Understanding Your Online Sales - Jason Nelson Digital

Understanding Your Online Sales

As this topic is my most engaged Insta post I thought it a great topic to cover in more detail in a blog. As an eCommerce consultant, many clients, ask "what is the most important sales number to monitor daily in eCommerce?". Let's start by covering the basics:

Google Analytics (GA) Revenue
This is the value of any orders plus the shipping charge. If you sell in more than one currency, and have one instance of GA, then GA will convert all revenue into £s using the day’s exchange rate. If this order is later cancelled Google will still show the product sale and count the conversion. The best place to see sales generally, and product sales particularly, is in the Google report Conversion/ Ecommerce. This metric is also called Gross Demand.

Because GA is plugged into the customer facing part of your website, known as the Front End, it can track very accurately customer behaviour in your online store. It will not pick up any sales that are placed by you, on your customers behalf in the Back Office.

Both of the below metrics are reported from within your eCommerce platform i.e. Shopify, Magento, Woo Commerce.

Gross Sales
The value of all products sold plus shipping charges.

Net Sales
Gross sales minus returns minus taxes. This is the number that businesses stand by and report on when, for example, they say they have hit £1m in sales. This, therefore, IS your most important sales number to monitor daily. You will, of course, want to make sure that you are driving sales profitably and you are maintaining your margin target.

I will cover in another post, how you can easily monitor margin daily using one of the Golden KPIs: Traffic, Average Transaction Value (ATV) and Conversion.

I would love to know what topic you would like me to cover next :)

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