Top 10 daily metrics you need to track for a profitable Shopify Store.March 9, 2020 by Uncoil Advertising
Growing an eCommerce brand is not straightforward. It’s difficult to determine what to do and when to do it. There is an increasingly complex ecosystem of necessary tools and platforms required to maintain market competitiveness. Worse, these critical data sources continue to grow more disparate from one another.
At Uncoil, through deep analysis of a Shopify Stores data by the Uncoil data science division and understanding of best practices. We have identified the top 10 core metrics you need to track on a daily basis to ensure the profitability and success of your store. The top metrics are:
Gross Revenue – revenue earned from sales of products plus shipping.
Net Revenue – calculated by gross revenue minus return losses and product refunds.
Gross Profit – calculated by subtracting attributed ad spend and product costs from gross revenue.
Orders & Units Sold – the number of orders and units sold by the shop.
Product Cost – product cost is the total cost of all product(s) sold. It is calculated by adding up COGS, shipping and fulfillment for all units sold.
AOV – Average order value (AOV) for the shop. Calculated by dividing orders by Gross Revenue.
Attributed Ad Spend – the ad spend attributed to the shop through customer interactions with ads directed at this shop.
Refund Rate – calculated by the number of refunded items divided by the number of ordered items.
Return Losses – refunded shipping costs plus the product costs of returned items that will not be restocked.
CAC – Customer acquisition cost (CAC), the cost associated with convincing a new customer to buy a product from your shop. Calculated by dividing attributed ad spend by new customers.
How can I calculate these metrics?
To help you calculate some of these metrics, we have gone ahead and created an Excel Shopify Business Calculator. Free download or if you are looking for an automated solution to get those metrics and more try out Uncoil.ai.
If you don’t want to enter further into spreadsheet confusion and manually entering the data, day by day, Uncoil is here to help. Go from a spreadsheet to using Uncoil.ai, which automatically unifies data from disparate sources (like Shopify and Facebook) and applies sophisticated, real-time Artificial Intelligence surfacing optimization opportunities to increase revenue and profit. Thus removing the need to manually enter data into a time-consuming spreadsheet.