If running an e-commerce store feels like juggling, KPIs are the spotlight that tells you which balls are worth keeping in the air. Without them, you’re just tossing things around in the dark, hoping something will stick. With them, you’re making decisions with precision, clarity, and confidence.
What is a KPI?
A Key Performance Indicator (KPI) is a measurable value that tells you how effectively you’re achieving your most important business objectives. Think of it as your scoreboard.
KPIs aren’t just numbers, they’re the right numbers. The ones that tell you if your marketing is working, your customers are happy, and your store is on the path to growth.
E-Commerce KPIs by Category
- Profitability & Revenue Performance
These metrics tell you whether your business is financially healthy and your marketing is truly paying off.
- Conversion Rate (CR), The percentage of visitors who make a purchase.
- Return on Ad Spend (ROAS), Revenue from ads ÷ cost of ads.
- Return on Investment (ROI), Overall profitability across all operations.
- Average Order Value (AOV), Total revenue ÷ total orders.
- TACoS (Total Advertising Cost of Sales), Ad spend ÷ total revenue (paid + organic).
- Cost per Conversion (CPC or CPA), Cost to acquire one completed sale.
- Earned Revenue Share, % of total revenue from organic/unpaid sources.
- Incremental Sales, Extra sales generated by a specific campaign or channel.
- Customer Acquisition & Retention
Metrics that reveal how well you’re attracting and keeping customers.
- Customer Acquisition Cost (CAC), The cost of gaining a new customer.
- Customer Lifetime Value (CLV), Revenue expected from a customer over time.
- Repeat Purchase Rate, % of customers who buy again.
- Cart Abandonment Rate, % of shoppers who abandon before checkout.
- Marketing & Engagement Effectiveness
Metrics that show how engaging and relevant your messaging is to your audience.
- Click-Through Rate (CTR), % of people who click after seeing your ad or listing.
- Purchase Funnels, Tracks the customer journey from awareness to purchase.
- SEO & Organic Performance
Metrics that measure your visibility and effectiveness in unpaid channels.
- Keyword Ranking, Search position for your priority keywords.
- Organic Traffic Performance, Visitors arriving from unpaid search results.
How to Use These KPIs Without Being Overwhelmed
Pick your top 5–7. You don’t need all of them at once.
- Set benchmarks. Know what “good” looks like for your store.
- Track regularly. Weekly for fast-moving metrics, monthly for slower ones.
- Act, don’t just observe. KPIs should spark action, not just sit in a spreadsheet.
KPIs aren’t just numbers, they’re the levers you can pull to grow your e-commerce business. By grouping them into clear categories, you can spot where you’re thriving, where you’re struggling, and where you need to focus next. Because in e-commerce, success comes from knowing which numbers tell the real story, and acting on them.