Ecommerce Diagnostic 5

Question 1

Traffic and conversion are stable, but revenue is declining month over month. What is the most likely culprit to diagnose?

Accepted Answer

Falling average order value or increased discounting

Answer

Stable traffic and conversion with falling revenue points to lower AOV or heavier discounting.

Question 2

A diagnostic shows most cart abandonment happens at the shipping-cost reveal step. What is the best fix to test?

Accepted Answer

Show shipping costs earlier or offer free-shipping thresholds

Answer

Unexpected shipping costs at the end are a top abandonment cause; revealing them earlier reduces surprise.

Question 3

Which cohort analysis insight best diagnoses a retention problem?

Accepted Answer

Each new customer cohort buys less over time after sign-up

Answer

Declining repeat purchases within cohorts over time is the clearest retention signal.

Question 4

Email is your top revenue channel by attribution, but uses last-click. What diagnostic caution applies?

Accepted Answer

Last-click may over-credit email and undercount earlier touchpoints

Answer

Last-click attribution credits the final touch, potentially overstating email's true contribution.

Question 5

Which metric best diagnoses inventory health for cash flow purposes?

Accepted Answer

Inventory turnover rate

Answer

Inventory turnover shows how quickly stock sells, indicating whether cash is tied up in unsold goods.

Ecommerce Practice Test