Ecommerce businesses saw incredible shifts over the last couple of years. The industry grew by 50% since 2019.
Is your business seeing the same level of growth? You might see a steady stream of sales, but you’re missing out on opportunities to grow and thrive in this industry.
Since your business is completely online, there are endless ways to collect data. You can track everything right down to the best-selling product.
That lets you optimize your business, but it can be information overload. You need to look at the most useful ecommerce reports that let you make the most consequential changes in your business.
Which are the ecommerce analytics you need to check to run your business? Read on to find out.
1. Marketing Reports
Marketing reports let you see which investments are paying off and which ones you can let go of.
Check social media reports for engagement. You’ll see which types of content connect with your audience.
You’ll also want to check which tactics drive traffic to your site. Then match that with conversion reports to see the channels that make the most sales.
2. Net Revenue
Gross revenue is the total income of your business. Net revenue is what’s left over after you subtract the cost of goods sold, operations expenses, and taxes.
Net revenue is your bottom line.
If you’re selling goods through your website, Amazon, and other channels, it’s difficult to know what your true numbers are.
Most multi-channel ecommerce sellers rely on spreadsheets to gather and extrapolate the sales data. There are programs like this helpful tool that make it easy to pull data from different sales channels and generate reports.
3. Cart Abandonment Rate
Do you get a ton of website traffic and few sales? Check your cart abandonment rate. This is the percentage of people who put items in their shopping carts and leave the site.
A high cart abandonment rate means there’s something wrong with the payment process. It could be that your shipping rates are too high or your payment pages are slow.
4. Average Order Value
The average order value measures how much people spend with each order. You can increase this number by offering related products or services during the checkout process.
If you bump the average order by 10% or 15%, that can make a big difference in your business.
5. Lifetime Value of a Customer
In an ideal world, you have your customers for a long, long time. They return on a regular basis to buy more and more from your ecommerce business.
This helps you figure out the appropriate amount of money to spend on marketing. If your customers only spend $100 total, it doesn’t make sense to spend $150 to acquire them.
Utilize the Right Ecommerce Reports for Your Business
This is a great time to run an ecommerce business. If you’re not paying attention to data, you’re just running a hobby.
Turn your business into a sales engine that’s always running. Use the ecommerce reports listed in this article. You’ll be able to optimize your business and get more sales.
Check out the other articles on the blog for more creative business ideas.