How to Track Shopify Store Revenue

The Shopify Revenue Formula

Tracking Shopify revenue starts with a simple formula: Traffic x Conversion Rate x Average Product Price = Revenue. 

For example, if a store has 20,000 monthly visitors, a 5% conversion rate, and an average product price of $50, their estimated revenue is $50,000. 

Let’s break down each element of this formula so you can understand how to leverage these metrics.

1. Traffic: Measuring Shopify Store Visitors

Traffic refers to the number of visitors a Shopify store attracts, commonly tracked as "sessions." Traffic is a critical indicator of store success and can be categorized into two main types:

• Paid Traffic: Includes visitors driven by paid advertising campaigns such as Google Ads or social media ads. Stores investing heavily in paid traffic often target high-converting audiences for immediate sales results.

• Organic Traffic: This refers to visitors from search engines or social media platforms without paid ads. Organic traffic often indicates strong SEO strategies, valuable content, or brand loyalty.

Tracking your competitors' traffic helps you understand the scale of their marketing efforts and potential revenue.

2. Conversion Rate by Niche

The conversion rate is the percentage of visitors who complete a purchase. This varies significantly across niches:

• Gifts: 4.9%

• Health & Pharmacy: 3.6%

• Apparel & Footwear: 2.8%

• Electronics: 1.4%

By analyzing your competitors’ niche, you can estimate realistic conversion rates and determine if their business strategies align with customer expectations. 

WinningHunter’s Shopify Sales Tracker lets you benchmark competitors’ conversion rates against industry standards.

3. Average Product Price

Understanding a competitor’s average product price provides insights into their revenue potential. Higher prices often correlate with higher revenue per sale, but it’s essential to balance price with demand. Use WinningHunter’s Shopify Sales Tracker to uncover product pricing strategies, upsells, and bundling tactics competitors use to maximize their average order value.