Number of Orders

Number of Orders

When running an eCommerce business, it is essential to have a clear picture of your business, order costs, inventory supply, annual demand, and more. The most critical place to start is measuring the number of orders you receive in a given time and from a specific audience. It can help you determine optimal business strategies moving forward.

In this post, we will review everything there is to know about the number of order metrics.


  • 3 +

    Templates using this KPI

  • 1 +

    Integrations using this KPI

What is “number of orders”?

Simply put, the number of orders is how many sales you make to customers in a given time period. This number will help you determine your cost formula, the cost of inventory, and the economic order quantity (EOQ), the order quantity that will keep the holding costs and ordering costs low, so your business makes a profit.

The number of orders metric needs to be on pace with your annual total costs and will inform the way you run your inventory and compare your yearly ordering cost, fixed costs, storage costs, raw materials, and more.

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How to calculate your number of orders

Calculating the number of orders is straightforward and only requires business owners to set date limits and count how many sales from individual customers they had during that time.

What is a good number of orders?

There is no objectively good number of orders, as it will vary depending on the industry, price point, and customer relationship. It is essential, however, that your number of orders does not fall short of your holding inventory and inventory level costs. What matters is ensuring that the frequency and quantity of orders pay for the product and generate a profit.

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What is a bad number of orders?

A bad number of orders would be any quantity that leaves you in the negatives and does not cover production costs. This would indicate an unprofitable business.

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Number of orders KPI examples & templates

You can add your number of orders in some of our templates!

See this KPI in action here!

Ecommerce report template Ecommerce report template

A report with all the most important metrics for your ecommerce site, like shopping cart abandonment, click-through rate, and revenue.

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Executive report template Executive report template

This dashboard template is filled with metrics your C-suite will want to see. Show them your revenue, new customers, churn rate, and more. You can also add some customer satisfaction KPIs, gross margin, or customer data to have a better overview.

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Google Analytics report template Google Analytics report template

Check the number of customers, traffic, customer journey through your website, and more with this easy-to-use GA template.

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Number of orders best practices

If the number of orders your business receives isn’t serving your needs, consider employing the following strategies.

Return on ad spend cost best practices

step 1 icon Engage new customers

Returning customers are precious since they represent brand loyalty. However, if you are not getting the number of orders you need, consider reaching out to new audiences. Leverage digital platforms like social media and YouTube to gain subscribers, use visual templates to make ads and posts, and use the opportunities of organic reach to supplement your marketing strategy.

step 2 icon Focus on your optimal order quantity

Ensure you have precisely calculated your inventory numbers to know your exact sales targets, needed inventory levels, and optimal reorder points to stay in line with all budgeting. Performing these calculations will give you a direct target to aim for and inform your strategy moving forward.

step 3 icon Automate your calculations

Set up automated spreadsheets and apps to send you a notification when your inventory level hits a certain point. This way, your business is always in line to maintain its necessary levels, and you don’t risk making a mistake due to human error.

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