All websites are important, but e-commerce is one step ahead. Why? Because their main goal is sales. And if there are no sales, your business cannot get ahead.
And with this, some doubts usually arise… How do I know if my e-commerce is working as it should? How can I optimize it and sell even more?
At Kiwop we want your business to be future. That is why we recommend you continue reading this article on how to measure the success of your e-commerce effectively.
What are you waiting for? 👉
What is an e-commerce and how to create it
An e-commerce is, as its name suggests, an electronic commerce. That is, immersed in the digital world. Thus, the maximum objective of an e-commerce is to sell online, being a kind of digital showcase for a brand.
Of course! There are many types of e-commerce depending on their target or what they sell. For example, an e-commerce that is aimed at consumers to companies (C2B) is not the same as a business e-commerce that is aimed at other brands (B2B). Just as it is not the same if your e-commerce sells only its own products or if, on the contrary, it is a Marketplace or store store.
Therefore, before setting up an e-commerce, start by defining what type of e-commerce you want to set up. Answer questions like who you want to target, what you want to sell, how you’re going to ship orders… After defining your business well, then yes, ask for help from
experts for the development of your e-commerce
What is success in an e-commerce
Now, what is that about success? It may seem like a very objective thing, but it really isn’t, not at all!
In fact, what for one company can be a resounding success, such as reaching 400 sales in a month, for another brand can be a total failure because they are looking for 400 sales in a day.
One thing is clear, the main objective of e-commerce is to sell, for something they are online stores! The question is to know the main metrics in which you must set and establish measurable, specific, temporary, achievable and, above all, realistic objectives.
Don’t want to start by measuring your success by reaching 1,000 sales a day, start at the beginning. After all, all of today’s great successful e-commerce has gone step by step.
Examples of successful e-commerce
Amazon, eBay, Zalando, Rakuten… They ring a bell, right? How can they not do it! They are some of the largest and most successful e-commerce worldwide. And what is the secret of all of them?
Well, to begin with, all of them except for Zalando started in the 90s, so … give yourself time!
On the other hand, all of them offered new features when buying and browsing, such as new ways of buying, such as eBay , social interaction and real reviews, such as Amazon , online store for specific products or areas, such as Zalando , or create a store store at the right time and place, such as Rakuten .
10 essential metrics to calculate the success of your e-commerce
And although each e-commerce must establish different objectives based on its own situation, it is advisable to know what metrics or KPIs to follow to measure the success of your e-commerce.
Traffic and traffic by device
Before focusing on sales or conversions, it is important that you know how many users access your website, both daily, weekly, monthly and, if you have been with your e-commerce long enough, also on an annual basis.
And beyond this, it’s also important to see where your users are accessing from. This helps to improve the usability and design of your e-commerce to focus on the type of device from which your customers access the most.
Revenue by traffic source
After looking at the traffic, look at the revenue for each traffic source! That is, do they buy more from mobile, from tablet or from the computer? It is another key fact to make it easy for your user to buy from you.
Average order value
The average value of the order is equal to or even more important than the sales themselves. And it is the amount of money that each customer leaves in your e-commerce when buying your products.
If the average order value of your e-commerce is increasing, you are on the right track!
Conversions or sales
Here comes the big star in any goal of growth of an e-commerce, sales! Of course, they are also very important. The greater the number of sales, the greater the turnover and growth of your e-commerce.
Although obtaining a growth in conversions and the average value of the order is the central objective to measure the success of your e-commerce.
🔎 If you found it interesting, don’t miss the blog on
how to attract more customers to your e-commerce
Products with better results
Another interesting fact is to know which products have the best results, either in sales or in traffic.
In this way, when you need to optimize the SEO of your e-commerce or make changes for the better in the usability of your website, you will already know in which URLs to start working those changes to obtain better results.
Return on ad spend or ROAS
Return on Investment is key in your e-commerce, especially if you are investing money in advertising to promote your website.
This metric helps you to know how much you are earning for each euro invested and thus know if advertising works and compare it with other sales sources.
The formula is:
ROAS = Sales Revenue / Investment x 100
Don’t panic! In Spain, it is normal for an e-commerce to have up to 70% cart abandonment. Yes, we know that it is high, but there are a thousand ways to lower this percentage or even work a good remarketing to capture those unmade purchases.
You should not confuse this metric with the bounce rate, since in this case it is about users who have an interest in your e-commerce, that is, interact and visit pages, but do not end up making purchases.
Knowing this data will help you see how many of your users end up being customers and look at the sales funnel to find a why. Thus, you can decrease this abandonment rate and increase the conversion rate.
Rate of returns and refunds
This data not only tells us about the operation of your e-commerce, but also about its quality and esteem among your users.
The lower the rate of returns or refunds, it means that there is greater satisfaction with what they buy and find in your e-commerce. This, of course, is also key to growing online.
Customer lifetime value
This is another of the metrics that you should take into account. Through it you can calculate how the interaction, purchases and behavior of a user has been throughout its life cycle relating to your e-commerce.
In this way, you can classify those users with a high lifetime value and establish similarities to work strategies and reach similar users.
Take your e-commerce to success
After all this information on how to measure the success of your e-commerce, you just have to launch and start measuring, optimizing, improving and selling more!
Now it’s your turn.
If you need help or want us to solve any questions related to your business, we will be happy to do so. 😊
Cheer up and…
Learn to measure the success of your e-commerce and reach the top! 🚀