CEC E-commerce Strategy & Planning 2

Question 1

A DTC brand wants to reduce dependency on Amazon. Which strategic move best diversifies their sales channels?

Accepted Answer

Launch a branded Shopify store with loyalty rewards

Answer

Launching a branded own-domain store builds direct customer relationships, captures first-party data, and eliminates marketplace fees.

Question 2

Which metric best indicates whether a customer acquisition cost (CAC) is sustainable for an e-commerce business?

Accepted Answer

CAC to LTV ratio

Answer

A CAC:LTV ratio below 1:3 typically signals that acquisition costs outpace the long-term revenue generated per customer.

Question 3

An e-commerce consultant is evaluating a market entry strategy for a US apparel brand expanding into Germany. What is the MOST critical compliance consideration?

Accepted Answer

Complying with EU GDPR data privacy regulations

Answer

GDPR requires strict data handling, consent mechanisms, and privacy policies, with heavy fines for non-compliance across all EU markets.

Question 4

Which pricing strategy involves setting a high initial price and gradually lowering it over time?

Accepted Answer

Price skimming

Answer

Price skimming extracts maximum revenue from early adopters before reducing price to attract more price-sensitive segments.

Question 5

A startup e-commerce brand has limited budget. Which customer acquisition channel typically delivers the highest ROI at early stage?

Accepted Answer

Email marketing to an owned list

Answer

Email marketing to an owned list has near-zero per-send cost and consistently delivers among the highest ROI of any digital channel.

(CEC) Certified Ecommerce Consultant Practice Test

(CEC) Certified Ecommerce Consultant Practice Test

CEC E-commerce Strategy & Planning 2