As an eCommerce entrepreneur, you are juggling a ton of responsibilities from sales and marketing to customer service, operations, and managing key vendor and manufacturing relationships.
Unfortunately, many make their jobs so much harder by not having a firm grasp of their numbers. When you don’t know your numbers, it is essentially the equivalent of playing the slot machines in Las Vegas. You might win big. Or, you might walk out with an empty wallet.
Do you really want to play Russian Roulette with your business?
In this post, we’re going to look at the top metrics that every eCommerce business owner should be tracking on a regular basis.
Growth metrics include all of your important sales and marketing KPIs. Here are some examples of metrics that you might want to track:
- Top-line Revenue
- Customer Acquisition Costs (CAC)
- Customer Lifetime Value (CLTV)
- Average Order Value (AOV)
- eCommerce Conversion Rate
This includes all of your operational expenses (i.e. what it takes to run your business day in and day out). Some examples of metrics that you might want to track here, including:
- Cost of goods sold (COGS)
- Cost of Sales
- Processing fees
- Contribution Margin
- Profit Margins
In this post over on the TaxJar blog, I dive deeper into all of the financial metrics that eCommerce businesses should be tracking.