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Should my 'Add to Cart' button be a specific color?
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Healthy Store Metrics: What to Monitor and What They Mean
Most Shopify store owners check revenue. The best ones check the ratios and rates that predict whether revenue will grow or decline. These leading indicators give you early warning of problems before they show up in the revenue line.
Key Store Health Metrics
| Metric | Healthy Range (Cosmetics) | Warning Sign |
|---|---|---|
| Overall CVR | 2.0-3.5% | Below 1.5% or declining 3+ weeks |
| Cart abandonment rate | 60-70% | Above 75% (checkout friction likely) |
| AOV | Stable or increasing quarterly | Declining 10%+ over 3 months |
| Repeat purchase rate | 25-40% for cosmetics | Below 20% (product satisfaction issue) |
| Email open rate | 25-35% | Below 20% (list quality or subject line issue) |
| Return/refund rate | Under 5% for cosmetics | Above 8% (product description mismatch) |
The Repeat Purchase Rate Signal
Repeat purchase rate is the best proxy for product satisfaction. Cosmetics are inherently replenishment categories - a customer who loves your moisturizer should buy again in 2-3 months. If your repeat rate is below 20%, it suggests either the product didn't meet expectations, or you're not staying in touch after purchase. Both are fixable.
Leading vs. Lagging Indicators
Revenue is a lagging indicator - by the time it drops, the problem has already been happening for weeks. Traffic source quality, bounce rate, and add-to-cart rate are leading indicators that predict revenue changes. Check these weekly to catch problems early.
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