Mixed Deck — All CES Topics Flashcards

Why is email marketing effective for ecommerce?

Answer: It provides direct, personalized marketing to users

Email marketing is highly effective for ecommerce because it enables direct and personalized communication with customers and subscribers. Businesses can send targeted promotions, abandoned cart reminders, new product announcements, and loyalty program updates. This direct channel fosters customer relationships, drives repeat purchases, and offers a strong return on investment.

What is the primary advantage of using a payment gateway over directly processing credit cards?

Answer: It securely transmits payment data between the customer, merchant, and bank

A payment gateway securely encrypts and transmits card data between the customer, merchant, and acquiring bank, reducing the merchant's security burden.

Cross-channel attribution in ecommerce analytics is used to:

Answer: Determine how much credit each marketing channel deserves for contributing to a conversion

Cross-channel attribution models distribute conversion credit across all touchpoints in the customer journey, giving marketers a more accurate view of each channel's ROI.

What is the primary legal risk of using customer product reviews that contain misleading claims on an ecommerce site?

Answer: FTC enforcement action for facilitating deceptive advertising and potential consumer lawsuits

The FTC holds merchants responsible for reviews displayed on their sites; allowing fake, incentivized without disclosure, or materially misleading reviews can trigger enforcement actions and fines.

Which platform is commonly used for paid search advertising?

Answer: Google Ads

Google Ads is a widely recognized and powerful platform for paid search advertising. It allows businesses to display targeted advertisements to users searching for specific keywords on Google and its partner sites. This enables ecommerce stores to reach potential customers actively looking for their products, driving immediate and relevant traffic to their websites.

What is multi-channel integration in ecommerce?

Answer: Integration with multiple online selling platforms

Multi-channel integration in ecommerce refers to the strategy of selling products across various online platforms simultaneously. This includes your own website, major marketplaces like Amazon or eBay, and social media channels. By integrating these platforms, businesses can significantly expand their reach, connect with a broader customer base, and offer diverse purchasing options.

What is the impact of easy returns on customer experience?

Answer: They enhance trust and improve satisfaction

Easy and hassle-free returns significantly enhance customer trust and satisfaction. This policy reduces purchase anxiety, as customers feel confident that they can return an item if it doesn't meet their expectations. It demonstrates a brand's commitment to customer happiness and can lead to increased confidence and future purchases.

How do product categories help in inventory management?

Answer: They organize inventory and aid search

Product categories are essential in inventory management as they logically group similar items together, making stock easier to organize, locate, and track. For customers, categories improve the shopping experience by allowing them to quickly navigate the website and find specific types of products. This organization enhances both internal operations and customer usability.

Which PCI DSS compliance level applies to merchants processing more than 6 million card transactions per year?

Answer: Level 1

PCI DSS Level 1 applies to merchants processing over 6 million card transactions annually and requires an annual on-site audit by a Qualified Security Assessor.

What is the significance of the 'last mile' in ecommerce logistics?

Answer: The final step of delivery from a local hub to the customer's door, which is often the most costly

Last-mile delivery is the final step of the logistics chain delivering a package to the customer, and it is typically the most expensive and time-consuming segment.

What is the California Consumer Privacy Act (CCPA) most relevant to for ecommerce businesses?

Answer: Giving California residents the right to know what personal data is collected and to opt out of its sale

CCPA grants California residents the right to know what personal data businesses collect, the right to delete it, and the right to opt out of having their data sold to third parties.

What is tokenization in ecommerce payment processing?

Answer: Replacing sensitive card data with a non-sensitive placeholder value

Tokenization replaces sensitive payment card data with a unique identifier (token) that has no exploitable value if intercepted.

In ecommerce analytics, what is 'attribution modeling'?

Answer: The process of assigning credit for a sale to different marketing touchpoints in the customer journey

Attribution modeling determines how credit for conversions is distributed across the marketing channels a customer interacted with before purchasing (e.g., first-click, last-click, linear).

What is the difference between DDP and DDU shipping terms in international ecommerce?

Answer: DDP means duties are paid by the seller; DDU means duties are collected from the buyer upon delivery

DDP (Delivered Duty Paid) means the seller pays all import duties upfront, while DDU (Delivered Duty Unpaid) means the buyer is responsible for paying duties at delivery.

What does dropshipping mean?

Answer: Fulfilling orders without storing inventory

Dropshipping is an ecommerce fulfillment model where the retailer does not physically store the products they sell. Instead, when a customer places an order, the retailer purchases the item from a third-party supplier, who then ships it directly to the customer. This method eliminates the need for the retailer to manage inventory or warehousing.

What is the role of an EDI (Electronic Data Interchange) system in B2B ecommerce?

Answer: Automating the exchange of business documents like purchase orders and invoices between trading partners in a standardized format

EDI automates the transfer of structured business documents (purchase orders, invoices, shipping notices) between companies, replacing manual paper-based processes in B2B transactions.

What is Average Order Value (AOV) in ecommerce analytics?

Answer: The average dollar amount spent per transaction on the store

AOV is calculated by dividing total revenue by the number of orders over a period, indicating how much customers spend per transaction on average.

What does intellectual property protection mean for an ecommerce brand's product photos?

Answer: Original product photos are automatically protected by copyright, preventing others from using them without permission

Under US copyright law, original photographs are protected the moment they are created, meaning others cannot use, reproduce, or distribute them without authorization.

What is the purpose of a 3PL (third-party logistics) provider in ecommerce?

Answer: To handle warehousing, order fulfillment, and shipping on behalf of ecommerce businesses

A 3PL provider outsources warehousing, picking, packing, and shipping operations for ecommerce businesses, allowing merchants to scale without managing logistics infrastructure.

What is a payment processor's role in an ecommerce transaction?

Answer: It handles the technical transfer of transaction data between the merchant, card networks, and banks

The payment processor manages the technical aspects of transmitting transaction data between the merchant's bank, the card network, and the customer's issuing bank.