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Home / Tech / E-commerce / 37 KPIs to track e-commerce business performance

37 KPIs to track e-commerce business performance

“The price of light is less than the cost of darkness.” 

– Arthur C. Nielsen (the famous analyst who founded the ACNielsen company)

“Every line is the perfect length if you don’t measure it.”

– Marty Rubin (Author of Boiled Frog Syndrome)

Track your performance!

If you haven’t read my article about key identifiers of e-commerce, you can have a look at it here. Now it’s time to give you more tips with more visualized way.

In order to track yourself and to facilitate the involvement of investors, you need to be able to view how you have been doing for the past months on a day to day basis.

Especially if you are aiming to have an investment from a big VC, which probably gets multiple reports from multiple ventures, then you need to do your homework, at least for the sake of creating “well-established” or “well controlled” venture image. You need to have a clear and extensive view of how your performance is across different departments/work streams in order to optimize allocation, spending and efforts.

Find below the balls (KPIs) that I have visualized with respective departments of e-commerce:

Few notes:

%: KPI is a percentage

$: KPI is a value

#: KPI is a number (amount of x)

 1) Sales (15 KPIs)

e commerce sales kpi

  • Value Per item ($)
  • Discount Rate (%)
  • Coupon Rate (%)
  • COGS basic (Cost of goods sold) ($)
  • COGS Rate (%)
  • Gross Basket size ($)
  • Number of items per order (#)
  • Number of orders (#)
  • Sold items (#)
  • Gross Revenue Change (week over week) – this is optional (it’s good to have it)
  • Gross Revenue ($)
  • Gross Revenue Change (week over week) – this is optional (it’s good to have it)
  • Sales per each category (#)
  • Revenue per each category ($)
  • % of each category ($ and/or #) – it’s good to have both

2) Marketing (10 KPIs)

e-commerce KPIs 2

  • Number of visits(#)
  • Unique visitors (#)
  • Total Marketing Spent ($)
  • Cost Per Visit (CPV) ($)
  • Customer Acquisition Cost (CAC) ($)
  • Cost Per Order ($)
  • Number of Customers (#)
  • % of new customers (over total customers) (%)
  • % of repeating customers (over total customers) (%)
  • Visit based conversion rate (# of orders/# of visits) (%)

3) Operations & Payment (12 KPIs)

e-commerce KPIs 3

  • Total Inventory (#)
  • Number of products online (#)
  • Inventory online (#)
  • Inventory online in % of total (%)
  • Cancellation rate (%) (can be value based or item based – preferably item based)
  • Rejection rate (%)
  • Return rate (item based) (%)
  • Return rate (value based) (%)
  • Percentage of credit card payments (%)
  • Percentage of cash on delivery payments (%)
  • Percentage of PayPal (or others) (%)
  • Percentage of other payment channels (%)

Now you have a pretty extensive toolkit. In my next article, I will explain how you can use KPIs and when you can take action.

 

Image source: Flickr

 

Orkun Basaran

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