Varos Glossary

Ecommerce KPI Benchmarks

What is Ecommerce KPI Benchmarks

It might be difficult to settle on a set of KPIs that are most relevant to your ecommerce business. Your decision should be guided by your own unique tactics and objectives. There is so much information at a company's fingertips nowadays that it's easy to get lost in the noise and overlook what's really essential. Since it is impossible to keep tabs on everything, it is crucial to identify and prioritize the data that is worth tracking and reporting on a frequent basis.

While there is no silver bullet, there are several industry-standard measures and ecommerce KPIs that may help guide your company in the right direction.

  • First, you need to choose your key performance indicators (KPIs) in the context of your ecommerce company's objectives, stage of development, and other considerations.

Importance of ecommerce KPI Benchmarks

Decisions concerning income, marketing strategies, and the quality of the customer experience may all be improved with the help of ecommerce key performance indicators. They are useful for figuring out which tactics succeed and which fail.

When it comes to ecommerce, KPIs not only help you focus on what needs fixing, but they also provide you a glimpse into how that may be done. When everything is said and done, they will point you in the direction of the adjustments that will best expand your consumer base and boost your bottom line.

You can't make educated judgments about your ecommerce platform without access to data like this. A more effective strategy for corporate success is to use data to guide decision-making. Senior stakeholders and lenders are this way more inclined to approve.

Key Performance Indicators to grow your business

Many key performance indicators (KPIs) may help with sales monitoring. These important KPIs for ecommerce contain a number of data, such as how frequently your organization turns customers into paying ones.

1. Average Order Value (AOV)

How much of a profit does each order on your site bring in?

An average transaction value (ATV) reveals how much money a typical consumer spends at your shop.

2. AOV = Sales / Number of Purchases

Despite being one of the most elementary ecommerce KPIs, this metric's importance cannot be overstated, as it may help you determine the efficacy of your client acquisition efforts and provide light on shoppers' habits. Increasing AOV is one of the most effective (and cheapest) strategies to boost revenue and profit.

3. Customer Lifetime Value (CLV)

If you want to keep more of your current customers coming back, this is one of the most important KPIs for your online store to monitor. It’s particularly handy if your firm is centered on selling high-end things.

  • The value of a client throughout their relationship with your company is measured by what is called their "customer lifetime value".

4. Conversion Rates

Ecommerce conversion rate benchmarks tell you what proportion of your target market is doing the desired action. This may concern the percentage of people who make a purchase after seeing your ad on the search engine results page, the number of people who click on your social network share button, or other similar metrics.

  • CR= (Conversions / Visitors) x 100

A website's conversion rate is measured in a variety of ways, such as the number of visitors who sign up for a newsletter, make an account, join a loyalty program, or make a purchase.

5. Customer Acquisition Cost (CAC)

CAC informs you how much you need to pay to attract one new customer.

The price of acquiring a new client should include not just your marketing and sales expenses but also your overhead expenditures. As a business increases exposure and awareness, CAC should fall hence it is an excellent KPI to set objectives for.

6. Net Profit

As ecommerce performance measures go, net profit is frequently disregarded yet it is a clear vital sign of your ecommerce store’s overall health.

  • Net Profit = Total revenue - Total Profit

7. Average Session Duration

The average session duration benchmark is a KPI of how engaged they are with your content.

  • Higher numbers indicate that site visitors are actively interacting with your business, which ultimately enhances the likelihood that they will make a purchase.

Too much time on site might result in foregone purchases, hence this indicator should be tracked alongside conversion rates.

8. Bounce Rate

Lastly, the bounce rate benchmark is the proportion of first-time visitors who do not go beyond the homepage.

  • Poor quality traffic sources, unmet expectations, badly designed UI, and technological challenges all contribute to high bounce rates.


A startup's ability to turn a profit is a significant achievement, and knowing how much money is coming in will help you choose how much of your resources to allocate toward growth activities like marketing, customer service, and product development.

Due to the fact that each metric measures a slightly different aspect of online retail performance, there is no single metric that can be considered the most crucial.

You may monitor the health of your ecommerce business by measuring and monitoring the following mentioned key ecommerce KPIs and their changes over time. This way, you can see trouble spots and have them fixed before they become catastrophic.