How do I know if my Shopify store is doing well?
A single point-in-time score will not tell you. Healthy stores have CAC, MER, gross margin, repeat purchase rate, email revenue share, AOV, site conversion rate, and return rate that all sit at or above the vertical median for their category and revenue stage. Score yourself on all 8 to see where you actually sit, weighted by which metrics move the most profit.
What is a good MER for a Shopify store?
It depends on your vertical and your gross margin. As a rough floor, a Shopify store at 50 percent gross margin needs a 2.0x MER to break even on ad spend overall. Apparel and beauty stores at the same revenue stage typically run between 2.5x and 3.5x; supplements run higher because of strong repeat behavior. The right read is your MER vs your vertical median, not against a generic threshold.
What is a healthy CAC for ecommerce?
Healthy CAC is whatever leaves you with positive contribution after gross margin, returns, and shipping. The rule of thumb is CAC at or below 30 percent of first-order AOV times gross margin. A more reliable read is comparing your CAC against the vertical median for your category and revenue stage; the score weights it accordingly.
What is a good gross margin for a DTC brand?
Apparel benchmarks around 60 to 70 percent. Beauty around 65 to 75 percent. Supplements around 55 to 70 percent. Food and beverage around 40 to 55 percent. Pet around 45 to 60 percent. Below those ranges, every other lever in the score compounds harder against you. Above those ranges, you have room to absorb a higher CAC or lower MER without bleeding.
What is a good site conversion rate for Shopify?
Site-wide conversion rates of 1.5 to 3 percent are typical for ecommerce; over 3 percent is strong; under 1.5 percent points to product detail, checkout friction, or trust issues. The score benchmarks your rate against the vertical median for your specific category, because apparel converts differently than supplements.
What ecommerce metrics matter most for profitability?
The 8 we score are the highest-leverage ones at most stages: gross margin, CAC, MER, AOV, repeat purchase rate, email revenue share, site conversion rate, and return rate. Gross margin and CAC carry the most weight because they compound through every order. Site conversion and repeat purchase rate matter most for stores doing real ad volume.
How often should I check my store's health metrics?
A point-in-time score is most useful before you decide what to fix this quarter. Check it once a month if you are running paid ads, once a quarter if you are mostly organic. The score is designed to point you at the biggest leak; once you have it, fix that leak for 4 to 6 weeks before re-scoring.