E-Commerce Metrics

The most important E-Commerce and Online Retail metrics and KPIs. Your roadmap to more revenue, better profit, and smarter business growth.

Abandoned Checkouts

Abandoned Checkouts is an e-commerce metric that measures the value of all the abandoned orders (i.e., sum of the prices of all the items in those orders) before shipping and taxes. Abandoned Checkouts is an important metric for online businesses as it shows the value of customer orders that were not completed due to a variety of reasons. It helps reveal any potential issues in your checkout process, such as customer difficulty in filling out forms or selecting payment options, that are preventing customers from actually completing their purchases.

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Active Users

Active Users in GA4 represents the number of distinct users who engaged with your website or app during a specified time period. A user is considered "active" when they trigger an engagement session, which occurs when they stay on your site for 10 seconds or longer, have a conversion event, or have 2 or more page or screen views. This metric provides a foundational understanding of your audience size and engagement levels, replacing the traditional "Users" metric from Universal Analytics with a more engagement-focused approach. Unlike simple visitor counts, Active Users emphasises meaningful interaction with your content, filtering out users who immediately bounce or show no genuine interest in your site. This makes it a more reliable indicator of your actual engaged audience size.

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Average Order Value

Average Order Value (AOV) indicates the average amount of money spent on an order, either over a set period or over the lifetime of an e-commerce store. This is calculated by taking the total revenue and dividing it by the number of orders placed within the determined period.

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Conversions

Conversions represent the total number of meaningful actions (conversion events) that users take on your website or application during a specific time period. These are meaningful interactions that align with your business objectives—such as purchases, sign-ups, or requests for consultation—and indicate that a visitor has moved from passive browsing to active engagement with your brand. Think of conversions as the digital equivalent of a customer walking into your physical store and taking a desired action—whether that's making a purchase, signing up for information, or requesting a consultation.

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Customer Acquisition Cost

Customer Acquisition Cost (CAC) is the cost a business incurs to acquire a new customer. This includes the fully loaded costs associated with sales and marketing to attract a potential customer and to convince them to purchase, divided across all new customers.

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Customer Lifetime Value

Customer Lifetime Value (LTV) represents the total net revenue a business can reasonably expect to generate from a single customer account throughout the entire duration of their relationship. This metric goes beyond simple transaction analysis by incorporating customer retention patterns, purchasing frequency, and profit margins to provide a comprehensive view of customer economic value. LTV serves as a cornerstone metric for strategic decision-making, enabling businesses to optimise acquisition spending, prioritise retention efforts, and identify high-value customer segments that drive sustainable growth.

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Customer Retention Rate

Customer Retention Rate calculates the proportion of customers in a particular period that are retained into the next period.

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Engaged Sessions

The number of sessions where the user was meaningfully active. A session counts as engaged if it lasted longer than 10 seconds, included a conversion event, or had at least 2 page or screen views. This metric represents GA4's approach to measuring quality engagement rather than simply counting all sessions regardless of user behaviour. By filtering out sessions that show minimal interaction, Engaged Sessions provides a clearer picture of sessions where users demonstrated genuine interest in your content or offerings, making it a more reliable indicator of successful user experiences than total session counts.

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Net Profit Margin

Net Profit Margin shows net profit as a percentage of total revenue. It gives the net profit earned for every dollar of revenue generated and is a good indicator of profitability and operating expense management.

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On-Time In-Full

On-Time In-Full (OTIF) delivery rate measures the percentage of orders delivered both on the promised date (or within the agreed time window) and complete with all requested items in the correct quantities. It combines punctuality and completeness into a single metric that reflects successful order fulfilment from the customer's perspective.

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Perfect Order Rate

Perfect Order Rate measures the percentage of orders that are delivered without any errors, such as missing items, incorrect quantities, or damaged goods. It reflects the overall accuracy and quality of order fulfillment. The Perfect Order Rate (POR) is an essential supply chain metric that measures the effectiveness of an organization’s order fulfillment process. It is calculated by determining the percentage of orders that are executed flawlessly, without any errors or issues. Considered from a customer's perspective, a perfect order is one that arrives on time, contains the right items in the correct quantities, is delivered to the right place, and is accompanied by the correct invoicing.

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Return On Marketing Investment

The Return On Marketing Investment (ROMI) metric measures how much revenue a marketing campaign is generating compared to the cost of running that campaign. Effective marketers are driven to connect their time, energy and advertising spend with results that contribute to company growth. This KPI answers the question, “are we recouping the time and money we spent developing and executing our marketing campaigns?”

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