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Guide to E-commerce Metrics

Updated over 5 months ago

Key E-commerce Metrics

1. Mean AOV (Average Order Value)

  • Formula:
    Mean AOV = Total Revenue ÷ Total Orders

  • Purpose: Provides an average of how much customers spend per order. Helps businesses set pricing strategies and optimize marketing campaigns.

2. Median AOV

  • Formula:
    The middle order value when all orders are arranged in ascending order.

  • Purpose: Reduces the impact of extreme high or low order values, offering a more balanced view of spending trends.

3. Mode AOV

  • Formula:
    The most frequently occurring order value.

  • Purpose: Identifies the most common purchase amount, providing insights into standard spending behavior.

4. Mode to Mean Ratio

  • Formula:
    Mode to Mean Ratio = Mode AOV ÷ Mean AOV

  • Purpose: A lower ratio indicates price variability, while a higher ratio suggests consistency in customer spending.

5. Return on Ad Spend (ROAS)

  • Formula:
    ROAS = Revenue from Ads ÷ Ad Spend

  • Purpose: Evaluates how much revenue is generated for every dollar spent on ads.

6. Add to Carts

  • Formula:
    Total number of times users added a product to their cart.

  • Purpose: Measures purchase intent and identifies high-interest products.

7. Checkouts Initiated

  • Formula:
    Total number of users who started the checkout process.

  • Purpose: Helps track the number of users moving past cart addition to the final purchase steps.

8. Purchases

  • Formula:
    Total number of successful transactions.

  • Purpose: Measures actual conversions and revenue generation.

9. Revenue

  • Formula:
    Revenue = Total Sales Value

  • Purpose: Key financial metric showing total earnings from sales.

10. Return Rate (RR)

  • Formula:
    RR (%) = (Total Returned Orders ÷ Total Orders) × 100

  • Purpose: Helps businesses analyze return trends and improve product quality or descriptions.

11. Product Views

  • Formula:
    Total number of times a product was viewed.

  • Purpose: Indicates product interest and effectiveness of marketing campaigns.

12. Conversion Rate (CR)

  • Formula:
    CR (%) = (Total Purchases ÷ Total Visitors) × 100

  • Purpose: Measures how well a website turns visitors into buyers.

13. Cost Per Purchase (CPP)

  • Formula:
    CPP = Total Ad Spend ÷ Total Purchases

  • Purpose: Determines how much it costs to generate a single purchase through paid ads.

14. Add to Cart to Purchase Ratio

  • Formula:
    Ratio (%) = (Total Purchases ÷ Total Add to Carts) × 100

  • Purpose: Shows how many users who added an item to the cart completed the purchase.

15. Checkout Abandonment Rate (CAR)

  • Formula:
    CAR (%) = (Checkouts Initiated - Completed Purchases) ÷ Checkouts Initiated × 100

  • Purpose: Identifies friction in the checkout process and helps improve conversion optimization.

16. Revenue Per Click (RPC)

  • Formula:
    RPC = Total Revenue ÷ Total Clicks

  • Purpose: Measures the effectiveness of ad campaigns and website traffic in generating revenue.

17. Return on Investment (ROI)

  • Formula:
    ROI (%) = [(Revenue - Cost) ÷ Cost] × 100

  • Purpose: Measures overall profitability by comparing returns to expenses.

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