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Natalya Brinza Project Manager

Essential KPIs for Ecommerce Business


Essential KPIs for Ecommerce Business

For doing tasks with the maximum precision any job needs specific skills to be used. Business is the same – you need to be hardworking and know exact data to propel it to the next level.

How to manage a business project to make it money-making?

To succeed in E-commerce, you shouldn't forget about unbreakable rules of commercial activities — regular gaging of key performance indicators (KPIs). Simply said, get all metrics you can only do to understand which results are capital formatting to be corrected in future.

There are a lot of key figures to be analyzed and taken into account for preparing a strategy of business development or cost-effectiveness analysis – it's up to you which figures to prioritize. Keep in mind, you must be well-informed to make good sales.

Now I'm going to tell you how to control correctly the effectiveness of E-sales. First of all, it is important to structure goals by dividing them into categories. Key performance indicators for E-commerce consists of the one for sales, marketing, and service. Let's dwell upon each of them and mark the main points. So,

1 Key figures of KPIs for sales include:

      • Average purchase size

It is the main key figure in any business. It is not difficult to count it – you need to divide sum of earned revenue by number of orders. The result is an average purchase size of your web-resource. It will help you to think over the effectiveness of sales department's work, actuality of discount system and workflow of a web store in general.

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Get bigger average purchase size by providing attractive commercial offers such as free delivery, related products, discounts or invitation bonuses.

      • Volume of sales

Volume of sales is planned by managers for the certain period of time (month, quarter or year). It is very important – if you haven't fixed figures to aim at, it will be harder to reach the highest notch.

      • Clear profit

Everyone is able to sum up net profit. It's quite easy – you should take all spendings from total income to remain figure for the sake of you do business. Put down away costs to raise income: look over spendings, avoid expenses and control actuality of prices.

2 Key figures of KPIs for marketing are:

      • TOP ranking

Correctly chosen marketing strategy is that which has the final goal to reach the TOP of search engines results. How difficult it will be to succeed depends on specialists' qualification and experience, specific of business and employment status on the market.

      • Traffic volume

Using Google Analytics as a tool for analysis you will know which promotion channels work the best, which resources are the most attractive for visitors, how do social networks function and which channels you have underrated before.

      • Abandoned carts

Practice shows that coefficient of cart abandonment is up to 70% depending on specific of business. It is quite a high rate, use Google Analytics to monitor reasons of users' behavior.

      • Purchase refusal

Analytic tools show the percentage of refusals – it helps to understand how to deal with the reasons which have caused such action. To calculate coefficient of rejections divide number of users quickly leaving resource by total number of users vising web site. Analyzing common reasons – design, usability, content quality, you are able to decrease coefficient of refusals and increase targeted traffic.

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      • Conversion

Conversion rate is the most important element in the sales system. Keep in mind that you should rate a number of completed purchases, but not a number of clicks. The concept of conversion includes number of voice calls and number of placed orders, the result of which is sold goods. To count index of target audience, that has already made its purchase, divide number of sales by total hits. According to Nielsen Norman Group research, in 2014, the average conversion rate for E-commerce was 3%. Acceptable conversion coefficient is from 1% to 10%. If it is lower than 1% - you should find the reason! To increase the percent of conversion growth, analyze usability of a website, currency of prices and the common reaction on order processing.

3 KPIs for service include:

      • Win-back rate

Many entrepreneurs know that clients who repeat their purchases, but not impulse buyings make the bulk of the sales. The first purchase made by customer in your store must become the best in his life – service and loyalty system are to push clients to come back. If a customer comes back for a purchase again and again, it means your service is high-grade.

      • Order processing speed

The faster sales order processing is - the better clients' testimonials are. React immediately to orders, and a customer will be glad to look on you as reliable suppliers of goods and services. Use in your work such fast-response services as Call-back.

business project

      • Feedback

It's very important to seek feedback from its customers to understand does your market positioning come up to clients' expectations.

      • Fast response on negative

If your client isn't satisfied with your product or service, deal with his problem directly and resolutely. By this, you show understanding of a mistake and your high-grade service. In that way by protecting yourself from adverse publicity, you build brand credibility.

      • Growth rate of lead base

If your landing page is informative and user-understandable, you systematically apprise your clients about special offers and proposals by mailings and make your contact base wider, it will provoke your lead base into growing.


Web business starts from setting goals and objectives, that's why to think over what do you want it to be in the future and how is it going to be implemented. Except choosing a robust tool for data collection and analysis, you need to be well-versed to be able to attach your priorities and make your business project successful. KPIs help measures your spendings and results — go on them, and the result will not be slow to arrive!

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