Key Metrics
I asked Claude and ChatGPT to list out key eCommerce metrics.
| Category | Metric | What to Track | Why It Matters |
| Growth & Revenue | Gross Merchandise Value (GMV) | Total value of all merchandise sold before returns, discounts, etc. | Provides high-level view of business scale and growth trajectory; essential for investors and industry benchmarking. |
| Net Revenue | GMV minus discounts, returns, and cancellations. | Shows actual realized revenue and more accurately represents financial health than GMV. | |
| Revenue Growth Rate | Month-over-month or year-over-year percentage increase in revenue. | Indicates momentum and scalability; declining rates may signal market saturation or competitive threats. | |
| Monthly Recurring Revenue (MRR) | Predictable monthly revenue from subscription customers. | Provides predictability for cash flow forecasting and demonstrates revenue stability. | |
| Customer Metrics | Customer Acquisition Cost (CAC) | Total marketing and sales expenses divided by number of new customers acquired. | Determines if acquisition strategy is sustainable and helps optimize marketing spend across channels. |
| Customer Lifetime Value (CLV/LTV) | Projected revenue a customer will generate throughout their relationship with your business. | Helps determine appropriate acquisition spend and guides pricing and loyalty strategies. | |
| LTV
Ratio |
Ratio between lifetime value and acquisition cost. | Key indicator of business sustainability; healthy ratio is 3:1 or higher. | |
| Active Customers | Number of unique customers who made a purchase in a given period. | Reflects actual size of customer base and helps detect early warning signs of disengagement. | |
| Churn Rate | Percentage of customers who don’t return within a specific timeframe. | High churn indicates product-market fit issues or poor customer experience. | |
| Retention Rate / Repeat Purchase Rate | Percentage of customers who return to make additional purchases. | Demonstrates product satisfaction and brand loyalty; repeat customers typically have higher LTV. | |
| Unit Economics & Profitability | Gross Margin | (Revenue – COGS) / Revenue, expressed as a percentage. | Shows how much revenue remains to cover operating expenses and generate profit. |
| Contribution Margin | Revenue minus COGS minus variable costs (marketing, shipping, etc.). | Provides clearer picture of profitability per unit by including all variable costs. | |
| Average Order Value (AOV) | Total revenue divided by number of orders. | Increasing AOV can significantly improve profitability since many costs are fixed per order. | |
| Orders per Customer | Total number of orders divided by number of unique customers. | Measures depth of customer relationship and success of cross-selling efforts. | |
| Return Rate | Percentage of sold items that are returned. | High return rates impact profitability through reverse logistics costs; can indicate product quality issues. | |
| First Order Profitability | Profit or loss on a customer’s first purchase. | Determines if you can afford aggressive first-order promotions while maintaining sustainable economics. | |
| Marketing & Funnel | Traffic Sources Breakdown | Percentage of visitors from different channels. | Helps diversify acquisition channels and identify which to prioritize. |
| Conversion Rate | Percentage of visitors who complete a purchase, segmented by channel and device. | Direct indicator of website effectiveness; small improvements can dramatically increase revenue. | |
| Cart Abandonment Rate | Percentage of users who add items to cart but don’t complete checkout. | Represents “low-hanging fruit” revenue opportunity; may indicate UX issues or payment friction. | |
| Email Metrics | Open/click/conversion rates for email campaigns. | Email often delivers highest ROI of any marketing channel when properly segmented. | |
| ROAS (Return on Ad Spend) | Revenue generated per dollar spent on advertising. | Measures advertising efficiency and helps optimize campaign spending across channels. | |
| Blended CAC vs. Paid CAC | Overall CAC across all channels versus CAC for paid channels only. | Helps understand true efficiency of marketing mix when scaling. | |
| Operations & Fulfillment | Order Fulfillment Rate | Percentage of orders delivered successfully on first attempt. | Directly impacts customer satisfaction and operational costs. |
| Average Delivery Time | Time from order placement to customer receipt. | Speed of delivery is a key competitive differentiator. | |
| Logistics Cost per Order | Total shipping, handling, and fulfillment costs divided by number of orders. | Often a substantial portion of total costs; optimization can significantly improve margins. | |
| Inventory Turnover Ratio | Cost of goods sold divided by average inventory value. | Measures inventory management efficiency; low turnover ties up capital. | |
| Out-of-Stock Rate | Percentage of SKUs unavailable when customers attempt to purchase. | Results in immediate revenue loss and potential customer defection to competitors. | |
| Cancellation Rate | Percentage of orders cancelled before dispatch. | Indicates issues with inventory management, payment processing, or customer commitment. | |
| Customer Experience & Brand Health | Net Promoter Score (NPS) | Likelihood of customers to recommend your brand (promoters minus detractors). | Predictive of future growth; promoters drive referrals and have higher retention rates. |
| Customer Satisfaction (CSAT) | Rating of customer satisfaction with specific interactions or overall experience. | Identifies pain points in the customer journey that need immediate attention. | |
| Product Rating & Reviews | Average score and sentiment analysis of product reviews. | Directly influences conversion rates for new customers. | |
| Customer Support Metrics | Resolution time, satisfaction, ticket volume relative to order volume. | Support interactions are critical moments that determine retention. | |
| Time on Site & Pages per Session | How long visitors engage with your site and how many pages they view. | Indicates content engagement; longer sessions typically correlate with higher conversion. | |
| Bounce Rate | Percentage of visitors who leave after viewing only one page. | High bounce rates suggest landing page issues, poor targeting, or site performance problems. |
