E-commerce performance metrics using the Torgsoft program
In the current realities of retail, a successful online store requires not only product availability but also deep data analysis. The Torgsoft program, thanks to its synchronization options with online stores (for example, through Torgsoft Online Market, Prom, or Rozetka), acts not only as an inventory management system but also as a powerful center for management analytics. Management reporting allows making data-driven decisions: understanding what should be expanded, where the margin is dropping, and which products are "eating up" money, thus avoiding "blind" growth.
Below is a comprehensive overview of the key metrics and reports in Torgsoft that allow you to measure and improve e-commerce efficiency.
1. Profitability and ROI metrics
The basis of any business's efficiency is financial control and an understanding of actual profit.
Period sales profitability: this report is one of the most important. It shows how much product was sold, its cost price, the amount of discounts provided, and the net profit. The "% Profitability" metric demonstrates the ratio of profit to cost, and the "Profitability ratio" shows the efficiency of the invested funds.
Incoming invoice profitability analysis: allows assessing the success of a specific purchase. The owner sees the percentage of goods sold from the batch, which helps in making decisions about the priority of payment to suppliers (for example, asking for a deferral if the product sells slowly).
Daily entrepreneur balance: allows you to quickly evaluate the business value, balances in cash registers and accounts, as well as the total amount of debts. This is a daily metric of the online store's financial health.
2. Assortment and warehouse efficiency
In e-commerce, funds frozen in illiquid stock mean lost opportunities. Torgsoft offers powerful tools for assortment optimization.
ABC and XYZ analysis: this is a fundamental metric for an online store. The ABC analysis is based on the Pareto principle and shows the 20% of products (Category A) that generate 80% of the revenue. XYZ analysis determines demand stability, where Category X represents products with steady demand, and Z represents random demand. Building a joint ABC-XYZ matrix allows you to flawlessly determine which products must always be in stock for uninterrupted online sales (green zone), and which ones should be phased out (red zone).
Dead stock (illiquid) analysis: this metric highlights products that have been in the warehouse for a long time without selling. Thanks to this report, a quick decision can be made to apply a promotional discount, mark down the price, or return the goods to the supplier.
Size sales rating: a critical metric for clothing or footwear online stores. It shows exactly which sizes sell best over a selected period, allowing you to optimize future purchases and avoid spending your budget on unpopular sizes.
3. Customer behavior and average receipt analysis
Understanding how customers buy allows you to increase sales volume through cross-selling and upselling.
Average receipt (Analysis of the number of receipts by amounts): the metric reflects the average purchase amount. The report shows a breakdown of receipts by specified price intervals: the number of receipts in a certain range, their amount, and their percentage of the total volume. This helps to understand the purchasing power of the online store's audience.
Customer purchase analysis: allows identifying the most active buyers of the online store. You can see the number of receipts, total sales amount, and revenue for each customer. This metric serves as the foundation for audience segmentation and launching loyalty programs (e.g., granting VIP status).
Analysis of selling price impact on profit: shows how a price reduction (discounting) affected sales volumes. The owner can evaluate whether the increase in the number of orders covered the loss of margins due to the promotion.
4. Evaluating marketing and promotional efficiency
Online stores often use promo codes, discounts, and sales. Torgsoft allows you to digitize their effectiveness.
Discount usage analysis: the metric displays exactly which discounts (cumulative, promotional, bonuses, etc.) were applied, by which employee, and, most importantly, whether this sale brought profit. The report visually highlights sales that generated a negative profit due to excessive discounts.
Sales intensity analysis: allows measuring traffic and conversion over time (hours, days of the week, months). For an online store, this helps identify peak shopping hours, which is useful for planning the workload of order processing managers.
Analysis of the "Refer a Friend" promo and bonuses: allows tracking the movement of bonuses (accrual and deduction), as well as the number of new customers and the amounts of their purchases attracted via referral links.
5. Operational efficiency (Time-to-Market and continuity)
The efficiency of an online store is also measured by order processing speed and data relevance.
Inventory relevance metric (Synchronization): the biggest pain in e-commerce is an order for an out-of-stock item, which leads to wasted marketing money. Automatic synchronization of Torgsoft with the site's CMS (via CSV/XML files) ensures that offline sales instantly reduce the stock on the site, preventing order cancellations.
Launch speed (Torgsoft Online Market): if the ready-made TOM solution is used, the efficiency metric is launching an online store in 1 day without involving programmers. Orders automatically drop into the program with a "New" status, allowing instant product reservation.
Using the listed metrics in the Torgsoft program transforms an online store from a simple showcase into a manageable business mechanism. The owner gets the opportunity not only to record the fact of sale but also to deeply analyze the profitability of each product, optimize stock using ABC/XYZ analysis, stimulate the average receipt, and control the profitability of every marketing activity.
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