAC): Helps control ad spend
Traffic source breakdown: Identifies which channels bring the highest-value visitors
Add-to-cart rate: Tracks buyer interest and product appeal
Email conversion rate: Shows how well your email marketing drives sales

Marketing and acquisition KPIs

Bounce rate: Measures how many users leave without interacting—lower is better
Average session duration: Higher times often reflect better engagement
Churn rate: Shows how many customers stop buying over time
CLV: Helps prioritize retention efforts
Return rate: Can reveal issues with product quality or misleading expectations

Bounce rate: Measures how many users leave without interacting—lower is better
Average session duration: Higher times often reflect better engagement
Churn rate: Shows how many customers stop buying over time
CLV: Helps prioritize retention efforts
Return rate: Can reveal issues with product quality or misleading expectations

How to take action on your data

Not all metrics need constant attention. Here’s a basic schedule:

Identify the weak spot – Start with the lowest-performing metric or area.
Analyze the cause – Review traffic sources, UX, page speed, product info, and device usage.
Make a change – A/B test a different CTA, offer free shipping, or shorten the checkout.
Measure results – Watch for meaningful movement in your metrics.
Repeat – Keep improving one metric at a time.

Site performance ties everything together

Even the best product and marketing strategy can be undermined by a slow or buggy site. Every key metric—from bounce rate to conversions—depends on your technical foundation.

Keep load times under 3 seconds.
Make mobile usability a top priority.
Choose hosting built for ecommerce performance and traffic spikes.

Getting started with ecommerce metrics

These metrics and KPIs help you make smarter decisions and grow your revenue. Start by choosing 4–10 top KPIs, implement tracking, and schedule regular reviews. Then pick one area—like checkout speed—and run a quick A/B test.

The next step is to choose an ecommerce hosting provider that understands your needs, and that’s where Liquid Web comes in. We offer the industry’s fastest and most secure ecommerce web hosting—for WooCommerce or Magento.

Click below to explore options or start a chat with one of our hosting experts now.