Retail Metrics

The most important Retail and E-Commerce metrics and KPIs. Learn about what metrics and KPIs are best for you, and your business, and contribute your own.

Abandoned Checkout Rate

Abandoned Checkout Rate measures the share of checkout sessions that begin but do not end in a completed order. It focuses on the checkout funnel only, not the cart. You use it to understand friction after a shopper clicks “Checkout,” including issues with shipping choices, payment, taxes, and form friction. A high rate points to lost revenue and poor user experience during the last steps before purchase.

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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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Add-to-Cart Rate

Add-to-Cart Rate measures the share of sessions in which at least one product is added to a shopping cart. It shows how effectively your product pages and browse experiences move visitors toward purchase intent. Track it to spot friction on product detail pages, evaluate merchandising and offers, and compare buyer intent across channels, devices, and audiences.

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Average Basket Size

Average Basket Size (ABS) is an e-commerce metric that tracks the average number of items sold per transaction. In other words, ABS measures the increase or decrease in the quantity of items purchased per transaction. It can also be used to calculate the Average Basket Value, which is the average cost of units placed in the basket.

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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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Average Purchase Frequency

Average Purchase Frequency counts the average number of transactions per customer per period. This metric is used to better understand customer behavior and purchase patterns.

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Average Revenue Per Paying User

Average Revenue Per Paying User (ARPPU) is a key performance indicator (KPI) that measures the average revenue generated from each user who has made at least one purchase within a specific time period. Unlike Average Revenue Per User (ARPU), which includes all users (both paying and non-paying), ARPPU focuses specifically on the paying customer base. This metric provides a crucial insight into the value of a business's paying customers and their spending behaviour. It is especially useful for subscription-based models, e-commerce, mobile apps, and other businesses where a distinction exists between free users and those who generate revenue. By tracking ARPPU, a company can better understand its monetization efficiency and the effectiveness of its pricing strategies.

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Cart Abandonment Rate

Cart Abandonment Rate is the percentage of shopping sessions in which a visitor adds at least one item to a cart but leaves without completing a purchase. It quantifies mid?funnel friction and helps you pinpoint checkout blockers, pricing or shipping concerns, and gaps in product detail clarity. Track it over time and by segment to understand where intent stalls and which fixes move the needle.

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Cash Conversion Cycle

The Cash Conversion Cycle, also knows as Cash-to-Cash Cycle Time, is the time between when a business pays its suppliers and when the business receives payment from its customers, usually expressed in days. Keeping active tabs on your Cash Conversion Cycle will aid you in monitoring your finances as cash flows in and out of your business.

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Charges

Charges refers to the total revenue you earn from payments, after deducting any fees, refunds, transfers, and disputes. Sometimes also known as Net Charges, this metric is your view of net earnings collected through a payment gateway.

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Cost Of Goods Sold

The Cost Of Goods Sold (COGS) is the measure of direct costs incurred by a company to manufacture or deliver their product or service. Costs typically include raw material and direct labour, but this varies from business to business, depending on the products or services that are being sold. COGS is the building block to understanding Gross Margin and Gross Margin Percent.

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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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