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Bringing in huge amounts of traffic is ultimately meaningless if users leave after mere seconds. Metrics such as bounce rate and time on page pant a picture of how users behave.
What % of users made a purchase?
For an online business to flourish, it needs a large audience. But it also needs to be the right audience. Determining how many users buy products, commonly measured by conversion rate, shows whether an ecommerce store is effectively selling marketing their product offerings.
How much does it cost to bring in a visitor?
Some web traffic is free, but many online stores rely on paid traffic — such as PPC or affiliates — to support and grow their business. Cost of Acquiring Customers (CAC) and Cost Per Acquisition (CPA) are arguably the two most important ecommerce metrics. When balanced with AOV (average order value) and CLV (customer lifetime value), a business can assess and adjust its ad spend as necessary.