Expert answer · 2 min read
Should I send product restock notifications?
The short answer
In depth
What E-Commerce KPIs Should I Track?
Most stores track too many metrics or the wrong ones. Vanity metrics like total page views, social media followers, and traffic look good in reports but don't reveal whether your business is healthy. Six core KPIs tell you everything you need to know about e-commerce business performance - and tracking them consistently enables better decisions at every level.
The Six Essential E-Commerce KPIs
| KPI | Formula | Industry Benchmark |
|---|---|---|
| Conversion Rate (CVR) | Orders / Sessions | 2.0-3.5% (all ecom) |
| Average Order Value (AOV) | Revenue / Orders | Category-dependent ($50-$300 typical) |
| Customer Acquisition Cost (CAC) | Marketing Spend / New Customers | Under 33% of LTV (3:1 ratio) |
| Customer Lifetime Value (LTV) | AOV x Frequency x Lifespan | 3x first order value (minimum) |
| LTV:CAC Ratio | LTV / CAC | 3:1 minimum; 5:1 excellent |
| Cart Abandonment Rate | 1 - (Completed checkouts / Initiated checkouts) | 65-75% (lower is better) |
Secondary KPIs by Business Stage
Early Stage (Under $1M revenue)
Focus on CVR, AOV, and repeat purchase rate. These three drive early revenue growth without needing sophisticated analytics infrastructure.
Growth Stage ($1M-$10M)
Add CAC, LTV:CAC, and cohort retention to the core six. Channel-level CAC becomes critical as you diversify ad spend across Meta, Google, and other platforms.
Scale Stage ($10M+)
Add contribution margin per channel, payback period, net revenue retention, and NPS. At this stage, margin mix and customer quality per channel determine long-term profitability.
KPI Dashboard Setup for Shopify
| KPI | Where to Find in Shopify | Check Frequency |
|---|---|---|
| Conversion Rate | Analytics - Overview | Weekly |
| AOV | Analytics - Overview | Weekly |
| Cart Abandonment | Reports - Checkout funnels | Weekly |
| Repeat Purchase Rate | Reports - Customers over time | Monthly |
| CAC | Ad platform + Shopify combined | Monthly |
| LTV | Reports - Customer cohort analysis | Quarterly |
Built-In Performance Reporting
Growth Suite's Funnel Report, Product Report, and Cart Insights provide campaign-level and store-level KPI visibility specifically relevant to conversion and offer performance. Track campaign revenue attribution, per-product conversion contribution, and cart behavior patterns without needing to configure custom reports in GA4. These metrics directly connect offer performance to the six core KPIs that determine business health.
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