Ecommerce Analytics: A Beginner’s Guide

Ecommerce analytics is the process of collecting, analyzing, and interpreting data from an online store to understand its performance and make data-driven decisions.

Here are some key metrics that ecommerce businesses should track:

  1. Traffic: This includes the number of visitors to the website, where they came from, and what pages they viewed.
  2. Conversion rate: The percentage of website visitors who make a purchase.
  3. Average order value: The average amount spent per transaction.
  4. Repeat customers: The percentage of customers who make multiple purchases.
  5. Cart abandonment rate: The percentage of visitors who add items to their cart but do not complete the purchase.
  6. Product performance: The performance of individual products, such as how many were sold and at what price.
  7. Customer demographics: Information about the age, gender, and location of customers.
  8. Referral sources: The websites or marketing channels that drive the most traffic and sales.
  9. Search terms: The most common search terms used on the website.
  10. Marketing campaigns: The performance of various marketing campaigns, such as email marketing, social media, and paid advertising.

To track these metrics, ecommerce businesses can use a variety of tools such as Google Analytics, Adobe Analytics, Mixpanel, and Heap. These tools provide detailed information about website traffic, conversion rates, and customer behavior, and allow businesses to segment their data and analyze it in different ways.

By analyzing this data, ecommerce businesses can identify areas for improvement, such as increasing conversion rates, reducing cart abandonment, or identifying high-performing products. They can also use the data to make decisions about their marketing strategy, such as where to invest more resources and what types of campaigns to run.

Overall, ecommerce analytics is an essential tool for businesses to understand their performance, identify opportunities for growth, and make data-driven decisions.