E-commerce Strategy & Planning Flashcards
7 cards from real CEC practice questions. Tap to flip, then mark Knew It or Still Learning โ missed cards come back until you master them.
Read the first 7 E-commerce Strategy & Planning flashcards as text
An e-commerce brand's gross margin is 60% but net margin is 2%. Which area should the consultant investigate FIRST?
Answer: Operating expenses and overhead costs
A large gap between gross and net margin signals excessive operating costs such as fulfillment, staffing, or software eating into profitability.
Which framework helps prioritize e-commerce growth initiatives by evaluating Impact, Confidence, and Ease?
Answer: ICE scoring
ICE scoring ranks initiatives by multiplying Impact, Confidence, and Ease scores so teams focus on high-value, low-effort experiments first.
A brand sells B2B and B2C through the same platform. What is the primary strategic risk of this approach?
Answer: Pricing conflict and channel cannibalization
Exposing wholesale B2B pricing alongside retail B2C pricing can undermine retail margins and create conflicts with reseller partners.
What is the strategic purpose of a product catalog audit in e-commerce planning?
Answer: To identify underperforming SKUs and rationalize the assortment
A catalog audit reveals SKUs that drain logistics and merchandising resources without proportional revenue contribution, enabling smarter assortment decisions.
Which growth strategy involves selling existing products to new customer segments or geographies?
Answer: Market development
Market development (from Ansoff's Matrix) expands reach by targeting new demographics or regions with the current product line.
A consultant recommends an omnichannel strategy. What is the core benefit compared to multichannel?
Answer: Unified customer experience across all touchpoints
Omnichannel integrates inventory, data, and messaging so customers experience seamless consistency whether shopping in-store, on mobile, or via chat.
When building an e-commerce business plan, what does a 'unit economics' analysis primarily evaluate?
Answer: Profitability of a single transaction or customer
Unit economics measures contribution margin per order or LTV minus CAC per customer to determine whether the business model is inherently profitable at scale.