Vital Metrics for every e-commerce business

• CPA (Cost per Acquisition)

It is best to know your customer first, rather than spending a ton of money on them.
This CPA is the answer to cost issues for most businesses. It exactly tells where your customers are and how much you need to spend on them

CPA= (Campaign Cost)/ (Acquisitions)

• Return on Ad Spend (ROAS)/Return on Marketing Investment (ROMI)

You want to consider the return on your marketing dollars to determine which campaigns are really working for you. So its good to look at two ratios for this: Return on Ad Spend (ROAS) and Return on Marketing Investment (ROMI).

ROAS = (Revenue $) / (Campaign Cost $)

ROMI = ($ Net Profit) / ($ Marketing Expense)

• Bounce Rate(BR)

It the percentage of users who visited a particular page and suddenly left

Bounce Rate = (# of visitors who leave immediately) / (# of visitors)

• Checkout Abandonment Rate (CoAR)

Represents the lowest hanging fruit for most internet retailers.

In Google Analytics, navigate to Goals > Funnel Visualization to get a picture of where visitors are defecting from your checkout process.

• Conversion rate (CR)

Conversion rate is the driver of your business — it’s the percentage of visitors who buy from you

CR = (# transactions) / (# visits)

• Product Revenue

The most important part for merchandisers is this one. You can see it by looking at Conversions > E-commerce > Product Performance and sorting by Product Revenue