10 Important eCommerce KPIs Every Brand Needs to Track in 2025
If you're running an eCommerce brand in 2025 (and if you're reading this article, I guess you are!), you know how fierce the competition can be. Staying ahead means keeping your finger on the pulse of your business performance metrics, and that's exactly what tracking KPIs (key performance indicators) helps you do. But which KPIs really matter? Don't get lost in a sea of data and let's explore 10 crucial eCommerce KPIs that can help your brand thrive, drive sustainable growth and profitability.
What Are eCommerce KPIs?
Simply put, eCommerce KPIs are measurable values that help you understand how well your online store and other sales channels (omnichannel) is performing. Think of them as the vital signs of your business, they reveal what's working, what's not, and where you should focus your efforts. Tracking these key metrics lets you make smarter decisions, quickly adapt to market changes, and ultimately grow your business more efficiently.
How to Measure eCommerce Success (True Profitability)
True profitability isn't just about high sales numbers. It involves understanding the complete financial picture, including costs, customer acquisition, retention, and satisfaction. By closely monitoring key eCommerce performance metrics, you can pinpoint exactly how profitable your business truly is and where you can optimize across channels, operations and marketing for even better results.
The 10 KPIs Every eCommerce Brand Should Track 👇
1. Sales Conversion Rate
Your sales conversion rate is the percentage of visitors who make a purchase. Improving this metric means your marketing and website experiences resonate better with visitors, driving more sales. It's your go-to indicator for evaluating how persuasive your online shopping experience really is.
Formula:
CVR = (Purchases / Sessions) x 100
If 1,000 people visit your store and 30 make a purchase, your CVR is 3%. But that’s just the tip of the iceberg.
The full conversion funnel includes:
- Product views
- Add-to-cart actions
- Checkout initiations
- Completed purchases
If you notice that a high percentage of visitors add items to their cart but few complete checkout, this could signal a friction point, maybe shipping costs are too high or your checkout process is too long.
2. Average Order Value (AOV)
AOV is the average amount customers spend per transaction. Boosting this metric not only grows your revenue quickly but also means you're effectively leveraging promotional tactics. Maximizing AOV is a powerful lever for increasing revenue without acquiring more customers. You can improve AOV through upselling, bundling, minimum spend incentives, or free shipping thresholds.
Formula:
AOV = Total Revenue / Number of Orders
3. Customer Lifetime Value (LTV)
Customer LTV shows how much revenue you can expect from a customer throughout your relationship. A higher LTV means your customers stick around longer and spend more, significantly boosting long-term profitability. LTV tells you how much you can afford to spend acquiring a new customer and how valuable different customer segments and channels are. High-LTV customers are your VIPs - invest in keeping them!
Formula (basic):
LTV = Average Order Value x Purchase Frequency x Customer Lifespan
Discover Conjura's LTV Analysis Dashboard here.
4. Customer Acquisition Cost (CAC)
CAC measures the cost to acquire each new customer. Lowering this KPI directly improves your profit margins. By monitoring CAC, you can fine-tune your marketing spend and ensure you're getting the best return on your investment. A good rule of thumb is that your LTV should be at least 3x your CAC. If CAC is rising but LTV isn’t, it’s time to reassess your acquisition strategy.
Formula:
CAC = Total Marketing Spend / Number of New Customers
5. Repeat Purchase Rate (RPR)
Your RPR shows the percentage of customers making repeat purchases. High RPR is a sign of loyalty, brand trust, and product-market fit. If you’re only selling once per customer, it’s a sign you need to boost retention efforts through email, loyalty programs, or subscription models. Cultivating loyal customers reduces your reliance on costly new customer acquisition, creating a more stable and profitable business.
6. Churn Rate
Churn rate is the percentage of customers lost over a specific period. A low churn rate signifies strong customer satisfaction and successful customer relationship management. By tracking churn closely, you can quickly spot any issues causing customer dissatisfaction and address them proactively. Fun fact (if you can call it that!), Churn Rate is often the flip side of LTV and RPR. The lower your churn, the higher your retention and profitability.
7. Return on Ad Spend (ROAS)
ROAS evaluates how much revenue you generate for every dollar, euro or pound spent on advertising. High ROAS means your advertising efforts are paying off efficiently. Regularly tracking ROAS helps you identify the most effective marketing channels and campaigns, optimizing your budget for maximum impact and revenue.
Formula:
ROAS = Revenue from Ads / Cost of Ads
If you spend £1,000 and generate £4,000 in revenue, your ROAS is 4x (not a bad position to be in!). A poor ROAS may mean you’re overbidding, targeting the wrong audience, or not optimizing your creative…boo!
8. Contribution Profit
Contribution Profit measures how much actual profit your business makes after subtracting all direct costs associated with selling a product, like cost of goods sold (COGS), shipping, refunds, and ad spend. Unlike gross revenue, which only tells you what came in at the top, contribution profit tells you what’s left in your pocket to reinvest or scale.
Formula:
Contribution Profit = Net Revenue – COGS – Shipping – Refunds – Ad Spend – Other Direct Costs
This KPI is vital because it gives you a clearer picture of what's truly driving profitability in your business. A product might sell like hotcakes, but if ad costs are high and refund rates are through the roof, it could actually be losing you money. That’s where most platforms fall short, they only show revenue, not return.
9. Refund Rate
Refund rate, the percentage of orders returned by customers, highlights potential issues in product quality or customer satisfaction. Reducing refunds not only boosts profitability but also enhances your brand reputation and customer trust. Keeping a close eye on this KPI helps ensure you meet customer expectations consistently.
10. Cart Abandonment
Cart abandonment rate measures how many shoppers leave without completing their purchase. Lowering this rate through improved checkout experiences, better incentives, or targeted/retargeting campaigns significantly increases your sales conversions.
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Why Track These eCommerce KPIs with Conjura?
You've probably got the jist by now, tracking your eCommerce KPIs is the golden ticket to driving profitability. But relying solely on out-of-the-box analytics from platforms like Shopify, Google Analytics, or your ad dashboards only gives you a fragmented view of performance. You end up piecing together data manually, trying to align different definitions of metrics, and still not getting a full picture of what’s driving growth or eroding profit. Conjura solves this by pulling all your data into one platform, seamlessly integrating your store, marketing platforms, web analytics, and marketplaces. This centralised view not only saves time but also provides consistency and clarity, ensuring you're always making decisions from a single source of truth.
More than just aggregating data, Conjura delivers deeper, more actionable insights, down to SKU level. You’ll understand your true profitability by factoring in ad spend, returns, shipping, and COGS, giving you contribution profit metrics that show exactly which products and channels are worth investing in. You can compare performance across all channels, paid vs organic, Shopify vs Amazon, email vs social, and pinpoint what’s driving customer lifetime value and retention. With daily summaries, intelligent recommendations, and granular cohort and funnel analysis, Conjura transforms raw numbers into smart actions. Whether you’re trying to scale efficiently or optimize what you already have, Conjura gives you the visibility and confidence to grow profitably in today’s omnichannel world. P.s if you're a brand selling in multiple channels discover how Conjura helps omnichannel brands here.