Ecommerce is full of moving parts. Traffic rises and falls. Customers behave in ways that don’t always make sense. Teams optimise one area only to see another dip unexpectedly. In a world where everything is connected, KPIs become more than numbers they become opportunities.
For ecommerce managers, KPIs are the language of performance. They help you understand what’s working, what’s not, and where the system is quietly leaking value. And with so many metrics available, it’s easy to get lost in dashboards and miss the story behind the data.
In this post, we’ll break down the 10 KPIs every ecommerce manager should know. We’ll define each metric, explain why it matters, and explore how to influence it. And we’ll do it through the INSIGHT Framework; a systems‑thinking approach to human‑centered ecommerce, merchandising & strategy. To help you see not just what outcomes the KPIs measure, but the forces behind it.
What KPIs Are Ecommerce Managers Responsible For?
Ecommerce managers are responsible for KPIs that measure customer behaviour, website performance, merchandising effectiveness, and revenue growth. These include metrics like conversion rate, traffic, average order value, add‑to‑cart rate, and abandonment rates. Together, they help teams diagnose friction, understand intent, and make decisions that drive sustainable growth.
These KPIs span the entire customer journey; from awareness to purchase to repeat behaviour. And because ecommerce is a system, each KPI influences the others. And real value comes from understanding how they connect and be adjusted together to deliver growth.
Why KPIs Are Important
KPIs matter because they reveal the truth about how your ecommerce ecosystem is performing. They show you where customers hesitate, where the experience breaks down, and where value is being created or lost.
A few reasons they’re essential:
- KPIs help you identify friction – A high bounce rate or low add‑to‑cart rate is often the first sign something isn’t resonating.
- KPIs support better decisions – Teams aligned around shared metrics make faster, clearer choices.
- KPIs protect profitability – With rising acquisition costs, understanding efficiency metrics like AOV and conversion rate is critical.
- KPIs reflect customer experience – KPIs are behavioural signals, a form of data empathy.
10 KPIs Every Ecommerce Manager Should Know
Below are the core KPIs that shape ecommerce performance. Each one tells part of the story, and together, they reveal the system.
1. Add to Cart Rate
What it is:
The percentage of visitors who add a product to their cart.
Why it matters:
It’s one of the clearest indicators of product relevance and early‑stage purchase intent.
How to influence it:
- Improve product imagery and descriptions
- Strengthen value messaging
- Add social proof
- Ensure pricing and delivery information is clear
2. Average Order Value (AOV)
What it is:
The average amount spent per order.
Why it matters:
Higher AOV improves profitability and helps offset rising acquisition costs.
How to influence it:
- Loyalty incentives
- Cross‑sell and upsell
- Free shipping thresholds
3. Bounce Rate
What it is:
The percentage of visitors who leave after viewing one page.
Why it matters:
A high bounce rate often signals a mismatch between expectation and experience.
How to influence it:
- Simplify navigation
- Improve page load speed
- Strengthen above‑the‑fold messaging
- Ensure landing pages match ad intent
4. Cart Abandon Rate
What it is:
The percentage of shoppers who add items to their cart but don’t start checkout.
Why it matters:
It highlights friction in pricing, trust, or delivery expectations.
How to influence it:
- Persistent cart reminders
- Transparent fees
- Clear delivery timelines
- Strong reassurance messaging
5. Checkout Abandon Rate
What it is:
The percentage of shoppers who start checkout but don’t complete it.
Why it matters:
This is the closest point to revenue, and the most expensive place to lose customers.
How to influence it:
- Clear error handling
- Fewer form fields
- More payment options
- Guest checkout
6. Conversion Rate
What it is:
The percentage of visitors who complete a purchase.
Why it matters:
It reflects the health of the entire ecommerce system, from traffic quality to site merchandising, UX and operations.
How to influence it:
- Align marketing and merchandising
- Improve product content
- Strengthen trust signals
- Optimise checkout
7. Number of Orders
What it is:
The total number of orders placed in a given period.
Why it matters:
It’s a direct measure of demand and a key input for forecasting.
How to influence it:
- Strengthen merchandising
- Increase traffic quality
- Improve retention
- Run targeted campaigns
8. Revenue
What it is:
Total income generated from sales.
Why it matters:
It’s the clearest indicator of top‑line performance.
How to influence it:
- Optimise pricing
- Improve AOV
- Increase conversion
- Expand product range
9. Traffic
What it is:
The number of visitors to your site.
Why it matters:
Traffic fuels the entire funnel, but quality matters more than quantity.
How to influence it:
- Content marketing
- SEO
- Paid media
- Partnerships
10. Units per Order (UPO)
What it is:
The average number of items purchased per order.
Why it matters:
It reflects basket efficiency and merchandising effectiveness.
How to influence it:
- Category merchandising
- Multi‑buy offers
- Product recommendations
Closing
KPIs are not just numbers on a dashboard. They’re signals, reflections of customer behaviour, team alignment, and the health of your ecommerce ecosystem. When you view them through a systems‑thinking lens, you stop chasing isolated metrics and start designing experiences that work together.
The best ecommerce managers don’t just track KPIs. They interpret them, connect them. And use them to tell a story about what customers need and how the business can serve them better.
