What does KPI mean?

KPI stands for Key Performance Indicator, a metric a company uses to track whether it is meeting its goals. A KPI can be financial, marketing, sales or operational and should always be tied to a specific goal. In e-commerce, KPIs include revenue, conversion rate, average order value, customer acquisition cost, return on ad spend or the share of repeat purchases. Not every tracked metric is automatically a KPI; the key ones are those indicators that genuinely matter for decision-making and evaluating company performance.