eCommerce Innovation Lab Logo for business content
eCommerce Key Performance Indicators
Your key performance indicators (KPIs) that you set for your business are a critical component of your ecommerce digital strategy.

eCommerce Key Performance Indicators

Why Do I Need to Establish KPIs or Metrics for My Online Sales?

Your ecommerce key performance indicators (KPIs) are reference points to help you determine if you are meeting the online business metrics you set for yourself with your digital strategy and search engine optimization efforts. Your ecommerce metrics will provide you with monetized return on investment (ROI) that results from your digital strategy efforts and goals.

Create KPIs and metrics to help you monetize the 4 possible touchpoints of the ecommerce sales channel:

  • Website
  • Online marketplaces
  • Social Media
  • In-country distributor's online sales

What are ecommerce business metrics and KPIs?

  • The data collected by web analytics
  • Represents a “dashboard” of all online business-customer interactions
  • Can be connected through your CRM (Customer Relationship Management software) to track full sales cycle (online search -> email follow up -> sale)
  • The (same) data used in Search Engine Optimization (SEO) and digital marketing feedback
  • Online metrics are a non-intrusive way for you to identify areas of improvement
  • Your online metrics allow you to demonstrate your value and return on investment from the four ecommerce sales channels

Examples of KPIs for Measuring eCommerce Sales:

  • Sales Conversion Rate
    • {Form submissions (+add) tracked calls (+add) tracked email (÷by) Total website visitors = Conversion rate.}
    • Example: You receive in-depth digital strategy counseling (WGR Gap Analysis Service, eCommerce Business Service Providers referrals, market identification/research) over the course of several months, and you report an increase in overall sales during this counseling period. You see from your site analytics that you had 1,000 total site visitors for March; from that 20 prospects and leads were identified as coming from online channels; the result of the prospects and leads was 1 sale for March. Using the formula above we can see that you had a sales conversion rate of 2% from your online efforts in March. You can also take this percentage from sales dollar figures to provide you with an actual dollar amount to online efforts for March.
  • Digital Marketing Return on Investment (dmROI)
    • {Total Revenue Attributed to DM (–subtract) Total Cost of DM (÷ by) Total Cost of DM = Digital Marketing ROI (dmROI)}
    • Example: You do a Gold Key Matchmaking Service and partner with an overseas local distributor with a strong online presence, and your sales increase as a result; take how much you spent to support your overseas local distributor to sell your products (time spent on content, monies, etc.) and plug that in for the dmROI formula above. For February and March you report $10,000 in online sales; you then subtract the $2,000 that you spent on digital marketing (services or fees), and then divide by that same amount again. You have realized a 4% return-on-investment from your digital marketing efforts.