Ecommerce Ecommerce Analytics & Metrics

Question 1

What is the ecommerce conversion rate and how is it calculated?

Accepted Answer

Transactions ÷ Sessions × 100 — the percentage of site visits that result in a completed purchase

Answer

Revenue ÷ Sessions — the average revenue per visit

Answer

Add-to-cart clicks ÷ Product page views — the product engagement rate

Answer

Returning visitors ÷ Total visitors — the loyalty percentage

Question 2

What does Google Analytics 4 (GA4) use as its primary tracking unit instead of sessions?

Accepted Answer

Events

Answer

Page views

Answer

Transactions

Answer

Users

Question 3

What is 'attribution modeling' in ecommerce analytics?

Accepted Answer

Assigning credit to the marketing touchpoints that contributed to a conversion along the customer journey

Answer

Generating automated performance reports from ad platform data

Answer

Attributing product returns to specific marketing campaigns

Answer

Calculating how much revenue each customer service rep generated

Question 4

What does 'customer acquisition cost' (CAC) compare against in ecommerce profitability analysis?

Accepted Answer

Customer lifetime value (CLV) — CAC must be lower than CLV for the business to be sustainable

Answer

Average order value (AOV) — CAC must be lower than each order's revenue

Answer

Gross margin percentage — CAC must be lower than 50% of gross margin

Answer

Monthly recurring revenue — CAC should not exceed one month's revenue per customer

Question 5

What is a funnel analysis in ecommerce analytics?

Accepted Answer

Tracking the step-by-step progression of users from product discovery through checkout to identify drop-off points

Answer

Analyzing the shape of a sales growth curve over time

Answer

Comparing revenue across marketing channels in a single view

Answer

Segmenting customers into top/middle/bottom tiers by purchase frequency

Question 6

What does 'traffic source' segmentation in ecommerce analytics reveal?

Accepted Answer

Which channels (organic search, paid ads, social, email, direct) are driving visitors and how each converts

Answer

The physical geographic location each website visitor comes from

Answer

Which internet service provider most visitors are using

Answer

The device type (mobile, tablet, desktop) of site visitors