KPI for e-commerce

 These are key performance metrics in e-commerce that help businesses track sales performance and customer behavior:

1. GMV (Gross Merchandise Value)

   • The total sales dollar value of products sold on a platform before deductions like discounts, returns, and operating costs.
   • Formula: $$GMV = \text{Total Order Value} \times \text{Number of Transactions}$$
   • Example: If an online store sells 1,000 items at an average price of $50, GMV = $50,000.

2. AOV (Average Order Value)

   • The average amount spent per order.
   • Formula: $$AOV = \frac{\text{Total Revenue}}{\text{Total Orders}}$$
   • Example: If a store generates $10,000 from 200 orders, AOV = $50.

3. CVR (Conversion Rate)

   • The percentage of visitors who complete a desired action (e.g., making a purchase).
   • Formula: $$CVR = \left(\frac{\text{Number of Conversions}}{\text{Total Visitors}}\right) \times 100$$
   • Example: If 1,000 people visit a website and 50 make a purchase, CVR = (50 / 1,000) × 100 = 5%.

Each of these metrics is crucial for optimizing an e-commerce business, as they provide insights into sales performance, customer spending habits, and conversion effectiveness.