Shopify guideGuide7 min read

The Ecommerce KPIs Every Store Owner Should Track

Most store dashboards show plenty of numbers and few decisions. Here are the ecommerce KPIs I track, what each one tells you, and where to find it in Shopify.

Card: conversion funnel, gross margin and returning customers ticked, daily session swings crossed out
Track the numbers that change what you do next.

Key takeaways

  • Most stores need about ten ecommerce KPIs, grouped into four questions: are people arriving, are they buying, is each order profitable, and do they come back.
  • Shopify defines conversion rate as the percentage of sessions that resulted in a purchase, and its funnel report splits that into added to cart, reached checkout and completed checkout.
  • Every Shopify plan includes over 200 reports plus custom analytics, but profit reports only work if you enter cost per item on your products.
  • Benchmarks from other stores are a weak guide. Your own trend, week on week, is the number that tells you what to fix.
Who it is for
Store owners who want numbers that lead to actions
Time needed
An hour to set up, 20 minutes a week
What you need
Shopify admin access and cost data

Shopify's admin will happily show you dozens of numbers every morning. The trouble is that most of them don't lead to a decision. A store owner sees sessions dip on a Tuesday, worries for an hour, and changes nothing, because the number never pointed to a cause.

This guide sets out the ecommerce KPIs I track for the stores I work on, what each one tells you, the formula, where to find it in Shopify, and a simple weekly routine so the numbers turn into actions. Report names and definitions come from Shopify's Help Center, as checked on 7 November 2026.

How to choose your KPIs

A KPI is only useful if a change in it would make you do something differently. I group store KPIs under four questions, in this order, because each one depends on the one before:

  1. Traffic: are the right people arriving?
  2. Conversion: are they buying?
  3. Order economics: is each order worth having?
  4. Retention: do customers come back?

Pick one headline number for the business, usually gross profit or contribution per month, and use the rest to explain why it moved.

The core ecommerce KPIs to track

KPIFormulaWhere in Shopify
SessionsVisits to your online storeBehavior and acquisition reports
Conversion rateSessions with a purchase ÷ sessionsConversion rate over time
Add to cart rateSessions with cart additions ÷ sessionsConversion rate breakdown
Average order valueSales ÷ number of ordersSales reports
Gross margin(Net sales − cost) ÷ net salesProfit reports
Returning customer rateReturning customers ÷ all customersCustomers reports
Refund rateRefunded value ÷ gross salesSales and finance reports
Customer acquisition costMarketing spend ÷ new customersOutside Shopify, from your ad and tool costs

To find any of these, go to Analytics > Reports in your Shopify admin and use the Category filter. Shopify's pricing page lists "200+ real-time reports, plus custom analytics" on Basic, Grow, Advanced and Plus.

Traffic KPIs

Sessions on their own say little. What matters is where they come from and where they land. Use Sessions by landing page to see which pages bring people in, and the acquisition reports to split traffic by channel and referrer.

The question to ask each week: did the channels that convert best grow or shrink? A jump in sessions from a viral post that converts at a tenth of your normal rate isn't progress. Tag links you control, such as email and social bios, with UTM parameters so they show up clearly.

Conversion KPIs and the funnel

Shopify defines conversion rate as "the percentage of sessions that resulted in a purchase". The Conversion rate breakdown report splits it into steps, each shown as a share of all sessions:

  1. Sessions with cart additions: sessions where a customer added a product to a cart.
  2. Sessions that reached checkout: sessions with user input during checkout.
  3. Sessions that completed checkout: sessions where a customer purchased.

This is where the funnel earns its keep, because each drop points to a different fix:

  • Low add to cart rate: product pages, pricing, images or traffic quality.
  • Carts that don't reach checkout: surprise shipping costs, a confusing cart or a missing express checkout button.
  • Checkouts that don't complete: payment options, unexpected costs, or trust.

Baymard Institute's research, updated 28 October 2026, puts the documented average cart abandonment rate at 70.22%, based on 50 studies, with extra costs (40%) and slow delivery (20%) the top checkout-specific reasons. My Shopify CRO audit checklist walks through the fixes for each step.

Watch out for bots: bot traffic inflates sessions and makes conversion rate look lower than it is. If sessions spike with no change in orders, check where those sessions came from in the acquisition reports before you change the site.

Order economics KPIs

Revenue tells you how busy you are. Margin tells you whether it's worth it.

  • Average order value (AOV). Total sales divided by orders. Raise it with bundles, free shipping thresholds and relevant add-ons.
  • Gross margin. Shopify calculates margin as (net sales − cost) ÷ net sales × 100, in its profit reports such as Gross profit by product. It only counts items that had a cost recorded when they sold, so fill in Cost per item on every product.
  • Contribution per order. Gross profit minus payment fees, shipping you absorb and marketing cost per order. This isn't a standard Shopify report, so I keep it in a simple spreadsheet.

Example: same revenue, different health

  • Store A$20,000400 orders at $50 AOV, 60% gross margin: $12,000 gross profit.
  • Store B$20,000250 orders at $80 AOV, 45% gross margin: $9,000 gross profit.
Illustrative figures. Store B looks stronger on AOV, but keeps $3,000 less each month, before shipping on its orders.

For quick what-if checks, the profit margin calculator helps, and my guide to pricing products for profit shows how to fix a thin margin.

Retention KPIs

  • Returning customer rate. The share of customers in a period who had bought before. Find it in the customers reports.
  • Repeat purchase interval. The typical number of days between first and second order. Time your follow-up emails to land just before it.
  • Customer lifetime value. Average gross profit per customer over a set period, such as 12 months. Compare it with customer acquisition cost: if it costs more to win a customer than they're worth in a year, growth makes you poorer.

Retention KPIs move slowly, so read them monthly, not weekly.

Operations KPIs

These rarely make dashboards, but they drive reviews and repeat orders:

  • Refund and return rate, overall and by product. A single product with a high return rate usually has a sizing, description or quality problem.
  • Time to ship, from order to fulfillment.
  • Stockouts on your top 20 products, from the inventory reports.
  • Searches with no results, a Shopify behavior report that shows what shoppers wanted and couldn't find.

A weekly, monthly and quarterly routine

WhenKPIs to reviewDecision it drives
WeeklySessions by channel, conversion funnel, AOVWhat to fix or test next
MonthlyGross margin, refund rate, returning customersPricing, products, email plans
QuarterlyLifetime value vs acquisition costWhere to spend on growth

Keep it to 20 minutes a week. Write down one sentence on what changed and one action you'll take. Over a quarter, those notes become more useful than any dashboard.

Which KPIs matter most at each stage

The same ten numbers matter at every size, but the one you should obsess over changes as the store grows.

StageFocus KPIWhy
New storeAdd to cart rateShows whether the offer and product pages work at all
First steady salesConversion funnel by stepPoints to the exact page losing buyers
Growing trafficContribution per orderStops you scaling an order that loses money
EstablishedLifetime value vs acquisition costDecides how much you can spend to grow

On a brand-new store with a few hundred sessions a month, conversion rate swings wildly from week to week because the numbers are small. Add to cart rate settles sooner, so it's the better early signal. Once you have a few thousand sessions a month, the full funnel becomes reliable enough to act on.

Set up your KPI dashboard in Shopify

  1. Enter cost per item on every product and variant, in the Pricing section of each product.
  2. Open the reports. Go to Analytics > Reports and filter by category: Behavior, Sales, Profit margin and Customers.
  3. Save the reports you use. Customize the date range and columns, then save them so your weekly review takes one click.
  4. Add UTM tags to email, social and partner links.
  5. Record contribution and acquisition cost in a spreadsheet each month, using your ad and app invoices.

Common mistakes

  • Tracking revenue only. Revenue can grow while profit shrinks.
  • Chasing someone else's benchmark. Conversion rates vary hugely by product, price and traffic source.
  • Reading daily swings. Use weekly totals and compare with the same week last year where you can.
  • Blank cost fields, so profit reports show nothing useful.
  • No action attached. If a KPI never changes what you do, drop it.

KPI checklist

  • One headline number chosen for the business.
  • Traffic tracked by channel and landing page.
  • Conversion funnel reviewed weekly.
  • Cost per item entered, and gross margin reviewed monthly.
  • Contribution per order and acquisition cost tracked in a sheet.
  • Returning customer rate and lifetime value reviewed monthly or quarterly.
  • Refund rate, time to ship and stockouts checked monthly.
  • One written action after every weekly review.

Next steps

Set up the reports this week, then do your first 20-minute review next Monday and write down the biggest drop in the funnel. That drop is your next project. If you'd like help finding why it happens, my Shopify CRO service starts from $500, and I'm happy to review your store for free first.

Free tools

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Free, no sign-up. Each one runs a part of this guide for you.

Frequently asked questions

What are the most important ecommerce KPIs?

Conversion rate, average order value, gross margin and returning customer rate cover most of what matters, with sessions by channel, add to cart rate, refund rate and customer acquisition cost explaining why they move.

How does Shopify calculate conversion rate?

Shopify defines conversion rate as the percentage of sessions that resulted in a purchase. Its Conversion rate breakdown report splits this into sessions with cart additions, sessions that reached checkout and sessions that completed checkout.

Where do I find KPIs in Shopify?

Go to Analytics, then Reports, in your Shopify admin and use the Category filter to open Behavior, Sales, Profit margin or Customers reports. Shopify lists over 200 reports plus custom analytics on Basic, Grow, Advanced and Plus.

Why don't my Shopify profit reports show anything?

Shopify only reports profit for products and variants that had a cost recorded when they sold. Enter Cost per item in each product's Pricing section, and profit will show for sales from then on.

What is a good ecommerce conversion rate?

It depends heavily on your product, price and traffic source, so another store's number is a weak guide. Track your own rate week on week, and look at which funnel step drops most.

How often should I review ecommerce KPIs?

Review traffic, conversion and AOV weekly, margin, refunds and returning customers monthly, and lifetime value against acquisition cost every quarter.

Sources

  1. Behavior reports, Shopify Help Center
  2. Profit reports, Shopify Help Center
  3. Default reports, Shopify Help Center
  4. Shopify pricing, Shopify
  5. Cart abandonment rate statistics, Baymard Institute
Ashraf Siddik

Written by Ashraf Siddik

I'm a Shopify developer and CRO specialist. I have built and improved Shopify stores since 2018, completed more than 1,000 projects, and hold a 4.96 average rating across 719 client reviews.

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