Understanding the basics of e-commerce KPIs
Learn the fundamentals of key e-commerce KPIs, why they matter, and how to use them to measure online store success.
Key Performance Indicators (KPIs) are like the health check of your online store. Without them, you’re flying blind. For e-commerce managers, KPIs show what’s working, what’s not, and where to focus energy. This guide introduces the basics so you can track performance confidently.
What are KPIs?
KPIs are specific metrics that reflect business goals. For e-commerce, they help measure sales, customer behavior, and efficiency.
Takeaway: Choose KPIs that match your store’s growth stage. Don’t track everything—focus on what matters most.
The must-know KPIs
Conversion rate (CR): % of visitors who buy.
Average order value (AOV): Average spend per order.
Customer acquisition cost (CAC): Cost of gaining one new customer.
Customer lifetime value (CLV): Total revenue per customer over time.
Cart abandonment rate: % of shoppers who leave before checkout.
Takeaway: Start with 3–4 KPIs and expand once you’re comfortable.
How KPIs connect to goals
If your goal is growth, track CAC and CR. If it’s profitability, AOV and CLV matter more. Align metrics with strategy.
Takeaway: Don’t track KPIs in isolation—tie them to outcomes.
Tools to track KPIs
Shopify and WooCommerce provide built-in analytics. GA4 helps track traffic and user behavior. Peasy consolidates data for easy reporting.
Takeaway: Use one central dashboard to avoid data silos.
Common mistakes to avoid
Tracking too many numbers without context.
Focusing on vanity metrics like page views without linking to sales.
Not reviewing KPIs regularly.
Takeaway: Less is more—choose metrics that guide decisions.
Conclusion: Mastering e-commerce KPIs is the first step toward smart decision-making. By focusing on the right metrics, you’ll know where to adjust and where to invest.
👉 Want a simple way to monitor KPIs? Explore Peasy and take the guesswork out of tracking performance.
