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KPIs for eCommerce: Understanding Your Overall Performance
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Ultimate goals for evaluating your eComm metrics is understanding:
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(1) the overall trajectory (growth) of your revenue and profits.
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(2) the unit economics (per order / unit revenue, costs, and profits) of your business.
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(3) understand how marketing spend it takes to acquire a new customer (CAC).
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(4) how much a customer purchases over their lifetime (lifetime value) and how that relates to CAC.
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Who this video is for: e-commerce founders / builders who want to track the most important metrics.
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Part 1: overall trajectory / growth of your revenue & profits.
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Question: is your revenue increasing, are your margins predictable & are you becoming more efficient over time?
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Are you profitable? eCommerce businesses in general should be profitable, at least on each order (some exceptions if they are subscription-based)
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Summary Financials% of Net Rev
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Jun-26Jul-26Aug-26Jun-26Jul-26Aug-26
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New Customers 1,123 1,431 1,464
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Returning Customers 97 275 515
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Total Customers 1,220 1,706 1,979
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New Customer Orders 1,234 1,555 1,627
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Returning Customers Orders 122 341 572
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Total Orders 1,356 1,896 2,199
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Units Sold 1,492 2,067 2,529
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Net Revenue $ 314,592 $ 456,936 $ 523,362 100.0%100.0%100.0%
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Revenue Growth Rate45%15%
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COGS
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Product cost $ 59,458 $ 81,792 $ 92,635 18.9%17.9%17.7%
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Import freight 7,865 15,536 15,701 2.5%3.4%3.0%
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Import duties & taxes 16,988 27,416 30,355 5.4%6.0%5.8%
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COGS (Product) $ 84,311 $ 124,744 $ 138,691 26.8%27.3%26.5%
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Gross Margin $ 230,281 $ 332,192 $ 384,671 73.2%72.7%73.5%
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Fulfillment
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Shipping to customer $ 51,908 $ 77,679 $ 90,018 16.5%17.0%17.2%
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Pick, pack, packaging 9,752 10,053 15,701 3.1%2.2%3.0%
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Other 3PL charges 16,988 27,416 30,355 5.4%6.0%5.8%
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Merchant fees 16,988 27,416 30,355 5.4%6.0%5.8%
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Fulfillment $ 95,636 $ 142,564 $ 166,429 30.4%31.2%31.8%
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Contribution Margin $ 134,645 $ 189,628 $ 218,242 42.8%41.5%41.7%
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Marketing Expenses $ 91,861 $ 175,920 $ 162,242 29.2%38.5%31.0%
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Post-Marketing CM $ 42,785 $ 13,708 $ 56,000 13.6%3.0%10.7%
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Other OPEX $ 19,190 $ 23,761 $ 22,505 6.1%5.2%4.3%
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Operating Income $ 23,594 $ (10,053) $ 33,495 7.5%-2.2%6.4%
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D&A $ 315 $ 822 $ 785 0.1%0.2%0.2%
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EBITDA $ 23,909 $ (9,230) $ 34,280 7.6%-2.0%6.6%
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Part 2: understand the unit economics of your business.
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Question: how much profit do you make after selling, producing & fulfilling an order? What are the economics of your most important products?
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Unit Economics Definition: per order financial breakdown of a product.
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Total Sales (All Products)
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Unit EconomicsJun-26Jul-26Aug-26Overall
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Per OrderAll-CompanyAll-CompanyAll-CompanyAll-Company
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Revenue (Per Order) - AOV $ 232 $ 241 $ 238 $ 238
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Product COGS $ 62 $ 66 $ 63 $ 64
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Gross Profit $ 170 $ 175 $ 175 $ 174
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Fulfillment $ 71 $ 75 $ 76 $ 74
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Contribution Margin $ 99 $ 100 $ 99 $ 100
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Top Selling Products
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Unit EconomicsProduct AProduct B
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Per Unit60% of sales25% of sales
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Revenue (Unit) $ 230 $ 122
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Product COGS $ 67 $ 17
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Gross Profit $ 163 $ 104
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Fulfillment $ 72 $ 30
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Contribution Margin $ 92 $ 74
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Part 3: understand how much marketing spend it takes to acquire a new customer (CAC).
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Customer Acquisition Cost (CAC): how much spend in marketing to get one new customer to purchase for the very first time.
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Jun-26Jul-26Aug-26Overall
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New Orders 1,234 1,555 1,627 4,416
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Marketing Expense $ 91,861 $ 175,920 $ 162,242 $ 430,023
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CAC (Marketing / New Orders)
 $ 74 $ 113 $ 100 $ 97
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Part 4: how much a customer purchases over their lifetime (lifetime value) and how that relates to CAC.