Ecommerce Analytics: What to Track

Every platform throws dozens of metrics at you. Most are noise. Here's what actually matters.

The Core Metrics

1. Conversion Rate

Percentage of visitors who buy. Good benchmark: 2-3% for most stores.

2. Average Order Value (AOV)

Higher AOV = more profit per customer. Increase with bundles, free shipping thresholds, upsells.

3. Customer Acquisition Cost (CAC)

Total marketing spend divided by new customers. Calculate by channel to find what works.

4. Customer Lifetime Value (LTV)

Total revenue from a customer over time. LTV should be 3x+ your CAC.

5. Repeat Purchase Rate

Percentage of customers who buy again. The foundation of sustainable growth.

What to Ignore (Usually)

• Vanity metrics like followers without context
• Averages without segments
• Daily fluctuations (look at trends)
• Competitor metrics you can't verify

The Weekly Review

Set 30 minutes weekly to review:

• Revenue vs goal
• Conversion rate trend
• Top traffic sources
• Best/worst selling products
• Email performance

Make one improvement based on data each week. Small gains compound.