Shopify gives you access to a lot of data—but knowing which numbers actually matter is the real challenge. Instead of guessing what works, let your reports guide your decisions. Here's how to read the most useful Shopify analytics and turn them into clear, actionable strategies for growth.
The Three Analytics Reports Every Shopify Store Should Monitor
Shopify provides dozens of prebuilt reports, but you don’t need all of them to make meaningful decisions. Start by focusing on these three core areas:
1. Sales Reports
Found under Analytics > Reports > Sales, these help you answer key questions like:
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What’s driving the most revenue?
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Which channels (Shopify, Facebook, TikTok, Google, etc.) are performing best?
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Are you gaining momentum or slowing down?
Key metrics to watch:
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Gross sales: The raw revenue before refunds and discounts
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Net sales: Your actual income after deductions
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Average order value (AOV): A great indicator of customer buying behavior
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Sales by product / SKU: Spot your bestsellers and underperformers
What to do with this data:
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Double down on high-performing SKUs with better placement and more ads
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Bundle low-performing products with top sellers to lift their performance
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Track AOV trends and test upsells or cross-sells at checkout
2. Customer Behavior Reports
This is where you begin to understand how visitors interact with your site.
Check:
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Sessions over time: Is your traffic growing or dipping?
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Conversion rate: What percentage of visitors are actually buying?
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Add-to-cart rate & abandoned cart rate: Where are you losing people in the funnel?
Use this data to:
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Test new layouts or product page copy if conversion rates are low
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Launch abandoned cart recovery emails if drop-off is high
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Segment campaigns by traffic source—see which ads drive the most engaged users
3. Customer Reports
Understanding who your customers are—and how they behave—unlocks smarter targeting and retention strategies.
Look at:
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First-time vs. returning customers: Is your store built to drive loyalty?
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Customer cohort analysis: How do different signup groups perform over time?
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LTV (lifetime value): Are your customers profitable in the long run?
Actionable ideas:
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If repeat purchase rate is low, introduce post-purchase emails or loyalty rewards
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Use high-LTV customer data to build lookalike audiences for Facebook or TikTok Ads
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Run email winback campaigns targeting old customers with exclusive offers
Pro Tips for Better Shopify Data Interpretation
Segment by source: Most reports allow you to filter by traffic source (e.g., organic, paid, referral). Use this to understand which marketing efforts are driving real results. For instance, if your Meta ads bring more traffic but TikTok drives more conversions, shift spend accordingly.
Look at trends, not just snapshots: Don’t panic over a single-day dip or spike. Instead, zoom out to weekly or monthly views to identify meaningful patterns.
Benchmark your metrics: Wondering if your 1.8% conversion rate is good? Here's a rough guide for ecommerce stores:
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Conversion Rate: 1.5–3% is typical
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Add-to-Cart Rate: 4–8%
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Bounce Rate: Under 50% is healthy
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Returning Customer Rate: 20–30% is average, over 30% is strong
These vary by industry, but they’ll help you know when to celebrate—or when to test.
Use UTM parameters: If you're running campaigns on social or email, always use UTM links. This ensures your analytics can accurately attribute traffic and sales to the correct sources, especially when blending Shopify data with Google Analytics or AdsPolar.
Combining Shopify Data with External Analytics Tools
While Shopify's built-in reports are great for daily and weekly reviews, you might want more depth when scaling. That’s where third-party tools shine.
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Google Analytics 4 (GA4): Offers detailed user behavior tracking, multi-touch attribution, and deeper audience segmentation.
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AdsPolar: Perfect for ecommerce brands running cross-platform ads. Consolidates ad performance from TikTok, Meta, and Google with your Shopify store data, giving you a unified view of what’s working and why.
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Hotjar or Lucky Orange: Add qualitative insights via heatmaps and session recordings to see how users interact with your store.
Combining these tools with your Shopify reports gives you both the "what" and the "why" behind performance trends.
Making Decisions From Your Data
At the end of the day, numbers only matter if they lead to action. Here are some data-informed decisions you can start making:
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Low add-to-cart rates? Try adjusting your product photos, pricing format, or reviews section.
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High mobile bounce rate? Optimize your site speed and mobile layout.
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Low returning customer rate? Launch a post-purchase email series or loyalty program.
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High-performing SKUs? Feature them on your homepage, in ads, or in bundles.
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Seasonal traffic dips? Plan sales events or fresh content around off-peak periods.
Don’t just read reports—build a rhythm of weekly review and monthly strategic action. Over time, this builds compound growth and helps you stay ahead of the curve.
Final Thoughts
Shopify analytics aren’t just about tracking—they’re about clarity. The more fluently you can read your store’s data, the faster and smarter your business decisions will be. From optimizing product pages to shifting your ad budget or launching new campaigns, data is your most honest business partner.
Don’t be intimidated by dashboards. Open them regularly, read the story behind the numbers, and take action. That’s where real ecommerce growth begins.