eCommerce Analytics

eCommerce Analytics Explained: The Importance of eCommerce Metrics

As a beginner just venturing into the world of website management, the most demotivating part was when I had to check my website’s analytics. 

It was a regular old blog, but just opening the analytics dashboard, I was welcomed to a milieu of graphs and charts which, at the time, made no sense to me at all. 

While things have definitely changed for me, there are those who are still overwhelmed with analytics. When you bring in eCommerce website management, things get even more problematic. 

No need to fear though, because in this post we’ll take you through a short journey on everything eCommerce analytics. 

Ecommerce Analytics: Explained

If you don’t know what you’re doing, eCommerce analytics can get complicated really fast. 

But here’s the thing: it’s one of the most effective methods through which you can analyze how your business is performing and growing overall. 

Imagine a world without eCommerce analytics. You’re getting sales, and are generating leads, but you don’t know the difference between a hot and a cold lead. In addition to that, you don’t know what kind of customer is visiting your site, where they are coming from, and what kind of demographics they fall under. 

In short, you have no clue on what’s happening to your site. As a result, you’re not able to make decisions that might cause your business to grow.

Ecommerce analytics matter a lot. They help organizations set and track goals, improve their business processes, and gain insights into the customers at a granular level. 

On top of everything else, eCommerce analytics helps you overcome your competition, grow your revenues, and improve your business. 

We’ve already mentioned that they’re quite important, but let’s elaborate on it a bit more. 

The Importance of Ecommerce Analytics

Ecommerce analytics are a doorway towards understanding a customer. Mapping the entire customer journey, from product discovery to checkout, and how customers move through the sales funnel, is all possible because of these analytics. 

The following are just some of the main benefits you can gain from integrating an analytics software to your eCommerce store:

  • Helps you see where your customers are coming from. With these traffic statistics at your disposal, you can see through what methods are customers coming to your store, and what search terms are driving them to your website. 
  • Since they allow you to map the customer journey for your business, analytics allow you to see the points where they are converting most, and where they’re opting out of a purchase. With this data, you can optimize the high conversion points even more, and fix the issues at the low conversion points.
  • Besides mapping the customer journey, eCommerce analytics allow you to check the personal information related to your customers. Everything from their contact information, to their sales and order histories – you have access to all the data points. This can prove very useful for retargeting and future decision making. 
  • With so much data at your disposal, you can further improve the customer experience for your brand. You can further optimize your store for more sales, leads, and ensuring that everything is smooth on your website. 

Ecommerce Analytics: The Types

Besides the all-powerful Google Analytics, most modern eCommerce platforms come equipped with a variety of different analytics software. 

For businesses looking to implement cross-channel marketing and sales strategies, these software can provide you with various insights into their progress. 

Even though there are so many analytics software available on the internet, they all fall under one of the three main categories which we’ll discuss below. 

Website Analytics

These are the basic analytics software like Google Analytics. They provide essential information related to how your website is performing. From what kind of terms users are searching to visit your website, the traffic sources, to checkout, conversion rates, display metrics, and other factors are all important forms of analytics. s

If you’re not running a multi-channel eCommerce strategy, and aim to get your traffic from a single web source, then web analytics are your best friend. They help you map your customers to the tee, and develop a healthy relationship with them. 

Social Media Analytics

As the name suggests, social media analytics give you essential details related to the performance of your social media strategy. Facebook, Twitter, Instagram, LinkedIn and other social media platforms each have their own social media analytics tools.  

They allow you to check the engagement of your eCommerce store, click-through rates, as well as other information related to your followers. They provide you with the essential information needed to improve your eCommerce strategy on social media.

Email Analytics 

In comparison to the other strategies, Email analytics are very different in that they’re restricted to only providing data related to your email marketing strategy. 

Now, there are plenty of email marketing strategies you can apply to your store. With the right email tracking tools, you can see how many people opened up your email, who clicked through, who subscribed, and unsubscribed to your email address. 

eCommerce Analytics Tools

E-Commerce Analytics Tools

Now that you have a general idea of what eCommerce analytics is, it’s time we explain the various eCommerce and general analytics tools available online. 

All of these tools are essential must-haves if you’re looking to understand and interpret data more effectively. 

Google analytics is by-far one of the best tools to use to gain more insights on your website. It’s a free, and easy-to-integrate tool that gets you started with eCommerce tracking. If you’re new to Google Analytics, no need to worry since there are plenty of tutorials, and documentation to walk you through it with ease. 

Customer Relationship Management (CRM) tools one-up the benefits provided by Google Analytics, and provide you with the ability to organize traffic with effective ease. It keeps all your information in one place, giving you more granular data related to your customers. 

Plenty of eCommerce stores come equipped with software that track analytics information and streamline the sales processes for users. 


With more and more brands opening up digital storefronts for their traditional business, there is serious competition to look out for.

To survive in this digital landscape, you need to be smart. This article discussed how you can utilize eCommerce analytics for smart decision making. We hope it gave you an idea of the importance of analytics in the eCommerce landscape.

We hope this article proved helpful! 

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