# E-Commerce KPIs: The 5 Numbers That Decide Whether Your Store Grows or Stalls

Source: https://wernerstrauch.com/en/blog/ecommerce-kpis-metrics-guide
Language: en
Author: Werner Strauch
Published: 2026-01-07

> All important e-commerce KPIs at a glance: From financial to marketing to customer metrics. With formulas, example calculations, and industry benchmarks for your success.

What separates successful online retailers from those who struggle despite having great products? The answer often lies in the numbers—or more precisely: in understanding the right numbers. Because if you only look at revenue, you’re only seeing the tip of the iceberg.

In this comprehensive guide, I’ll show you all the relevant KPIs (Key Performance Indicators) you need to know for a successful e-commerce business. With concrete formulas, example calculations, and industry benchmarks so you can not only understand your metrics but also put them in context.

![Overview of six KPI categories in e-commerce: Finance, Marketing, Customers, Shop Performance, Operations, and Product](https://wernerstrauch.com/_astro/kpi-overview-en.uJGEj12U_Z19qUPU.webp)

The six core areas of e-commerce metrics

## Why KPIs Are Essential in E-Commerce

Many online retailers make a fundamental mistake: they focus exclusively on revenue. But revenue alone says little about the health of an e-commerce business. A company can generate millions in revenue and still lose money—for example, because customer acquisition is too expensive or returns eat up all the profit.

**KPIs enable you to:**

-   **Early detection of problems**: Before they impact revenue
-   **Informed decisions**: Based on data instead of gut feeling
-   **Targeted optimization**: You know exactly where to apply leverage
-   **Comparability**: With industry benchmarks and your own history

* * *

## 1\. Financial KPIs: The Foundation of Your Business Success

Financial metrics form the foundation of any e-commerce analysis. They show whether your business model is viable.

### Revenue

Revenue is the most obvious metric—but pay attention to the distinction:

-   **Gross Revenue**: Total income before deductions
-   **Net Revenue**: Gross revenue minus returns, discounts, and taxes

**Net Revenue Formula:**

FormulaCalculator

![Net Revenue equals Gross Revenue minus Returns minus Discounts minus Sales Tax](https://wernerstrauch.com/_astro/net-revenue-en-mobile.DjlZ5a4E_Z241mLv.webp)![Net Revenue equals Gross Revenue minus Returns minus Discounts minus Sales Tax](https://wernerstrauch.com/_astro/net-revenue-en.BSNnDR5j_ZM3mHx.webp)

Gross Revenue

€

Returns

€

Discounts

€

VAT

€

Net Revenue

### Average Order Value (AOV)

AOV shows how much a customer spends on average per order. It’s an important lever for profitability.

**Formula:**

FormulaCalculator

![AOV equals Total Revenue divided by Number of Orders](https://wernerstrauch.com/_astro/aov-en-mobile.GYOHVdO3_1Tdjlo.webp)![AOV equals Total Revenue divided by Number of Orders](https://wernerstrauch.com/_astro/aov-en.IGO8wy2__Z28Hd3m.webp)

Total Revenue

€

Number of Orders

AOV

**Example Calculation:**

-   Monthly Revenue: $165,000
-   Number of Orders: 2,000
-   **AOV = $165,000 / 2,000 = $82.50**

**Industry Benchmarks AOV:**

| Industry | Average AOV |
| --- | --- |
| Fashion & Apparel | $90–135 |
| Electronics | $170–340 |
| Beauty & Cosmetics | $50–80 |
| Furniture & Home | $225–565 |
| Groceries | $45–70 |

[Download as Excel](https://wernerstrauch.com/downloads/tables/aov-benchmarks-en.xlsx)

### Contribution Margin

The contribution margin shows what remains after deducting variable costs. It’s more meaningful than pure revenue.

**Formula:**

FormulaCalculator

![Contribution Margin equals Revenue minus Variable Costs](https://wernerstrauch.com/_astro/contribution-margin-en-mobile.Bl2-00-b_EB1py.webp)![Contribution Margin equals Revenue minus Variable Costs](https://wernerstrauch.com/_astro/contribution-margin-en.By3Cnyhw_1JHXrS.webp)

Revenue

€

Variable Costs

€

Contribution Margin

**Variable costs in e-commerce typically include:**

-   Cost of goods sold (purchase price)
-   Shipping costs
-   Payment fees (PayPal, credit card, etc.)
-   Packaging
-   Marketing costs (when attributable to orders)

**Example Calculation:**

-   Selling price: $110
-   Purchase price: $44
-   Shipping: $5.50
-   Payment fees: $3.30
-   Packaging: $2.20
-   **Contribution Margin = $110 - $55 = $55 (50%)**

### Profit Margin

The profit margin shows what percentage of revenue remains as profit.

**Gross Margin:**

FormulaCalculator

![Gross Margin equals Revenue minus Cost of Goods Sold divided by Revenue times 100](https://wernerstrauch.com/_astro/gross-margin-en-mobile.C9WKO3oc_12ea0q.webp)![Gross Margin equals Revenue minus Cost of Goods Sold divided by Revenue times 100](https://wernerstrauch.com/_astro/gross-margin-en.CiC1KI2n_Z20Qpad.webp)

Revenue

€

Cost of Goods Sold

€

Gross Margin

**Net Margin:**

FormulaCalculator

![Net Margin equals Profit After All Costs divided by Revenue times 100](https://wernerstrauch.com/_astro/net-margin-en-mobile.Cx4uhFFO_1ATHxv.webp)![Net Margin equals Profit After All Costs divided by Revenue times 100](https://wernerstrauch.com/_astro/net-margin-en.Cy3wrfBM_tlAqu.webp)

Net Profit

€

Revenue

€

Net Margin

**Industry Benchmarks Gross Margin:**

| Industry | Typical Gross Margin |
| --- | --- |
| Fashion | 50–60% |
| Electronics | 15–25% |
| Beauty | 60–70% |
| Furniture | 40–50% |
| Groceries | 20–35% |

[Download as Excel](https://wernerstrauch.com/downloads/tables/gross-margin-benchmarks-en.xlsx)

### Break-Even Point

The break-even point shows when you start operating profitably.

**Formula:**

FormulaCalculator

![Break-Even equals Fixed Costs divided by Contribution Margin per Unit](https://wernerstrauch.com/_astro/break-even-en-mobile.-Vmwua_n_Z1lesak.webp)![Break-Even equals Fixed Costs divided by Contribution Margin per Unit](https://wernerstrauch.com/_astro/break-even-en.DJh09zG9_Z2qIXOB.webp)

Fixed Costs

€

Contribution Margin per Unit

€

Break-Even

**Example Calculation:**

-   Monthly Fixed Costs: $22,000
-   Contribution Margin per Order: $55
-   **Break-Even = $22,000 / $55 = 400 Orders**

You need to generate at least 400 orders per month to break even.

* * *

## 2\. Marketing KPIs: The Efficiency of Your Customer Acquisition

Marketing metrics show how efficiently you acquire new customers and reactivate existing ones.

![Visualization of the most important KPI formulas: CLV, CAC, and ROAS](https://wernerstrauch.com/_astro/marketing-kpis-en.Cry_-2oG_2Y2ma.webp)

The three most important marketing formulas at a glance

### Customer Acquisition Cost (CAC)

Customer acquisition costs show how much you need to spend to acquire a new customer.

**Formula:**

FormulaCalculator

![CAC equals Marketing and Sales Costs divided by Number of New Customers](https://wernerstrauch.com/_astro/cac-en-mobile.Cl5KlZQl_ZOMA9e.webp)![CAC equals Marketing and Sales Costs divided by Number of New Customers](https://wernerstrauch.com/_astro/cac-en.BeV1j86M_Z2kskvk.webp)

Marketing & Sales Costs

€

Number of New Customers

CAC

**Example Calculation:**

-   Monthly Marketing Spend: $16,500
-   Sales Costs: $5,500
-   New Customers Acquired: 500
-   **CAC = $22,000 / 500 = $44**

**Industry Benchmarks CAC:**

| Industry | Typical CAC |
| --- | --- |
| Fashion | $33–55 |
| Beauty | $22–44 |
| Electronics | $55–110 |
| Furniture | $110–220 |
| Subscription Models | $55–165 |

[Download as Excel](https://wernerstrauch.com/downloads/tables/cac-benchmarks-en.xlsx)

### Return on Ad Spend (ROAS)

ROAS shows how much revenue each invested advertising dollar generates.

**Formula:**

FormulaCalculator

![ROAS equals Revenue from Ads divided by Ad Spend](https://wernerstrauch.com/_astro/roas-en-mobile.Ceh_A59j_Z1ypw4P.webp)![ROAS equals Revenue from Ads divided by Ad Spend](https://wernerstrauch.com/_astro/roas-en.DAyv3YKB_1Knk4X.webp)

Revenue from Ads

€

Ad Spend

€

ROAS

**Example Calculation:**

-   Google Ads Spend: $5,500
-   Generated Revenue: $27,500
-   **ROAS = $27,500 / $5,500 = 5.0** (or 500%)

**What does the ROAS value mean?**

| ROAS | Assessment |
| --- | --- |
| < 2.0 | Critical – review your campaigns |
| 2.0–3.0 | Adequate, but room for optimization |
| 3.0–5.0 | Good – solid performance |
| \> 5.0 | Very good – scale up! |

[Download as Excel](https://wernerstrauch.com/downloads/tables/roas-assessment-en.xlsx)

### Cost per Click (CPC) and Cost per Mille (CPM)

**CPC (Cost per Click):**

FormulaCalculator

![CPC equals Ad Spend divided by Number of Clicks](https://wernerstrauch.com/_astro/cpc-en-mobile.Dy7sdQoO_evfKw.webp)![CPC equals Ad Spend divided by Number of Clicks](https://wernerstrauch.com/_astro/cpc-en.BRcNDucl_Z2bUsGt.webp)

Ad Spend

€

Number of Clicks

CPC

**CPM (Cost per 1,000 Impressions):**

FormulaCalculator

![CPM equals Ad Spend divided by Impressions times 1000](https://wernerstrauch.com/_astro/cpm-en-mobile.VAZkT7My_bWHxC.webp)![CPM equals Ad Spend divided by Impressions times 1000](https://wernerstrauch.com/_astro/cpm-en.CYjxumPX_Z2fRsGx.webp)

Ad Spend

€

Impressions

CPM

**Industry Benchmarks CPC (Google Ads):**

| Industry | Average CPC |
| --- | --- |
| Fashion | $0.55–1.65 |
| Electronics | $0.88–2.20 |
| Beauty | $0.44–1.32 |
| Furniture | $1.10–3.30 |
| B2B | $2.20–5.50 |

[Download as Excel](https://wernerstrauch.com/downloads/tables/cpc-benchmarks-en.xlsx)

### Click-Through Rate (CTR)

CTR shows what percentage of users who see your ad actually click on it.

**Formula:**

FormulaCalculator

![CTR equals Clicks divided by Impressions times 100](https://wernerstrauch.com/_astro/ctr-en-mobile.BQAnmpUL_Z2j57lN.webp)![CTR equals Clicks divided by Impressions times 100](https://wernerstrauch.com/_astro/ctr-en.DdtI1LXZ_ZWzg8f.webp)

Clicks

Impressions

CTR

**Industry Benchmarks CTR:**

| Channel | Good CTR |
| --- | --- |
| Google Search Ads | 2–5% |
| Google Display Ads | 0.3–0.5% |
| Facebook/Instagram Ads | 0.9–1.5% |
| Email Marketing | 2–4% |

[Download as Excel](https://wernerstrauch.com/downloads/tables/ctr-benchmarks-en.xlsx)

### Conversion Rate (CVR)

The conversion rate is one of the most important metrics overall. It shows what percentage of your visitors actually make a purchase.

**Formula:**

FormulaCalculator

![Conversion Rate equals Number of Purchases divided by Number of Visitors times 100](https://wernerstrauch.com/_astro/conversion-rate-en-mobile.BossxNYY_Z6QcWY.webp)![Conversion Rate equals Number of Purchases divided by Number of Visitors times 100](https://wernerstrauch.com/_astro/conversion-rate-en.E2jgru_-_Z2kTDz.webp)

Number of Purchases

Number of Visitors

Conversion Rate

**Example Calculation:**

-   Monthly Website Visitors: 50,000
-   Orders: 1,000
-   **CVR = (1,000 / 50,000) × 100 = 2.0%**

**Industry Benchmarks Conversion Rate:**

| Industry | Average CVR |
| --- | --- |
| Fashion | 1.5–2.5% |
| Electronics | 1.0–2.0% |
| Beauty | 2.5–3.5% |
| Furniture | 0.5–1.5% |
| Groceries | 3.0–5.0% |

[Download as Excel](https://wernerstrauch.com/downloads/tables/cvr-benchmarks-en.xlsx)

### Marketing Efficiency Ratio (MER)

The MER (also called Blended ROAS) looks at total marketing relative to total revenue.

**Formula:**

FormulaCalculator

![MER equals Total Revenue divided by Total Marketing Spend](https://wernerstrauch.com/_astro/mer-en-mobile.VbzUPErk_AF6Dx.webp)![MER equals Total Revenue divided by Total Marketing Spend](https://wernerstrauch.com/_astro/mer-en.mrOECVS2_15dxSO.webp)

Total Revenue

€

Total Marketing Spend

€

MER

**Example Calculation:**

-   Monthly Total Revenue: $220,000
-   Total Marketing Spend: $44,000
-   **MER = $220,000 / $44,000 = 5.0**

MER is more meaningful than individual channel ROAS values because it bypasses attribution problems and shows the big picture.

* * *

## 3\. Customer KPIs: The Value of Your Customer Relationships

Customer-focused metrics show how valuable your customer relationships are and how well you retain customers.

### Customer Lifetime Value (CLV)

CLV shows how much revenue a customer generates over the entire course of their relationship with your company.

**Simple Formula:**

FormulaCalculator

![CLV equals AOV times Purchase Frequency times Customer Lifespan](https://wernerstrauch.com/_astro/clv-en-mobile.CGRViwPv_hCzEv.webp)![CLV equals AOV times Purchase Frequency times Customer Lifespan](https://wernerstrauch.com/_astro/clv-en.BxiqUKxt_ZJ0GFC.webp)

AOV

€

Purchase Frequency (per year)

Customer Lifetime (years)

CLV

**Example Calculation:**

-   Average Order Value: $88
-   Purchases per Year: 3
-   Average Customer Relationship: 4 years
-   **CLV = $88 × 3 × 4 = $1,056**

**Extended Formula (with Margin):**

FormulaCalculator

![CLV Profit equals AOV times Purchase Frequency times Customer Lifespan times Gross Margin](https://wernerstrauch.com/_astro/clv-profit-en-mobile.BoCR4KqR_Zh1BKd.webp)![CLV Profit equals AOV times Purchase Frequency times Customer Lifespan times Gross Margin](https://wernerstrauch.com/_astro/clv-profit-en.DsKyir8w_XoALQ.webp)

AOV

€

Purchase Frequency (per year)

Customer Lifetime (years)

Gross Margin

%

CLV (Profit)

With 50% gross margin:

-   **CLV (Profit) = $1,056 × 0.5 = $528**

### CLV:CAC Ratio

The ratio of Customer Lifetime Value to Customer Acquisition Cost shows the profitability of your customer acquisition.

**Formula:**

FormulaCalculator

![CLV to CAC Ratio equals CLV divided by CAC](https://wernerstrauch.com/_astro/clv-cac-ratio-de-mobile.zU5vcUQM_Z1F2Lu0.webp)![CLV to CAC Ratio equals CLV divided by CAC](https://wernerstrauch.com/_astro/clv-cac-ratio-de.Cv9rPxvK_1Oy24q.webp)

Customer Lifetime Value

€

Customer Acquisition Cost

€

CLV:CAC

**Example Calculation:**

-   CLV: $528 (profit basis)
-   CAC: $66
-   **CLV:CAC Ratio = $528 / $66 = 8:1**

**Assessment:**

| Ratio | Assessment |
| --- | --- |
| < 1:1 | Critical – you're losing money |
| 1:1–3:1 | Problematic – little margin |
| 3:1–5:1 | Healthy – good business model |
| \> 5:1 | Very good – scaling potential |

[Download as Excel](https://wernerstrauch.com/downloads/tables/clv-cac-ratio-assessment-en.xlsx)

### Repeat Purchase Rate

The repeat purchase rate shows what percentage of your customers buy more than once.

**Formula:**

FormulaCalculator

![Repeat Purchase Rate equals Customers with more than one Order divided by Total Customers times 100](https://wernerstrauch.com/_astro/repeat-purchase-en-mobile.D-777-ul_ZWoWVM.webp)![Repeat Purchase Rate equals Customers with more than one Order divided by Total Customers times 100](https://wernerstrauch.com/_astro/repeat-purchase-en.So5m0zEt_wa8m5.webp)

Customers with > 1 Order

Total Customers

Repeat Purchase Rate

**Industry Benchmarks:**

| Industry | Good Repeat Purchase Rate |
| --- | --- |
| Fashion | 25–40% |
| Beauty/Cosmetics | 35–50% |
| Groceries | 50–70% |
| Electronics | 15–25% |

[Download as Excel](https://wernerstrauch.com/downloads/tables/repeat-purchase-benchmarks-en.xlsx)

### Customer Churn Rate

The churn rate shows how many customers you lose in a given period. Particularly relevant for subscription models.

**Formula:**

FormulaCalculator

![Churn Rate equals Lost Customers divided by Customers at Start times 100](https://wernerstrauch.com/_astro/churn-rate-en-mobile.CQOTIAVD_Z2l03aw.webp)![Churn Rate equals Lost Customers divided by Customers at Start times 100](https://wernerstrauch.com/_astro/churn-rate-en.Bb5EuNQn_Z1h6biv.webp)

Lost Customers

Customers at Start

Churn Rate

**Example Calculation:**

-   Customers at Month Start: 5,000
-   Cancellations in Month: 150
-   **Churn Rate = (150 / 5,000) × 100 = 3%**

**Annual Churn Rate:**

-   3% monthly means approximately **30% annual churn**

### Net Promoter Score (NPS)

NPS measures customer satisfaction and likelihood to recommend.

**Calculation:**

1.  Question: “How likely are you to recommend us?” (0–10)
2.  Promoters: Answers 9–10
3.  Detractors: Answers 0–6
4.  **NPS = % Promoters - % Detractors**

**Assessment:**

| NPS | Assessment |
| --- | --- |
| < 0 | Critical |
| 0–30 | Needs improvement |
| 30–50 | Good |
| 50–70 | Very good |
| \> 70 | Excellent |

[Download as Excel](https://wernerstrauch.com/downloads/tables/nps-assessment-en.xlsx)

* * *

## 4\. Shop Performance KPIs: The Efficiency of Your Online Store

These metrics show how well your shop converts visitors into buyers.

### Conversion Rate by Traffic Source

Not all traffic converts equally well. Analyze CVR by channel:

| Traffic Source | Typical CVR |
| --- | --- |
| Direct Traffic | 2.5–4.0% |
| Email | 3.0–5.0% |
| Organic Search | 2.0–3.0% |
| Paid Search | 1.5–2.5% |
| Social Media | 0.5–1.5% |
| Display Ads | 0.3–0.8% |

[Download as Excel](https://wernerstrauch.com/downloads/tables/traffic-source-cvr-en.xlsx)

### Cart Abandonment Rate

The cart abandonment rate shows how many customers fill their cart but don’t complete the purchase.

**Formula:**

FormulaCalculator

![Cart Abandonment Rate equals 1 minus Completed Purchases divided by Created Carts times 100](https://wernerstrauch.com/_astro/cart-abandonment-en-mobile.CiTiqBbq_15i8R0.webp)![Cart Abandonment Rate equals 1 minus Completed Purchases divided by Created Carts times 100](https://wernerstrauch.com/_astro/cart-abandonment-en.BbXU6LzL_gJv4Y.webp)

Completed Purchases

Created Carts

Abandonment Rate

**Example Calculation:**

-   Created Carts: 10,000
-   Completed Purchases: 3,000
-   **Cart Abandonment = (1 - 3,000/10,000) × 100 = 70%**

**Industry Average:** 65–75%

**Common Reasons for Cart Abandonment:**

1.  Unexpected shipping costs (48%)
2.  Account creation required (24%)
3.  Complicated checkout (18%)
4.  Trust concerns (17%)
5.  Website errors (13%)

### Bounce Rate

The bounce rate shows how many visitors leave the page immediately.

**Formula:**

FormulaCalculator

![Bounce Rate equals Single-Page Visits divided by Total Visits times 100](https://wernerstrauch.com/_astro/bounce-rate-en-mobile.8QSzhZQG_LBp19.webp)![Bounce Rate equals Single-Page Visits divided by Total Visits times 100](https://wernerstrauch.com/_astro/bounce-rate-en.2FAbH6If_Z2sKNSl.webp)

Single Page Visits

Total Visits

Bounce Rate

**Benchmarks:**

| Page Type | Acceptable Bounce Rate |
| --- | --- |
| Homepage | 30–50% |
| Category Page | 25–40% |
| Product Page | 20–35% |
| Blog Article | 60–80% |
| Landing Page | 30–50% |

[Download as Excel](https://wernerstrauch.com/downloads/tables/bounce-rate-benchmarks-en.xlsx)

### Average Session Duration & Pages per Session

**Session Duration:** How long does a visitor stay on your website?

-   E-commerce average: 2–3 minutes
-   Target: > 3 minutes

**Pages per Session:** How many pages does a user visit?

-   E-commerce average: 4–5 pages
-   Target: > 5 pages

* * *

## 5\. Operations KPIs: The Efficiency of Your Processes

Operational metrics show how efficiently your logistics and fulfillment work.

### Return Rate

The return rate is a critical factor, especially in e-commerce.

**Formula:**

FormulaCalculator

![Return Rate equals Returned Orders divided by Total Orders times 100](https://wernerstrauch.com/_astro/return-rate-en-mobile.Cm8NhoXp_CCoEY.webp)![Return Rate equals Returned Orders divided by Total Orders times 100](https://wernerstrauch.com/_astro/return-rate-en.C7C_H8lM_ZB2Vx.webp)

Number of Returns

Number of Orders

Return Rate

**Industry Benchmarks:**

| Industry | Average Return Rate |
| --- | --- |
| Fashion | 20–30% |
| Shoes | 25–35% |
| Electronics | 10–15% |
| Furniture | 5–10% |
| Beauty | 5–10% |
| Groceries | 1–3% |

[Download as Excel](https://wernerstrauch.com/downloads/tables/return-rate-benchmarks-en.xlsx)

### Fulfillment Time

The time from order receipt to shipping.

**Benchmarks:**

-   Same-Day Shipping: Orders by 2 PM = shipped same day
-   Standard: 24–48 hours
-   Acceptable: up to 72 hours

### Inventory Turnover

Shows how often inventory is completely sold and replaced per year.

**Formula:**

FormulaCalculator

![Inventory Turnover equals Cost of Goods Sold per Year divided by Average Inventory Value](https://wernerstrauch.com/_astro/inventory-turnover-en-mobile.BbZ2IQuw_Z1pCgVh.webp)![Inventory Turnover equals Cost of Goods Sold per Year divided by Average Inventory Value](https://wernerstrauch.com/_astro/inventory-turnover-en.NXkH8j5z_Z2o58tD.webp)

Annual COGS

€

Average Inventory

€

Inventory Turnover

**Example Calculation:**

-   Annual COGS: $660,000
-   Average Inventory: $110,000
-   **Inventory Turnover = $660,000 / $110,000 = 6**

This means: Inventory turns over 6× per year (every 2 months).

**Industry Benchmarks:**

| Industry | Typical Inventory Turnover |
| --- | --- |
| Fashion (Fast Fashion) | 8–12× |
| Fashion (Premium) | 4–6× |
| Electronics | 6–10× |
| Groceries | 15–25× |
| Furniture | 3–5× |

[Download as Excel](https://wernerstrauch.com/downloads/tables/inventory-turnover-benchmarks-en.xlsx)

### Out-of-Stock Rate

Shows how often products are unavailable.

**Formula:**

FormulaCalculator

![Out-of-Stock Rate equals Unavailable SKUs divided by Total SKUs times 100](https://wernerstrauch.com/_astro/oos-rate-en-mobile.DNXIGCWE_ZmnEtB.webp)![Out-of-Stock Rate equals Unavailable SKUs divided by Total SKUs times 100](https://wernerstrauch.com/_astro/oos-rate-en.BI-Odwl5_1bzlKI.webp)

Out-of-Stock SKUs

Total SKUs

OOS Rate

**Target:** < 5%

Every out-of-stock means lost revenue and potentially a lost customer who buys from a competitor.

* * *

## 6\. Product KPIs: The Performance of Your Assortment

Product-related metrics help with assortment decisions.

### Bestseller Analysis

Identify your top products by different criteria:

-   **Top 10 by Revenue**: Your revenue drivers
-   **Top 10 by Margin**: Your profit generators
-   **Top 10 by Units Sold**: Your volume drivers

### Product Margin per SKU

**Formula:**

FormulaCalculator

![Product Margin equals Selling Price minus Purchase Cost minus Variable Costs divided by Selling Price times 100](https://wernerstrauch.com/_astro/product-margin-en-mobile.BgNeBRWC_Z3qRo0.webp)![Product Margin equals Selling Price minus Purchase Cost minus Variable Costs divided by Selling Price times 100](https://wernerstrauch.com/_astro/product-margin-en.BnxlxySK_Zrrq3N.webp)

Selling Price

€

Cost Price

€

Variable Costs

€

Product Margin

Sort your assortment by margin and identify:

-   **Stars**: High margin, high sales → Advertise and push
-   **Cash Cows**: Low margin, high sales → Traffic drivers
-   **Question Marks**: High margin, low sales → Marketing potential
-   **Dogs**: Low margin, low sales → Phase out

### Sell-Through Rate

Shows how quickly a product sells.

**Formula:**

FormulaCalculator

![Sell-Through Rate equals Units Sold divided by Units Purchased times 100](https://wernerstrauch.com/_astro/sell-through-en-mobile.C56jKF1V_llq1h.webp)![Sell-Through Rate equals Units Sold divided by Units Purchased times 100](https://wernerstrauch.com/_astro/sell-through-en.B8pPoqMz_Zz9fde.webp)

Units Sold

Units Purchased

Sell-Through

**Example Calculation:**

-   Purchased Quantity: 500 units
-   Sold in 30 days: 350 units
-   **Sell-Through = (350 / 500) × 100 = 70%**

**Assessment:**

-   > 80%: Reorder, possibly raise price
    
-   50–80%: Good performance
-   < 50%: Review marketing measures or price reduction

* * *

## 7\. KPI Dashboard & Tools

To keep track of all these metrics, you need the right tools.

### Google Analytics 4

**Free and indispensable for:**

-   Traffic analysis
-   Conversion tracking
-   E-commerce tracking (revenue, AOV, CVR)
-   User behavior

**Setup Tip:** Set up Enhanced E-Commerce Tracking to get detailed data on carts, product performance, and checkout funnel.

### Shopify Analytics / WooCommerce Reports

**Directly in your shop system:**

-   Revenue and orders
-   Product performance
-   Customer statistics
-   Marketing channel attribution

### Klaviyo (Email Marketing)

**Specifically for email KPIs:**

-   Open rate
-   Click rate
-   Revenue per email
-   Unsubscribe rates
-   CLV tracking

### Triple Whale / Northbeam (Attribution)

**For advanced marketing attribution:**

-   Cross-channel attribution
-   Blended ROAS / MER
-   CAC and CLV tracking
-   Cohort analyses

### Custom Dashboard

For a quick overview, I recommend a weekly KPI dashboard with the most important metrics:

| KPI | Target | Current | Trend |
| --- | --- | --- | --- |
| Revenue | $220,000 | ? | ↑↓ |
| AOV | $88 | ? | ↑↓ |
| Conversion Rate | 2.5% | ? | ↑↓ |
| ROAS | 4.0 | ? | ↑↓ |
| CAC | < $55 | ? | ↑↓ |
| Return Rate | < 25% | ? | ↑↓ |

[Download as Excel](https://wernerstrauch.com/downloads/tables/kpi-dashboard-template-en.xlsx)

* * *

## Conclusion: KPIs as the Compass for Your E-Commerce Success

Metrics aren’t an end in themselves—they’re your navigation system for data-driven decisions. The key takeaways:

1.  **Focus on profitability**: Revenue is important, but contribution margin and profit margin determine success.
    
2.  **CLV:CAC Ratio as your north star**: This metric shows whether your business model is sustainably scalable.
    
3.  **Optimize conversion rate**: Often the biggest lever—a small improvement impacts all other KPIs.
    
4.  **Keep returns under control**: A decisive cost factor that can make or break profitability.
    
5.  **Measure regularly and take action**: A dashboard that nobody looks at is useless. Establish a weekly KPI review.
    

Use KPIs in combination with modern technologies. How [AI in e-commerce](https://wernerstrauch.com/en/blog/ai-ecommerce-2026) can help you improve these metrics—from automated product copy to personalized recommendations—you can learn in my separate article.