How To Measure E-Commerce Success

When running a business, it’s important to track your success. It’s the only way you can tell whether or not you’re making a substantial profit. You can also use it as a measure of the effectiveness of your market strategies and adjust accordingly. For real-world businesses, this involves a lot of research and number crunching. If you’re running an online business, however, you’ll find a lot more ways to measure your success.

  1. Ad revenue. One place to look at is your ad revenue. Consult several webmasters about the average revenue they make from ads and compare it with yours. If you can, compare it with your competition as well. Track the number of visitors your site gets and see what percentage of your traffic goes to your ad revenue. Multiply this amount by the rate at which your advertisers pay you per click, and you’ll have your revenue. A website typically has 2-5% of its visitors click on an ad, but the click rate for more successful sites is 5-8%.
  2. Site analytics. A good way to measure your site’s traffic is to get a stat counter. You can get one at, or by availing of Google Analytics’ services at As these sites attest, the analyses based on the results they pull will greatly help your business. A simple piece of code you insert in your website will give you access to all kinds of information – ingoing and outgoing visitors, clicks, and the locations of your visitors, among others. You’ll also be able to keep track of how much time your visitors are spending on your site.

    You can use this data to further measure your website’s success. A good site usually gets 95% of its traffic from its target location. Say you want to sell guitars in Maine – your site is doing its job if the vast majority of its visitors come from Maine. You should also have 50% return visits, meaning half of your visitors should ideally come back to look through your site again.

  3. Daily income. Financially speaking, if your income is dependent primarily on the business your website generates, you should be making at least $100 a day. This is the recommended amount needed to live comfortably off of e-commerce. This depends, though, on your industry and the type of products or services you sell online.
  4. Visitor feedback. You can also gauge your site’s success by the feedback given by visitors. Add a commenting feature to your website and let the opinions fly in. You can get valuable advice based on user feedback, and their appreciation, or lack thereof, for your site will tell you whether or not your site is a success. Hopefully, one of your visitors will link back to your site free of charge. This will not only increase traffic to your site and therefore widen your market, but it’s also a sign that you have a loyal customer in the individual who provided the link.

The important thing to do once you have any information on the success of your website is to react accordingly. If your site’s traffic is poor, take the necessary measures to increase it. If your website is a success, keep it up and research way to make it even better. Remember, success only lasts as long as you work on it.


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