How do you calculate and track e-commerce sales metrics?

Calculating and tracking e-commerce sales metrics is essential for monitoring the performance of your online store, identifying areas for improvement, and making data-driven decisions to optimize sales and revenue. Here are some key e-commerce sales metrics to calculate and track:

1. **Total Sales Revenue**:
   - Total sales revenue represents the total amount of money generated from the sale of products or services through your e-commerce store over a specific period.
   - Calculate total sales revenue by summing up the revenue from individual transactions, including product sales, shipping fees, and any additional charges.

2. **Average Order Value (AOV)**:
   - Average order value measures the average amount spent by customers on each transaction.
   - Calculate AOV by dividing total sales revenue by the number of orders received during the same period.

3. **Conversion Rate**:
   - Conversion rate measures the percentage of website visitors who complete a desired action, such as making a purchase or signing up for a newsletter.
   - Calculate conversion rate by dividing the number of conversions (e.g., orders) by the total number of website visitors and multiplying by 100 to express it as a percentage.

4. **Customer Acquisition Cost (CAC)**:
   - Customer acquisition cost represents the average cost of acquiring a new customer, including marketing and advertising expenses.
   - Calculate CAC by dividing total marketing and advertising expenses by the number of new customers acquired during the same period.

5. **Customer Lifetime Value (CLV)**:
   - Customer lifetime value predicts the total revenue that a customer is expected to generate over their entire relationship with your business.
   - Calculate CLV by multiplying average order value by average purchase frequency and then multiplying the result by the average customer lifespan.

6. **Repeat Purchase Rate**:
   - Repeat purchase rate measures the percentage of customers who make more than one purchase from your e-commerce store over a specific period.
   - Calculate repeat purchase rate by dividing the number of repeat customers by the total number of customers and multiplying by 100 to express it as a percentage.

7. **Cart Abandonment Rate**:
   - Cart abandonment rate measures the percentage of shopping carts that are abandoned by users before completing the checkout process.
   - Calculate cart abandonment rate by dividing the number of abandoned carts by the total number of initiated checkouts and multiplying by 100 to express it as a percentage.

8. **Revenue by Traffic Source**:
   - Revenue by traffic source tracks the amount of revenue generated from different marketing channels and traffic sources, such as organic search, paid advertising, social media, and email marketing.
   - Use analytics tools like Google Analytics to attribute revenue to specific traffic sources and evaluate the effectiveness of each channel.

9. **Product Performance Metrics**:
   - Track metrics related to individual product performance, such as sales volume, revenue generated per product, bestselling products, and inventory turnover rate.
   - Analyze product performance data to identify top-performing products, optimize pricing strategies, and make informed decisions about inventory management.

10. **Sales Funnel Metrics**:
    - Monitor key metrics throughout the sales funnel, including website traffic, product views, add-to-cart rates, and checkout completion rates.
    - Identify bottlenecks and areas for improvement within the sales funnel to optimize the customer experience and increase conversion rates.

To track these e-commerce sales metrics effectively, use analytics and reporting tools provided by your e-commerce platform, as well as third-party analytics solutions like Google Analytics. Regularly analyze and review your sales metrics to gain insights into your e-commerce performance and take proactive measures to drive growth and profitability.