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LogZuno

Ecommerce2 min readUpdated

Ecommerce metrics that explain your revenue

Conversion, cart abandonment, acquisition cost, returning buyers and seller activity, with formulas and the events that measure them.

Revenue is the result; these metrics are the causes. Each one points at a part of the shopping journey you can change.

Conversion rate

Formula. Orders ÷ visitors × 100, over the same period. Use people, not sessions, if you can, and leave out automated traffic: bots that load product pages never buy, so they drag the rate down. Try the conversion rate calculator.

Break it down by landing page, source and device. A rate that is fine overall but low on mobile is a mobile problem, not a pricing one.

Cart abandonment rate

Formula. (Carts created − carts that became orders) ÷ carts created × 100.

Events. Product added to cart, Checkout started, Order placed, each with a cart_id property. A funnel across them shows where people leave: before checkout, at shipping costs, or at payment.

Cost of acquisition

Formula. Marketing and sales spend in a period ÷ new customers in that period.

LogZuno doesn't import ad spend, but it gives you the denominator honestly: new customers by source and campaign, from UTM tags and channels, including AI assistants. Compare acquisition cost with the customer lifetime value of the same customers.

Active and returning buyers

Active buyers. Distinct customers who placed an order in the period.

Repeat purchase rate. Customers with two or more orders ÷ all customers who ordered, over a fixed window.

Retention. A cohort table by first-order month shows what share order again in each following month. A business that lives on repeat orders should watch this more closely than conversion.

Marketplaces: seller activity

If you run a marketplace, sellers are a second set of users with their own metrics:

  • Active sellers: sellers who listed or sold something in the period.
  • Power sellers: the sellers responsible for most orders. A frequency chart of selling days shows how concentrated your supply is.
  • Seller stickiness: daily active sellers ÷ monthly active sellers.

Send seller events with the seller's ID as user_id, or as a group_id for seller companies, so seller metrics stay separate from buyer metrics.

The events to send

EventProperties
Product viewedproduct_id, category, price
Product added to cartproduct_id, cart_id, quantity
Checkout startedcart_id, value
Order placedorder_id, value, currency, items
Order refundedorder_id, value

Send order events from your server, not the browser, so ad blockers and closed tabs can't lose them.

Questions

How do I calculate cart abandonment rate?

Divide the number of carts that didn't become an order by the number of carts created, and multiply by 100. Count carts, not visits, and use the same period for both.

Why is my conversion rate lower than I expected?

Often because the visitor count includes automated traffic that never buys. Counting only people who interacted with the page gives a more honest rate.

Send your first event today.

7 days free on any plan, up to 500 events. Then from $17 a month. Cancel during the trial and you pay nothing.