Ecommerce Ebook EN V2 (2) - Flipbook - Page 22
1- K EY PERFORMANCE INDICATORS FOR SALES
Sales key performance indicators are measures about sales conversions and revenue. You can look at sales KPIs related to a specific
channel, time period, team, employee, etc. to inform business decisions.
Examples of key performance indicators for sales include:
• Sales: Ecommerce retailers can monitor total sales by the hour,
day, week, month, quarter, or year.
• Average order size: Sometimes called “average market basket”,
the average order size tells you how much a customer typically
spends on a single order.
• Gross profit: Subtract the total cost of goods sold from the total
sales.
• Shopping cart abandonment rate: The shopping cart abandonment
rate tells you how many users are adding products to their
shopping cart but not checking out. If your cart abandonment rate
is high, there may be complications in the checkout process. Given
that 70% of shopping carts are abandoned, most companies are
in dire need of better e-commerce practices.
• Average margin: Average margin, or average profit margin, is a
percentage that represents your profit margin over a period of time.
• New customer orders vs. returning customer orders: This
metric shows a comparison between new and repeat customers.
A focus on customer retention can drive loyalty, word of mouth
marketing, and higher order values.
• Number of transactions: Total number of transactions. Use
this KPI in conjunction with the average order size or the total
number of site visitors for deeper insights.
• Cost of goods sold (COGS): COGS tells you how much you’re
spending to sell a product. This includes manufacturing,
employee wages, and overhead costs.
• Conversion rate: The conversion rate, also a percentage, is the
rate at which users on your ecommerce site are converting
(or buying). This is calculated by dividing the total number of
visitors (to a site, page, category, or selection of pages) into the
total number of conversions.
• Total available market relative to a retailer’s share of market: Tells
you how much your business is growing compared to others
within your industry.
• Product affinity: This KPI tells you which products are purchased
together. This is the basis for cross-promotion strategies.
KEY PERFORMANCE INDICATORS
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