Luna Morris

5 Key Financial Metrics Every eCommerce Business Should Track Running a successful eCommerce business requires more than just offering great products and excellent customer service. It’s essential to have a firm grasp of your financial health to ensure sustainable growth and profitability. By tracking key financial metrics, you can make informed decisions, optimize performance, and stay on top of your business's finances. Here are five crucial financial metrics every eCommerce business should monitor: Gross Profit Margin Gross profit margin is a vital metric that helps you assess the profitability of your eCommerce business. It measures the difference between revenue and the cost of goods sold (COGS). This percentage indicates how efficiently you're producing or sourcing products. Formula: Gross Profit Margin=Revenue−COGSRevenue×100\text{Gross Profit Margin} = \frac{\text{Revenue} - \text{COGS}}{\text{Revenue}} \times 100Gross Profit Margin=RevenueRevenue−COGS​×100 A higher gro...