Ecommerce Ecommerce Analytics & Metrics 1

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

Ecommerce conversion rate is the most fundamental performance metric, indicating how efficiently the site turns visitors into buyers.

Question 2

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

Accepted Answer

Events

Answer

GA4 is event-based, meaning every user interaction (page view, scroll, click, purchase) is tracked as an event rather than aggregated into sessions.

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

Attribution models determine how conversion credit is distributed across channels — last-click, first-click, linear, time decay, or data-driven.

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

A healthy CLV:CAC ratio (typically 3:1 or higher) ensures that the revenue from a customer over their lifetime justifies the cost to acquire them.

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

Funnel analysis reveals exactly where users abandon the purchase journey, enabling targeted improvements to the highest-drop-off steps.

Ecommerce Practice Test