Global eCommerce wholesale and retail sales are expected to reach the value of $7.3 trillion by the end of 2025. While this growth represents a wider opportunity for businesses to expand their online presence, it also poses a challenge — keeping track of success. Especially in B2B eCommerce where transactions take place at a larger scale, business owners may find it difficult to determine where they stand in the market. This is where the role of eCommerce metrics becomes significant.
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Importance of Measuring eCommerce Metrics
1. Quantification
eCommerce metrics allow businesses to track their success by quantifying their performance into hard numbers that can be charted and analyzed for future use and reference, as well as for business intelligence.
2. Planning
By quantifying data, companies will be able to come up with a comprehensive plan to improve their market presence and sustain their growth. For example, should a fashion distributor determine that their online ads are not that effective in retaining customers, they will be able to come up with more effective strategies in the future.
Metrics that Matter
Important B2B eCommerce metrics may change depending on the objectives of a business. However, given the bulk of available data, it is vital to prioritize the following metrics to measure their standing in general:
1. Customer Retention Rate
Customer retention rate measures the number of buyers who purchased a product within a given period, allowing B2B eCommerce businesses to see how many of their past customers are still making purchases and determine how many buyers they have lost.
Since acquiring new customers is often more expensive than retaining existing ones, this metric becomes a critical measure for eCommerce wholesale and retail businesses to maintain a healthy base of repeat customers, while allowing them to determine whether their strategies are good enough to maintain their standing in the market.
2. Online Order Frequency
Online order frequency is the amount of orders made by customers in a particular online business in a span of one year. This crucial metric allows eCommerce businesses to determine how often buyers make a direct purchase from their stores compared with other digital channels. Through this, those engaging in online clothing retail will be able to measure how impactful their brand and marketing strategies are, allowing them to keep up with the fast-paced retail industry.
3. Average Order Value
Average order value (AOV) measures the average amount spent by each purchaser on his or her individual order. This metric allows online companies to determine their revenue, such that a higher AOV indicates a strong market presence and a good customer base. On the other hand, a declining AOV may indicate customer dissatisfaction — a call for businesses to rethink their products and strategies.
4. Percentage of Return Visits
The percentage of return visits is an indicator of how good a B2B eCommerce shopping experience is, both for new and returning customers. This measures the number of buyers who return to an online shopping platform to make a purchase, allowing businesses to determine how much more they can improve their user interface and product presentation. To illustrate, a healthy percentage indicates that customers are enjoying their experience and are eager to make repeat purchases, while a declining rate may indicate that the site navigation, ordering process, or other digital functions are poor.
Measuring for Success
If you are among the fashion distributors looking to enhance their presence through eCommerce, making use of these metrics is vital in ensuring a reliable path to success. Along with this, partnering with a reliable platform like Kingpin can help you improve your strategies with forward-looking insights. Reach out to their experts for more information.