Shopify Analytics Guide: Track, Measure, and Grow Your Store

Analytics transform gut feelings into actionable insights. This guide covers Shopify's built-in analytics, Google Analytics 4, key metrics to track, and how to use data to grow your business.

1. Shopify Analytics Overview

Where to Find Analytics

• Shopify Admin → Analytics: Main dashboard
• Reports: Pre-built and custom reports
• Live View: Real-time visitor activity
• Product Analytics: Individual product performance

Shopify Plan Differences

• Basic Shopify: Basic reports only
• Shopify: Standard reports
• Advanced Shopify: Advanced reports + custom reports
• Shopify Plus: Full analytics + API access

2. Essential Ecommerce Metrics

Revenue Metrics

• Total Sales: Gross revenue (before refunds/discounts)
• Net Sales: After refunds and discounts
• Average Order Value (AOV): Total revenue ÷ number of orders
• Revenue Per Visitor (RPV): Total revenue ÷ total visitors

Traffic Metrics

• Sessions: Total website visits
• Unique Visitors: Individual people visiting
• Page Views: Total pages viewed
• Traffic Sources: Where visitors come from
• Bounce Rate: % who leave after one page

Conversion Metrics

• Conversion Rate: Orders ÷ Sessions × 100
• Add-to-Cart Rate: Add to carts ÷ Product views
• Cart Abandonment Rate: (Carts - Purchases) ÷ Carts
• Checkout Abandonment: Started checkout but didn't buy

Customer Metrics

• Customer Acquisition Cost (CAC): Marketing spend ÷ new customers
• Customer Lifetime Value (LTV): Average total revenue per customer
• Repeat Purchase Rate: % of customers who buy again
• Customer Retention Rate: % of customers retained over time

Product Metrics

• Best Sellers: Top products by revenue and units
• Product Views: Traffic to product pages
• Inventory Turnover: How quickly products sell
• Return Rate: % of products returned

3. Shopify Reports

Sales Reports

• Sales over time: Daily, weekly, monthly trends
• Sales by product: What's selling best
• Sales by traffic source: Which channels drive revenue
• Sales by location: Geographic performance

Customer Reports

• Customers over time: Growth trends
• First-time vs returning: Customer mix
• Customers by location: Where customers are
• Top customers: Your best customers

Marketing Reports

• Sessions by traffic source: Channel breakdown
• Conversion by traffic source: Which channels convert best
• Sessions by device: Mobile vs desktop
• Sessions by location: Geographic traffic

4. Google Analytics 4 Setup

Why Use Google Analytics

• More detailed user behavior data
• Advanced segmentation
• Cross-device tracking
• Integration with Google Ads
• Custom reports and dashboards
• Free forever

GA4 Installation

1. Create Google Analytics 4 property
2. Get Measurement ID (G-XXXXXXXXXX)
3. In Shopify: Online Store → Preferences
4. Paste GA4 Measurement ID
5. Enable Enhanced Ecommerce
6. Verify tracking with GA4 Realtime report

Enhanced Ecommerce Tracking

Automatically tracks:

• Product views
• Add to cart
• Remove from cart
• Begin checkout
• Purchase
• Refund

5. Key Reports to Monitor

Daily Dashboard (Check Every Morning)

• Yesterday's sales vs. goal
• Traffic sources breakdown
• Conversion rate
• Top-selling products
• Any unusual spikes or drops

Weekly Reports

• Week-over-week sales growth
• Traffic trends by channel
• Product performance changes
• Customer acquisition by source
• Cart abandonment rate

Monthly Reports

• Revenue vs. goals and previous month
• Customer acquisition cost by channel
• Customer lifetime value trends
• Product category performance
• Geographic expansion opportunities

6. Traffic Source Analysis

Understanding Traffic Sources

• Direct: Typed URL or bookmark (brand awareness)
• Organic Search: Google, Bing (SEO traffic)
• Paid Search: Google Ads, Bing Ads
• Social: Instagram, Facebook, TikTok, Pinterest
• Email: Email marketing campaigns
• Referral: Links from other websites

Channel Performance Metrics

For each channel, track:

• Sessions (volume)
• Conversion rate (quality)
• Revenue (value)
• Cost (if paid)
• ROI or ROAS

7. Conversion Funnel Analysis

The Ecommerce Funnel

1. Sessions: 10,000 visitors
2. Product Views: 3,000 (30%)
3. Add to Cart: 600 (20% of viewers)
4. Checkout Initiated: 300 (50% of carts)
5. Purchases: 200 (67% checkout completion)
6. Overall Conversion: 2% (200/10,000)

Identifying Drop-Off Points

• Low product view rate → Homepage/navigation issue
• Low add-to-cart → Product page optimization needed
• High cart abandonment → Pricing/shipping concerns
• Checkout abandonment → Checkout friction

8. Product Performance Analysis

Product Metrics to Track

• Units sold: Popularity
• Revenue: Financial impact
• Profit margin: Profitability
• Page views: Interest level
• Conversion rate: How well it sells
• Return rate: Quality/expectation issues

Product Performance Actions

• High views, low sales: Price too high or poor page
• High sales, low margin: Raise price or reduce costs
• Low views, high conversion: Increase visibility
• High returns: Improve photos or description accuracy

9. Customer Behavior Analysis

Cohort Analysis

• Track customer groups by first purchase month
• Measure repeat purchase rates over time
• Identify retention patterns
• Calculate customer lifetime value by cohort

RFM Analysis

Segment customers by:

• Recency: How recently they purchased
• Frequency: How often they buy
• Monetary: How much they spend

Customer Segments

• Champions: Recent, frequent, high-value (nurture, VIP treatment)
• Loyal: Frequent buyers (reward programs)
• At-Risk: Haven't bought recently (win-back campaigns)
• Lost: Long time since purchase (re-engagement)
• One-time buyers: Never returned (convert to repeat)

10. UTM Parameters

What Are UTM Parameters

Tags added to URLs to track campaign performance:

• utm_source: facebook, instagram, newsletter
• utm_medium: social, email, cpc
• utm_campaign: spring_sale, launch, blackfriday
• utm_content: ad_variation_a, header_link

Example UTM URL

yourstore.com/products/widget?utm_source=facebook&utm_medium=social&utm_campaign=spring_sale&utm_content=video_ad

UTM Tools

• Google Campaign URL Builder
• UTM.io
• Spreadsheet tracker for all URLs

11. A/B Testing

What to Test

• Product page layouts
• Pricing strategies
• Product descriptions
• Call-to-action buttons
• Checkout flow
• Email subject lines

Testing Requirements

• Minimum 100 conversions per variation
• Run for at least 2 weeks
• 95% statistical significance
• Test one variable at a time

12. Custom Reports

Creating Custom Reports (Advanced Shopify+)

• Combine multiple data sources
• Filter by specific criteria
• Schedule automated delivery
• Share with team members

Useful Custom Reports

• Sales by marketing campaign
• Product profitability analysis
• Customer lifetime value by acquisition source
• Hourly sales patterns
• Geographic expansion opportunities

13. Mobile vs Desktop Analysis

Device Metrics

• Traffic split (typically 60-70% mobile)
• Conversion rate by device
• Average order value by device
• Bounce rate by device

Mobile Optimization

If mobile conversion is significantly lower:

• Test mobile checkout flow
• Check page load speed
• Review button/form sizes
• Ensure images load properly

14. Benchmarks and Goals

Industry Benchmarks

• Conversion rate: 1-3% average, 3.5%+ excellent
• Bounce rate: 40-60% normal
• Cart abandonment: 70% average
• Email open rate: 15-25%
• Email click rate: 2-5%

Setting SMART Goals

• Specific: "Increase conversion rate to 2.5%"
• Measurable: Track in Shopify Analytics
• Achievable: Based on current 2.0%
• Relevant: Aligns with revenue goals
• Time-bound: Within 3 months

15. Analytics Tools

• Shopify Analytics: Built-in, ecommerce-focused
• Google Analytics 4: Free, comprehensive
• Hotjar: Heatmaps, session recordings ($32+/mo)
• Lucky Orange: Similar to Hotjar ($10+/mo)
• Triple Whale: Ecommerce dashboard ($129+/mo)
• Klaviyo: Email + SMS analytics (varies)

Common Analytics Mistakes

• ❌ Not tracking anything (flying blind)
• ❌ Tracking too many metrics (paralysis)
• ❌ Looking at vanity metrics only (followers, not sales)
• ❌ Not setting up goals in GA
• ❌ Ignoring mobile data
• ❌ Not using UTM parameters
• ❌ Comparing to wrong time periods
• ❌ Not acting on insights

Action Plan

Week 1: Setup

• Install Google Analytics 4
• Enable Enhanced Ecommerce
• Create UTM parameter system
• Set up basic dashboard

Week 2: Baseline

• Document current metrics
• Identify top 5 KPIs
• Set quarterly goals
• Create weekly reporting routine

Ongoing: Optimize

• Review dashboard weekly
• Test one hypothesis per month
• Track campaign performance with UTMs
• Adjust strategy based on data

Conclusion

Analytics aren't just numbers—they're the story of your business. Track the right metrics, understand what drives results, and use data to make better decisions.

Start simple: revenue, traffic, conversion rate. As you grow, add more sophisticated analysis. The goal isn't to track everything, but to track what matters and act on insights.