How does Analytics play an Important Role in E-Commerce?

In this digital era, everyone is looking for E-Commerce as it’s a dynamically evolving industry. Electronic Commerce, well known as E-Commerce is an online platform for buying and selling goods. It has become the vast growing and customer oriented business industry. In spite of everything, what is more important in this process is to be aware about the activity of visitors and customers who use to visit your site or buy products from your site. In turn, merchants need to be more attentive to survive and succeed, and for that they need to be able to make improved decisions faster. It’s when web analytics comes into play.

What is the need of Tracking Activity?
Online behaviours show that the businesses themselves, and their E-Commerce presences, are often the biggest deterrent to conversions. And in conclusion, it’s very necessary to create some segments that can help the E-Commerce stores to get the information relevant to the customers’ activities and visitors’ behaviour.


Once the merchant of the site would become known to the tracking information, s(he) can set the new standards and gain the popularity for the E-Commerce website. In this competitive business world, tracking the activity of the audience in real time is not an easy task. And here, when we can raise a toast for analytics…

What is Analytics? How it works for E-Commerce?We tend to reach on any conclusion after the proper analysis of any site. The entire process of analysis counts as the Analytics while performing diverse tactics. When it comes to E-Commerce, Analytics lends a hand more precisely as it helps in

  • Tracking the customer/visitor' behaviour
  • Analysing the customer/visitor' behaviour

E-Commerce is the online business platform; moreover a customer oriented dais, where you have to be more aware & conscious about the customer’ interest and demography. As we know that there are multiple ranges of E-Commerce sites; from small to medium and big website, all we need to know is about the insights. Without having any knowledge about the insights, the merchant cannot determine the real audience and their interest. In conclusion, there is no scope of success and growth.


If you are not aware about the marketing strategies and other stuff such as what people are using or want to achieve then it is nothing but a bad business play. Not knowing the marketing strategies effects! And still you are implementing things constantly… it’s totally a squander of time and cost. In conclusion, you will not be getting any profit from the channels on which you are spending efforts.

Why it's a Wonder?
What make analytics beautiful are its statistical information and the real time activities. It lets you know about the understanding of your audience as well as about the competitors. You can take this information as your advantage in your business. It’s very important to know the issues, which other E-Commerce businesses are facing so that you can maneuver things. By understanding the customer’ behavior you can get the insights regarding the market statistics. After knowing the things, you can make strategic modifications in your pricing and practices that will definitely give you the profit.

Get ready for the Conversions!
You are all done with your E-Commerce site, Campaign has been created yet you are lacking the real asset for your business and that is the Conversions. Here, the role of analytics comes in a bigger shape as it is one of the aspects that can mould the whole situation in a certain way. This is the first step in a way of building a new start with your audience. Online presence of any website can retain its popularity by keeping their customers nearby. By keeping your customers in close proximity, you can increase the required conversion rate and attain the conversions.
There are a number of analytic processes that we can use for analysing the E-Commerce sites; these will not only help in Customer behavior but also in Customer Acquisition.

  • Funnel Analytics - A funnel path is a sequence of pages in which visitor pass the complete funnel setup and proceed to the action. After the completion of an action, visitors reach on the goals, which is a page in real. You can count each action as a funnel and then can set the required goals.

Funnel Analytics depicts some aspects as:

  • From which point in the funnel path people tends to leave
  • What does turn them away? Is there any design element that doesn't work here?
  • Which funnels path convert the best?


By setting up a proper goal for your website you can make smarter decisions from the information provided with the goal such as

  • Which marketing campaign or referral brought most visitors
  • Demograohy and Geographic of converting visitors
  • The keyword that leads to goal conversation


  • Traffic Channel Tracking Analytics – Traffic channel tracking is very important as it associates with the advertise campaign and goals that measure the campaign performance and ROI. Since analytics can track all search queries and traffic source to your website, by adding campaign information you can also estimate the ROI of same. Traffic channel also help in obtaining information about the Meta tags such as which keyword is working more precisely and delivering organic traffic.

There are basically four categories mentioned in traffic tracking such as Search, referral, Campaign and Direct. Search traffic is the organic traffic comes directly from the search engines, Referral comes directly from some other websites or referrals, Campaign traffic comes as per the marketing strategies, and direct traffic comes without any source. The need of the segmented traffic is extremely high as the more traffic would segment the more merchants would learn about the divergent channels and diverse audience.  

  • E-Commerce Tracking Analytics- By evaluating sales activity and performance, you will get to know about the:
  • Transaction detail
  • Revenue
  • E commerce conversion rate
  • How many times people visited your website
  • How many products purchased from your website


  • On-site Search Tracking Analytics - One of the imperative and wonderful features of analytics is On-site search tracking. It produces internal search reports. It is about how people search once they entered your website.

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By analysing the search report following things can be determined:

  • The most searchable product by user
  • How user start his search
  • How user end up his search
  • Social Media Analytics – Social Media Analytics is a new gem for the E-Commerce Marketing. It is one of the well-liked marketing channels for the E-Commerce stores and their owners. You can easily get acquainted with your customers' interest, demo, geo and their behaviour.


In over the past years, it has become more popular and imperative. Whether you are having online business that has a Facebook page or you want to create some buzz on Twitter, LinkedIn, all you need to know about the insight section. Insights or analytics show the customers' experience and behaviour. It will help you out in improving your social media profiles and pages.

  • Product Focused Analytics – Product focused analytics detailed the gratification rate of the customers and anticipation of the sales for a product. This process analyses the complete products across all verticals. Basically a product oriented analysis defines all the aspects related to the product. By using this you can justify your product inventory and provide more relevant and required products.

All in all, these are the key ingredients of web analytics that can help merchants in scrutinising the real-time audience behavior with a significant approach.
To the best of knowledge, the E-Commerce has reformed the way we look at our customers; it’s become more vital to know about them. By using the analytics you not only forecast the Customer’ Behaviour but also get aware about the ROI, Revenue, Sales and Customer Acquisition.

Henceforth, it’s clear that analytics plays a decisive part in the E-Commerce. Just so you know that one of reasons of E-Commerce industry’ growth is the measurement of user’ behavior that helps in making the site delightful.
A number of analytics tools are there to measure the accurate statistics of the site such as Google Analytic, SEMrush, Kissmetrics, and Moz analytics. These are wonderful analytics tools that provide accurate information and statistics. No wonder why analytics is inevitable for the E-Commerce sites and the Merchants. Know more about E-Commerce Website Development