Key Financial Metrics Every eCommerce Seller Should Track
Key Financial Metrics Every eCommerce Seller Should Track For eCommerce sellers, tracking the right financial metrics is crucial to understanding the health of their business, making informed decisions, and ensuring long-term profitability. These metrics provide insights into revenue generation, cost control, and overall operational efficiency. Below are some key financial metrics every eCommerce seller should track: 1. Gross Profit Margin Gross profit margin is one of the most important metrics for an eCommerce business. It measures the profitability of your core operations by showing the percentage of revenue left after subtracting the cost of goods sold (COGS). Formula : Gross Profit Margin = (Revenue - COGS) / Revenue × 100 This metric helps you assess how efficiently you're producing and selling products. A high gross profit margin indicates that your products are priced well relative to production costs, while a low margin may signal the need to renegotiate supplier contracts...