e-commerce metrics you need to focus on first.

Selling things online has never been both easier and harder. You need to plan strategies accordingly to reach more customers.

You need to find the top platform to sell online like Amazon, eBay, Walmart, Wayfair and Etsy, high-ranking eCommerce platforms geographically. These platforms help you lower the barriers to entering a new online business.

One major or basic metric you need to focus on is data tracking. In order to become a successful online store owner, you need to track a lot of data.

Tracking these metrics helps you understand how can you optimise your store and grow your sales.

To help you grow here are a few most important metrics

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Sales Conversion Rate
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Website Traffic
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Email opt-in rate
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Customer lifetime value.
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Average order value
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Customer acquisition rate
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Shopping cart abandonment rate
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Bounce rate
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Visitor navigation behaviour.
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Sales Conversion Rate

What is the sales conversion rate in eCommerce?

Conversion Rate is defined by Google as: “The ratio of transactions to sessions, expressed as a percentage. The conversion rate is actually the percentage of those visitors who purchase something from your website.

To calculate your conversion rate, use the following formula:

Number of sales/Number of users x 100%=conversion rate.

So as per the formula if 1000 people visited your website and 10 people purchased then your conversion rate will be 10%.

An ideal industry-standard conversion rate is around 2%.

Website traffic

Why website traffic is important? Tracking the website traffic helps you understand which product or content is performing well and which ones need to focus on in the future.

Once you’ve tracked the details and you’ll be able to optimize your conversion rate as you’ll be able to increase the rate of visitors and sales.

To grow your website traffic what else you can do is:

Promote your store and offerings on social media.
Optimise and promote your product for search engines.
Grow your newsletter subscriber.

Email Opt-in Rate

As an online seller, your target audience will also be online. So targeting such users is easy via social media in today’s age. As per some research, email marketing has delivered an ROI of 4400% in 2016 in fact their final reports revealed that 59% of marketers use email marketing and believe that email marketing delivers high ROI than other channels.

The concept here is exactly the same just as growing visitors to the website and getting as many as possible subscribers for an email list.

The difference between an ordinary website visitor and subscribers is those who sign up for your newsletter are most interested in your brand and are more likely to get converted as your end buyer.

To get more and more subscribers you can get to your email, you need to give them some good offerings like coupon codes, vouchers, ebooks, etc.

Customer lifetime value.

Customer lifetime value is the total benefit or profit a business will get over the time period from customers or let’s say as long as that person remains your client.

The formula for calculating Customer lifetime value is-

For example, if some of your regular or typical customers make 5 transactions, each one worth $40, throughout their life, your CLV would be $200. Note that you still have to deduct your acquisition costs from this number, which brings us to the next point.

In order to increase your ecommerce store’s business, you have to focus on improving your average order value and building trust if existing customers so that you’ll be able to retain your customer.

Customer Acquisition Rate

Customer acquisition rate is the cost of those customers who purchase your product and service. In other words the amount of money and resources we spent to acquire a customer.

How to measure customer acquisition costs?

Let’s say, if you spending $100 to convert a customer but your earning amount is $90 which shows you are at loss.

With the help of CAC, you’ll be able to track the average cost of acquiring customers including online and traditional marketing costs.

You can either manually or through tools like Google Analytics, search engines, and social media. etc.

Practices to bring down your CAC are as under:

Improve your conversion rate.
Optimize your advertising strategy
Invest in an organic marketing strategy
Investing in referral marketing

Shopping cart abandonment rate

Shopping cart abandonment is a metric in which we measure the performance of those shoppers who add products to the cart but don’t checkout. Shopping cart abandonment is very often done by almost everyone.

If your abandonment rate is too high, you need to improve it by following a few practices-

Make your shopping experience easy, and keep the checkout process smooth.
Use remarketing strategies through ads and emails to bring shoppers back and convert.

Visitor Navigation Behaviour

Ecommerce metrics cart abandonment, bounce rates and conversion rates help you under and plan things better and get better results but as an eCommerce business owner or manager you might need more metrics to understand why visitors are leaving without buying, which is why there are few tools help to see the recordings of the movement called “Heat Maps”.

This data is priceless in terms of growth!

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