{"id":37055,"date":"2023-03-02T12:12:37","date_gmt":"2023-03-02T12:12:37","guid":{"rendered":"https:\/\/www.engagebay.com\/blog\/?p=37055"},"modified":"2025-03-20T08:23:41","modified_gmt":"2025-03-20T08:23:41","slug":"ecommerce-metrics","status":"publish","type":"post","link":"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/","title":{"rendered":"eCommerce Metrics Made Easy: How to Measure Success and Drive Growth"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">How do you know if your eCommerce business is smashing it or underperforming?&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Building a highly successful eCommerce business isn\u2019t a walk in the park. Without regularly evaluating your eCommerce performance with the right metrics, your chances of success are slim.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Conversely, tracking your eCommerce performance with the right metrics could be your ticket to bagging a chunk of the estimated <\/span><a href=\"https:\/\/www.shopify.com\/blog\/global-ecommerce-sales\"><span style=\"font-weight: 400;\">6.3 trillion dollars<\/span><\/a><span style=\"font-weight: 400;\"> in eCommerce sales (in 2023).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To keep you from getting overwhelmed, we&#8217;ve divided the eCommerce metrics into two parts\u2014one for beginners and the other for experienced business owners.<\/span><\/p>\n<p><strong>Here&#8217;s a preview of what we cover in this blog post:<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The top 21 eCommerce metrics to focus on<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">eCommerce metrics you should be tracking based on your experience level<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Why some eCommerce metrics are essential to track<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">How to calculate the most important eCommerce metrics<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Tips for driving growth for your eCommerce business<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Frequently asked questions about eCommerce metrics<\/span><\/li>\n<\/ul>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_74 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#eCommerce_Metrics_for_Beginners\" >eCommerce Metrics for Beginners<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#1_Website_Traffic\" >1. Website Traffic<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#2_Conversion_rate\" >2. Conversion rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#3_Average_Order_Value_AOV\" >3. Average Order Value (AOV)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#4_Customer_Lifetime_Value_CLV\" >4. Customer Lifetime Value (CLV)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#5_Bounce_Rate\" >5. Bounce Rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#6_Cart_Abandonment_Rate\" >6. Cart Abandonment Rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#7_Gross_Profit_Margin\" >7. Gross Profit Margin<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#8_Net_Promoters_Score_NPS\" >8. Net Promoters Score (NPS)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#9_Average_customer_satisfaction_rating\" >9. Average customer satisfaction rating<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#10_Number_of_customer_reviews\" >10. Number of customer reviews<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#eCommerce_Metrics_for_Experienced_Business_Owners\" >eCommerce Metrics for Experienced Business Owners<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#1_Repeat_Purchase_Rate\" >1. Repeat Purchase Rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#2_Customer_Acquisition_Cost_CAC\" >2. Customer Acquisition Cost (CAC)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#3_Return_On_Advertising_Spend_ROAS\" >3. Return On Advertising Spend (ROAS)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#4_Gross_Merchandize_Volume\" >4. Gross Merchandize Volume<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#5_Average_selling_price_ASP\" >5. Average selling price (ASP)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#6_Best-selling_products\" >6. Best-selling products<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#7_Product_return_rate\" >7. Product return rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#8_Product_profit_margin\" >8. Product profit margin<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#9_Mobile_bounce_rate\" >9. Mobile bounce rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#10_Mobile_traffic\" >10. Mobile traffic<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#11_Mobile_conversion_rate\" >11. Mobile conversion rate<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#Wrap_Up\" >Wrap Up<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#eCommerce_Frequently_Asked_Questions\" >eCommerce Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#What_is_the_difference_between_marketing_metrics_and_KPIs\" >What is the difference between marketing metrics and KPIs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#What_are_the_most_important_marketing_metrics\" >What are the most important marketing metrics?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-metrics\/#How_often_should_I_measure_marketing_metrics\" >How often should I measure marketing metrics?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n\r\n            <script>\r\n                var EhAPI = EhAPI || {}; \r\n                EhAPI.after_load = function() {\r\n                    EhAPI.set_account('ktb76s1540fl2hnhbqnrtd2npb', 'our');\r\n                    EhAPI.execute('rules');\r\n                };\r\n                (function(d, s, f) {\r\n                    var sc = document.createElement(s);\r\n                    sc.type = 'text\/javascript';\r\n                    sc.async = true;\r\n                    sc.src = f;\r\n                    var m = document.getElementsByTagName(s)[0];\r\n                    m.parentNode.insertBefore(sc, m);   \r\n                })(document, 'script', '\/\/d2p078bqz5urf7.cloudfront.net\/jsapi\/ehform.js');\r\n            <\/script>\r\n            <script>\r\n                function waitForEhForms() {\r\n                    const interval = 100; \/\/ Check every 100ms\r\n                    const checkAndLoad = () => {\r\n                        const params = new URLSearchParams(window.location.search);\r\n                        const elementorPreviewParam = params.get('elementor-preview');\r\n                        if (elementorPreviewParam && typeof EhForms !== 'undefined' && typeof EhForms.loadForms === 'function') {\r\n                            EhForms.loadForms();\r\n                            console.log('EhForms.loadForms() called successfully.');\r\n                        } else {\r\n                            setTimeout(checkAndLoad, interval);\r\n                        }\r\n                    };\r\n                    checkAndLoad();\r\n                }\r\n                \/\/ Call the function\r\n                waitForEhForms();\r\n            <\/script>\r\n        <div class='engage-hub-form-embed' id='eh_form_5161654467690496' data-id='5161654467690496'><\/div>\n<h2><span class=\"ez-toc-section\" id=\"eCommerce_Metrics_for_Beginners\"><\/span><span style=\"color: #339966;\"><b>eCommerce Metrics for Beginners<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Website Traffic<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Conversion rate<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Average Order Value (AOV)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Customer Lifetime Value (CLV)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Bounce Rate<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Cart Abandonment Rate<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Gross Profit Margin<\/span><\/li>\n<li>Net Promoters Score<\/li>\n<li>Customer Satisfaction Ratings<\/li>\n<li>Customer Reviews<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"1_Website_Traffic\"><\/span><span style=\"color: #993300;\"><b>1. Website Traffic<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Website traffic is designed to track the number of people who visit your website from a search engine or other online sources. This number can help you measure your <\/span><a href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-marketing-strategies\/\"><span style=\"font-weight: 400;\">eCommerce marketing<\/span><\/a><span style=\"font-weight: 400;\"> strategy&#8217;s success in attracting new visitors.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It&#8217;s crucial not just to track website traffic but also to track the average time a visitor spends on your site. Traffic is sourced from paid methods (paid ads, influencer, and <a href=\"https:\/\/www.engagebay.com\/blog\/affiliate-marketing-programs\/\">affiliate marketing<\/a>) and free methods (organic search or referrals).&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whichever method you use to attract web visitors, it&#8217;s essential to monitor your website traffic to ensure it&#8217;s growing and meeting your goals.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Manually tracking your eCommerce website traffic can be daunting. The good news is, with EngageBay\u2019s <\/span><a href=\"https:\/\/www.engagebay.com\/crm\/crm-analytics\"><span style=\"font-weight: 400;\">web analytics tool<\/span><\/a><span style=\"font-weight: 400;\">, you can easily track your eCommerce website traffic and unique visitors. It gives you real-time insight into where your traffic comes from and even tracks the average session duration in a beat.<\/span><\/p>\n<figure id=\"attachment_35813\" aria-describedby=\"caption-attachment-35813\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/01\/ezgif.com-gif-maker-16.gif\"><img decoding=\"async\" class=\"size-full wp-image-35813\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/01\/ezgif.com-gif-maker-16.gif\" alt=\"\" width=\"1200\" height=\"597\"><\/a><figcaption id=\"caption-attachment-35813\" class=\"wp-caption-text\"><em>EngageBay&#8217;s web analytics<\/em><\/figcaption><\/figure>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-marketing-strategies\/\">6 High-Impact eCommerce Marketing Strategies to Try Now<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Conversion_rate\"><\/span><span style=\"color: #993300;\"><b>2. Conversion rate<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Conversion rate is an important metric to track in eCommerce marketing. It&#8217;s the number of visitors who convert or buy a product or service from your website. This number helps estimate the effectiveness of your online marketing campaigns in <\/span><a href=\"https:\/\/www.engagebay.com\/blog\/lead-generation-process\/\"><span style=\"font-weight: 400;\">attracting qualified leads<\/span><\/a><span style=\"font-weight: 400;\">.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your conversion rate should be high enough to continue advertising and <a href=\"https:\/\/www.engagebay.com\/marketing\/landing-pages\">landing page campaigns<\/a> without losing too much money from visitors who do not convert. Below is an <a href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-conversion-rate-optimization\/\">eCommerce<\/a><\/span><a href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-conversion-rate-optimization\/\"><span style=\"font-weight: 400;\"> conversion rate<\/span><\/a><span style=\"font-weight: 400;\"> benchmark by industry to keep you in check.<\/span><\/p>\n<figure id=\"attachment_37065\" aria-describedby=\"caption-attachment-37065\" style=\"width: 1760px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1658649515-ecommerce-conversion-rate-by-industry-1.jpg\"><img decoding=\"async\" class=\"size-full wp-image-37065\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1658649515-ecommerce-conversion-rate-by-industry-1.jpg\" alt=\"Ecommerce conversion rate by industry\" width=\"1760\" height=\"900\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1658649515-ecommerce-conversion-rate-by-industry-1.jpg 1760w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1658649515-ecommerce-conversion-rate-by-industry-1-300x153.jpg 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1658649515-ecommerce-conversion-rate-by-industry-1-1024x524.jpg 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1658649515-ecommerce-conversion-rate-by-industry-1-768x393.jpg 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1658649515-ecommerce-conversion-rate-by-industry-1-1536x785.jpg 1536w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1658649515-ecommerce-conversion-rate-by-industry-1-595xh.jpg 595w\" sizes=\"(max-width: 1760px) 100vw, 1760px\" \/><\/a><figcaption id=\"caption-attachment-37065\" class=\"wp-caption-text\"><em><a href=\"https:\/\/www.oberlo.com\/statistics\/ecommerce-conversion-rate-by-industry\">Source<\/a><\/em><\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Additionally, you can track your conversion rate to determine which areas of your website are most effective at converting visitors into customers.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, if your <\/span><a href=\"https:\/\/www.engagebay.com\/glossary\/conversion-rate\"><span style=\"font-weight: 400;\">conversion rate<\/span><\/a><span style=\"font-weight: 400;\"> is high on your homepage but low in other areas of your website, focus your marketing efforts on the homepage. Knowing which pages are converting, you can focus your efforts on those pages.&nbsp; This ensures that your marketing messages get through to your visitors.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Alternatively, if your conversion rate is low on certain products but high on others, you should re-optimize such products for better conversions.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To calculate your conversion rate, divide the total number of visitors by the total no. of conversions (in this case, the total number of purchases) in a given period. Then multiply your answer by 100.&nbsp;<\/span><\/p>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1-1.png\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-37317\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1-1.png\" alt=\"Ecommerce conversion rate EngageBay\" width=\"1920\" height=\"1080\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1-1.png 1920w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1-1-300x169.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1-1-1024x576.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1-1-768x432.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1-1-1536x864.png 1536w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1-1-595xh.png 595w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">With EngageBay\u2019s automated <\/span><a href=\"https:\/\/www.engagebay.com\/marketing\/email-ab-testing\"><span style=\"font-weight: 400;\">A\/B testing feature<\/span><\/a><span style=\"font-weight: 400;\">, you can easily scale your conversion rates. It has an easy drag-and-drop feature helps you quickly implement changes to your web page without coding<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can increase your eCommerce sales by tracking your conversion rate and using this information to improve your <a href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-marketing-strategies\/\">ecommerce marketing strategy<\/a>.<\/span><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/ideas-for-ecommerce-business\/\">17 Fab Ideas for eCommerce Business<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Average_Order_Value_AOV\"><\/span><span style=\"color: #993300;\"><b>3. Average Order Value (AOV)<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It&#8217;s the average amount your eCommerce customers spend on purchases in a single transaction. This statistic gives you a snapshot of how much your customers spend on your products.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By understanding your AOV, you can determine which products are selling well and which need to be tweaked or redesigned.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To calculate your AOV, divide the total revenue from all eCommerce orders in a set period (best to track it monthly) by the no. of orders taken within the specified period.&nbsp;<\/span><\/p>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/2-1.png\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-37318\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/2-1.png\" alt=\"Average Order Value Formula\" width=\"1920\" height=\"1080\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/2-1.png 1920w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/2-1-300x169.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/2-1-1024x576.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/2-1-768x432.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/2-1-1536x864.png 1536w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/2-1-595xh.png 595w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><\/a><span style=\"font-weight: 400;\">Using the formula, suppose your total value of orders in a given month is $30,000, and the number of completed orders is from 200 customers. Your AOV would be $150 per customer.<\/span><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-marketing\/\">Ecommerce Marketing: 8 Areas to Focus on to Increase Sales<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Customer_Lifetime_Value_CLV\"><\/span><span style=\"color: #993300;\"><b>4. Customer Lifetime Value (CLV)<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">CLV&nbsp; is a metric used to measure the worth of a customer to your eCommerce business throughout their time with you. It is a critical metric for eCommerce businesses because it is a strong indicator of the long-term success of a business. Calculating <a href=\"https:\/\/www.engagebay.com\/blog\/customer-lifecycle-management-clm\/\">customer lifetime value<\/a> is essential to maximize eCommerce profits and optimize customer service.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To calculate your customer lifetime value, you need three crucial data:<\/span><\/p>\n<p><b>Customer Purchase Frequency Rate (PFR)<\/b><span style=\"font-weight: 400;\">. This is the average number of times a customer buys from you over a specific period.<\/span><\/p>\n<p><b>Average Customer Lifespan (ACL)<\/b><span style=\"font-weight: 400;\">. This is the average time a customer will remain in business with you.<\/span><\/p>\n<p><b>Average Order Value (AOV)<\/b><span style=\"font-weight: 400;\">. This is the average amount a customer spends per transaction.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With the above in place<\/span><b>, you can calculate your CLV using this formula: CLV = AOV x ACL x PFR<\/b><\/p>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/3-1.png\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-37319\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/3-1.png\" alt=\"Customer Lifetime Value formula\" width=\"1920\" height=\"1080\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/3-1.png 1920w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/3-1-300x169.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/3-1-1024x576.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/3-1-768x432.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/3-1-1536x864.png 1536w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/3-1-595xh.png 595w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/>Suppose<\/a><span style=\"font-weight: 400;\"> your eCommerce customers spend $150 per order on average, continue to buy from you for eight years, and place six orders yearly. Then your CLV would be $150 x 8 x 6 = $7,200.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is important to note that CLV is a long-term metric and can fluctuate over time depending on your customer\u2019s purchasing habits. Thus, tracking customer lifetime value at intervals is essential to correctly measure and understand a customer\u2019s current and potential value to your eCommerce business.&nbsp;<\/span><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-email-heatmap-analysis\/\">Read also: How To Optimize Your CTR With eCommerce Email Heatmap Analysis<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Bounce_Rate\"><\/span><span style=\"color: #993300;\"><b>5. Bounce Rate<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Bounce Rate is designed to give insight into the percentage of visitors who exit your site after only visiting a page.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.excitemedia.com.au\/you-should-switch-to-google-analytics-ga4-today-and-heres-why\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">Google Analytics 4 (GA4)<\/a>, which is the updated version of Google Universal Analytics (UA), defines bounce rates quite differently.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">GA4 says bounce rate is \u201cthe percentage of sessions users weren\u2019t engaged.\u201d&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That means if a visitor visiting a single page leaves your site within 10secs and doesn\u2019t interact with anything on your page, it is considered a bounce.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The most popular way to track your bounce rate is using Google Analytics. The image below shows the average bounce rates per industry.<\/span><\/p>\n<figure id=\"attachment_37072\" aria-describedby=\"caption-attachment-37072\" style=\"width: 1486px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/Screen-Shot-2020-12-11-at-12.28.21-PM.png\"><img decoding=\"async\" class=\"size-full wp-image-37072\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/Screen-Shot-2020-12-11-at-12.28.21-PM.png\" alt=\"Ecommerce industry bounce rate per industry\" width=\"1486\" height=\"902\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/Screen-Shot-2020-12-11-at-12.28.21-PM.png 1486w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/Screen-Shot-2020-12-11-at-12.28.21-PM-300x182.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/Screen-Shot-2020-12-11-at-12.28.21-PM-1024x622.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/Screen-Shot-2020-12-11-at-12.28.21-PM-768x466.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/Screen-Shot-2020-12-11-at-12.28.21-PM-595xh.png 595w\" sizes=\"(max-width: 1486px) 100vw, 1486px\" \/><\/a><figcaption id=\"caption-attachment-37072\" class=\"wp-caption-text\"><em><a href=\"https:\/\/wearejh.com\/5-reasons-your-ecommerce-website-has-a-high-bounce-rate-and-what-to-do-about-it\/\">Source<\/a><\/em><\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Low-quality content is often cited as the reason for high bounce rates. Although that holds, another common yet often ignored cause for high bounce rate is misleading meta description\/ title tags. Deliver what you promised in your meta description and title tags to keep your audience from \u201cbouncing\u201d.<\/span><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/advantages-and-disadvantages-of-ecommerce\/\">Read also: The Advantages and Disadvantages of eCommerce<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"6_Cart_Abandonment_Rate\"><\/span><span style=\"color: #993300;\"><b>6. Cart Abandonment Rate<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">There&#8217;s no doubt that online shopping is growing in popularity every day. And with that growth comes the need for merchants to find ways to reduce the cart abandonment rate.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cart Abandonment Rate tells how many people abandon their shopping carts after filling it out.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A <\/span><a href=\"https:\/\/baymard.com\/lists\/cart-abandonment-rate\"><span style=\"font-weight: 400;\">Baymard Institute<\/span><\/a><span style=\"font-weight: 400;\"> research shows that 69.82% of eCommerce shoppers abandon their shopping carts. This means that only three out of every ten customers complete their purchase.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By extension, $18 billion is lost annually due to cart abandonment, according to reports from <\/span><a href=\"https:\/\/www.gartner.com\/en\/marketing\/insights\/daily-insights\/the-case-of-cart-abandonment\"><span style=\"font-weight: 400;\">Gartner<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If your <a href=\"https:\/\/www.engagebay.com\/blog\/abandoned-cart-emails\/\">cart abandonment<\/a> rate is high, it&#8217;s vital to take action to reduce it.&nbsp;&nbsp;<\/span><\/p>\n<p><b>The top three reasons for Cart abandonments during checkout are high extra costs, being required to create a new account, and too long checkout.&nbsp;<\/b><\/p>\n<p><span style=\"font-weight: 400;\">However, the above reasons may not apply to you. Carry out customer surveys to determine why your customers bail out on their purchases and fix the loopholes accordingly.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Taking action without first discovering why your eCommerce customers are abandoning their carts is counterproductive.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A shopping cart tracking system is one way to track cart abandonment. These systems allow you to track the number of orders that are placed, the number of orders that are completed, and the number of orders that are abandoned.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To manually calculate your eCommerce cart abandonment rate, use the formula in the image below.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/4.png\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-37320\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/4.png\" alt=\"Formula to calculate cart abandonment rate\" width=\"1920\" height=\"1080\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/4.png 1920w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/4-300x169.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/4-1024x576.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/4-768x432.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/4-1536x864.png 1536w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/4-595xh.png 595w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><\/a><\/span><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-crm\/\">eCommerce CRM: Top Platforms to Streamline Your Business<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"7_Gross_Profit_Margin\"><\/span><span style=\"color: #993300;\"><b>7. Gross Profit Margin<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Gross profit margin shows how much of your eCommerce revenue you can keep after subtracting costs of goods sold (COGS). It gives you a snapshot of your eCommerce business profitability.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To calculate your gross profit margin, subtract the costs of goods sold from the total <\/span><a href=\"https:\/\/www.engagebay.com\/blog\/net-sales\/\"><span style=\"font-weight: 400;\">net sales<\/span><\/a><span style=\"font-weight: 400;\"> in a given period.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/5.png\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-37321\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/5.png\" alt=\"Formula to calculate gross profit margin\" width=\"1920\" height=\"1080\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/5.png 1920w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/5-300x169.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/5-1024x576.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/5-768x432.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/5-1536x864.png 1536w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/5-595xh.png 595w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><\/a><\/span><span style=\"font-weight: 400;\">For example, if your eCommerce store generates $10,000 from sales within a set period, and the cost of goods sold is $6000, your Gross profit margin will be $4,000.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To get the percentage use this formula: <a href=\"https:\/\/www.engagebay.com\/blog\/sales-volume\/\">Sales revenue<\/a> &#8211; Cost of goods sold \/ sales revenue x 100. In this case, that would be 40%.<\/span><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-analytics\/\">Read also: Master the Art of eCommerce Analytics with These 16 KPIs<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"8_Net_Promoters_Score_NPS\"><\/span><span style=\"color: #993300;\"><b>8. Net Promoters Score (NPS)<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Net promoters score (NPS) is a customer satisfaction metric that measures how likely your eCommerce customers are to recommend your products to other customers or friends.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is straightforward to carry out. All you need do is send out a survey to your customers asking, &#8220;On a scale of 1-10, how likely are you to recommend [insert product or company name] to your friends or family?&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Based on the scores, you can place your eCommerce customers into any of the following categories:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Promoters (Scores between 9-10):<\/b><span style=\"font-weight: 400;\"> They are your product evangelists and most likely recommend your products to other users. They form your most loyal customer base,<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Passives (Score between 7-8):<\/b><span style=\"font-weight: 400;\"> This set of customers use your products and don\u2019t necessarily have a problem with them. But like the name sounds, they are unenthusiastic about promoting your products.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Detractors (Score between 0-6): <\/b><span style=\"font-weight: 400;\">These customers are unhappy with your products and are not likely at all to promote them.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">You can calculate your NPS by subtracting the percentage of detractors from the percentage of promoters (the passives are not factored in).<\/span><\/p>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/14.png\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-37330\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/14.png\" alt=\"Net promoters score formula\" width=\"1920\" height=\"1080\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/14.png 1920w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/14-300x169.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/14-1024x576.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/14-768x432.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/14-1536x864.png 1536w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/14-595xh.png 595w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">The trick to increasing your NPS is to have more promoters than detractors. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">So it would be best to work on converting your passives to promoters to get a high net promoter score. The higher the NPS score, the more satisfied customers are with the company.<\/span><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-support-outsourcing\/\">Read also: The Beginner\u2019s Guide To ECommerce Support Outsourcing<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"9_Average_customer_satisfaction_rating\"><\/span><span style=\"color: #993300;\"><b>9. Average customer satisfaction rating<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Customer satisfaction ratings give a quantitative insight into your <a href=\"https:\/\/www.engagebay.com\/blog\/customer-experience-automation\/\">customer experience<\/a> using your products or with your eCommerce service in general.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It usually appears as a 1-to-5 star rating that helps prospects with purchase decisions and product research.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Having 4+ ratings helps increase your eCommerce sales and effectively drives ready-to-purchase customers to your eCommerce store. These ratings and reviews help drive more <\/span><a href=\"https:\/\/www.engagebay.com\/crm\/lead-scoring\"><span style=\"font-weight: 400;\">qualified leads<\/span><\/a><span style=\"font-weight: 400;\"> to your product pages.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To measure customer satisfaction, you must understand what factors drive customer satisfaction, such as product quality, customer service, delivery times, and pricing.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can get online reviews by taking online surveys or by in-person interviews. It also helps to be on review platforms like TrustPilot or Feefo, so your customers can find a place to review you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Finally, it helps to use customer satisfaction ratings to identify areas for improvement and develop strategies for increasing customer satisfaction. <\/span><a href=\"https:\/\/www.engagebay.com\/\"><span style=\"font-weight: 400;\">EngageBay<\/span><\/a><span style=\"font-weight: 400;\"> enjoys a 4.6 out of 5 overall rating on top review sites like <\/span><a href=\"https:\/\/www.capterra.com\/p\/178819\/EngageBay-Marketing\/reviews\/\"><span style=\"font-weight: 400;\">Capterra<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/www.getapp.com\/marketing-software\/a\/engagebay\/reviews\/\"><span style=\"font-weight: 400;\">GetApp, <\/span><\/a><span style=\"font-weight: 400;\">and <\/span><a href=\"https:\/\/www.g2.com\/products\/engagebay-all-in-one-suite\/reviews\"><span style=\"font-weight: 400;\">G2<\/span><\/a><span style=\"font-weight: 400;\"> from satisfied customers.<\/span><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/best-email-marketing-software-for-ecommerce\/\">9 Great Email Marketing Software for eCommerce<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"10_Number_of_customer_reviews\"><\/span><span style=\"color: #993300;\"><b>10. Number of customer reviews<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Online shoppers are likelier to purchase based on customer reviews than a sales pitch or product advertisement.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, <\/span><a href=\"https:\/\/www.brightlocal.com\/research\/local-consumer-review-survey\/\"><span style=\"font-weight: 400;\">81%<\/span><\/a><span style=\"font-weight: 400;\"> of customers rely on reviews to evaluate businesses. Customer reviews show your customers&#8217; first-hand experience using your eCommerce product. Good product reviews indicate that your product is valuable to customers and that they will most likely recommend it to others.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The best way to get more <a href=\"https:\/\/www.engagebay.com\/blog\/five-star-reviews\/\">positive reviews<\/a> is by ensuring your product is of excellent quality and solves users&#8217; problems.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Notwithstanding your product&#8217;s greatness, you may occasionally get one or two unpleasant reviews. Don\u2019t let that overwhelm you. Instead, use insights from the reviews to improve your product and services to drive sales and increase your eCommerce revenue.<\/span><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/positive-online-reviews-for-your-business\/\">Get Positive Online Reviews For Your Business, Consistently!<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"eCommerce_Metrics_for_Experienced_Business_Owners\"><\/span><span style=\"color: #339966;\"><b>eCommerce Metrics for Experienced Business Owners<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>Repeat Purchase Rate<\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Customer Acquisition Cost (CAC)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Return On Advertising Spend (ROAS)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Gross Merchandise Volume<\/span><\/li>\n<li style=\"font-weight: 400;\">Average Selling Price<\/li>\n<li>Best-selling Products<\/li>\n<li>Product Return Rate<\/li>\n<li>Product Profit Margin<\/li>\n<li>Mobile Bounce Rate<\/li>\n<li>Mobile Traffic<\/li>\n<li>Mobile Conversion Rate<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"1_Repeat_Purchase_Rate\"><\/span><span style=\"color: #993300;\"><b>1. Repeat Purchase Rate<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The repeat purchase rate is designed to track the frequency of customers&#8217; returns to purchase from your eCommerce store or website. It is an essential metric for online stores, as it can provide great insight into customer loyalty and the effectiveness of your eCommerce <\/span><a href=\"https:\/\/www.engagebay.com\/glossary\/customer-retention\"><span style=\"font-weight: 400;\">customer retention<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Measuring repeat purchase rates is relatively simple. First, calculate the number of repeat customers who purchase within a given timeframe. This can be done by looking at purchase history (you can easily track your eCommerce customer&#8217;s purchase history using EngageBay\u2019s excellent <\/span><a href=\"https:\/\/www.engagebay.com\/crm\/customer-database-software\"><span style=\"font-weight: 400;\">customer database software<\/span><\/a><span style=\"font-weight: 400;\">) and tracking how many customers have purchased in the past month or quarter.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once you have the number of repeat customers, you can calculate the repeat purchase rate by dividing that number by the total number of customers who have purchased during the same timeframe.<\/span><\/p>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/6.png\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-37322\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/6.png\" alt=\"Formula to calculate repeat purchase rate\" width=\"1920\" height=\"1080\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/6.png 1920w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/6-300x169.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/6-1024x576.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/6-768x432.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/6-1536x864.png 1536w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/6-595xh.png 595w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">For example, if 100 customers made purchases in the last month and 20 of those customers were repeat customers, then the repeat purchase rate would be 20%. This number can then be compared to previous months or years to see how your store is doing regarding customer loyalty.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the repeat purchase rate is increasing, customers are responding well to your campaigns and returning to make more purchases. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Conversely, if the repeat purchase rate decreases, your campaigns are not resonating with customers, and they may be shopping elsewhere.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another way is to use a cookie-based system. This system sends a unique ID to your customer&#8217;s computer each time they make a purchase. You can then use this data to track how often customers return to your website and to see which of your products and services are most popular.<\/span><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-email-marketing-examples\/\">eCommerce Email Marketing Simplified: 15 Examples + Tips<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Customer_Acquisition_Cost_CAC\"><\/span><span style=\"color: #993300;\"><b>2. Customer Acquisition Cost (CAC)<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Customer Acquisition Cost (CAC) is an eCommerce marketing metric that measures the cost of acquiring new customers for your eCommerce business. It is a key indicator of the efficiency of your eCommerce company&#8217;s sales and marketing efforts.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">CAC is a valuable metric to track as it helps you understand how much you spend to acquire each customer and how much you should invest in customer acquisition efforts.<\/span><\/p>\n<p>You can easily calculate your Customer acquisition cost using the formula in the image below.<\/p>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/7.png\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-37323\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/7.png\" alt=\"Formula to calculate Customer Acquisition cost\" width=\"1920\" height=\"1080\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/7.png 1920w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/7-300x169.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/7-1024x576.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/7-768x432.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/7-1536x864.png 1536w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/7-595xh.png 595w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Another way to track your CAC is by analyzing the conversion rate of your website visitors. You can determine how much money you spend to acquire a new customer by analyzing the conversion rate of website visitors into customers.&nbsp;<\/span><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/best-cms-for-ecommerce\/\">Read also: The Best CMS for eCommerce<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Return_On_Advertising_Spend_ROAS\"><\/span><span style=\"color: #993300;\"><b>3. Return On Advertising Spend (ROAS)<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This metric tracks an advertisement&#8217;s <a href=\"https:\/\/www.engagebay.com\/blog\/crm-roi\/\">return on investment (ROI)<\/a> or how much money you earn in relation to the amount spent on an eCommerce advertisement. A high ROAS indicates that the advertisement is generating a positive return, while a low ROAS means the ad is not performing as well as expected.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is calculated by dividing the amount of money generated from an advertisement by the amount spent on the ad.&nbsp;<\/span><\/p>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/8-2.png\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-37329\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/8-2.png\" alt=\"Revenue generated from ad spend formula\" width=\"1080\" height=\"608\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/8-2.png 1080w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/8-2-300x169.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/8-2-1024x576.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/8-2-768x432.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/8-2-595xh.png 595w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">For example, if you spend $2000 on an ad that generates $8000 in sales, your return on ad spend would be 4:1, the ROAS<\/span><a href=\"https:\/\/adacado.com\/blog\/what-is-roas\/#:~:text=According%20to%20a%20study%20by,financial%20health%20of%20a%20company.\"><span style=\"font-weight: 400;\"> benchmark<\/span><\/a><span style=\"font-weight: 400;\"> for eCommerce businesses.&nbsp;&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To ensure your ROAS is as high as possible, there are three key factors to consider: the target audience, the type of advertisement, and the advertisement&#8217;s message.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The more targeted the advertisement is, the more likely it is to generate a higher ROAS. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additionally, the advertisement&#8217;s messaging should be clear and concise, which will help encourage more sales. Finally, the type of advertisement should be chosen carefully, as different types of advertisement may have different effectiveness levels.<\/span><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-marketing-tools\/\">25 eCommerce Tools to Boost Sales in 2023<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Gross_Merchandize_Volume\"><\/span><span style=\"color: #993300;\"><b>4. Gross Merchandize Volume<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Gross Merchandise Volume (GMV) is an eCommerce marketing metric that measures all sales made through your online platform within a given period. GMV helps you track and analyze your sales performance. It also gives you data-driven insight into your business&#8217;s health because it tells you how profitable your eCommerce business is.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can calculate GMV by multiplying the number of items sold by the total sales price of those items. This includes the cost of the product, any taxes, and shipping fees. It does not include discounts or returns.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/9.png\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-37324\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/9.png\" alt=\"Formula to calculate gross merchandize volume\" width=\"1920\" height=\"1080\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/9.png 1920w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/9-300x169.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/9-1024x576.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/9-768x432.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/9-1536x864.png 1536w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/9-595xh.png 595w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><\/a><\/span><\/p>\n<p><span style=\"font-weight: 400;\">By tracking your GMV, you can identify how much revenue you are generating and if your eCommerce sales are increasing or decreasing over time, so you can double down on your efforts to <\/span><a href=\"https:\/\/www.engagebay.com\/blog\/close-the-deal\/\"><span style=\"font-weight: 400;\">close more sales<\/span><\/a><span style=\"font-weight: 400;\">.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">GMV is also a valuable metric for eCommerce marketers when conducting marketplace analysis. It helps compare the performance of your product against other competitors in the market.&nbsp;<\/span><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/best-ecommerce-integrations\/\">Read also: 8 Game-Changing eCommerce Integrations For 4X Growth<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Average_selling_price_ASP\"><\/span><span style=\"color: #993300;\"><b>5. Average selling price (ASP)<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Average selling price (ASP) is one of the most crucial product performance metrics. ASP is the estimated amount an eCommerce customer pays to buy a specific product.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The ASP also provides an indication of the overall demand for a product and allows you to adjust its prices accordingly. It helps you make informed decisions about pricing your products, which is essential for remaining competitive in the market.&nbsp;<\/span><\/p>\n<p>You can easily calculate your product&#8217;s average selling price using the formula in the image below.<\/p>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/10.png\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-37325\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/10.png\" alt=\"Formula to calculate average selling price\" width=\"1920\" height=\"1080\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/10.png 1920w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/10-300x169.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/10-1024x576.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/10-768x432.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/10-1536x864.png 1536w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/10-595xh.png 595w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"6_Best-selling_products\"><\/span><span style=\"color: #993300;\"><b>6. Best-selling products<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Best-selling product is a performance metric that looks at the number of units sold in a given period. This metric helps you determine which products are the most popular and make data-driven decisions on which products to invest in.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additionally, It helps you understand what types of products your eCommerce customers are most interested in.<\/span><\/p>\n<p><em>\ud83d\udc49Supercharge your ecommerce business with the ultimate marketing tool recommendations \u2013 <a href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-marketing-tools\/\">dive into our in-depth guide today<\/a>! \ud83d\ude80<\/em><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-market-research\/\">Read also: How to Conduct eCommerce Market Research in 2024<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"7_Product_return_rate\"><\/span><span style=\"color: #993300;\"><b>7. Product return rate<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">There&#8217;s no denying that product returns are a common occurrence in eCommerce shopping. The eCommerce industry return rate could be as high as <\/span><a href=\"https:\/\/www.richpanel.com\/blog\/ecommerce-return-rates\"><span style=\"font-weight: 400;\">20% &#8211; 30%<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are many reasons why customers might return a product. The image below gives a statistical report on generic reasons for product return.&nbsp;<\/span><\/p>\n<figure id=\"attachment_37079\" aria-describedby=\"caption-attachment-37079\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/Ecommerce-Return-Rate-Statistics-1024x673-1.png\"><img decoding=\"async\" class=\"size-full wp-image-37079\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/Ecommerce-Return-Rate-Statistics-1024x673-1.png\" alt=\"Ecommerce product return rate\" width=\"1024\" height=\"673\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/Ecommerce-Return-Rate-Statistics-1024x673-1.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/Ecommerce-Return-Rate-Statistics-1024x673-1-300x197.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/Ecommerce-Return-Rate-Statistics-1024x673-1-768x505.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/Ecommerce-Return-Rate-Statistics-1024x673-1-595xh.png 595w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption id=\"caption-attachment-37079\" class=\"wp-caption-text\"><em><a href=\"https:\/\/www.nosto.com\/ecommerce-statistics\/return-rate\/\">Image source<\/a><\/em><\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Whatever the reason, it&#8217;s crucial to understand how to handle product returns effectively.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To reduce your <a href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-returns\/\">eCommerce product return<\/a>, provide a quality guarantee, ensure that your products are authentic, and match the product ordered in size, color, etc.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additionally,&nbsp; provide customer support and ensure your products are easy to use and understand. If they&#8217;re not, customers will likely return them.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To calculate your eCommerce product return rate, divide the no. of products returned by the total number of products sold.<\/span><\/p>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/11.png\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-37326\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/11.png\" alt=\"Formula to calculate product return rate\" width=\"1920\" height=\"1080\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/11.png 1920w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/11-300x169.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/11-1024x576.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/11-768x432.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/11-1536x864.png 1536w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/11-595xh.png 595w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><\/a><span style=\"font-weight: 400;\">So, if your total eCommerce sales were 10,000 units within a quarter and 2000 units were returned, your product return rate would be 2000 \/ 10,000 x 100 = 20%.<\/span><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-customer-expectations\/\">Read also: eCommerce Customer Expectations: The Science of Delight<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"8_Product_profit_margin\"><\/span><span style=\"color: #993300;\"><b>8. Product profit margin<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Product profit margin is a key performance indicator (KPI) that determines the profitability of your eCommerce products. It refers to the percentage of revenue left after expenses are subtracted.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A high-profit margin indicates that your products are profitable and their income is high enough to cover their business expenses.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Conversely, a low product margin suggests that your products are not profitable, and its revenue needs to be increased to cover business expenses.&nbsp;<\/span><\/p>\n<p>Here&#8217;s a formula to easily calculate your product profit margin.<\/p>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/12.png\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-37327\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/12.png\" alt=\"How to calculate profit margin\" width=\"1920\" height=\"1080\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/12.png 1920w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/12-300x169.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/12-1024x576.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/12-768x432.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/12-1536x864.png 1536w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/12-595xh.png 595w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Several factors affect product profit margins, such as pricing and <a href=\"https:\/\/www.engagebay.com\/blog\/sales-volume\/\">sales volume<\/a>. Keeping track of these factors is vital to consistently producing profitable products that meet customer needs. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">That way, you can ensure that your company is achieving its profit goals and that your eCommerce customers are happy too!<\/span><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-email-marketing-examples\/\">eCommerce Email Marketing Simplified: 15 Examples + Tips<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"9_Mobile_bounce_rate\"><\/span><span style=\"color: #993300;\"><b>9. Mobile bounce rate<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Mobile metrics such as mobile bounce rate are becoming increasingly important in the eCommerce marketing sphere. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Consumers increasingly rely on mobile devices to access and engage with online content. As such, you need to know the metrics associated with mobile use, which will help you gauge your marketing efforts. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">One of the most critical mobile metrics is the mobile bounce rate. Like website bounce rate, this metric measures the number of people visiting your website from your mobile device and immediately leaving without engaging with any content. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is important for eCommerce marketers to track because it indicates how effective and user-friendly your site is optimized for mobile users.<\/span><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-marketing-automation-guide\/\">The Beginner&#8217;s Guide to eCommerce Marketing Automation<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"10_Mobile_traffic\"><\/span><span style=\"color: #993300;\"><b>10. Mobile traffic<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">When was the last time you browsed a site on your desktop for an online purchase? You may even be reading this right now on your mobile device. And that\u2019s the reason you should be tracking your mobile traffic.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Tracking mobile traffic metrics for eCommerce marketing in this digital age has become increasingly important.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Smartphones are now the primary source of online activity for <\/span><a href=\"https:\/\/explodingtopics.com\/blog\/mobile-internet-traffic#:~:text=92.1%25%20of%20internet%20users%20access,5G%20connections%20worldwide%20by%202025.\"><span style=\"font-weight: 400;\">92.1% <\/span><\/a><span style=\"font-weight: 400;\">of consumers, with <\/span><a href=\"https:\/\/ojdigitalsolutions.com\/mobile-ecommerce-statistics\/#:~:text=Today%2C%20almost%20three%20out%20of,to%20the%20COVID%2D19%20pandemic.\"><span style=\"font-weight: 400;\">75% <\/span><\/a><span style=\"font-weight: 400;\">of eCommerce purchases coming from mobile devices. This makes the analysis of mobile traffic a key metric for any eCommerce business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This metric helps eCommerce marketers understand how well their website is optimized for mobile devices. If mobile visitors are low, the website must be optimized for mobile devices to maximize engagement and conversions.&nbsp;<\/span><\/p>\n<figure id=\"attachment_37083\" aria-describedby=\"caption-attachment-37083\" style=\"width: 1760px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1659521271-most-popular-devices-in-the-us.jpeg\"><img decoding=\"async\" class=\"size-full wp-image-37083\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1659521271-most-popular-devices-in-the-us.jpeg\" alt=\"Most popular devices in the US\" width=\"1760\" height=\"900\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1659521271-most-popular-devices-in-the-us.jpeg 1760w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1659521271-most-popular-devices-in-the-us-300x153.jpeg 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1659521271-most-popular-devices-in-the-us-1024x524.jpeg 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1659521271-most-popular-devices-in-the-us-768x393.jpeg 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1659521271-most-popular-devices-in-the-us-1536x785.jpeg 1536w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/1659521271-most-popular-devices-in-the-us-595xh.jpeg 595w\" sizes=\"(max-width: 1760px) 100vw, 1760px\" \/><\/a><figcaption id=\"caption-attachment-37083\" class=\"wp-caption-text\"><em><a href=\"https:\/\/www.oberlo.com\/statistics\/most-popular-devices\">Image source<\/a><\/em><\/figcaption><\/figure>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/free-ecommerce-website-builders\/\">8 Free eCommerce Website Builders For Every New E-Preneur<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"11_Mobile_conversion_rate\"><\/span><span style=\"color: #993300;\"><b>11. Mobile conversion rate<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This is the number of purchases made on mobile devices. It can be used to identify which devices drive the most sales. This data can be used to understand when and where customers buy from. It also helps optimize the mobile experience to push leads further down the <a href=\"https:\/\/www.engagebay.com\/blog\/sales-pipeline-stages\/\">sales pipeline<\/a> and increase<\/span><span style=\"font-weight: 400;\">&nbsp;mobile conversions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To optimize mobile conversion rate, it is crucial to understand what your customers are looking for. Understanding your customer\u2019s needs helps create content and eCommerce product offerings tailored to them.&nbsp;<\/span><\/p>\n<p>You can calculate your eCommerce mobile conversion rate using the formula in the image below.<\/p>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/13.png\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-37328\" src=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/13.png\" alt=\"Mobile conversion rate formula\" width=\"1920\" height=\"1080\" srcset=\"https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/13.png 1920w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/13-300x169.png 300w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/13-1024x576.png 1024w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/13-768x432.png 768w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/13-1536x864.png 1536w, https:\/\/www.engagebay.com\/blog\/wp-content\/uploads\/2023\/02\/13-595xh.png 595w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Additionally, optimizing your website or app for mobile devices is vital. This means ensuring your website or app is user-friendly and easy to navigate on mobile devices.<\/span><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-best-practices\/\">19 eCommerce Best Practices to Win Customer Confidence<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Wrap_Up\"><\/span><span style=\"color: #339966;\"><strong>Wrap Up<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Tracking all the eCommerce marketing metrics listed in this blog post immediately will overwhelm you.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To prevent that, if you&#8217;re new to the eCommerce business landscape, we recommend you begin by tracking the metrics listed above for beginners, such as conversion rate, Average Order Value, and Customer Lifetime Value.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Conversely, if you are an experienced eCommerce business owner, in addition to the metrics listed in the beginners&#8217; category, track the expert metrics such as Return On Advertising Spend (ROAS) and Gross Merchandize Volume to get advanced insight into how your eCommerce store is performing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Finally, track your sales easily, <\/span><a href=\"https:\/\/www.engagebay.com\/crm\/customer-database-software\"><span style=\"font-weight: 400;\">manage your customer database<\/span><\/a><span style=\"font-weight: 400;\">, and monitor your performance over time on EngageBay&#8217;s <\/span><a href=\"https:\/\/www.engagebay.com\/marketing\/marketing-automation\"><span style=\"font-weight: 400;\">all-in-one CRM<\/span><\/a><span style=\"font-weight: 400;\">.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additionally, it helps you automate your sales, marketing, and customer support for maximum efficiency, all on one platform. Plus, it <\/span><a href=\"https:\/\/zapier.com\/apps\/engagebay-marketing\/integrations\/shopify?utm_source=google&amp;utm_medium=cpc&amp;utm_campaign=gaw-usagbl-nua-search-onetwo_service-mobile-dsa&amp;utm_adgroup=dsa_one_service_activecampaign&amp;utm_term=&amp;utm_content=_pcrid_646546132277_pkw__pmt__pdv_m_slid__pgrid_152458415424_ptaid_aud-933646226346:dsa-1944672399574_&amp;gclid=Cj0KCQiAi8KfBhCuARIsADp-A57MG918nrQJ5LWVLRZGcH35MZ8BBakGZ69wz_yOKGGQsf8baYUKzvsaAmdJEALw_wcB\"><span style=\"font-weight: 400;\">integrates with Shopify<\/span><\/a><span style=\"font-weight: 400;\"> too!<\/span><\/p>\n<p><em>\ud83d\udc49Empower your ecommerce business with the best marketing ideas \u2013 <a href=\"https:\/\/www.engagebay.com\/blog\/ecommerce-marketing-ideas\/\">learn more in our expert guide<\/a>! \ud83d\udcaa<\/em><\/p>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"eCommerce_Frequently_Asked_Questions\"><\/span><span style=\"color: #339966;\"><b>eCommerce Frequently Asked Questions<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_difference_between_marketing_metrics_and_KPIs\"><\/span><span style=\"color: #993300;\">What is the difference between marketing metrics and KPIs?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The key difference between <a href=\"https:\/\/www.engagebay.com\/blog\/marketing-metrics\/\">marketing metrics<\/a> and KPIs is the purpose they serve. Metrics provide a measure of performance and are used to evaluate the success of marketing campaigns.<\/p>\n<p>On the other hand, KPIs are used to set goals and track progress toward achieving those goals.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_most_important_marketing_metrics\"><\/span><span style=\"color: #993300;\">What are the most important marketing metrics?&nbsp;<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">There are several marketing metrics, and the most important ones will depend on the goals of your eCommerce business, the size, the industry, and your experience level.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, if the goal is to generate leads or measure the quality of your eCommerce leads, then website traffic and conversion rate would be two critical metrics to track. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you want to increase sales, customer lifetime value (LTV) and return on Return On Advertising Spend (ROAS) would be key metrics to monitor. In this blog post, to keep it simple, we divided the top <a href=\"https:\/\/www.salehoo.com\/blog\/ecommerce-metrics\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">e-commerce metrics<\/a> you must know based on your experience level.&nbsp;<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_often_should_I_measure_marketing_metrics\"><\/span><span style=\"color: #993300;\">How often should I measure marketing metrics?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\"> The frequency with which you measure marketing metrics will depend on your eCommerce goals and the metrics you are tracking. If you\u2019re tracking your eCommerce site traffic, then monitoring the data weekly or monthly is a good idea. On the other hand, if you\u2019re trying to track Customer Lifetime Value (CLV), it&#8217;s best to follow it annually.<\/span><\/p>\n\r\n            <script>\r\n                var EhAPI = EhAPI || {}; \r\n                EhAPI.after_load = function() {\r\n                    EhAPI.set_account('ktb76s1540fl2hnhbqnrtd2npb', 'our');\r\n                    EhAPI.execute('rules');\r\n                };\r\n                (function(d, s, f) {\r\n                    var sc = document.createElement(s);\r\n                    sc.type = 'text\/javascript';\r\n                    sc.async = true;\r\n                    sc.src = f;\r\n                    var m = document.getElementsByTagName(s)[0];\r\n                    m.parentNode.insertBefore(sc, m);   \r\n                })(document, 'script', '\/\/d2p078bqz5urf7.cloudfront.net\/jsapi\/ehform.js');\r\n            <\/script>\r\n            <script>\r\n                function waitForEhForms() {\r\n                    const interval = 100; 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