The ROI of Email Marketing in E-commerce: Benchmarks and Best Practices

Is email dead in e-commerce?

With TikTok ads averaging an 11.8x short-term ROI, influencer campaigns generating $4.12 for every $1 spent, and SMS delivering up to $40 ROI per dollar, it’s easy to think email’s time is up.

But here’s the truth: email still delivers the highest ROI in digital marketing, with e-commerce brands earning up to $45 for every $1 spent.

So why isn’t everyone seeing those numbers? Simple: most aren’t using email correctly.

If you think you’re one of those brands and you want to learn how to use email for the good of your brand, you’re in the right place! Read on as in this article, we’ll cover:

Why email still delivers strong ROI in e-commerce
The key benchmarks you should track (and aim for)
Best practices to boost open rates, clicks, and conversions
Recommended email service providers

By the end, you’ll know exactly how to turn email into a reliable sales engine for your e-commerce business.

Why email marketing still works

Email marketing continues to outperform because it gives e-commerce brands something most channels can’t: an owned channel. This means you’re not dependent on algorithms—the complex rules that decide who sees your content on platforms like Facebook—or on rising ad costs, which increase every time more brands compete for the same audience.

Once someone signs up for your email list, you can connect with them directly without paying every time and build long-term value across the customer journey. That’s why email works especially well for things such as:

Reminding shoppers to complete their purchase. These quick nudges help recover lost sales with minimal effort.
Announcing new products or limited-time offers. These emails build excitement and prompt faster buying decisions.
Following up after a purchase. A simple thank-you, care instructions, or product recommendations can increase repeat orders and customer trust.
Rewarding loyal customers or encouraging referrals. Special perks and incentives keep your best buyers engaged and help attract new ones.

In short, unlike social media or paid ads, where reach isn’t guaranteed and costs can spike overnight, email is direct, measurable, and scalable, making it one of the most dependable tools in your marketing strategy.

What benchmarks should you aim for?

So, if email is this powerful, how do you know if yours is actually performing? Aside from the ROI (which was mentioned above), here are five key benchmarks every e-commerce brand should monitor:

Open rate (15%–25%): This tells you how many recipients opened your email. It’s a direct reflection of how effective your subject lines and sender name are. If open rates are low, your message isn’t even making it past the inbox preview.
Click-through rate (CTR: 2%–5%): A healthy CTR means your email content and call-to-action are compelling enough to drive engagement. If people open but don’t click, that’s a sign your content might not be aligned with their intent or needs.
Conversion rate (varies by campaign): This is the percentage of recipients who take the desired action after clicking, like making a purchase or signing up for a promo. Campaigns like abandoned cart emails often convert 3x better than generic newsletters. This metric is the most direct link to revenue impact.
Bounce rate (keep it below 2%): A high bounce rate means your emails aren’t getting delivered, often due to invalid addresses or outdated lists. This affects not only your deliverability but also your sender reputation. Removing invalid or unengaged contacts regularly helps keep your list healthy and your emails deliverable.
Unsubscribe rate (ideally under 0.5%): If people are opting out at a high rate, something’s off. Maybe you’re sending too often, or your content isn’t meeting expectations. A low unsubscribe rate means your emails are relevant, well-targeted, and welcome in your customers’ inboxes.

Best practices that boost ROI

The above benchmarks show how well your emails are performing. If your numbers are low, it doesn’t mean email has failed; the solution often comes down to strategy. The following best practices can help you improve performance where it counts most.

Segment your list

One-size-fits-all emails are a quick way to lose engagement. This is why you should segment your list based on customer behavior, like purchase history, browsing activity, or location. A returning customer should see different offers than a first-time visitor. Tailoring your message makes each email more relevant and more likely to convert.

Build lifecycle emails

Set up automated emails that follow where someone is in the buying journey. For instance, you can start with a welcome series for new subscribers. Then create messages for people who browse but don’t buy, leave items in their cart, or complete a purchase. These emails are timely, personal, and usually perform better than one-off promos because they meet the customer at the right moment.

Test subject lines and timing

Your subject line is your first impression; if it doesn’t catch attention, the email won’t get opened. Try different approaches: ask a question, highlight an offer, or use personalization. Test your send times too. Some audiences respond better in the morning, others at night. The goal is to find out what gets your audience to open and click, not just what feels right.

Optimize for mobile

Most emails are now opened on phones, with mobile accounting for over 40% of all email opens in 2025. If your message doesn’t load fast or format correctly, you’re losing readers before they even scroll. Use large fonts, a single-column layout, and buttons that are easy to tap. Always keep your main call-to-action visible right away.

Track and improve

Don’t just send emails and forget about them. Keep an eye on the key metrics mentioned above, as well as revenue per email, and average order value (the average amount a customer spends when they buy from you). This helps you see which emails are bringing in results and which ones are falling short. Reviewing performance regularly lets you fix issues early and make smarter decisions that lead to more sales.

Recommended email service providers

You may know what to watch for in your email performance, but those benchmarks won’t mean much if you’re using the wrong tools. You need an email service provider (ESP) that works especially well for e-commerce brands, such as:

Klaviyo: Built for e-commerce with deep integrations for Shopify, WooCommerce, and BigCommerce. Great for advanced segmentation, product-triggered flows, and real-time revenue tracking.
Mailchimp: Best for smaller brands or beginners. It’s easy to use, has strong templates, and offers basic automation and analytics without a steep learning curve.
Omnisend: Also designed specifically for e-commerce. Comes with built-in tools like product pickers, cart abandonment tracking, and SMS/email integration.
Drip: Ideal for brands focused on personalization and multichannel marketing. Strong visual flow builder and advanced tagging for behavior-based targeting.

If you're currently using a basic email tool—like Gmail, Outlook, or a platform that wasn’t built for e-commerce—you’re likely missing out on features like automation, segmentation, and performance tracking. Each of these ESPs supports the best practices we covered earlier and gives you the data and automation needed to scale your email revenue.

Conclusion

Email still delivers—but only if you treat it as a revenue channel, not just a place to send announcements. The brands that see real ROI are the ones who take it seriously: they segment their lists, build automated journeys, and continuously test what works.

If you’re just getting started, focus on your top three core email journeys: a welcome series for new subscribers, reminders for abandoned carts, and post-purchase follow-ups. Nail those, and the returns will come.