Learning from running an e-commerce company is one plain fact: progress only occurs when groups collaborate. Each department plays its part, but actual growth occurs when their actions are aligned.
That’s why I prefer to divide OKRs into the nine fundamental departments most e-commerce businesses bank on. Rather than arbitrary to-dos, every set contains 3–5 definite objectives that not only propel their own targets but also assist other teams.
When OKRs are aligned, marketing is providing feedback to the product, customer service is working together with operations, and finance ensures growth is sustainable. It’s not about one team winning anymore, it’s about the entire company progressing as one.
OKRs to me aren’t about creating lengthy lists that hang in a document. They’re about providing each team with a clear line of sight to how their work is related to the larger picture.
At the end of the day, no department can thrive on its own. The real impact shows up when everyone is pulling in the same direction and that’s exactly what OKRs make possible.
Founder/Owner
1. Increase the Overall Profitability
Objective: Increase the company’s overall profitability by 10% this year
Owner: Founder
Period of time: 1 year
Key Results:
- Raise net profit margin by 2%
- Cut operating expenses by 3%
- Generate revenue by 5%
2. Grow the Market Share of our Company
Objective: Grow the company’s market share by 3% this year
Owner: Founder
Period of time: 1 year
Key Results:
- Increase customer acquisition by 4%
- Reduce customer churn by 1%
- Expand into 2 new geographic markets
Product Management
1. Face the Price War with Other E-commerce Brands
Objective: Mitigate the impact of price wars with other E-commerce brands
Owner: Head of Product Management
Period of time: 3 months
Key Results:
- Increase average order value by 10%
- Launch 2 new product lines with higher margins
- Improve customer perception of brand value by 5%
2. Provide Detailed Product Descriptions and Clear Return Policies
Objective: Enhance customer experience with better product details and clear return policies
Owner: Head of Product Management
Period of time: 3 months
Key Results:
- Ensure all product descriptions are at least 300 words and include high-quality images from all angles
- Add a clear and simple return policy on the website and mobile app
- Reduce customer inquiries about product info or returns by 20%
3. Expand the Product Range
Objective: Expand the product range by 15%
Owner: Head of Product Management
Period of time: 6 months
Key Results:
- Launch 20 new products
- Achieve a 70% success rate for new product launches (based on sales targets)
- Increase website traffic by 5% through category expansion
4. Enhance Packaging Efficiency
Objective: Enhance packaging efficiency by 10%
Owner: Head of Product Management & Fulfillment and Logistics Team
Period of time: 3 months
Key Results:
- Reduce packaging material usage by 5%
- Implement a standardized packaging system for core product categories
- Decrease product damage during shipping by 2%
Inventory Management
1. Optimize Inventory Levels Across Warehouses
Objective: Optimize inventory levels to reduce carrying costs by 5%
Owner: Head of Inventory Management
Period of time: 6 months
Key Results:
- Achieve a 95% in-stock rate for all core products across warehouses
- Reduce inventory turnover ratio by 10%
- Implement a warehouse management system (WMS) for better tracking and optimization
2. Effectively Forecast Inventory and Predict Demand
Objective: Improve demand forecasting accuracy by 10% to reduce stockouts and overstock
Owner: Head of Inventory Management & Marketing and Customer Acquisition
Period of time: 1 year
Key Results:
- Reduce stockouts by 15%
- Cut excess or obsolete inventory by 20%
- Implement a data-driven forecasting model using sales data, marketing results, and seasonal trends
Marketing & Customer Acquisition
1. Drive the Sales Revenue
Objective: Increase sales revenue by 8%
Owner: Head of Marketing & Customer Acquisition
Period of time: 1 year
Key Results:
- Grow website conversion rate by 15%
- Increase average order value by 5%
- Acquire 10% more new customers through marketing efforts
2. Acquire more Traffic Using SEO
Objective: Increase website traffic by 20% through SEO efforts
Owner: Head of Marketing & Customer Acquisition & Technology and Development
Period of time: 6 months
Key Results:
- Improve rankings for 15 high-priority product keywords
- Increase organic website traffic by 20% (measured via analytics)
- Complete a technical SEO audit and fix optimization issues
3. Drive Brand Awareness Through Social Media
Objective: Enhance brand awareness by reaching 2 million followers across all platforms
Owner: Head of Marketing & Customer Acquisition
Period of time: 1 year
Key Results:
- Increase social media followers by 50% across all platforms
- Achieve a 10% engagement rate on posts
- Launch 2 successful campaigns that drive brand mentions and positive sentiment
4. Offer a Seamless Omnichannel Customer Experience
Objective: Provide a seamless omnichannel customer experience across all touchpoints
Owner: Head of Marketing & Customer Acquisition & Technology and Development
Period of time: 1 year
Key Results:
- Ensure consistent brand experience and messaging across all channels
- Integrate data from all touchpoints into a unified customer profile
- Increase customer satisfaction with omnichannel experience by 10% (via surveys)
5. Create targeted promotions and a personalized shopping experience
Objective: Develop targeted promotions and personalize the shopping experience to boost engagement and loyalty
Owner: Head of Marketing & Customer Acquisition
Period of time: 3 months
Key Results:
- Launch a personalized product recommendation engine on website and app
- Run targeted email campaigns based on purchase history and browsing behavior
- Increase repeat purchase rate by 3%
6. Leverage the AI to Enhance Customer Experience
Objective: Use AI to enhance customer experience
Owner: Head of Marketing & Customer Acquisition & Technology and Development
Period of time: 1 year
Key Results:
- Launch an AI-powered chatbot for FAQs and basic support
- Use AI to analyze reviews and social media sentiment for improvement areas
- Improve customer satisfaction score by 5% (via surveys on AI features)
7. Adapt to Evolving Customer Behavior
Objective: Adapt to evolving customer behavior by tracking trends and preferences
Owner: Head of Marketing & Customer Acquisition
Period of time: 1 year
Key Results:
- Set up tracking for website analytics, social media engagement, and surveys
- Produce quarterly reports on customer behavior to guide marketing strategies
- Run A/B tests on marketing strategies and website features to optimize experience
Customer Service
1. Process Returns Efficiently and Reduce Return Rates
Objective: Improve return process to boost satisfaction and reduce return rates
Owner: Head of Customer Service
Period of time: 3 months
Key Results:
- Cut return processing time by 20%
- Add a self-service return portal on website and app
- Reduce customer inquiries about return policies by 15%
2. Provide Prompt and Helpful Service to Build Trust and Loyalty
Objective: Increase customer satisfaction score by 10% with faster, more helpful service
Owner: Head of Customer Service
Timeline: 1 year
Key Results:
- Respond to all customer inquiries within 60 seconds across channels
- Raise agent resolution rate to 90%
- Add post-service satisfaction surveys after every interaction
Fulfillment and Logistics
1. Deliver Fast and Offer Free Shipping
Objective: Improve customer satisfaction with faster delivery and free shipping options
Owner: Head of Fulfillment & Logistics
Timeline: 6 months
Key Results:
- Cut average delivery time by 1 day for core products in core markets
- Offer free shipping for orders above $X
- Raise delivery satisfaction by 5% (via surveys)
2. Implement Hassle-free Return Policies
Objective: Streamline the return process with hassle-free options
Owner: Head of Fulfillment & Logistics & Customer Service
Timeline: 3 months
Key Results:
- Provide pre-paid return shipping labels for eligible returns
- Cut average return processing time by 15%
- Improve return process satisfaction by 10% (via surveys)
3. Build a Robust Logistics Network
Objective: Strengthen the logistics network to ensure efficient and cost-effective order fulfillment
Owner: Head of Fulfillment & Logistics
Due Date: 1 Year
Key Results:
- Reduce order fulfillment errors by 10%
- Increase on-time delivery rate by 5%
- Implement a warehouse management system (WMS) to optimize inventory allocation and order fulfillment across warehouses
4. Establish a Successful Supplier Management
Objective: Build strong supplier relationships for timely delivery and better pricing
Owner: Head of Fulfillment & Logistics
Timeline: 1 year
Key Results:
- Negotiate a 2% cut in average supplier lead times
- Achieve 95% on-time delivery from core suppliers
- Raise supplier satisfaction score by 5% (via surveys or reviews)
Technology and Platform
1. Provide Customer Data Security
Objective: Strengthen customer data security with robust measures
Owner: Head of Technology & Development
Timeline: 1 year
Key Results:
- Achieve SOC 2 compliance certification
- Enable two-factor authentication (2FA) for all customer accounts
- Run regular penetration tests and vulnerability checks to fix risks
2. Ensure a Mobile-friendly Experience
Objective: Improve mobile experience to boost engagement and conversions
Owner: Head of Technology & Development
Timeline: 1 year
Key Results:
- Raise mobile app conversion rate by 10%
- Achieve an average app store rating of 4.5+ stars
- Cut mobile app loading time by 20%
3. Comply with Evolving Data Privacy Regulations
Objective: Stay compliant with evolving data privacy regulations
Owner: Head of Technology & Development & Legal Department
Timeline: 3 months
Key Results:
- Set up a process to track data privacy regulation changes
- Run a compliance audit to find gaps and create an action plan
- Apply required updates within 30 days of new regulations
Finance and Accounting
1. Data Analysis to Identify Cost-saving Opportunities
Objective: Use data analysis to find and achieve at least 5% cost savings
Owner: Head of Finance & Accounting
Timeline: 1 year
Key Results:
- Launch a cost-saving initiative that cuts operational expenses by 2%
- Produce quarterly variance reports to spot optimization opportunities
- Build a system to track KPIs for operational efficiency
2. Optimize Pricing Strategies
Objective: Optimize pricing strategies to boost profitability
Owner: Head of Finance & Accounting & Marketing and Customer Acquisition
Timeline: 1 year
Key Results:
- Raise gross profit margin by 1.5% through pricing adjustments
- Run A/B tests on pricing strategies for key product categories
- Implement a dynamic pricing model based on demand, competition, and costs
Human Resources
1. Recruit more Relevant Employees
Objective: Improve recruitment to attract and hire top talent
Owner: Head of Human Resources
Timeline: 1 year
Key Results:
- Cut time-to-hire for core roles by 15%
- Achieve 90% retention rate for new hires
- Increase use of skills-based assessments by 20%
2. Retain the Top Talent Across all Departments
Objective: Foster a positive work environment to retain top talent
Owner: Head of Human Resources
Timeline: 6 months
Key Results:
- Lower employee turnover rate by 2%
- Improve employee satisfaction score by 5% (via engagement surveys)
- Launch 2 recognition programs to celebrate achievements and boost morale
3. Upskill the Workforce
Objective: Support employee growth with continuous upskilling opportunities
Owner: Head of Human Resources & Department Heads
Timeline: 1 year
Key Results:
- Run a skills gap analysis to identify upskilling needs
- Increase participation in training programs by 10%
- Launch a mentorship program connecting experienced staff with new hires and high-potential employees
Conclusion
I’ve seen firsthand that no e-commerce team can do everything alone. Marketing can bring in traffic, but without operations and customer service in sync, growth stalls. And that’s where OKRs come in, and helps to connect the dots and get everyone moving toward the same goal.
The best part? OKRs turn big goals into clear steps each team can take. Sales, product, finance everyone sees how their work fits the bigger picture.
Setting the right OKRs can be tiring, but that’s what we assist with. Our consultants collaborate with you to define OKRs that are not only targets, but actually growth tools.
If you’re ready to align your teams and move with velocity, let’s connect.
Frequently Asked Questions
Q1. What are OKRs in e-commerce?
OKRs are a framework that breaks big business goals into clear objectives and measurable results. They help teams know exactly what to achieve and how success will be tracked.
Q2. Why are OKRs important?
They align all departments, prevent teams from working in silos, and keep everyone focused on the same business priorities. This leads to faster, more sustainable growth.
Q3. How often should OKRs be reviewed?
Quarterly reviews are common, with regular check-ins to track progress. This ensures teams stay on course and can adapt quickly if needed.
Q4. Can small e-commerce businesses use OKRs?
Yes, OKRs aren’t just for large companies. They help small teams stay focused, prioritize better, and compete effectively in fast-moving markets.
Gaurav Sabharwal
CEO of JOP
Gaurav is the CEO of JOP (Joy of Performing), an OKR and high-performance enabling platform. With almost two decades of experience in building businesses, he knows what it takes to enable high performance within a team and engage them in the business. He supports organizations globally by becoming their growth partner and helping them build high-performing teams by tackling issues like lack of focus, unclear goals, unaligned teams, lack of funding, no continuous improvement framework, etc. He is a Certified OKR Coach and loves to share helpful resources and address common organizational challenges to help drive team performance. Read More
Gaurav Sabharwal