On today’s episode of the Built to Scale eCommerce Show, we’re covering the 3 most important metrics that every eCommerce store owner should monitor. While there are many different metrics that should be evaluated within your eCommerce business, knowing the 3 most important metrics can help ensure that your business is successful for years and years to come.
On this episode:
- Important Metric 1: Profit Margin.
- Transitioning from Amazon to Shopify and how this impacts profit margins.
- The typical profit margin on Amazon.
- What profit margin should you aim for in your own eCommerce store?
- Comparing your profit margin to the cost of gods sold.
- Fulfillment, other variable costs, and why they are subject to variation.
- Why profit margin should be the first metric to examine.
- Important Metric 2: Average Order Value.
- What can cause high profit margins yet low average order values?
- The issue with a lower average order value.
- How can you generate a higher profit overall on Amazon by monitoring average order value?
- A good target for average order value.
- Bundling options and utilizing email campaigns to help with average order value.
- Important Metric 3: Shop ROAS (Return On Advertising Spend).
- Why you should use applications to track ROAS and monitor end profitability daily and weekly
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