15 Must-Track Business Performance Metrics for E-Comm Stores
- Identify strengths and weaknesses: Regularly tracking metrics helps you see where your business is excelling and where it needs improvement.
- Make informed decisions: With accurate data, you can adjust your strategies and tactics based on real-time performance.
- Improve operational efficiency: Metrics highlight inefficiencies in operations, marketing, and customer service that can be optimized for better results.
- Maximize profitability: By tracking financial metrics and analyzing costs versus revenues, you can ensure your business is growing profitably.
- Example 1: Your store generates $100,000 in revenue per month. Your AOV is $50, which means you’ve made 2,000 sales. If your conversion rate is 2%, it means that 100,000 visitors came to your site during the month, and 2% of them completed a purchase.
- Example 2: You’ve spent $5,000 on Facebook ads, and you made $25,000 in revenue from those ads. Your ROAS is 5, meaning you earned $5 for every dollar spent on ads.
- Example 3: Your store's gross profit margin is 40%, and your monthly revenue is $50,000. This means your COGS is $30,000, and your gross profit is $20,000.
Harry Chu
Founder of TrueProfit & eCommerce Profitability Expert
Harry Chu is the Founder of TrueProfit, a net profit tracking solution designed to help Shopify merchants gain real-time insights into their actual profits. With 11+ years of experience in eCommerce and technology, his expertise in profit analytics, cost tracking, and data-driven decision-making has made him a trusted voice for thousands of Shopify merchants.
