Ecommerce Conversion Rate
The ecommerce conversion rate is the percentage of sessions that results in ecommerce transactions (in a given time period).
Ecommerce conversion rate = (Total Ecommerce Transactions/Total website sessions) * 100
For e.g. the ecommerce conversion rate in the chart above was calculated as:
= (1,736 transactions / 996,563 sessions) * 100 = 0.17%
Ecommerce Transactions and Transaction IDs
Transaction (or ecommerce transaction) is a purchase order.
Here, 4419144621 is a transaction ID.
A single transaction can include several products or several units of the same product because a person can buy several products in one transaction or several units of the same product in one transaction. For example, a person can buy an iPhone and an iPad in a single transaction, or a person can buy ten units (or pieces) of an iPhone in a single transaction.
Note: The value of transaction ID is of type ‘string’.
Revenue
The revenue that you see in the Ecommerce Overview report is the total revenue.
Total Revenue = Total Product Revenue + Total Tax + Total Shipping
For example, the total revenue in the Ecommerce Overview report was calculated as follows:
Total Revenue = $188,211.37 (total product revenue) + $47,371.58 (total tax) + $1,274.95 (total shipping) = $236,857.90
Your total revenue figure in the Ecommerce Overview report depends upon how the ecommerce tracking has been set up.
If your client decided to exclude tax and shipping amount from the total revenue, then your total revenue and product revenue amount would be the same.
Suppose the tax information or shipping information is not supplied while setting up ecommerce tracking. In that case, Google Analytics can’t report such information in its reports, and they won’t be included in the computation of total revenue.
Note: The value of revenue is of type ‘currency’.
Average Order Value
The average value or average order value (AOV) is the average value of an ecommerce transaction.
Average Value = Total Revenue/Total Transactions
For example, the AOV in the chart above was calculated as:
AOV = $236,857.90 / 1,736 = $136.44
Note: The value of the Average Order Value is of type ‘currency’.
Unique Purchases
Unique purchase is the total number of times a product or a set of products was a part of a transaction.
There are two categories of unique purchases in Google Analytics:
#1 Total Unique purchases of a set of products
#2 Total Unique purchases of a product.
Note: The total unique purchases of a product are not equal to the total number of units sold for the product in one transaction. For example, the total unique purchases of the first product are 75.
But many people wrongly assume the 75 units of the first product were sold in one transaction. This is not the case.
The 75 figure tells you that the first product was a part of a transaction 75 times. It doesn’t tell you the number of units sold for the product in one transaction.
To find the number of units of a product that were sold in one transaction, follow the steps below:
- Click on a product link in the ‘Product Performance’ report (under Conversions > Ecommerce).
- Add ‘transaction ID’ as a ‘secondary dimension.
- Sort the ‘Unique Purchases’ column in decreasing order.
You will now see a report like the one below:
Note: The value of Unique Purchases is of type ‘number’.
Quantity
Quantity is the total number of units sold for a product or set of products. There are two categories of quantities inch Google Analytics:
#1 Total number of units sold for a set of products
#2 Total number of units sold for a product.
Note: The value of the quantity is of type ‘number’.
Average Quantity
Average quantity is the average number of units sold for a product or set of products in one transaction.
Average Quantity = Quantity / Unique Purchases
For example:
- The average quantity of a set of products is calculated as 3684/3242 = 1.14
- The average quantity of 1st product is calculated as 114/93 = 1.23
- The average quantity of 2nd product is calculated as 62/61 = 1.02
Note: The value of the average quantity is of type ‘number’
Product SKU
Stock keeping unit or SKU is a product code used to uniquely identify a product.
Note: The value of product SKU is of type ‘string’
Average Price
The average price is the price of a single unit of a product.
The average price of a set of products = Total Product Revenue / Total Quantity = $3,701,278.00 / 45,226 = $81.84
The average price of the first product = price of the single unit of a product = $79
Note: The value of the average price is of type ‘currency’
Product Revenue
Product revenue is the total revenue generated from a product or a set of products.
Product Revenue = Quantity * Average Price
In this example,
Total Revenue generated from a set of products is calculated as: 45,226 * $81.84 = $3,701,278.00
Total Revenue generated from the first products is calculated as: 13,281 * $79.00 = $1,049,199.00
Note(1): Product revenue doesn’t include tax and shipping charges.
Note (2): The value of the average price is of type ‘currency’
Per Session Value
Per session value is the average value of a session of your ecommerce website.
Per session value = Total Revenue / Total Sessions
For example, in the chart above,
The per session value for all traffic sources is calculated as: $280,650.01 / 1,182,618 = $0.24
The per session value of the traffic from Google Organic is calculated as: $77,228.80 / 210,212 = $0.37
The higher the per session value, the more valuable the traffic is for your ecommerce business.
Note(1): You can determine per session value through ‘E-commerce’ Tabs found in various reports.
Note (2): The ‘per session value’ is of type ‘currency’
Where can you see ecommerce metrics in Google Analytics?
To view your ecommerce metrics in Google Analytics. follow the below steps:
Step-1: Login to your Google Analytics reports console.
Step-2: On the left-hand navigation bar, go to ‘Conversions’ and locate ‘E-commerce’ underneath it.
Under this subheading, you’ll be able to find the shopping and checkout behaviour of the users, transactional information, sales performance and how long it takes for the users to purchase on average.
Let us look at each tab individually and see what information it provides:
Overview Tab
This report provides you with a quick overview of what exactly is happening on the ecommerce side of your business. This report includes overall revenue, transactions, and avg order value.
Shopping Behaviour Analysis
This report provides an insight into how new vs returning visitors behave when shopping on your site. It also shows you how users progress through a sales funnel.
If we look at the report, you can notice that it all starts with ‘All sessions’ on the left-hand side, followed by product views, adding to cart, checking out and making a transaction.
You can view where exactly the users are getting dropped off in each stage.
You can use this report to analyze the pain points in the customer journey. For example, if you are noticing that users are mostly getting dropped off from a particular page, you can investigate the reason and work on improving the performance of the website.
The Checkout Behaviour Analysis
With the help of this report, you can analyze how exactly the users had moved from one step to another before they reached the checkout page. Like the shopping behaviour report, you have an option in this report that provides insights into the drop-off rate at each step.
Product Performance Report
The product performance report in your analytics gives valuable insights into how customers interact with your online products.
In this report, you have an option to view your report by product SKU, product name, product category or product brand. It gives detailed insights into how exactly each product is performing and what are top revenue-generating products.
Sales Performance Report
The sales performance tab shows sales and transactional information for individual product orders. This report provides key insights about your sales metrics like revenue, transactions delivery, refund amount etc.
Product List Performance
Product list performance gives you in-depth information on how each individual product or set performs. It allows you to track how clusters of data of products in your online store are performing.
Follow this article which explains How to Fix Common Issues with Ecommerce Tracking