How to measure e-commerce performance

What are the characteristics, you can use to measure your e-commerce activity (except just turnover). Most of the sales and communications are direct, so you can not measure it by the number of partners/resellers/distributors.

Here are examples for the software e-shop:

  • Revenue source split
    • Direct sales
    • After trial
    • Affiliate network
    • SEM
    • Email marketing
    • Shareware
    • Banners
    • Other
  • Type of clients
    • new
    • returning client (+ percentage of the happy clients, who buy again)
  • Products (which products do you sell)
  • Affiliate/Online partners parameters
    • Gross turnover
    • Affiliate commission
    • Network commission
    • Marketing agencies commission
  • Google SEM parameters
    • Gross sales
    • keywords cost
    • agency cost
    • Total visitors/orders
    • cost per visitor/order
    • ROI (Return on investment)
  • Website parameters
    • Total visitors/conversion
    • e-shop visitors/conversion
    • Trial section visitors/conversion
  • e-shop and electronic payment parameters
    • Total orders
    • paid orders
    • never paid orders
    • Refunds
    • Charge-backs

I don’t go too deep in the website analytics, this can have another couple of dozen¬†parameters. From mentioned parameters you can get a good idea how your e-commerce is performing. And don’t try to compare those values with other e-shop or “industry averages”. e-shops are too unique, each and every parameter could mean either success or failure of your business in general. Don’t think that high conversion or low google keyword costs¬†immediately¬†mean revenue growth.

Always compare your parameters with your own, but a year/month later

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