An e-commerce company is a data machine. But data is only valuable if you control it. Too often, KPIs are limited to superficial dashboards with visitor numbers or turnover. But controlling margin and customer value requires different numbers, KPIs that help you understand where profits are leaking, where returns are derailing, or where your customers are really valuable. In this article, we'll look at the most important e-commerce KPIs, grouped by theme: from traffic to tools.
KPIs for e-commerce conversion and traffic
Visitors alone do not generate sales. You need to know who converts, why, and most importantly, why not. These KPIs provide insight into your conversion funnel.
1. Conversion Rate (CR)
What? The percentage of visitors who actually make a purchase
Formula: number of orders ÷ number of sessions × 100
Use:
- Measure by device, channel, or product category
- Benchmark: B2C = 1-3%, B2B = 3-5% or higher
Hint: Combine with A/B testing for optimization
2. Bounce rate
What? Percentage of visitors who leave after one page with no action
Use:
- Per landing page or channel
- High = sign of irrelevance or slowness
Action: Improve loading speed, content and intent alignment
3. Average session duration
What? Average length of visit
Use:
- Long sessions can mean interest or doubt
- Short sessions without conversion = risk
4. Cost per acquisition (CPA)
What? Average cost to recruit a customer
Formula: total marketing cost ÷ number of new customers
Use: Combine with customer lifetime value (CLV)
Hint: Lower CPA via retargeting, organic traffic, or email flows
Returns and Fulfillment KPIs
Returns are a margin killer in e-commerce. Speed, margin of error and fulfillment costs are crucial to stay competitive. Help manage these KPIs.
5. Return rate
What? Percentage of items sold that are returned
Use:
- By product category, brand, or customer type
- Fashion average: 20-40%
Action: Reduce with better product info, photos, reviews and size advice
6. Return cycle time
What? Average time between purchase and return receipt
Why? Important for cash flow and inventory management
7. Fulfillment margin of error
What? % of orders that are delivered incorrectly (wrong item, wrong size...)
Use:
- Compare by warehouse, shift or picking method
- Direct impact on customer satisfaction
8. Fulfillment costs per order
What? Total of picking, packing, storage and shipping
Formula: total fulfillment cost ÷ number of orders
Use:
- Compare your own logistics with a fulfillment partner
- Link to order size for economies of scale
9. First time delivery rate
What? Percentage of deliveries that were delivered correctly and on time at once
Use: Essential for reputation and customer happiness
KPIs around customer value and retention
Attracting new customers is expensive. Retaining customers is cheaper and more profitable. These KPIs help you understand who is valuable — and who isn't.
10. Customer Lifetime Value (CLV)
What? Total value that a customer generates over their entire lifecycle
Formula: average order value × purchase frequency × customer duration
Use:
- Segmentation: who deserves extra attention?
- Combine with CPA for Profitability Analysis
Hint: CLV increases through loyalty programs and repeat purchases
11. Repeat purchase ratio
What? % of customers who make a second purchase after a first purchase
Use:
- Measure after 30, 60, 90 days
- Benchmark in FMCG: 25— 40%, fashion lower
Action: Retargeting, email flows, loyalty campaigns
1.2 Churn rate
What? Percentage of customers who drop out over a period
Use: Determine your break-even CLV and optimize onboarding
1.3 NPS (Net Promoter Score)
What? Customer Satisfaction Indicator based on “Would you recommend us?”
Use:
- Analyze by segment or purchase moment
- Link to return behavior or complaint frequency
- Cross- and upselling KPIs
More sales to the same customer? That requires insight. These KPIs measure the effectiveness of your product recommendations and bundling strategies.
14. Average Order Value (AOV)
What? Average order value
Use:
- By customer segment or channel
- Combine with discount impact (discount increases AOV but reduces margin)
15. Cross-sell ratio
What? % of customers who buy additional (complementary) products
Use:
- Measure the effect of product recommendations on PDP (Product Detail Page) and shopping basket
- Optimise with AI recommenders
16. Upsell ratio
What? % of customers who opt for a more expensive variant
Use: Think larger packaging, premium version, bundle
Action: Test visual suggestions, “most chosen” labels, price split
17. Discount impact on margin
What? Effect of promotions on gross margin per order
Use:
- Meet or promo leads to more profit or just more volume
- Optimise discount structure
Integrating KPIs with e-commerce tools
Numbers are just numbers if you don't link them to tools that allow action. Good e-commerce KPIs are built into your platform, BI solution, or marketing tools.
Tools and links
- Google Analytics 4 (GA4): traffic, conversion, funnel analysis
- Shopify/WooCommerce/Magento: Order Data, Returns, Customer Segmentation
- Klaviyo/ActiveCampaign/HubSpot: email open rate, CLV segments
- InsightData/Power BI/Qlik Sense: dashboards with KPIs per channel, product, customer type, churn, pricing, etc.
- ERP integration: for margin, fulfillment costs, inventory rotation
KPI integration tips
- Automate data import from webshop, ERP, marketing tool and accounting
- Visualize via KPI scorecards and dashboards
- Build in alerting in case of anomalies (e.g. return > 25%)
- Provide KPIs per role: marketing vs. logistics vs. finance
Common mistakes with e-commerce KPIs
- Just looking at turnover and traffic
- Making no difference between new and existing customers
- Only view KPIs on a monthly basis (too late!) , best to follow up on a daily basis
- No visual dashboards = insights are missing
Link KPIs to your margin and customer strategy
Work with real-time dashboards, including operations
Don't let KPIs float: link them to actions and targets
Visualize KPIs for daily or weekly use
Summary: What KPIs make the difference in e-commerce?
E-commerce KPIs need to do more than report, they need to steer. The most important ones:
- Traffic & conversion: CR, CPA, bounce, session duration
- Return & fulfillment: return rate, margin of error, delivery reliability
- Margin & customer value: CLV, AOV, repeat purchases
- Upselling: cross- and upsell ratio, discount impact
- Dashboarding & tools: links with GA4, BI and marketing automation
Ready to use e-commerce KPIs for profit, not just reporting?
Contact us for a conversation.
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