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Shopify Key Shopify Metrics

Let us guess—are you a new Shopify merchant?

Or someone looking for information on what metrics to track on Shopify?

You’ve come to the right place. In this article, we’ll provide you with 8 metrics you should track for your e-commerce store.

Before that, get to know where you can find a dashboard to see how well your store is performing and if there are any changes over time.

The Shopify Analytics Dashboard

The dashboard is like a control center of your Shopify store—from where you can access all the essential information you need to manage your business. With the help of Shopify’s built-in analytics, you can monitor your store’s performance, track sales, manage orders, understand customer behavior, and much more.

Here’s what you can do with the Analytics dashboard;

  • Check recent sales and compare them to past sales.
  • See how different sales channels are performing.
  • Keep track of the average amount customers spend.
  • Find out where your website visitors come from.
  • Analyze customer behavior over time.

To see your Analytics;

  1. Go to Analytics in your Shopify admin, which is on the sidebar.
  2. By default, it shows data for today compared to yesterday, but you can change the date range.
  3. You can also compare the data to previous periods and previous years to see how things have changed.

You’ll get to see some 15+ charts and visual representations of your store’s data—from where you can analyze how your store is performing.

You can customize your dashboard to show the specific metrics that matter most to you. Then, save your changes to keep your dashboard set up how you want it. This way, you can focus on the information that helps you decide on your store.

The Metrics library lists all the different metrics you can add to your dashboard. Each metric represents a specific type of data, like sales or customer behavior.

You can also View Reports for each metric if you’d like to investigate it further.

You can view metrics for each of the following categories on the Analytics dashboard;

  • Sales
  • Acquisition
  • Orders
  • Finances
  • Behavior
  • Customers
  • Inventory
  • Marketing

Learn more about it here.

8 Shopify Key Metrics You Must Track

1. Average Order Value

Shopify - Shopify Average Order Value

To understand if your sales strategies are effective and what your consumer purchasing habits are, look at the Average Order Value (AOV).

Average Order Value (AOV) tracks the average $$$ spent each time a customer places an order.

Why do we track Average Order Value?

  • Helps us understand our customers’ spending habits, providing insight into how much money customers are willing to spend per transaction.
  • Allows us to customize our marketing strategies and pricing tactics. For example, if AOV is lower than desired, you can implement strategies such as upselling or cross-selling to increase it.
  • Segment customers based on their spending—this helps us customize marketing messages according to the spending behavior of different groups.
  • We often use AOV to benchmark our performance against past performance or industry standards, which helps identify areas for improvement.

How do we measure AOV? The formula for calculating AOV is straightforward;

AOV = Total Revenue / Total Number of Orders

Where;

Total Revenue is the sum of all revenue from sales over a given period.
Number of Orders is the total number of orders placed in the same period.

You can also look at your AOV through Shopify’s analytics or reports that include order data.

If you want to increase your store’s AOV, you should;

  • Do Upselling and Cross-selling
  • Offer discounts on bulk purchases
  • Create product bundles
  • Implement loyalty programs
  • Improve Customer Experience

You might not know, but these tiny factors impact your AOV to increase/decrease. Some are;

  • Different customer segments may have different spending behaviors
  • Website and overall checkout experiences
  • Offering free shipping thresholds can motivate customers to increase their order size.
  • The pricing and offerings of competitors
  • Promotional strategies such as upselling, cross-selling, and bundling
  • Types of products and their pricing strategy offered

That’s why you should carefully analyze these factors and understand how they impact your customer purchasing decisions.

2. Returning Customer Rate

Shopify - Returning Customer Rate

This Returning customer rate can also be called a Repeat Purchase Rate.

Returning Customer Rate measures the % of customers who have made more than one purchase from your store within a specific period.

A higher rate indicates customer loyalty and satisfaction.

Why do we track RCR / RPR? You’ll get a comprehensive idea of why Repeat Customer Rates matter to our businesses.

To calculate the Returning Customer Rate, you can use the following formula, or you can also track this metric on the Shopify Analytics dashboard;

Returning Customer Rate = (Number of Returning Customers / Total Number of Customers) x 100%

If you want to increase your store’s RPR, you should implement these seven strategies we do.

However, it can also be significantly influenced by various factors determining customer satisfaction, loyalty, and overall engagement with your brand.

  • Exceptional customer service
  • High-quality products
  • Customers getting good value for their money.
  • Overall purchase experience
  • Well-structured loyalty programs
  • Personalized marketing and product recommendations
  • The level of competition in your market
  • Actively seeking and responding to customer feedback

3. Refund And Return Rate

Shopify - Returns and Refunds

According to eMarketer, the average e-commerce return rate is between 20-30%.

A high rate may indicate issues with product quality, customer expectations not being met, or problems with the product descriptions or images provided online.

The rate reflects the % of products sold that customers return for a refund or exchange.

Why is it important to track return rates? Several compelling reasons directly impact your store’s health, including;

  • Helps us understand how often our customers are dissatisfied to the point of returning a product.
  • Identifies if products fail to meet customer expectations or if quality control issues need addressing.
  • Identifies operational inefficiencies and areas for improvement in the handling and processing returns.
  • We can more accurately forecast demand and manage inventory levels, reducing waste and storage costs.

If you want to reduce your store’s return rate, you should;

  • Provide detailed product information
  • Offer product demos or trials
  • Implement accurate sizing charts
  • Use high-quality product images
  • Provide customer reviews and ratings
  • Have a clear and concise return policy
  • Use returns data to improve your business
  • Improve product quality and packaging

4. Top Products By Units Sold

Top Products by Units Sold

This metric helps you understand which items are most popular among consumers and are driving the majority of sales in quantity.

You should track this metric for inventory management, marketing focus, and strategic decision-making.

To measure top products by units sold,

  • Collect sales data from your Shopify dashboard, POS, or inventory management system.
  • Sort the products by the #units sold during a given period (e.g., monthly, quarterly, annually).
  • Regularly update and review the list of top products to monitor changes.

5. Sales By Traffic Source

Sales by Traffic Source

This metric helps you understand where your most effective customers come from. It helps identify which marketing channels drive sales and which may require optimization.

Familiar sources include organic search, paid search, social media, email marketing, referral sites, and direct traffic.

Why do businesses track this metric?

  • To focus more on profitable sources and reevaluate or eliminate underperforming ones.
  • To know where your high-value customers come from
  • To understand which organic search terms and content lead to the highest sales
  • Allows you to see which paid channels and campaigns are yielding the best ROI
  • To understand the user journey across different platforms

You can track the number of sales by each channel using;

  • Tools like Shopify Analytics and Google Analytics
  • UTM parameters in your URLs for all marketing campaigns
  • Your analytics dashboard to monitor sales performance by traffic source

For instance, If you notice that paid search drives a high sales volume, consider increasing your budget in this channel. Or if social media channels are driving a lot of traffic but do not convert to sales, adjust your approach—modifying CTA or targeting a different audience.

6. Online Store Conversion Rate

Shopify - Online Store Coversion Rate

Do you want to know how well your website and marketing efforts are working to achieve sales goals?

Track your store’s conversion rate—as it is the % of visitors to your website who make a purchase.

A higher conversion rate indicates that your e-commerce site persuades visitors to buy your products or services.

Market experts and analysts suggest that 2.5% is a good conversion rate for e-commerce.

The formula for calculating your online store’s Conversion Rate is straightforward;

Conversion Rate = (Number of Purchases / Number of Visitors/session) x 100

However, if you do not want to do manual calculations, you can track them in your Shopify Analytics dashboard. It shows a customer’s entire customer journey.

According to market data, average conversion rates across e-commerce are at 1.75%

So, if you’re having significant drops, you must start analyzing what’s going wrong. Some factors that influence significant drops between stages in the conversion funnel include;

  • xPoor user experience (UX)
  • Complicated checkout process
  • Lack of trust
  • Limited payment methods
  • Lack of transparency
  • Lack of sufficient details, poor-quality images, and missing reviews
  • Failing to retarget visitors effectively
  • To improve your store’s conversion rate, refer to this article for more information.

    7. Customer Cohort Analysis

    Shopify - Shopify Customer Cohort Analysis

    Understanding the behaviors of customer groups over time is much better than viewing all customers as a single unit.

    A customer cohort is a group of individuals who share a common characteristic or experience in a defined period.

    This could be the month they first purchased, the marketing campaign they responded to, or any other significant shared event. Cohort analysis analyzes these groups over time to see how their behavior changes.

    You can use these tools for Customer Cohort Analysis;

    • Google Analytics
    • Tableau, Looker, or Microsoft Power BI
    • Custom Databases and SQL

    You can also directly use the Shopify Analytics tool to analyze your audience.

    8. Search Conversion

    Shopify - Online Store Search Conversions

    Search Conversion refers to the conversion of visitors to a website who use the site’s search feature to find products or information and then complete a desired action, such as making a purchase or filling out a contact form.

    This could be measured in terms of sales, sign-ups, downloads, or any other key performance indicator relevant to your business.

    This metric is not readily available on your Shopify Analytics dashboard, but you can figure out search conversion with the help of these steps;

    • Use analytics tools to track how often visitors use the search feature on your site.
    • Define the conversion you’re tracking for (e.g., a sale, a sign-up, a download).
    • Track when these conversions occur following a search.

    Calculate the rate using this formula;

    Search Conversion Rate = ( Number of Conversions (downloads) Post-Search / Total Number of Searches ) x 100 %

    So, have you calculated your conversion rate? If it’s low, your customers can’t find what they’re looking for.

    To increase your store’s search conversion rate, do these;

    • Ensure your search engine is fast, accurate, and can handle misspellings or synonyms.
    • Implement autocomplete suggestions to help users find what they need more quickly.
    • Make sure search results are relevant, well-organized, and include useful filters.
    • Ensure your search functionality works seamlessly across all device types.
    • Analyze standard search terms to ensure that popular items are in stock.

    Leverage Shopify E-commerce Metrics

    Suppose you want to optimize performance and drive growth. In that case, Shopify’s built-in analytics provide valuable insights that help you understand your store’s data through visual representations, simplifying complex information into actionable insights.

    Here’s why you should actively leverage the analytics dashboard;

    • It provides real-time data on sales, customer behavior, and other
    • Tracks and analyzes how customers interact with your store
    • Identifies which products are performing well and which are not
    • Tracks your marketing campaigns and channels
    • Helps identify potential issues in the conversion funnel and make necessary adjustments
    • Segments customers based on various criteria for more personalized marketing
    • Provided financial reports that track your business’s financial health
    • Helps identify fraudulent activities over time

    For instance, if you notice a decline in certain products and some perform well, you can use this information to optimize your product catalog by promoting top-selling products or discontinuing underperforming items.

    Merely looking at numbers isn’t enough; understanding these data points and tweaking decisions based on them can place your business for long-term growth and profitability.

    Rishi Thakker

    Rishi Thakker

    Rishi Thakker is the founder and CEO of Huptech Web, an eCommerce development and marketing firm that helps companies attract visitors, convert leads, and close customers. His unique writing tips give startups and well-known brands a palpable action plan full of innovation unmatched.

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