skip to Main Content
0800 1816249 [email protected]
KPI, key performance indicators for your online personal stores

KPI, key performance indicators for your online personal stores

KPI, key performance indicators for your online personal stores. You should regularly monitor whether your objectives are met.

If so, the company is going in the right direction. The situation looks the same for e-commerce industry. To measure the effectiveness of your actions you need to determine KPIs.

So what are KPIs for e-commerce? Find out more in this blog article prepared by your personal local SEO agency in Munich! Don’t forget to contact us for an SEO audit that will show you the current stage of the online visibility.

KPI: definition

KPI stands for a key performance indicator.

Key performance indicators are applicable in a variety of industries. To be more precise, in almost every enterprise. They make it easier to monitor the progress of the company. It is a way to check whether it reaches given objectives.

A specific numerical value should be assigned to the indicator. Also it should refer to a particular time frame. Applied KPIs may differ depending on the business type.

Each company should define its KPIs individually. These indicators may vary at different stages of operation. They’re particularly applicable in the e-commerce industry.

Their calculation and analysis of changes are crucial. For example, to determine whether the performed activities are likely to meet store owner’s expectations.

The basic KPI is a target number of new customers acquired over a specific period. Aiming at reducing the number of complaints in relation to the number of products sold is another objective.

The value of revenue in a given period is also a common KPI. You can decide to improve the sales value by 40%. Or, to increase your conversion rate at a specific level in the next year.

KPI for e-commerce: key performance indicators for the online store

Calculation of key performance indicators is important for every business. However, the potential is promising when it comes to e-commerce.

With the use of various tools, you can analyze almost every element which affects your results. All of these thanks to alarm values informing that something disturbing is happening. In this case, immediate action is needed.

KPIs in e-commerce can concern a lot of issues related to:

  • shopping cart abandonment;
  • conversion;
  • effectiveness of marketing channels;
  • customer complaint ratio;
  • average order value per one customer;
  • bounce rate;
  • total revenue;
  • product return rate.

Which e-commerce parameters should you measure at your store? Many of them are pretty flexible. It’s worth using them to see the real condition of your business. To set objectives and start performing activities.

Below you can see e-commerce KPI metrics you should take into account.

1. ROI

ROI stands for return on investment.

With its use, you can calculate your return on investment of marketing activities. The easiness of assessing the achieved results is the greatest advantage of online ads.

You can check whether a given investment has brought you the expected profits. Let’s assume that you benefit from Google Ads.

It’s impossible to find marketing activities that ensure excellent results. By trial and error you need to decide which investments have been the most beneficial. As an illustration, for your enterprise.

For some, these will be social media activities, for others, SEO or email marketing. The time needed to see the return on investment also varies, depending on the activities.

In the case of SEO, ROI becomes visible after 9-10 months of on-site activities. Be patient and don’t stop performing your local SEO activities.

They require constant work but the results are more long-lasting than other marketing solutions. ROI increases over time.

2. Bounce rate

When do you deal with bounce rate? When users visit your store but leave it after seeing the landing page or one subpage.

The rate can be calculated by dividing the number of web sessions by the number of all website impressions. If the rate is high, it’s a sign that you need some changes.

Entering only one subpage is almost never enough to finalize the transaction. Although it’s possible in some cases, you shouldn’t expect such purchases to constitute the majority.

Minimizing the bounce rate should be your objective.

Test and analyze to find out what’s the reason behind your high bounce rate. Maybe your website loading time is too long. Or your page navigation is complex or the website search is located at the bottom of the website.

A high bounce rate can have a negative impact on your visibility in the organic search results.

3. Shopping cart abandonment rate

When do you deal with the abandoned shopping cart? For instance, users put some products into their carts. Then, they don’t finalize the transactions. Your objective is to achieve the lowest possible value of this indicator.

This translates into improvements of other parameters (conversion rate).

Check out what’s the problem in your case. Determine your bounce rate. Remember that these elements are strongly affected by the industry you operate in.


CLV/LTV stands for customer lifetime value (or lifetime value). It’s about calculating the income earned by each customer. For example, find out how much one customer will spend at your store for over 12 months.

Why should you need this information? You can calculate how much you can invest in one customer. In this case you can make sure that it’s still profitable for you. So how to calculate CLV:

CLV=annual income earned on the customer x average number of years of the customer relationship – initial costs of acquiring the customer.

5. Conversion rate, another important KPI

Conversion rate is another important indicator that can be calculated comparably effortlessly. Just divide the number of your online store orders by the total number of visits.

Let’s assume that the website was visited by 1000 users. From this total 50 of them made a purchase. This means that the conversion rate is 5%.

This is affected by numerous factors. UX, appropriate product targeting or product prices, all of these matters. Pay attention to every aspect of store management.

Even seemingly inconspicuous changes can help you improve your conversion rate. Making it possible for users to shop without setting up an account is a simple and effective modification.

You can find out what’s the conversion rate depending on the type of marketing activities. On the other hand, it’s crucial to carry out similar analyses for your online store.

Different activities may turn out to be effective in different industries.

6. AOV

AOV stands for average order value. Your goal should be to maximally increase the revenue from one order. There are numerous ways to improve AOV.

Offer free shipping, extra products for free, discounts for the next shopping or installment payments.

7. KPI about the newsletter subscribers

We are talking about a database of users. It is important to realize that this is a valuable source of information. If it’s one of your e-commerce KPIs you may aim at increasing the number of subscribers by a certain percentage.

For example, over a given time period. Thus, you can offer discounts to customers who decide to subscribe to your newsletter.


KPIs play a significant role in almost every industry. Thanks to this KPI you can monitor goals and check whether your store is developing as you wish.

Do you measure other KPIs for your online store? Then let us know in the comments below. Therefore, write what results you’ve managed to achieve.

Back To Top