Top Financial Metrics eCommerce Merchants Should be Tracking

19 June, 2020
Wayne Richard

Wayne Richard

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person writing on notebook

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

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

Expense Metrics

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.

tax jar guest post

Posted By

Wayne Richard

Wayne Richard

Wayne is a management accountant who forged a 15-year career with tech heavyweight Hewlett Packard before starting his own cloud accounting firm in Tucson, Arizona. Fate (and the Internet) brought him to discover Bean Ninjas via a blog post. Two years later and Wayne’s involvement with Bean Ninjas had grown from a blog comment to contractor to equity partner. When Wayne isn’t managing a global team and equipping entrepreneurs with the financial tools they need to enjoy business success and lifestyle freedom, he’s being an everyday superhero to his wife and five children. Wayne is Bean Ninjas resident e-commerce expert.

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