Ecommerce & Marketplace Metrics
Ecommerce and marketplace metrics measure how well a store or two-sided marketplace converts visitors into buyers and keeps them coming back. This glossary defines the essentials, including listing conversion rate, buyer and seller growth, purchase frequency, repeat customer rate, and transaction satisfaction.
Ecommerce and marketplace metrics glossary: definitions and formulas for listing conversion rate, purchase frequency, repeat customer rate, and marketplace health metrics.
48 metrics
Listing conversion rate
Ecommerce & Marketplace MetricsMetric Definition
Listing Conversion Rate = (Purchases from Listing / Total Listing Views) x 100
Listing conversion rate measures the percentage of product listing views that result in a completed purchase. It is the core marketplace efficiency metric that reveals how effectively individual listings turn browsing interest into buying action.
View metricNew buyer growth rate
Ecommerce & Marketplace MetricsMetric Definition
New Buyer Growth Rate = ((New Buyers This Period - New Buyers Last Period) / New Buyers Last Period) x 100
New buyer growth rate measures the rate at which a marketplace acquires new buyers over a given period. It is the demand-side growth engine that determines whether the marketplace can sustain increasing transaction volume and attract more sellers.
View metricNew seller growth rate
Ecommerce & Marketplace MetricsMetric Definition
New Seller Growth Rate = ((New Sellers This Period - New Sellers Last Period) / New Sellers Last Period) x 100
New seller growth rate measures the rate at which a marketplace onboards new sellers over a given period. It is the supply-side growth engine that determines catalogue breadth, product selection, and the marketplace's ability to satisfy buyer demand.
View metricPercentage of active listings
Ecommerce & Marketplace MetricsMetric Definition
Percentage of Active Listings = (Active Listings / Total Listings) x 100
Percentage of active listings measures the proportion of all listings on a marketplace that are currently live, in stock, and available for purchase. It is a catalogue health metric that directly affects buyer experience, search quality, and marketplace credibility.
View metricPercentage of active sellers
Ecommerce & Marketplace MetricsMetric Definition
Percentage of Active Sellers = (Sellers with Active Listings / Total Registered Sellers) x 100
Percentage of active sellers measures the proportion of registered sellers on a marketplace who currently have at least one live listing. It is the supply-side engagement metric that reveals whether the marketplace is retaining its sellers as active participants or accumulating dormant accounts.
View metricPercentage of engaged buyers
Ecommerce & Marketplace MetricsMetric Definition
Percentage of Engaged Buyers = (Engaged Buyers / Total Registered Buyers) x 100
Percentage of engaged buyers measures the proportion of registered buyers who regularly interact with the marketplace through actions such as searching, browsing, adding to wishlists, or purchasing. It reveals the depth of demand-side engagement beyond simple registration counts.
View metricPercentage of satisfied transactions
Ecommerce & Marketplace MetricsMetric Definition
Percentage of Satisfied Transactions = (Positively Rated or Uncontested Transactions / Total Completed Transactions) x 100
Percentage of satisfied transactions measures the proportion of completed marketplace transactions that receive a positive rating or no complaint from the buyer. It is the trust metric that determines whether buyers will return and whether sellers maintain their reputation.
View metricPurchase frequency
Ecommerce & Marketplace MetricsMetric Definition
Purchase Frequency = Total Number of Orders / Total Number of Unique Customers
Purchase frequency measures how often customers make a purchase within a given time period. It is a core loyalty metric that directly determines customer lifetime value and reveals how deeply a product or marketplace has been integrated into a customer's buying habits.
View metricRepeat customer rate
Ecommerce & Marketplace MetricsMetric Definition
Repeat Customer Rate = (Customers with More Than One Purchase / Total Unique Customers) x 100
Repeat customer rate measures the percentage of customers who return to make more than one purchase. It is the clearest signal of whether a business is building genuine customer loyalty or relying entirely on one-time transactions to generate revenue.
View metricRevenue by traffic source
Ecommerce & Marketplace MetricsMetric Definition
Revenue by Traffic Source = Total Revenue Attributed to Channel X
Revenue by traffic source measures the total revenue attributed to each acquisition channel, such as organic search, paid advertising, email, direct, social media, and referrals. It answers the most fundamental marketing question: which channels are actually generating revenue, not just traffic?
View metricTime to purchase
Ecommerce & Marketplace MetricsMetric Definition
Time to Purchase = Sum of (Purchase Timestamp - First Visit Timestamp) for All Customers / Total Number of Purchasing Customers
Time to purchase measures the average duration between a customer's first interaction with a platform and their completed purchase. It quantifies the length of the buying decision cycle and reveals how much friction, hesitation, or consideration exists between initial interest and transaction.
View metricCheckout conversion rate
E-commerce metric
Ecommerce & Marketplace MetricsMetric Definition
Checkout Conversion Rate = (Completed Purchases / Checkout Starts) x 100
Checkout conversion rate measures the percentage of users who begin the checkout process and successfully complete their purchase. It isolates the final stage of the buying funnel, from the moment a shopper initiates checkout to the order confirmation page. This metric is critical for e-commerce businesses because the checkout is where purchase intent is highest, and any friction at this stage directly destroys revenue that was nearly captured.
View metricProduct return rate
E-commerce metric
Ecommerce & Marketplace MetricsMetric Definition
Product Return Rate = (Number of Units Returned / Number of Units Sold) x 100
Product return rate measures the percentage of purchased products that are returned by customers after delivery. It is a critical e-commerce and retail metric because returns directly erode gross margin through reverse logistics costs, restocking expenses, and lost inventory value. For many online retailers, the return rate is the single largest threat to profitability, particularly in categories like fashion where return rates routinely exceed 30%.
View metricRevenue per visitor
E-commerce metric
Ecommerce & Marketplace MetricsMetric Definition
Revenue Per Visitor = Total Revenue / Number of Unique Visitors
Revenue per visitor (RPV) measures the total revenue generated divided by the number of unique visitors to a website or app over a given period. It combines the effects of conversion rate and average order value into a single number that represents how effectively the business monetises its traffic. RPV is one of the most useful e-commerce metrics because it captures both "how many visitors buy" and "how much they spend" in a single, comparable figure.
View metricCustomer repeat rate
Loyalty signal
Ecommerce & Marketplace MetricsMetric Definition
Customer Repeat Rate = (Customers with 2+ Orders / Total Unique Customers) x 100
Customer repeat rate measures the percentage of customers who return to make more than one purchase within a defined period. It is the simplest and most direct indicator of whether your product, pricing, and post-purchase experience are strong enough to earn a second transaction.
View metricOrder frequency
Buying cadence
Ecommerce & Marketplace MetricsMetric Definition
Order Frequency = Total Orders / Total Unique Customers (in period)
Order frequency measures the average number of orders a customer places within a defined time period. It captures how deeply your store has been woven into a customer's purchasing habits and is one of the three core levers of customer lifetime value alongside average order value and customer lifespan.
View metricFulfilment speed
Order-to-delivery time
Ecommerce & Marketplace MetricsMetric Definition
Fulfilment Speed = Sum of (Delivery Date - Order Date) for All Orders / Total Orders Delivered
Fulfilment speed measures the average elapsed time from when a customer places an order to when they receive it. It is one of the most visible indicators of operational excellence and directly influences customer satisfaction, repeat purchasing, and competitive positioning.
View metricShipping cost analysis
Shipping cost ratio
Ecommerce & Marketplace MetricsMetric Definition
Shipping Cost Ratio = (Total Shipping Costs / Total Order Revenue) x 100
Shipping cost analysis measures shipping expenditure as a percentage of order value. It quantifies how much of each sale is consumed by the cost of getting the product to the customer and is a critical input to e-commerce profitability, pricing strategy, and free-shipping threshold decisions.
View metricDiscount usage analysis
Promotional penetration
Ecommerce & Marketplace MetricsMetric Definition
Discount Usage Rate = (Orders with a Discount Code / Total Orders) x 100
Discount usage analysis measures the percentage of orders that include a discount code or promotional offer. It reveals how dependent your revenue is on price reductions and whether your promotional strategy is driving incremental sales or simply subsidising purchases that would have happened at full price.
View metricMarketing channel attribution
Revenue credit allocation
Ecommerce & Marketplace MetricsMetric Definition
Marketing channel attribution assigns revenue credit to the marketing channels that influenced each purchase. It determines which channels drive profitable customers and guides budget allocation across paid, organic, social, email, and referral sources.
View metricNew vs returning customers
Customer composition
Ecommerce & Marketplace MetricsMetric Definition
New vs returning customers measures the proportion of orders and revenue coming from first-time buyers versus repeat purchasers. It reveals whether growth is driven by acquisition, loyalty, or a sustainable balance of both.
View metricOrders per customer
Purchase depth
Ecommerce & Marketplace MetricsMetric Definition
Orders Per Customer = Total Lifetime Orders / Total Unique Customers
Orders per customer measures the cumulative average number of orders placed per customer across their entire relationship with your store. It captures how deeply customers engage with your brand over time and is a core component of customer lifetime value.
View metricProduct performance analysis
Catalogue optimisation
Ecommerce & Marketplace MetricsMetric Definition
Product performance analysis evaluates each product across revenue, units sold, margin, return rate, and conversion rate. It identifies which products drive value and which underperform, enabling data-driven merchandising, pricing, and inventory decisions.
View metricProfit margin by product
Per-product profitability
Ecommerce & Marketplace MetricsMetric Definition
Product Profit Margin = ((Revenue - COGS) / Revenue) x 100
Profit margin by product measures the percentage of revenue retained as profit after deducting cost of goods sold for each product. It reveals which products generate healthy margins and which are margin-dilutive, guiding pricing, promotion, and catalogue decisions.
View metricRevenue by channel
Channel diversification
Ecommerce & Marketplace MetricsMetric Definition
Revenue by channel segments total sales by the distribution channel through which they occur, including online store, point of sale, social commerce, marketplaces, and wholesale. It reveals channel contribution, concentration risk, and diversification opportunities.
View metricRevenue by geography
Regional performance
Ecommerce & Marketplace MetricsMetric Definition
Revenue by geography breaks down sales by customer location, including country, region, or city. It reveals market penetration, identifies expansion opportunities, and highlights geographic concentration risk.
View metricSessions to purchase ratio
Consideration cycle length
Ecommerce & Marketplace MetricsMetric Definition
Sessions to Purchase Ratio = Total Sessions / Total Purchases
Sessions to purchase ratio measures how many site sessions are needed, on average, before a visitor makes a purchase. It captures the consideration cycle length and browsing behaviour of your customers, revealing how much nurturing is required to convert interest into revenue.
View metricStore conversion rate
Visitor-to-buyer efficiency
Ecommerce & Marketplace MetricsMetric Definition
Store Conversion Rate = (Purchasing Visitors / Total Unique Visitors) x 100
Store conversion rate is the percentage of unique visitors who complete at least one purchase. It is the broadest measure of how effectively your store converts browsing traffic into paying customers and one of the highest-leverage metrics for e-commerce growth.
View metricTop selling products analysis
Best performer tracking
Ecommerce & Marketplace MetricsMetric Definition
Top selling products analysis ranks products by revenue, units sold, or order count to identify the items that drive the most business value. It highlights heroes, rising stars, and declining performers so merchandising teams can act before trends shift.
View metricTraffic source performance
Traffic quality analysis
Ecommerce & Marketplace MetricsMetric Definition
Traffic source performance evaluates each traffic source on volume, conversion rate, revenue contribution, and customer quality. It compares organic, paid, social, email, direct, and referral channels holistically to reveal which sources deliver valuable visitors.
View metricAbandoned cart recovery rate
Win-back effectiveness
Ecommerce & Marketplace MetricsMetric Definition
Abandoned Cart Recovery Rate = (Recovered Carts / Total Abandoned Carts) x 100
Abandoned cart recovery rate is the percentage of abandoned carts that are subsequently converted into completed orders through recovery efforts such as email sequences, SMS reminders, or retargeting campaigns. It quantifies how effectively your win-back automation recaptures lost revenue.
View metricAverage product rating
Customer satisfaction proxy
Ecommerce & Marketplace MetricsMetric Definition
Average Product Rating = Sum of All Ratings / Number of Reviews
Average product rating is the mean star rating across all customer reviews for a given product or your entire catalogue. It serves as a proxy for customer satisfaction, product quality perception, and directly influences conversion rate and search ranking.
View metricCart conversion rate
Add-to-cart to purchase
Ecommerce & Marketplace MetricsMetric Definition
Cart Conversion Rate = (Completed Orders / Sessions with Add-to-Cart) x 100
Cart conversion rate is the percentage of visitors who add items to their cart and subsequently complete a purchase. It isolates the effectiveness of the post-browse, pre-checkout stage of the buying journey and reveals how much high-intent traffic is lost before checkout.
View metricCheckout abandonment rate
Final-stage drop-off
Ecommerce & Marketplace MetricsMetric Definition
Checkout Abandonment Rate = ((Checkout Starts - Completed Orders) / Checkout Starts) x 100
Checkout abandonment rate is the percentage of visitors who initiate the checkout process but leave before completing payment. It focuses exclusively on drop-off after the buyer has committed to purchasing, representing the highest-intent lost revenue in the funnel.
View metricCollection performance analysis
Merchandising effectiveness
Ecommerce & Marketplace MetricsMetric Definition
Collection performance analysis evaluates each product collection on revenue contribution, conversion rate, average order value, and traffic volume. It reveals which product groupings resonate with customers and which underperform, guiding site structure and merchandising decisions.
View metricCustomer cohort analysis
Retention over time
Ecommerce & Marketplace MetricsMetric Definition
Customer cohort analysis groups customers by their acquisition period and tracks their purchasing behaviour over subsequent time intervals. It reveals how retention, order frequency, and revenue evolve for each cohort as they mature, exposing trends that aggregate metrics hide.
View metricSeasonal trend analysis
Demand pattern recognition
Ecommerce & Marketplace MetricsMetric Definition
Seasonal trend analysis examines recurring patterns in sales, traffic, and customer behaviour across different time periods. It identifies predictable demand cycles that inform inventory planning, marketing timing, staffing, and budget allocation.
View metricCoupon effectiveness analysis
Incremental return on discount
Ecommerce & Marketplace MetricsMetric Definition
Coupon Effectiveness = (Incremental Gross Margin - Discount Cost) / Discount Cost x 100
Coupon effectiveness analysis measures whether a discount code generates enough incremental profit to justify the margin it gives away. It separates sales that the coupon genuinely caused from sales that would have happened anyway, so a popular code is not mistaken for a profitable one.
View metricDiscount effectiveness
Promotion return on margin
Ecommerce & Marketplace MetricsMetric Definition
Discount Effectiveness = Incremental Gross Profit / Total Discount Cost
Discount effectiveness measures whether a discount generates enough incremental profit to justify the margin given away. It compares the extra gross profit a promotion drives against the cost of the discount itself. A discount can lift revenue and still destroy money if most of the sales would have happened anyway at full price.
View metricDraft order conversion rate
Draft-to-paid rate
Ecommerce & Marketplace MetricsMetric Definition
Draft Order Conversion Rate = (Paid Draft Orders / Total Draft Orders Created) x 100
Draft order conversion rate is the percentage of draft orders that turn into paid orders within a given period. A draft order is a manually created order that has not yet been paid, often used for wholesale, phone orders, custom quotes, or sales-assisted deals. The metric tells you how effectively your team converts these prepared orders into actual revenue.
View metricFulfilment time analysis
Order to delivery, stage by stage
Ecommerce & Marketplace MetricsMetric Definition
Fulfilment time = Delivery timestamp - Order timestamp
Fulfilment time analysis is the practice of measuring the time it takes to move an order from placement to delivery, broken down into the stages in between. It shows where time accumulates, whether in processing, picking, packing, or transit, so you can target the slowest stage. The aim is a clear, comparable view of how long fulfilment really takes and why.
View metricGift card utilisation rate
Redeemed value vs issued value
Ecommerce & Marketplace MetricsMetric Definition
Gift Card Utilisation Rate = (Redeemed Gift Card Value / Total Issued Gift Card Value) x 100
Gift card utilisation rate measures the share of issued gift card value that customers actually redeem. It is the difference between a card someone bought and a sale someone made. A high rate means cards convert into purchases and engaged customers, while a low rate signals trapped value, forgotten balances, and a revenue recognition question that finance has to manage.
View metricInventory turnover rate
Inventory turns
Ecommerce & Marketplace MetricsMetric Definition
Inventory Turnover Rate = Cost of Goods Sold / Average Inventory
Inventory turnover rate measures how many times a business sells and replaces its entire stock of inventory over a period. It shows whether capital is moving efficiently through the supply chain or sitting idle on shelves. A higher turnover usually means tighter buying, faster sales, and less cash tied up in goods.
View metricPurchase funnel analysis
Step-by-step buying drop-off
Ecommerce & Marketplace MetricsMetric Definition
Step Conversion Rate = Shoppers Reaching Next Step / Shoppers Reaching Current Step
Purchase funnel analysis is the practice of measuring how shoppers move through the stages between arriving on a site and completing a purchase, and where they drop off in between. It breaks the buying path into ordered steps, then quantifies the conversion and abandonment at each one. The result shows which step is losing revenue, not just that revenue is being lost.
View metricRepeat purchase rate
RPR
Ecommerce & Marketplace MetricsMetric Definition
Repeat purchase rate = (Customers with more than one purchase / Total customers) x 100
Repeat purchase rate is the percentage of customers who make more than one purchase in a defined period. It measures whether a business earns a second order, which is the foundation of customer lifetime value and efficient growth. A rising rate means acquisition spend compounds; a falling rate means you are refilling a leaking bucket.
View metricReturn visitor rate
RVR
Ecommerce & Marketplace MetricsMetric Definition
Return visitor rate = (Returning visitors / Total visitors) x 100
Return visitor rate is the percentage of visitors to a site or app who come back at least once within a given period, rather than visiting only once. It measures how well a site earns repeat attention. A rising rate suggests the content or product is worth returning to, while a flat rate points to a one-and-done experience.
View metricRFM segmentation
RFM
Ecommerce & Marketplace MetricsMetric Definition
RFM Score = (Recency Score x 100) + (Frequency Score x 10) + Monetary Score
RFM segmentation is a method that scores customers on three behaviours, how recently they bought, how often they buy, and how much they spend, then groups them into segments you can act on. It separates your best repeat buyers from one-time bargain hunters and at-risk regulars. The result is a targeting map built from behaviour rather than guesswork.
View metricStock-out frequency
OOS rate
Ecommerce & Marketplace MetricsMetric Definition
Stock-out frequency = (Number of stock-out events / Total item-days observed) x 100
Stock-out frequency is the rate at which products are unavailable to buy because inventory has dropped to zero, measured across a set of items over a defined period. It tells you how reliably you can fulfil demand. A high reading points to lost sales, frustrated customers, and a supply chain that cannot keep pace with what people are trying to buy.
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