# Most Important Ecommerce Stats

As an ecommerce business owner, there are several key metrics that you should be tracking to measure the success of your online store. By understanding these metrics and how to calculate them, you can make informed decisions that will help you grow your business. Here are the five most important stats in ecommerce and how to calculate them.

Conversion Rate

Conversion rate is the percentage of website visitors who complete a desired action, such as making a purchase or signing up for a newsletter. To calculate your conversion rate, divide the number of conversions by the total number of visitors to your site, and multiply by 100. For example, if you had 1000 visitors to your site and 50 of them made a purchase, your conversion rate would be 5%.

Conversion rate = (Conversions / Total Visitors) x 100

Average Order Value (AOV)
Average order value is the average amount spent by customers in a single transaction. To calculate your AOV, divide your total revenue by the number of orders. For example, if you had \$10,000 in revenue from 100 orders, your AOV would be \$100.

AOV = Total Revenue / Number of Orders

Customer lifetime value is the amount of revenue a customer is expected to generate for your business over their lifetime. To calculate your CLV, multiply your average order value by the number of times a customer is expected to purchase from you in a given time period, and then multiply that by the average customer lifespan. For example, if your AOV is \$100 and a customer is expected to make 10 purchases over a 3-year period, your CLV would be \$3,000.

CLV = AOV x Number of Purchases x Customer Lifespan

Cart Abandonment Rate

Cart abandonment rate is the percentage of shoppers who add items to their cart but do not complete the checkout process. To calculate your cart abandonment rate, divide the number of completed transactions by the number of shopping carts created, and then subtract that from 1. For example, if you had 100 shopping carts created and 75 completed transactions, your cart abandonment rate would be 25%.

Cart Abandonment Rate = 1 - (Completed Transactions / Shopping Carts Created)

Return on Investment (ROI)

Return on investment is the amount of revenue generated by an ecommerce campaign divided by the cost of that campaign. To calculate your ROI, subtract the cost of your campaign from your revenue and then divide by the cost of your campaign, and then multiply by 100. For example, if you spent \$1,000 on a marketing campaign that generated \$5,000 in revenue, your ROI would be 400%.

ROI = (Revenue - Cost) / Cost x 100

By tracking these five key metrics, you can gain valuable insights into the performance of your ecommerce store and make data-driven decisions to improve your bottom line.