Essential Ecommerce KPIs: The Metrics You Must Track for Growth

Why Ecommerce KPIs Can Make or Break Your Business

Did you know that over 90% of ecommerce businesses fail within their first 120 days? A major reason is the lack of focus on key performance indicators (KPIs). Without knowing which numbers truly matter, you’re flying blind in a highly competitive space.

Imagine pouring thousands into a marketing campaign and seeing zero ROI, only to later realize your cart abandonment rate was sky-high or your customer acquisition cost (CAC) was unsustainable.

Here’s where interactive videos step in as a modern solution to engage users and improve conversion KPIs. Platforms like Sharelo make it easy to create engaging, shoppable videos that keep customers interacting instead of bouncing away.

In this guide, we’ll break down essential ecommerce KPIs, explain how to measure them, and even show you how to create free interactive videos with Sharelo to improve your numbers.

What are KPIs? Why Are They Critical for Ecommerce?

A key performance indicator (KPI) is a measurable value that shows how effectively a business is achieving its key objectives. For ecommerce stores, KPIs are crucial because they help you:

• Track performance over time
• Identify bottlenecks in the sales funnel
• Make data-driven decisions to improve business success

Why Ecommerce KPIs Are Important

Monitoring the right ecommerce metrics and KPIs can:
✅ Boost customer acquisition and retention
✅ Improve ROI on marketing campaigns
✅ Enhance the customer experience

5 Essential Ecommerce KPIs You Should Track

Here are the KPIs you should measure for a thriving ecommerce business:

1. Conversion Rate (CR)

The percentage of website visitors who complete a purchase.
Formula: (Total Conversions / Total Visitors) x 100
📊 Why it matters: Shows how effectively your ecommerce site turns traffic into revenue.

2. Average Order Value (AOV)

The average dollar amount spent each time a customer places an order.
Formula: Total Revenue / Number of Orders
📊 Metric to track for increasing revenue without adding new customers.

3. Cart Abandonment Rate

The percentage of shoppers who add products to their cart but leave without purchasing.
Formula: (Abandoned Carts / Total Carts Created) x 100
📉 A high rate signals issues with the shopping cart experience.

4. Customer Acquisition Cost (CAC)

How much you spend on marketing and advertising to acquire a new customer.
📊 Helps you evaluate the effectiveness of marketing strategies.

5. Customer Lifetime Value (CLV)

The total revenue a customer generates during their relationship with your brand.
📈 KPI for growing a sustainable ecommerce business.

Different Types of KPIs for Ecommerce

Marketing KPIs

• Website Traffic
• Email Open Rate
• ROI on Marketing Campaigns

Customer Service KPIs

• Customer Satisfaction Score (CSAT)
• First Response Time
• Customer Retention Rate

Operational KPIs

• Order Fulfillment Time
• Return Rate

Choosing the Right Ecommerce KPIs for Your Business

Not all KPIs are created equal. To choose the right ecommerce KPIs:
✅ Align KPIs with your business goals
✅ Focus on metrics that impact revenue directly
✅ Avoid vanity metrics

How to Create Interactive Videos with Sharelo for Free

Interactive videos can drastically improve engagement and key ecommerce KPIs like conversion rate and bounce rate. Here’s how to create one with Sharelo:

1. Sign Up Free
   Go to Sharelo and create a free account.
2. Upload Your Video
   Choose a product demo, testimonial, or promo video.
3. Add Interactive Elements
   Add clickable hotspots, quizzes, or product links to engage viewers.
4. Publish and Embed
   Share the interactive video on your ecommerce website or via email marketing campaigns.
5. Track KPIs
   Use Sharelo’s analytics dashboard to monitor engagement metrics and adjust as needed.

FAQs: Ecommerce KPIs and Metrics

What are ecommerce KPIs?

KPIs are metrics that measure the performance of your ecommerce business in key areas like sales, marketing, and customer service.

Which KPIs are most important for ecommerce?

Essential ecommerce KPIs include conversion rate, average order value, customer lifetime value, and cart abandonment rate.

How do I track KPIs for my ecommerce store?

Use analytics tools like Google Analytics, your ecommerce platform’s dashboard (Shopify, BigCommerce), or dedicated KPI tracking software.

Can KPIs improve customer experience?

Yes! Monitoring customer service KPIs helps you identify and fix pain points in the customer journey.

Conclusion: Start Tracking the Right Ecommerce KPIs Today

Tracking the right ecommerce KPIs is essential for business success. With the right metrics and tools like Sharelo, you can optimize your ecommerce store, improve conversion rates, and grow sustainably.

✅ Next Steps:

1. Identify your essential ecommerce KPIs
2. Start tracking them with your dashboard
3. Boost engagement with free interactive videos from Sharelo

Book a Demo or Share Your Feedback

We’d love to hear from you!

Whether you're curious about how Sharelo can help your business or you have suggestions to make us better, we've made it easy for you to reach out.

👉 Watch the interactive video below to:

• Book a personalized demo
• Share your thoughts and feedback
• Ask questions directly

The Complete Toolkit: Turn Every Touchpoint Into a Conversion Opportunity

Screen Recordings That Actually Sell Your Product

Gone are the days of boring product demos. Create video walkthroughs that prospects can't stop watching – and that drive them to take action.

Top Tools for High-Converting Screen Recordings:

Video walkthroughs are a powerful way to showcase your product’s value. Tools like Loom, Tella, Descript or CapCut allow you to create clear, engaging screen recordings—like a personal demo your audience can watch anytime.

Watch this video comparison about Loom and Tella:

Tella (AI-Powered Screen Recording Tool)

Create beautiful screen recordings that engage viewers and transform hours of editing into minutes.

Features that matter:

• AI Magic Trim that automatically removes buffers, awkward pauses and filler words.
• Auto Zoom for perfect focus on key details
• Auto Layouts to make editing faster and and keep viewers engaged
• Collaborative editing for team efficiency
• Beautiful backgrounds that make you look professional
• Export in 4k

Perfect for creating any video content and product demos, tutorials, and online courses that prospects actually finish watching.

Descript (Audio and Video Editing Made Simple)

Write your script, and your video edits itself. The simplest way to create polished product walkthroughs without the learning curve.

CapCut (Free, Easy-to-Use Editing for Web and Mobile)

Capcut is one of the best free video editing tools out there and best for social media. Learn how to use CapCut in the video below.

Pro Tip: Combine any of these tools with Sharelo to make your recordings interactive. Add clickable choices, capture viewer data, and turn passive watchers into active prospects.

Simplify Your Links with Modern URL Shorteners

Stop guessing which marketing efforts drive results. Dub (the free Bitly alternative) gives you the insights you need:

• Track click-through rates in real-time
• Optimize campaigns based on actual data
• Create branded short links that build trust
• Streamline your entire link workflow

Scheduling That Doesn't Break the Bank

Cal.com delivers everything Calendly does – without the recurring fees eating into your profit margins. Free scheduling that actually scales with your business.

Ready to See Real Results?

Every tool mentioned here works 10x better when combined with Sharelo's interactive capabilities.

Your next step: Watch our interactive demo above and discover how businesses like yours are closing more deals with less effort.

Need more inspiration? Check out our Sharelo YouTube channel or my YouTube channel (Novie Dizon) for advanced strategies and real-world case studies.