How to measure your store’s profitability with KPIs
Learn which KPIs matter most when measuring profitability and how to track them effectively.
Revenue isn’t profit. To measure true success, you need the right KPIs that highlight your store’s profitability. E-commerce analytics tools make this easier.
Key profitability KPIs
Gross margin
Net profit margin
Return on ad spend (ROAS)
Customer lifetime value vs. CAC
Takeaway: Always look beyond top-line revenue.
How to calculate margins
Gross margin = (Revenue – COGS) ÷ Revenue × 100. Net margin = (Profit ÷ Revenue) × 100.
Takeaway: Calculate both monthly and quarterly for accuracy.
Tools for profitability tracking
GA4, Shopify, and WooCommerce dashboards can be combined with accounting tools for clarity.
Takeaway: Integrate financial and marketing data.
Balancing growth and profit
It’s tempting to chase revenue growth, but high CAC can erode profits quickly.
Takeaway: Always analyze ROI on campaigns.
Conclusion: Profitability-focused KPIs protect your business from vanity metrics. They ensure your growth is sustainable.
👉 Want to see profitability KPIs in one view? Peasy combines your sales and costs into clear dashboards.
