Tracking the right ecommerce Key Performance Indicators (KPIs) are essential for ecommerce companies to monitor performance, optimize operations, and align cross‑functional teams. Below is a comprehensive ecommerce KPI glossary for modern businesses covering everything from revenue metrics to customer behavior and operational efficiency.
Here is our comprehensive ecommerce KPI glossary with corresponding formulas (use ‘Command + F’ to find a metric quickly):
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Revenue
Definition: Total sales revenue generated by the eCommerce business in a period.
Formula: Total Sales Revenue
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Net Revenue
Definition: Revenue after deducting customer‑facing allowances.
Formula: Gross Revenue − Discounts, Returns, and Allowances
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Average Order Value (AOV)
Definition: The average dollar amount spent each time a customer places an order.
Formula: Total Revenue / Total Number of Orders
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Revenue Growth Rate
Definition: The week‑over‑week, month‑over‑month, or year‑over‑year change in revenue.
Formula: ((Current Revenue − Previous Revenue) / Previous Revenue) × 100
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Gross Merchandise Value (GMV)
Definition: The total value of all items sold through the platform before deductions.
Formula: Total Value of Items Sold
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Revenue per Visitor (RPV)
Definition: Average revenue generated per unique visitor.
Formula: Total Revenue / Total Website Visitors
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Customer Lifetime Value (CLV)
Definition: Predicted net profit attributed to the entire future relationship with a customer.
Formula: Average Order Value × Purchase Frequency × Customer Lifespan
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Customer Acquisition Cost (CAC)
Definition: Average cost to acquire a new customer.
Formula: Total Marketing Spend / Total New Customers
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Marketing ROI
Definition: Return on marketing investment.
Formula: (Revenue from Marketing − Marketing Spend) / Marketing Spend × 100
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Cost per Lead (CPL)
Definition: Average cost to generate a marketing lead.
Formula: Total Marketing Spend / Total Leads Generated
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Click‑Through Rate (CTR)
Definition: Percentage of ad or email impressions that result in clicks.
Formula: (Clicks / Impressions) × 100
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Impressions‑to‑Sale Conversion
Definition: Percentage of ad or display impressions that convert into sales.
Formula: (Number of Sales / Number of Impressions) × 100
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Customer Retention Rate
Definition: Percentage of customers who make repeat purchases.
Formula: (Customers Retained / Total Customers) × 100
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Email Open Rate
Definition: Percentage of marketing emails opened by recipients.
Formula: (Emails Opened / Total Emails Sent) × 100
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Email Click‑Through Rate
Definition: Percentage of marketing emails clicked by recipients.
Formula: (Clicks from Emails / Total Emails Sent) × 100
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Repeat Purchase Rate (RPR)
Definition: Proportion of customers who place more than one order.
Formula: (Number of Repeat Customers / Total Customers) × 100
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Churn Rate
Definition: Percentage of customers lost over a period.
Formula: (Customers Lost / Total Customers at Start) × 100
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Customer Satisfaction Score (CSAT)
Definition: Average satisfaction rating given by customers.
Formula: Sum of Scores / Total Number of Responses
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Net Promoter Score (NPS)
Definition: Measure of customer willingness to recommend your store.
Formula: % Promoters − % Detractors
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Customer Complaints Ratio
Definition: Rate of complaints relative to orders placed.
Formula: Number of Complaints / Total Orders
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Website Traffic
Definition: Total number of visitors to your eCommerce site.
Formula: Total Number of Visitors to the Website
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Bounce Rate
Definition: Percentage of visitors who leave after viewing only one page.
Formula: (Visitors Leaving After 1 Page / Total Visitors) × 100
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Conversion Rate
Definition: Percentage of visitors who make a purchase.
Formula: (Purchases / Total Website Visitors) × 100
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Cart Abandonment Rate
Definition: Percentage of shoppers who add items to cart but don’t complete checkout.
Formula: (Abandoned Carts / Total Carts Created) × 100
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Checkout Abandonment Rate
Definition: Percentage of shoppers who start checkout but don’t finish payment.
Formula: (Abandoned Checkouts / Total Checkouts Started) × 100
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Session Duration
Definition: Average time visitors spend on the site per session.
Formula: Total Time Spent on Website / Total Sessions
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Page Load Time
Definition: Average time for a page to fully render for users.
Formula: Average Time Taken to Load a Page
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Inventory Turnover Ratio
Definition: How quickly inventory is sold and replaced.
Formula: Cost of Goods Sold / Average Inventory Value
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Stockout Rate
Definition: Frequency of out‑of‑stock occurrences.
Formula: (Out‑of‑Stock Items / Total Items Sold) × 100
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Backorder Rate
Definition: Proportion of orders delayed due to stock shortages.
Formula: (Backordered Items / Total Orders) × 100
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Order Fulfillment Time
Definition: Average time from order placement to shipment.
Formula: Total Time to Process Orders / Total Orders Fulfilled
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Perfect Order Rate
Definition: Percentage of orders delivered without errors.
Formula: (Orders Fulfilled Without Errors / Total Orders) × 100
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Return Rate
Definition: Percentage of orders returned by customers.
Formula: (Number of Returned Orders / Total Orders) × 100
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Damaged Goods Rate
Definition: Percentage of shipped items damaged in transit.
Formula: (Damaged Items / Total Shipped Items) × 100
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On‑Time Delivery Rate
Definition: Proportion of orders delivered by the promised date.
Formula: (On‑Time Deliveries / Total Deliveries) × 100
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Shipping Cost per Order
Definition: Average shipping expense per order.
Formula: Total Shipping Costs / Total Orders
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Order Delivery Time
Definition: Average duration from shipment to customer receipt.
Formula: Total Time Taken for Delivery / Total Orders Delivered
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Lost Shipment Rate
Definition: Percentage of shipments that fail to reach customers.
Formula: (Lost Shipments / Total Shipments) × 100
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Delivery Accuracy Rate
Definition: Percentage of orders delivered correctly as placed.
Formula: (Correctly Delivered Orders / Total Deliveries) × 100
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Gross Margin
Definition: Profitability after accounting for cost of goods sold.
Formula: ((Revenue − Cost of Goods Sold) / Revenue) × 100
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Operating Margin
Definition: Profitability after operating expenses.
Formula: Operating Income / Revenue × 100
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Net Profit Margin
Definition: Overall profitability after all expenses.
Formula: Net Profit / Revenue × 100
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Average Cost per Unit
Definition: Average production or procurement cost per item sold.
Formula: Total Cost of Goods Sold / Total Units Sold
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Return on Investment (ROI)
Definition: Efficiency of capital deployed.
Formula: (Net Profit / Total Investment) × 100
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Customer Profitability
Definition: Net profit contributed per customer.
Formula: Revenue Generated by Customer − Cost to Service Customer
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App Downloads
Definition: Total installs of your mobile app.
Formula: Total Number of App Installs
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Daily Active Users (DAU)
Definition: Unique app or site users per day.
Formula: Number of Unique Users Using the App Daily
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Monthly Active Users (MAU)
Definition: Unique app or site users per month.
Formula: Number of Unique Users Using the App Monthly
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App Retention Rate
Definition: Percentage of users returning after initial install.
Formula: (Users Retained After Install / Total Installs) × 100
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App Crash Rate
Definition: Stability of your app measured by crash frequency.
Formula: (App Crashes / Total Sessions) × 100
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Carbon Footprint per Order
Definition: Environmental impact measured per order.
Formula: Total Carbon Emissions / Total Orders
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Packaging Waste Rate
Definition: Proportion of non‑recyclable packaging used.
Formula: (Non‑Recyclable Packaging Used / Total Packaging) × 100
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Sustainable Product Ratio
Definition: Revenue share from eco‑friendly product lines.
Formula: (Revenue from Sustainable Products / Total Revenue) × 100
In Closing;
The KPIs in this ecommerce KPI glossary are the lifeline of any ecommerce business. By tracking the right metrics—from top‑line revenue and customer behavior to fulfillment efficiency and sustainability—you gain actionable insights that drive smarter decisions, stronger performance, and lasting growth. Whether you’re optimizing marketing spend, reducing returns, or improving delivery accuracy, this KPI glossary ensures alignment across your teams and clarity on what matters most.
Manually tracking and analyzing these KPIs without this ecommerce KPI glossary across disparate systems can be time‑consuming and error‑prone. That’s where Brev.io comes in.
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