Ecommerce Metrics Glossary for Founders

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Ecommerce Metrics

AOV (Average Order Value)

The average dollar amount spent per order, calculated by dividing total revenue by total number of orders.

Ecommerce Metrics

Cart Abandonment Rate

The percentage of online shoppers who add items to their cart but leave without completing the purchase.

Ecommerce Metrics

Conversion Rate

The percentage of visitors who complete a desired action, such as making a purchase or signing up for a service.

Ecommerce Metrics

Cost Per Acquisition (CPA)

The marketing cost to acquire one new customer, measuring acquisition efficiency by channel or campaign.

Ecommerce Metrics

Customer Retention Rate

The percentage of customers who continue doing business with you over a specific period, measuring loyalty and satisfaction.

Ecommerce Metrics

Days Inventory Outstanding (DIO)

The average number of days a company holds inventory before selling it.

Ecommerce Metrics

Gross Merchandise Value (GMV)

The total value of goods sold through a platform before fees, returns, or cancellations are deducted.

Ecommerce Metrics

Inventory Turnover

How many times a company sells and replaces its inventory over a period, measuring inventory efficiency.

Ecommerce Metrics

ROAS (Return on Ad Spend)

The revenue generated for every dollar spent on advertising, measuring the efficiency of paid marketing campaigns.

Ecommerce Metrics

Repeat Purchase Rate

The percentage of customers who make more than one purchase, indicating customer satisfaction and loyalty.

Ecommerce Metrics

Return Rate

The percentage of orders returned by customers, measuring product satisfaction and description accuracy.

Ecommerce Metrics

Sell-Through Rate

The percentage of inventory sold compared to what was received, measuring how quickly products move.

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