Ecommerce and industries18 October 20262 min read
Track conversion rate, average order value, customer acquisition cost, gross margin and repeat purchase rate. Together they show whether your store brings in customers, makes money on them and keeps them.
1. Conversion rate
Orders divided by sessions. It shows how well your store turns visitors into buyers. If traffic grows and conversion rate falls, the new visitors may not be the right ones, or something on the site is putting people off.
2. Average order value
Revenue divided by number of orders. Raising it, through bundles, free-shipping thresholds or related products, can lift revenue without paying for more traffic.
3. Customer acquisition cost
Marketing spend divided by the number of new customers. Compare it with return on ad spend and with what a customer is worth to you. Use blended numbers across channels, because each ad platform claims its own sales.
4. Gross margin
Revenue minus the cost of goods, divided by revenue. Revenue can look healthy while margin is thin. Break margin down by product and by channel, because a best-seller with low margin may be costing you money once ad spend is counted.
5. Repeat purchase rate
The share of customers who buy more than once. Repeat customers cost far less to win than new ones, so a rising repeat rate is one of the clearest signs of a healthy store.
Where the numbers come from
- Orders, revenue and customers: Shopify, Etsy, Amazon or TikTok Shop.
- Sessions and conversion rate: Google Analytics 4.
- Ad spend: Google Ads, Facebook Ads and TikTok Ads.
- Product costs: your own spreadsheet or accounting system.
The hard part is bringing these into one place. Marketplaces such as Etsy and Amazon offer limited exports, so a little set-up is needed. That is exactly what we do. See how we connect your stores and ads or ask us.