When something breaks in your business it’s data that tells you what to fix.
Reading the right reports will tell you what’s holding your business back and which element needs to be changed.
For example, a jewelry store might discover through sales data that a particular line of bracelets is consistently outperforming others. This insight can lead the business to invest more in promoting and stocking that product line, maximizing revenue.
Conversely, if a report shows a high cart abandonment rate, it may prompt an investigation into possible causes, such as a complicated checkout process or unexpected shipping costs.
Ignoring eCommerce reporting can lead to missed opportunities and potential losses.
Here are some eCommerce reports that you should look at every once in a while to make sure that your business is running smoothly and efficiently.
Let’s go!
eCommerce reports to track for smooth and efficient business operations
1. Sales reports
2. Customer reports
3. Marketing reports
4. Inventory reports
5. Financial reports
1. Sales reports
In the world of eCommerce, sales reports are not just a routine check-in but a strategic tool for business growth.
Imagine running an online fashion store where each product category—clothing, accessories, and footwear—performs differently across various sales channels like your website, social media, and third-party marketplaces.
Daily reports might reveal an unexpected surge in accessory sales through Instagram, prompting a quick promotional push, while quarterly reports could show a steady growth in direct website sales, suggesting a need to invest more in SEO and site optimization.
Reports that you should look at are:
a. Daily, monthly and quarterly reports
One of the best practices is to analyze sales data in relation to seasonal trends, holidays, and promotional events. This helps in planning inventory and marketing campaigns.
For example, if a particular product sees a spike during certain holidays, you can prepare stock and promotions accordingly.
b. Sales by product category
Utilize these reports for evaluating the performance of each category in terms of revenue, units sold, and profitability. Identify top-performing categories to focus marketing efforts and consider diversifying or discontinuing underperforming categories.
c. Sales by channel
This comes in handy when you want to compare sales and conversion rates across different sales channels (e.g., website, marketplaces, social media).
Use these reports to determine the most cost-effective channels and allocate resources accordingly. Consider optimizing or scaling back on less effective channels.
How to analyze:
- Compare against baselines: Look at the previous day, month, and quarter sales to identify growth or decline
- Segment analysis: Break down metrics by product category, individual products, and marketing channels
- Trend identification: Spot seasonal trends or irregularities (e.g., weekend vs. weekday sales)
- Target assessment: Compare actual performance with projected goals or industry benchmarks
Measures to improve metrics:
- Optimize underperforming products: Identify low-selling items; consider bundling, discounting, or improving their presentation
- Promotions & discounts: Offer limited-time promotions or discounts to stimulate sales
- Website optimization: Improve website load times, streamline checkout processes, and enhance mobile responsiveness
- Adjust pricing strategies: Review competitor pricing and consider dynamic pricing strategies to stay competitive
2. Customer reports
In eCommerce, customer reports are essential for understanding the true value and behavior of your customer base.
For instance, tracking CLV helps identify its most profitable customers, guiding loyalty program investments. Analyzing CAC allows you to evaluate the efficiency of marketing campaigns, ensuring they're not overspending to acquire new customers.
The reports you can consider analyzing are:
a. Customer acquisition reports
These reports will help you analyze the demographics, behavior, and acquisition sources of your most valuable customers. They will also tell you which channels or campaigns bring in high-quality customers—those with higher lifetime value, lower churn rates, or higher engagement.
Reports & metrics to track:
- New customers: Count of first-time buyers
- Customer acquisition cost (CAC): Cost per new customer
- Conversion rate: Percentage of visitors who become customers
How to analyze:
- Track marketing channels and campaigns have the lowest CAC and highest conversion rates
- Compare new customer counts month-over-month to assess the impact of recent acquisition strategies
- Analyze the funnel from website visits to purchase to identify and reduce drop-off points
Measures to improve metrics:
- Optimize ad targeting and creatives based on high-converting demographics
- Improve landing pages to increase conversion rates
b. Customer retention reports
The best part about retention reports is that you can identify the churn rate and the factors contributing to it. After that, you can segment customers by their purchase frequency, order value, and engagement level.
Analyze patterns in the data to understand why customers are leaving, such as product dissatisfaction, lack of engagement, or better offers elsewhere.
Reports & metrics to track:
- Repeat purchase rate: Percentage of customers who make a second purchase
- Customer lifetime value (CLV): Average revenue generated from a customer over time
- Churn rate: Percentage of customers who stop purchasing
How to analyze:
- Monitor repeat purchase rates to identify trends and peak periods for returning customers
- Analyze CLV to understand the long-term value of different customer segments
- Track churn rates and correlate them with specific timeframes or events to uncover causes of customer loss
- Check if your promotions–free gifts, referral etc–have worked
Measures to improve metrics:
- Implement loyalty programs or subscription models to encourage repeat purchases
- Use personalized marketing and follow-up emails to re-engage inactive customers
- Analyze feedback and reviews to address issues affecting customer satisfaction
c. Customer demographics
Using demographics reports, you can identify which segments are most engaged, which products they prefer, and how they respond to different types of messaging and channels.
Reports & metrics to track:
- Age & gender distribution: Breakdown of customer age and gender
- Geographic location: Regions or cities where customers are based
- Purchase preferences: Product categories or items frequently bought
How to analyze:
- Examine age and gender distribution to tailor product offerings and marketing messages
- Analyze geographic location data to focus marketing efforts on regions with high potential
- Study purchase preferences to understand which product categories are most popular among different demographics
Measures to improve metrics:
- Tailor marketing messages and product offerings to the preferences of key demographic groups
- Expand marketing efforts to geographic areas with potential demand
- Adjust product assortments and inventory based on popular items within specific demographic groups
3. Marketing reports
Overlooking the details of marketing reports can lead to missed opportunities and wasted resources.
For instance, an online clothing retailer might invest heavily in a flashy Instagram campaign without tracking its impact–only to find later that it didn't translate into sales.
Hence, tracking the below-mentioned eCommerce reports is crucial.
a. Campaign performance reports
Iterate your campaigns based on campaign performance insights to continuously improve performance.
Reports & metrics to track:
- Impressions: Total number of times ads are displayed
- Click-through rate (CTR): Percentage of ad views that result in clicks
- Conversion rate: Percentage of clicks that lead to a desired action (purchase, signup, etc.)
- Return on ad spend (ROAS): Revenue generated per dollar spent on ads
How to analyze:
- Compare CTR and conversion rates across different ads and campaigns to identify top performers
- Calculate ROAS to determine the profitability of campaigns
- Analyze the time of day and audience demographics for optimal ad performance
Measures to improve metrics:
- A/B test ad creatives and copy to find the most effective combinations
- Refine audience targeting based on demographics and past engagement
- Optimize landing pages for better conversion rates
b. SEO and SEM reports
The trick is to use insights from both SEO and SEM to adjust your overall keyword strategy.
For example, if a keyword performs well in SEM but poorly in SEO, you might increase investment in paid search while working on a longer-term strategy to improve organic rankings.
Reports & metrics to track:
- Organic traffic: Number of visitors from organic search results
- Keyword rankings: Position of targeted keywords in search engine results
- Bounce rate: Percentage of visitors who leave the site after viewing only one page
- Cost per click (CPC): Average amount paid per click in SEM campaigns
How to analyze:
- Track keyword rankings to assess SEO effectiveness and identify opportunities for optimization
- Monitor organic traffic trends to measure the impact of content and SEO efforts
- Analyze bounce rates and average session duration to improve on-site content and user experience
- Evaluate CPC and conversion rates in SEM campaigns to optimize ad spend and keyword targeting
Measures to improve metrics:
- Update and optimize content for targeted keywords to improve rankings
- Improve website speed and mobile-friendliness to reduce bounce rates
- Focus on high-intent keywords with lower CPC and higher conversion potential
c. Social media engagement reports
You need to track engagement trends over time to understand shifts in audience preferences.
Reports & metrics to track:
- Followers growth: Increase in followers over time
- Engagement rate: Likes, comments, shares, and other interactions per post
- Reach: Total number of unique users who see content
- Click-through rate (CTR): Percentage of users who click on links from social media posts
How to analyze:
- Assess engagement rates and content performance to refine social media strategies
- Track follower growth to measure the effectiveness of social media campaigns
- Compare reach and impressions to understand content visibility and audience penetration
- Monitor CTR on social media links to gauge the effectiveness of calls to action and content relevance
Measures to improve metrics:
- Create engaging and relevant content tailored to the target audience
- Utilize influencer partnerships and user-generated content to boost engagement
- Experiment with different post formats (videos, stories, polls) to increase reach and interaction
4. Inventory reports
Ignoring inventory reports can lead to stockouts or overstocking, hurting sales and cash flow.
For instance, an online electronics store might neglect to monitor inventory levels, resulting in popular items selling out during a high-demand period, leading to lost revenue and disappointed customers.
a. Stock levels
This report is super useful to avoid stockouts and overstocking. Use these reports to integrate demand forecasting with promotional schedules and seasonal trends to adjust stock levels proactively.
Reports & metrics to track:
- Current inventory: Quantity of products available
- Reorder points: Thresholds for restocking items
- Stockout rate: Frequency of products being out of stock
How to analyze:
- Monitor current inventory against reorder points to maintain optimal stock levels
- Analyze stockout rates to identify potential issues in supply chain management
- Assess seasonal fluctuations in stock levels to plan for peak periods
Measures to improve metrics:
- Implement automated reordering systems to prevent stockouts
- Optimize warehouse organization for faster picking and restocking
- Use historical sales data to forecast demand and adjust reorder points
b. Inventory accuracy
Regularly compare physical inventory counts with recorded inventory data to identify discrepancies. Analyze the root causes of these discrepancies, such as errors in data entry, theft, or issues in the supply chain.
Reports & metrics to track:
- Sales velocity: Rate at which products are sold over a period
- Top-selling products: Items generating the most revenue or units sold
- Slow-moving inventory: Products with low sales or long holding periods
How to analyze:
- Evaluate sales velocity to determine the demand and adjust marketing efforts
- Identify top-selling products to prioritize in promotions and inventory management
- Analyze slow-moving inventory to consider discounts, bundles, or discontinuation
Measures to improve metrics:
- Focus on promoting top-selling products and optimizing their listings
- Create targeted promotions to move slow-moving inventory
- Regularly review and update product assortments based on sales data
c. Inventory turnover reports
Inventory turnover reports increase your business efficiency multifold.
All you have to do is identify fast-moving products with high turnover rates and ensure adequate stock levels to meet demand without stockouts.
For slow-moving products, evaluate if adjustments in pricing, marketing, or product placement can stimulate demand. If not, consider reducing order quantities or discontinuing these items to free up capital and reduce holding costs.
Reports & metrics to track:
- Inventory turnover ratio: Cost of goods sold divided by average inventory
- Days sales of inventory (DSI): Average number of days it takes to sell inventory
- Ageing inventory: Duration products have been in stock
How to analyze:
- Track inventory turnover ratio to understand how efficiently inventory is managed
- Analyze DSI to gauge the effectiveness of sales strategies and inventory planning
- Review ageing inventory to identify obsolete stock and make room for new products
Measures to improve metrics:
- Implement just-in-time (JIT) inventory management to reduce holding costs
- Increase marketing efforts during slow sales periods to boost turnover
- Offer clearance sales for ageing inventory to free up capital and storage space
5. Financial reports
Neglecting financial reports can leave an eCommerce business blind to its actual financial health, potentially leading to poor decision-making.
Imagine an online beauty retailer focusing solely on increasing sales without analyzing the financial implications; this oversight could mask high operational costs or unprofitable products.
a. Revenue reports
Assess the impact of revenue changes on overall profitability by evaluating associated costs and margins. Use these insights to adjust pricing strategies, promotional activities, and resource allocation to maximize revenue growth while managing costs effectively.
Reports & metrics to track:
- Total revenue: Total income generated from sales
- Revenue by product category: Income broken down by product lines
- Revenue growth rate: Percentage increase or decrease in revenue over a period
How to analyze:
- Track total revenue trends over time to identify growth patterns or downturns
- Analyze revenue by product category to determine top performers and underperformers
- Compare revenue growth rates against industry benchmarks and historical performance
Measures to improve metrics:
- Diversify product offerings to increase revenue streams
- Optimize pricing strategies based on competitor analysis and market demand
- Increase marketing efforts for high-margin products or categories
b. Profit and loss statements
​​Use trend analysis to compare P&L statements over time–spot patterns and make informed decisions about budgeting, forecasting, and strategic planning.
Reports & metrics to track:
- Gross profit: Revenue minus the cost of goods sold (COGS)
- Net profit: Total revenue minus total expenses, including COGS, operating expenses, and taxes
- Operating margin: Percentage of revenue left after paying for variable costs of production
How to analyze:
- Monitor gross profit margins to ensure products are priced effectively
- Review net profit to assess overall business profitability after all expenses
- Analyze operating margins to evaluate the efficiency of operational management
Measures to improve metrics:
- Reduce COGS by negotiating better supplier deals or optimizing production
- Cut unnecessary operational expenses to improve net profit
- Implement cost-control measures to maintain a healthy operating margin
c. Return on investment reports
Regularly review ROI across different projects and initiatives to ensure that resources are being allocated effectively and contributing positively to overall business goals.
Reports & metrics to track:
- Overall ROI: Net profit divided by total investment
- Campaign-specific ROI: Revenue generated from a specific campaign divided by the campaign's cost
- Customer acquisition ROI: Revenue generated from new customers divided by the cost of acquiring them
How to analyze:
- Calculate overall ROI to determine the effectiveness of total investments
- Analyze campaign-specific ROI to evaluate the success of marketing initiatives
- Assess customer acquisition ROI to measure the profitability of customer acquisition strategies
Measures to improve metrics:
- Focus on high-ROI campaigns and discontinue low-performing ones
- Optimize customer acquisition strategies to lower costs and increase revenue
- Reallocate investment towards areas with the highest ROI potential
eCommerce reporting in action–The Vitamin Shoppe
The Vitamin Shoppe, a global retailer specializing in wellness products, faced challenges in enhancing its online shopping experience. The company wanted to optimize its product discovery and improve the add-to-cart rate–especially for customers who browsed category pages without a specific product in mind.
eCommerce reporting approach:
- Detailed Analytics: The Vitamin Shoppe utilized comprehensive eCommerce reporting to understand customer behavior, particularly how users interacted with search and category pages
- Data-driven decisions: By leveraging data from customer behavior and conversion funnel reports, the company identified areas for improvement–such as the add-to-cart process and the effectiveness of category page layouts
Solution:
- The Vitamin Shoppe implemented an AI-powered solution that enabled personalized product recommendations on category pages based on users' browsing histories and preferences. This customization made it easier for customers to discover relevant products, even if they entered the site without a specific item in mind
- They added dynamic content features allowing the website to highlight trending or high-conversion products
- They also added features such as autocomplete and search suggestions were enhanced to better guide users towards popular products or categories–thus minimizing search abandonment
Results:
- Increased Engagement: The implementation led to an 11% increase in add-to-cart rate on category pages and a 5.69% increase in average order value (AOV) from search pages
- Higher Revenue Per Visitor: The improvements also resulted in a 2% increase in revenue per visitor (RPV) for users starting from category pages
Recommended articles:
8-Step eCommerce Promotion Strategy With Examples
22 (Really Specific) Ways to Reduce Customer Acquisition Cost in eCommerce
25 Proven Ways To Reduce eCommerce Shipping Costs
How To Increase eCommerce Sales: 23 Immediately Actionable Ideas
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Frequently asked questions
1. What are some of the eCommerce reporting tools?
There are several eCommerce reporting tools available that help businesses track and analyze their online performance.
Popular options include:
1. Google Analytics: Offers comprehensive insights into website traffic and user behavior
2. Shopify Analytics: Tailored for Shopify users with detailed sales and customer data
3. Klaviyo: Great for email marketing metrics
4. Hotjar: Provides heatmaps and session recordings for user experience analysis
5. Metorik: Useful tool for WooCommerce stores, offering real-time analytics and reports
Each tool offers unique features, so choosing the right one depends on specific business needs and goals.
2. What is the MIS report for eCommerce?
A Management Information System (MIS) report for eCommerce is a comprehensive document that provides key metrics and data insights to help business leaders make informed decisions.
These eCommerce reports typically include information on sales performance, inventory levels, customer behavior, marketing effectiveness, and financial data. They may also cover metrics like conversion rates, average order value, customer acquisition cost, and return on investment for various campaigns.
MIS reports are crucial for identifying trends, evaluating business strategies, and optimizing operations.
3. What are some of the eCommerce reporting challenges?
eCommerce reporting challenges often include data accuracy and integration, where inconsistent data from multiple sources can lead to errors and misinterpretations.
‍Data overload is another issue, as businesses may struggle to focus on relevant metrics amidst vast amounts of information.
‍Real-time reporting can be difficult to achieve, making it hard to respond quickly to market changes.
‍Customization limitations in reporting tools can prevent businesses from tailoring reports to their specific needs.
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