Year-End Ecommerce KPIs to Review in Dynamics 365 ERP

Year-end ecommerce performance reviews help businesses understand what drove revenue, how effectively they converted shoppers into customers, and whether their growth was profitable. By tracking the right ecommerce KPIs, including revenue growth, conversion rates, average order value, and customer retention, businesses can evaluate annual results and measure the success of Black Friday, Cyber Monday, and holiday shopping campaigns. For companies using Microsoft Dynamics 365 ERP, combining ecommerce analytics with ERP sales, cost, and customer data provides a stronger foundation for planning and decision-making in the year ahead.

Key Highlights

• Measure more than revenue. Ecommerce KPIs such as conversion rate, average order value, customer acquisition cost, and customer lifetime value provide a more complete picture of business performance.
• Evaluate peak-season results separately. Reviewing Black Friday, Cyber Monday, and holiday shopping performance helps identify which promotions, marketing activities, and sales strategies delivered results.
• Look for opportunities to improve profitability. Cost of goods sold, shopping cart abandonment, and customer retention can reveal inefficiencies that revenue figures alone may miss.
• Use year-end findings to guide next year's strategy. KPI trends help businesses establish realistic goals, prioritize investments, and make better-informed decisions about customer acquisition and retention.
• Connect ecommerce performance with Dynamics 365 ERP data. Integrating ecommerce activity with Microsoft Dynamics 365 Business Central or Dynamics 365 Finance helps businesses analyze sales, orders, inventory, and customer information together.

Why Are Ecommerce KPIs Important for Year-End Performance Reviews?

Ecommerce key performance indicators (KPIs) are measurable values that show how effectively an online business is achieving its objectives. They help businesses evaluate results, identify performance gaps, and make decisions based on actual data rather than assumptions.

Although the terms metric and KPI are often used interchangeably, they serve different purposes. A metric measures a particular activity, while a KPI connects that activity to a meaningful business goal.

For example, website traffic shows how many people visit an online store. Conversion rate goes further by measuring how many of those visitors complete a purchase, making it a more useful indicator of sales effectiveness. The average documented online shopping cart abandonment rate is 70.22%, calculated by Baymard Institute from 50 separate studies.

At year-end, KPI analysis is especially valuable because it helps businesses:

• Measure progress: Compare annual performance against business goals and previous results.
• Make informed decisions: Identify which sales and marketing activities produced meaningful outcomes.
• Allocate resources effectively: Direct budgets toward strategies that contribute to revenue, profitability, and customer relationships.
• Identify problems early: Recognize issues such as declining conversion rates or increasing shopping cart abandonment before they become more costly.

Rather than simply reporting whether sales increased or decreased, a useful year-end review explains what contributed to those results and what the business should do differently.

For businesses operating on Dynamics 365, connecting ecommerce performance with ERP financial and operational information provides additional context. A related guide to ecommerce and D365 BC integration explains how that connection is built. Sales numbers are more meaningful when they are evaluated alongside product costs, order history, and customer purchasing patterns.

Which Ecommerce KPIs Should Dynamics 365 Businesses Track at Year-End?

The most useful ecommerce KPIs measure sales performance, customer acquisition, purchasing behavior, and profitability. Reviewing these indicators together provides a clearer understanding of overall results and helps identify opportunities for improvement.

1. Revenue Growth: Did Ecommerce Sales Increase?

Revenue growth measures the change in ecommerce sales over a specific period, typically expressed as a percentage. It provides a starting point for determining whether the business expanded, maintained its performance, or experienced a decline.

For a year-end review, compare total annual revenue with the previous year and examine individual periods to identify seasonal trends. As a baseline, US retail e-commerce sales were an estimated $304.2 billion in Q2 2025, up 5.3% year on year, and accounted for 16.3% of total retail sales.

Pay particular attention to revenue generated during Black Friday, Cyber Monday, and the broader holiday shopping season. A record 202.9 million consumers shopped over the five days from Thanksgiving to Cyber Monday in 2025, with online shoppers up 9% year on year to 134.9 million, according to the National Retail Federation. Strong sales during these periods can contribute significantly to annual performance, but revenue growth alone does not establish whether the additional sales were profitable.

Comparing revenue with average order value, customer acquisition costs, and cost of goods sold helps reveal what actually drove the results.

Businesses using Dynamics 365 Business Central can also examine recorded sales and financial information to understand how ecommerce revenue contributes to overall business performance.

2. Conversion Rate: How Effectively Did Visitors Become Customers?

Ecommerce conversion rate measures the percentage of website visits that result in purchases. It helps businesses evaluate how effectively their online stores turn browsing activity into completed transactions.

A store might attract significantly more visitors during holiday promotions without seeing a proportional increase in orders. This would result in a lower conversion rate, suggesting that the additional traffic was less likely to convert into paying customers. Businesses should investigate whether their promotions attracted the right audience or whether issues with pricing, product offerings, or the shopping experience prevented visitors from completing purchases.

During your year-end review, consider:

• Did conversion rates improve during promotional periods?
• Were visitors more likely to purchase during Black Friday or Cyber Monday?
• Were there periods when conversion rates declined unexpectedly?

These findings can help businesses identify opportunities to improve the online shopping experience and refine future campaigns.

3. Average Order Value (AOV): How Much Did Customers Spend Per Order?

Average order value (AOV) measures the average amount customers spend each time they place an order. It is calculated by dividing total order revenue by the number of orders.

AOV provides insight into purchasing behavior, including whether customers tend to purchase multiple products, choose higher-value items, or favor lower-priced alternatives.

Year-end analysis should compare AOV across the full year and during peak shopping periods. A holiday promotion may increase the number of orders while reducing average order value, making it important to evaluate both measures.

Businesses looking to improve AOV can consider several approaches:

• Cross-selling: Recommend complementary products, such as ink cartridges or paper alongside printers.
• Upselling: Encourage customers to consider higher-value products or premium versions that better meet their needs.
• Free shipping thresholds: Offer free shipping once an order reaches a specified purchase amount.
• Product bundling: Group related products into packages that encourage customers to purchase multiple items together.

The order and sales records in Dynamics 365 provide useful information for calculating AOV and examining changes in purchasing behavior over time.

4. Customer Acquisition Cost (CAC): How Much Did It Cost to Gain New Customers?

Customer acquisition cost (CAC) measures the average amount a business spends to acquire a new customer. It is calculated by dividing relevant acquisition expenses by the number of new customers acquired during the same period.

CAC is particularly useful when reviewing promotional campaigns and marketing investments. For example, an increase in holiday sales may appear successful until the business considers how much it spent attracting those customers.

Compare acquisition costs across marketing activities such as paid advertising, social media, search engine optimization (SEO), email marketing, and affiliate marketing.

If acquisition costs rise without a corresponding improvement in customer value, it may be worth reconsidering how marketing resources are distributed.

5. Customer Lifetime Value (CLV): What Are Customer Relationships Worth Over Time?

Customer lifetime value (CLV) estimates the total value a customer generates throughout their relationship with a business. It helps ecommerce companies look beyond individual transactions and evaluate the longer-term contribution of customer relationships.

This is especially relevant when examining the customers acquired during major holiday promotions. A campaign may attract a large number of first-time buyers, but the longer-term results depend partly on whether those customers return.

Comparing CLV with CAC helps businesses assess whether their customer acquisition investments are supported by the value those relationships generate.

Year-end findings can also inform retention strategies designed to encourage repeat purchases and strengthen existing customer relationships.

6. Shopping Cart Abandonment Rate: Where Are Potential Sales Being Lost?

Shopping cart abandonment rate measures the percentage of shopping carts that do not result in completed purchases. It can help businesses identify problems in the purchasing process.

A sudden increase in abandonment may indicate an issue with the checkout experience. During peak shopping periods, when online stores experience heightened purchasing activity, this KPI deserves particular attention.

When evaluating year-end results, compare abandonment rates during normal sales periods with those recorded during Black Friday, Cyber Monday, and holiday promotions.

If abandonment increased, review the checkout process to identify possible obstacles. Improving the experience may help convert more existing shopping activity into completed orders without relying entirely on additional marketing investment.

7. Customer Retention: Did Shoppers Come Back?

Customer retention measures a business's ability to maintain relationships with existing customers over time. It helps evaluate whether buyers continue purchasing after their initial transaction.

A related KPI, new customer orders versus returning customer orders, compares purchases made by first-time buyers with those made by existing customers.

This distinction is useful when reviewing annual ecommerce performance:

• A higher proportion of new customer orders may indicate effective acquisition efforts, although the business should also examine whether those buyers return.
• A higher proportion of returning customer orders may reflect customer loyalty and satisfaction, but could also highlight opportunities to expand customer acquisition.
• A balanced mix can indicate that the business is attracting new buyers while maintaining relationships with existing customers.

If new customer orders are lagging, businesses can revisit acquisition activities such as paid advertising, SEO, social media, and email marketing.

If returning customer orders are declining, loyalty initiatives and exclusive offers for existing customers may help encourage additional purchases.

Year-end analysis should also consider whether customers acquired during previous promotions became repeat buyers. That information helps businesses distinguish short-term sales increases from sustained customer growth.

Dynamics 365 ERP users have customer records and order histories available, providing a valuable starting point for analyzing repeat purchases and changing buying patterns.

8. Cost of Goods Sold (COGS): Were Sales Profitable?

Cost of goods sold (COGS) represents the costs directly associated with producing or acquiring the products a business sells. Depending on the business, these may include manufacturing or purchasing costs and associated production expenses.

COGS is essential for understanding profitability because gross profit is calculated by subtracting COGS from revenue.

This makes it particularly important when evaluating holiday promotions. Higher sales figures do not necessarily produce stronger financial results if product costs or promotional pricing significantly reduce margins.

If your year-end review reveals high or increasing COGS, possible improvements include:

• Purchasing in bulk when doing so reduces per-unit costs.
• Comparing supplier quotes to identify more cost-effective purchasing options.
• Negotiating pricing with existing suppliers.
• Improving operational efficiency, including automating manual order-processing activities.

Dynamics 365 ERPs provide financial, inventory, and purchasing information that businesses can use to examine product costs alongside sales performance. This helps decision-makers evaluate whether ecommerce growth is translating into stronger financial results.

How Can You Measure Black Friday, Cyber Monday, and Holiday Ecommerce Success?

The most effective way to measure peak-season ecommerce performance is to evaluate revenue, customer behavior, acquisition costs, and profitability together. This helps distinguish genuinely successful campaigns from those that simply generated more transactions.

Once the holiday shopping season concludes, follow a structured review process.

Step 1: Compare Peak-Season Results with Previous Periods

Start by comparing Black Friday, Cyber Monday, and holiday shopping results with equivalent periods from the previous year. Review revenue, orders, conversion rates, and average order value to determine where performance improved or declined.

Compare holiday results with normal selling periods to understand how seasonal promotions affected purchasing behavior.

Step 2: Evaluate the Cost of Generating Holiday Sales

Revenue should be considered alongside customer acquisition cost and cost of goods sold. Where relevant, return on ad spend (ROAS) can provide another useful measure of advertising performance.

Step 3: Examine Customer Behavior During Promotions

Review conversion rates, cart abandonment, AOV, and the balance between new and returning customer orders. Determine whether promotional activities encouraged purchases, attracted first-time customers, or increased spending among existing buyers.

Step 4: Identify Which Results Are Worth Repeating

For example, if revenue increased while AOV declined, investigate whether the growth came primarily from additional orders or lower-value purchases. If conversion rates improved but acquisition costs climbed, examine whether the marketing investment remained worthwhile.

Looking at several KPIs together helps businesses avoid making decisions based on a single favorable number.

How Should Businesses Interpret Their Year-End Ecommerce KPI Results?

Individual KPIs are more useful when businesses examine the relationships between them. A change in one metric often needs context from another before it points to a clear course of action.

Year-end finding	What it may indicate	What to investigate
Revenue increased, but conversion rate declined	More traffic or larger orders may be driving growth despite weaker conversion	Traffic quality and the purchasing experience
AOV increased, but profitability declined	Larger orders may not be producing stronger margins	Product costs, pricing, and promotions
New customer orders increased, but repeat orders lagged	Acquisition efforts may be working better than retention efforts	Loyalty programs and repeat-purchase strategies
CAC increased while CLV remained unchanged	Customer acquisition spending may be outpacing the value generated	Marketing efficiency and customer retention
Cart abandonment increased during holiday promotions	Customers may be encountering purchasing obstacles	Checkout usability and possible friction

Other supporting indicators, including customer satisfaction score (CSAT), churn rate, and total cost of ownership (TCO), may also be relevant depending on the business's goals.

How Can Ecommerce KPIs Guide Next Year's Strategy and Budget?

The first step is identifying which ecommerce KPIs most closely reflect the business's objectives. A company focused on acquiring customers may prioritize conversion rate and CAC, while a business seeking stronger profitability may place greater emphasis on AOV, COGS, and retention.

From there, businesses can translate their findings into practical actions.

Set Measurable Business Objectives

Use current performance as a baseline for next year's goals. Rather than setting only a general revenue target, establish supporting objectives related to conversion rates, average order value, customer acquisition, or retention.

Choose KPIs that are measurable, understandable, and directly connected to business outcomes.

Allocate Marketing Budgets Based on Results

Review which marketing activities attracted customers and how their costs compared with the value generated. This will help businesses decide where to increase investment, which campaigns require adjustment, and whether more attention should go toward retaining existing customers.

Prioritize Operational Improvements

If high product costs or manual processes affected profitability, consider whether purchasing changes or greater automation could improve efficiency. Likewise, elevated abandonment rates may justify improvements to the ecommerce checkout experience before increasing advertising spending.

Prepare for the Next Peak Shopping Season

Use this year's Black Friday, Cyber Monday, and holiday results to establish a stronger plan for future promotional activity. The KPIs that proved most useful should become part of ongoing performance monitoring, not just an annual reporting exercise.

How Can Dynamics 365-Integrated Ecommerce Improve Reporting and Efficiency?

An ERP-integrated ecommerce solution connects online sales activity with the information maintained in the ERP system, reducing the need to manage disconnected records across multiple applications. See also how Dynamics 365 Business Central ecommerce integration increases productivity.

With an ERP-integrated ecommerce platform from k-ecommerce, businesses can connect their online stores with their ERP environments, including Microsoft Dynamics 365 Business Central and Dynamics 365 Finance.

Instead of evaluating website sales in isolation, teams can examine how online selling contributes to broader financial and operational objectives.

Why Can Businesses Trust k-ecommerce for Dynamics 365 ERP-Integrated Ecommerce?

Founded in 1999, k-ecommerce brings more than 25 years of experience developing ERP-integrated ecommerce and payment solutions. It supports 1,500 websites worldwide, with approximately $2 billion in transactions processed annually through its PCI-certified cloud infrastructure. Its experience spans manufacturing, distribution, wholesale, and other industries where complex pricing, customer-specific catalogs, and high-volume order processing make reliable ERP integration essential.

As a certified partner for Microsoft Dynamics, k-ecommerce specializes in connecting online stores with established business management systems. The company offers purpose-built ecommerce integrations for Microsoft Dynamics 365 Business Central, Microsoft Dynamics GP, and Dynamics 365 Finance and Operations. Its proprietary synchronization technology connects ecommerce storefronts with ERP information, including customer records, product pricing, inventory, and orders. This helps businesses reduce manual data entry, maintain consistent information across systems, and analyze ecommerce performance alongside their financial and operational results.

Turn Your Year-End Ecommerce Results Into a Plan for Growth

A successful year-end ecommerce review should do more than summarize sales. By analyzing the KPIs that matter most, businesses can better understand their annual performance, evaluate holiday campaigns, identify opportunities for improvement, and establish clearer priorities for the coming year.

For organizations using Microsoft Dynamics 365, connecting ecommerce activity with ERP data adds important financial and operational context to that analysis. It helps businesses evaluate not just how much they sold, but how those sales contributed to profitability and customer relationships.

By k-ecommerce | k-ecommerce.com