Ecommerce performance meters show you how your business is doing. Online marketing without metric e-commerce is like blind driving. If you do not follow your path and measure your progress over time, your business will not survive.
As a new entrepreneur, it can be challenging to choose which online business model to explore. For that reason, we have compiled this summary of the most critical performance indicators (KPIs) for e-commerce.
7 top metrics for creating a successful eCommerce store
We’ve selected these seven eCommerce metrics to help you measure the effectiveness of your sales and marketing strategies with same-day delivery.
1- Average order value (AOV)
Your value order refers to the average transaction made on your e-commerce site. As customer loyalty grows, customers need to aim to increase AOV. AOV leads to increased customer value because they want to spend more money at your store.
Pricing is a good e-commerce metric because it’s easy to apply without putting too much pressure on the market. For example, customer loyalty programs, upsell / sales, and online marketing are good plans to increase AOV. These methods are more convenient than adding new customers or letting existing customers buy more time.
2- Conversion rate
Conversion rate is the number of visitors who turn into customers. One of the most common problems faced by eCommerce entrepreneurs is accessing too much traffic without any marketing.
Meanwhile, the average conversion rate for e-commerce companies is usually 2.7%.
There are many reasons for this:
- the site’s design is entirely unreliable;
- there is no public evidence;
- the overall product price is high;
- there are no qualified leaders;
- few payment options;
- and same-day delivery options etc.
Conversion is a successful way to turn a visitor into a customer, so you should consider using a marketing pit to facilitate the shopping experience.
3- An individual’s bounce rate
Bounce rates are the percentage of people who leave your site after clicking on a page. It’s best to keep the bounce rate as low as possible, but if the bounce rate is less than 26%, it may indicate a problem with your website. The same is true for high bounce rates above 85%. In this 26-85% range, what is classified as a “bad” bounce rate depends on how your website behaves. For e-commerce stores, consumers are more likely to browse multiple product pages, so a bounce rate of 45.68% is considered average.
4- Profit margins on average
Profit margins, on average, are what you get from each item after deducting the amount you paid to supply the item. Profit is the portion of the retail price that you receive as a profit.
Keeping profit should be your primary business goal. You may be selling tons, but if you’re not making a profit, you better quit your job. It would help if you always kept your margins higher than your average purchase cost to build a sustainable online business.
It’s perfectly normal to have a high-performance product that gives you a sweet margin, but other products do almost nothing. Be sure to check the average margin and overall margin for each category.
5- Rate of return
Rate of return is an eCommerce metric that many merchants prefer to ignore. Everyone knows that returns are a big problem in eCommerce, but ignoring returns doesn’t mean they’re gone. The average rate of return in e-commerce is between 22% and 33%, but it can go up to 44% in product categories such as clothing. Therefore, your business needs to understand why this is happening and whether it is within your control.
6- Shopping Cart Abandonment Rate
Cart abandonment is a widespread problem among electronic merchants. The average e-commerce store abandonment rate for carts is around 68%. In other words, only 32 out of 100 people who go to the online store and add items to their cart are buying.
Tracking the abandonment rate of your cart is complex, so you can save a lot of time and effort by using tools such as Google Analytics and marketing automation software.
7- Rate of support
The rate of support measures the number of visitors and customers who need help before making a purchase. If this KPI is too high, the product will be subject to other issues such as return policy, shipping, etc.
More importantly, these people are active people who dare to reach out to you. This customer service has more people leaving without asking.
First, view your support contacts (live chat, email, phone) to ensure they are user-friendly. Do not put additional obstacles along the way. It will only hurt your conversion.
It is better to talk to frustrated people and solve problems than to lose them as customers.
Another sub-metric is the number of people who bought after contacting support. Suppose that rate is higher than your average conversion rate. In that case, you’re doing a great job helping your customers make purchasing decisions.
Incorporating important eCommerce metrics
Small or large stores need to pay attention to these indicators. As noted at the beginning, statistical significance affects the ability to measure changes in these metrics accurately. Stores with smaller datasets should improve non-fee starting indicators such as AOV, lifetime value, same day delivery options, and customer acquisition costs. As your store grows to handle large orders and data points increase, you can track and influence changes in other metrics more accurately. Changes in delivery requests, specifically an increase in same day delivery, can help you make the best decisions for your store to increase customer satisfaction.