Amazon Vendor Central Advertising: Brand Building & Sales Growth

Amazon Vendors have many choices when it comes to advertising online. Even though Vendors can take advantage of Facebook Ads, Google Ads, or other platforms, one of the most effective marketing strategies is to leverage Amazon Ads.

The difference between Amazon Vendor Central and Seller Central is that Vendors do not sell directly to customers, they sell to Amazon and then sell to consumers. As a result, Vendors are not directly transacting with customers, rather they are indirectly interacting with Amazon which is the merchant/retailer.

Why Amazon Vendor Advertising?

Vendors have several opportunities to ensure Amazon keeps returning and issuing those purchase orders for your products. One of the most prominent is Amazon Ads.

While Amazon Ads supports both Vendor Central and Seller Central merchants, it offers exceptional value to Vendors.

To help Vendors execute marketing strategies and fuel sales growth, Amazon provides various services that make it easy to market on the platform.

Vendors who sell their merchandise through Amazon can use native ads on the platform to promote their products and grow their audience. They can utilize the Amazon advertising console toolset, third-party applications, or an agency or consultant.

Amazon Ads allows Vendors to experiment, optimize, and scale according to business priorities. Specifically;

  1. Vendors decide the level of investment. Set a daily budget that meets your needs. Amazon recommends ensuring you have enough budget to get impressions, clicks, and sales.
  2. Vendors can change a budget at any time. Increase or decrease your daily budget in seconds — even when your campaigns are running — to meet your evolving needs.
  3. Vendors can see the impact on sales. A sale is attributed to a campaign when a shopper clicks an ad and purchases your brand’s products on Amazon within 14 days. There is reporting and the Amazon Advertising API, which lets you chart your ad-attributed sales.
  4. Vendors can control their message. Our solutions allow you to reinforce your brand’s value proposition, helping you tell an authentic and engaging story to Amazon shoppers.

How can Ads help your Amazon Vendor Marketing Strategy?

Before getting started with Amazon Ads and creating your first campaign, as a Vendor, it is helpful to establish your business goals. Knowing what you hope to achieve helps you decide which ads to run, how to organize them, and whether they work.

  • Do you want to drive sales of a new item?
  • Get people to visit your store?
  • Make your inventory move faster?
  • Boost brand awareness?
  • Determine if an ad is effective before spending money on it?
  • Help to create demand for new items or give your essential products an extra lift?

Amazon Advertising: What services are available to Vendors?

Several Amazon Ads services are available to vendors: Stores, Sponsored Brands, Sponsored Products, Display Ads, and Video Ads. Each type offers different benefits and restrictions.

  • Sponsored Brands — Formerly called Headline Search ads, Sponsored Brands ads are customized advertisements that feature your company’s logo, a custom title, and multiple products. They appear in prominent locations within shopping results and on individual product details, helping to increase the likelihood that potential buyers discover your business through these channels.
  • Sponsored Products: These are the most common form of Amazon Ads. They allow Merchants to list their product for sale on Amazon and display it alongside other sellers’ listings. Merchants can include a description, price, image, and link to their storefront in the listing.
  • Sponsored Display Ads: Display ads are similar to Sponsored Products, except that they do not require a merchant to list their product for purchase. Instead, they appear as text ads on the left side of the screen.
  • Video Ads: A video ad allows you to upload a short promotional video to Amazon. You can add a thumbnail, logo, and description to your video.
  • Amazon Stores — Described as creating your brand foundation in Amazon.”, your store help shoppers explore your entire range of products with your own branded URL on Amazon.

What can you do to get the most impact and see more results? Using all advertising channels gives you the best chances of reaching more people, amplifying your message, and generating more sales.

According to Amazon’s internal data, advertisers who launched Sponsored Brands after Sponsored Products saw a 12.2% average increase in advertising ROAS. The uplift reaches 16.5% after running Sponsored Brands campaigns for 3–6 months.

Why should Vendors use Sponsored Products?

A Sponsored Product ad is an advertisement that appears when someone searches for something related to your product categories and listings. It may be displayed at the top of the page, next to organic ads, or even below the fold.

Amazon Sponsored Products

It helps customers discover and purchase products you sell on Amazon, with ads appearing in shopping results and product pages. Sponsored product ads can help you reach out to potential customers who might be interested in buying your product.

Sponsored products control your ads’ targeting, spending, and more. They allow you to promote individual product listings to buyers as they browse and search for things to buy. These promoted posts appear above and within search result pages and product details pages across desktop and smartphone devices.

That’s why it’s essential to remember that the quality of your product information, as detail pages, can directly impact your ad performance and sales.

Sponsored products offer several targeting capabilities: automatic, manual (product and keyword), and an optional targeting option for both automatic and manual targeting — negative targeting. Amazon suggests running multiple ad groups at once so you can see which ones perform better than others.

Why should Vendors use Sponsored Brands?

You can use Sponsored Brands to help shoppers discover your brand while they browse items on Amazon and keep your brand at the top of their minds so they can come back and shop your brand in the future.

Amazon Sponsored Brands

Amazon’s internal data showed that from September 2020 to February 2021, on average, campaigns that use a custom image in Sponsored Brands ads on mobile see a 2.2x higher clickthrough rate than campaigns that use only a brand logo and headline with no products.

Ads are keyword and product-targeted, cost-per-click, and are eligible to appear in highly visible placements on top of and within shopping results and product detail pages.

Ads can direct shoppers to an individual product detail page, a custom landing page displaying a selection of your products, or your Store.

You can help encourage repeat purchases by linking your Sponsored Brands ad to your Store, providing opportunities for shoppers to find additional products in your catalog that they may be interested in.

Sponsored Brands video ad format displays auto-playing video in shopping results. Your 6–45 seconds video ads are displayed on mobile and desktop and shown for select keywords relevant to your product. When shoppers click on the video, they’re taken to the product detail page, where they can learn more and purchase the product.

Amazon Sponsored Brands Video

Why should a Vendors create an Amazon Brand Store?

Promote your brand with your multi-paged amazon store for free! As the home for your brand on Amazon, Stores are accessible, always-on destinations available to sellers and vendors enrolled in Amazon Brand Registry.

You can quickly build a free, customizable multipage customer experience with Stores. These experiences can feature Amazon creative assets that reflect your brand and product catalogs.

Per Amazon, of the customers who browse a brand’s Store once, 45% continue using Stores to shop on an ongoing basis.

The easy-to-use Store Builder lets you quickly create an amazon storefront with code or knowing HTML. Design templates and pre-made widgets make it easy to personalize your pages and showcase your products.

You can also promote yourself by using sponsored brands or promoting your business through non-Amazon.com marketing activities.

Now, you can use Sponsored Brands to help you promote your products by taking advantage of your Store and featuring Store pages in your creative. You can show up to three Store sub‑pages in your Sponsored Brand campaign and customize the headline and images for each one.

You can use Spotlight Promotions to promote any collection of products from your store. However, if you want to get approved for this feature, you need at least 3 different pages with unique products on them.

You can select any three of the four pages on your store page to show sponsored content from brands.

You’ll also be capable of entering a customized title, selecting a brand logo, and changing the labels and images representing each of the sub-pages within the ad group.

Note: To be eligible for Stores, you must be enrolled in Amazon Brand Registry. Vendors and sellers already selling on Amazon in the country they wish to advertise can create a Store at no additional cost.

Types of Amazon Vendor Central Amazon Ads Reports

There are a number of opportunities for Vendor advertising, especially on Amazon. The Amazon Ads team created a guide called Advertising solutions for vendors which provides a tutorial and insights on how to get started on their platform.

Below are a few of the key report types that will be of interest to Vendors;

  1. Search term reports can give an idea of which keywords convert best for your business.
  2. Targeting reports offer insights into which campaigns performed best and why. They help you understand how well your targeting works, so you can decide if you need to change your bidding strategy or expand your target audience.
  3. Advertised Product reports provide information on the performance of your advertised products in all your ad groups. It helps you understand whether your ads are working by showing you how well they perform compared to other products in similar categories. If you notice that one particular ASIN performs better than others in its category, then you may want to consider changing up your advertising campaign for that ASIN.
  4. Placement reports provide insights into the performance of your ads on top-of-the-page placements compared to other placement types.
  5. Performance over time report shows you the number of impressions, clickthroughs, conversions, and revenue generated by each campaign. It also shows you the average cost per click (CPC) for each campaign, plus your overall total spent.
  6. Purchase history reports provide details on all purchases made by your visitors. These reports can identify new advertising opportunities and gain insights into what people buy.

Also, as a Vendor, you have access to additional data points via Amazon Vendor Retail Analytics and Amazon Brand Analytics. For example, see our post Secret To Unlocking Amazon Vendor Central Reports and Amazon Advertising Reports: Performance Data.

Amazon Vendor Advertising Reporting Tools

There are several options these days for Amazon Advertising analytics for Vendors. For example, you can use your tools for e-commerce insights like business intelligence, data visualization, SQL, or data science tools. Examples are Google Data Studio, Tableau, Microsoft Power BI, Looker, and Amazon Quicksight.

Using tools like these for performance insights is possible because you can now unify your data to a leading data lake or cloud warehouses like Redshift, Redshift Spectrum, Google BigQuery, Snowflake, Azure Data Lake, Ahana, and Amazon Athena for a unified, analytics-ready single source of truth to fuel informed decisions on product, media, and customer demand.

Are you using an Amazon Vendor Central consultant or agency?

If you use an Amazon Vendor Central consultant or Amazon Agency, they will likely manage your campaigns in a vendor or agency account within the advertising platform. Also, it is not uncommon for an agency to leverage services like Amazon DSP or other third-party tools to manage Vendor specific sponsored brand ads and sponsored display ads. This may also include tools for managing creative assets, products, descriptions, product reviews, or so forth in your Amazon storefront.

So if you use an Amazon vendor central agency or consultant, check to see how they manage your campaigns, including requiring direct access to performance data.

Are you enrolled in the Amazon Brand Registry?

Asa Vendor, make sure you are enrolled in Amazon Brand Registry to unlock a suite of tools designed to help you build and protect your brand, creating a better customer experience.

  • Brand Registry helps you protect your intellectual property and create an authentic and trusted experience for customers on Amazon. Amazon automated protections proactively use information about your brand to remove suspected infringing or inaccurate content.
  • Take control over product pages that use your brand name with Brand Registry, so customers are more likely to see correct information associated with your brand.
  • Enrolling in Brand Registry gives you access to Amazon self-service solutions like Stores and Sponsored Products, which can help you reach more shoppers and build brand awareness and equity.

To be eligible to enroll in Amazon Brand Registry, you must have a registered trademark in each country where you want to register or a pending trademark application filed through Amazon IP Accelerator.

Get Started Automating Amazon Vendor Central Advertising Data — For Free

Ditch the manual Amazon Vendor Central Advertising report downloads. Openbridge is an Amazon Advertising verified partner and offers code-free ads data automation, one of the most powerful tools Vendors can tap into. Automation accelerates performance and the speed at which your team can gain valuable insights to deliver data-driven growth and profit.

Sign up for a 30-day free trial of our Amazon Vendor Central Advertising automation


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Tableau Ecommerce: 5 Tips For Building Dashboards

How to analyze Ecommerce data with Tableau Software, including example reports

Business intelligence tools are powerful analytical tools that help businesses make better decisions and improve performance. They provide insights into data such as sales trends, customer behavior, product usage patterns, and much more. Later in this post, we show examples of how Tableau Retail + Ecommerce dashboards bring those points to life.

While a diverse collection of Business Intelligence tools such as Google Data Studio, Power BI, SAP, or Looker allow teams to build dashboards, we are focusing on Tableau Software in this post. However, the outputs and approaches detailed in this post can easily apply to those tools!

Tableau Interface

Here are the core packages of the software;

Benefits Of Tableau

Tableau is one of the most popular tools used for data visualization. It allows you to make quick visualizations and dashboards. You can use it to analyze data quickly and easily.

The following are some of the core value propositions of the software:

  1. Easy To Use: Tableau is easy to learn and use. You don’t need programming languages to understand how to work with Tableau. Also, there are no technical skills required to use Tableau, though a basic understanding of data and how to construct reports is important. If you know Excel, you can use Tableau.
  2. Data Preparation: Tableau works best when you can transform data on the fly. They provide the tools to prepare the data before starting to work with Tableau.
  3. User-Friendly Interface: When you start using Tableau, you feel comfortable immediately because of its simple interface.
  4. Customizable Dashboard: If you want to customize your dashboard according to your needs, you can do it quickly.
  5. Interactive Charts: With Tableau, you can interact with charts. For example, you can zoom in/out, change colors, add annotations, etc.
  6. Powerful Filters: You can filter your data based on multiple criteria. This feature helps you to find out what exactly you want to see.

Value Of A Tableau Ecommerce Dashboard

An Ecommerce dashboard should display Key Performance Indicators (KPIs) that the business decides are critical for driving sales performance. These KPIs allow you to see how your business is performing and where it needs improvement. As a result, a well-designed Tableau ecommerce dashboard helps your team better understand trends and patterns in your product/service offerings.

A typical dashboard would include:

  1. Product Performance
  2. Customer Experience & Journey
  3. Sales Analytics
  4. Marketing Campaign Analysis

You can often find prebuilt or customized dashboards that make the process easier. Agencies, consultants, and freelance teams have them ready to go. However, there are dashboard solutions they build that are based on customer requirements.

Tableau Ecommerce Dashboard Examples

A Tableau dashboard provides a visual representation of key metrics across multiple elements of your digital marketing and retail business. In this example you can see product performance, ACOS, Ad Spend, Revenue, and other KPIs:

tableau retail dashboard examples

This is another dashboard that shows attributed revenue, ROAS, CPC, total sales, spending, units, and much more:

tableau retail dashboard examples

The couple of examples areof a Retail dashboard available as part of the Tableau accelerators;

Tableau dashboards like these are great tools to monitor sales and inventory levels, identify trends, and spot potential problems. They’re also great communication tools for employees, customers, and suppliers.

Extending Your Ecommerce Tableau Dashboard

As you build confidence in your reports, you can look to extend data pipelines to your data lake or cloud data warehouse. For example, you can start to layer other data sources in your Tableau data analysis;

  1. Unify your data in Amazon Redshift, AWS Athena, Google BigQuery, Snowflake, or Azure Data Lake, so your marketing team, agency, or on-site business analyst can quickly get what they need in Tableau.
  2. Employ integration solution ready for Amazon Selling Partner, Amazon Advertising, Shopify, and Amazon Vendor Central to accelerate ecommerce dashboards in Tableau.
  3. With a data lake or data warehouse, consolidate marketing data from Google Ads, Facebook, Amazon Advertising, and others. This includes advertising and marketing campaigns, as well as associated marketing spend
  4. Create lifetime value models, customer journey analysis, or RFM reports; you can map the business objectives to the type of analysis needed.
  5. Extend the examples we shared above to create a robust supply chain dashboard Tableau visualizes for you or include Tableau retail dashboards that show data from a physical store.

Fueling Your Tableau Ecommerce Dashboard With Automated Data Pipelines

From basic integrations to complex integrations, the key to analytics agility, efficiency, and performance is to store data in a scalable, flexible data lake or cloud data warehouse for Tableau to consume.

Having data well-abstracted allows teams to undertake data science, machine learning, or other types of data analytics. Unifying your data across a combination of integrations, including native connectors built into Tableau, will ensure fast, flexible, and future-proof integrations as you become a data-driven retailer.

Not only do you realize the business benefits of improved insights and growth, but it also allows for actionable insight supporting business future planning and strategy efforts. Any valuable insight gained from data analytics can blunt the negative business impact of competitors and market changes.

Here are a few examples of automated data pipelines that can fuel your insights efforts:

  • Tableau Shopify Integration
  • Tableau Amazon Seller Central
  • Tableau Amazon Advertising
  • Tableau Amazon Vendor Central

Not using Tableau? Pick Another Data Science, Modeling, Or Visualization Tool!

Customizable interfaces, informative visualizations, interactive dashboards, mobile-ready reports, and a robust Tableau user community make Tableau a great BI tool for e-commerce analytics. However, while the article focuses on Tableau, you can use tools like Power BI, Google Data Studio, Looker, and others to build equally compelling e-commerce dashboards, reports, and visualizations.

For example, our early report examples could be easily translated to a Power BI Ecommerce dashboard. The point here is an Ecommerce dashboard Power BI, or Google Data Studio, specific can be created in a similar context.

Here are a few other candidates to consider;

Get Started Fueling Tableau Ecommerce Dashboards With Data — For Free

Openbridge offers code-free data automation, one of the most potent tools Tableau users can tap into for Ecommerce dashboards and analysis. Automation accelerates performance and the speed at which your team can gain valuable insights to deliver data-driven growth and profit.

Sign up for a 30-day free trial of data automation for Tableau Ecommerce


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Kickstart Ecommerce Analytics: A Beginners Guide

Getting started with Ecommerce performance analytics using your tools for insight and optimization

Data analytics in Ecommerce can seem daunting, but it can be simplified with the right tools that support a consistent and flexible focus on performance.

There are several options these days for e-commerce analytics. For example, you can now use your tools for e-commerce insights like business intelligence, data visualization, SQL, or data science tools. Examples are Google Data Studio, Tableau, Microsoft Power BI, Looker, and Amazon Quicksight. Using tools like these for Ecommerce insights is possible because you can now unify your data to a leading data lake or cloud warehouses like Redshift, Redshift Spectrum, Google BigQuery, Snowflake, Azure Data Lake, Ahana, and Amazon Athena for a unified, analytics-ready single source of truth to fuel informed decisions on product, media, and customer demand.

As a result, there are tremendous opportunities for undertaking data-driven insights efforts.

What is Ecommerce Analytics?

Ecommerce analytics covers a broad spectrum of different types of data that reflect your customer and digital strategy. These include data on the entire customer journey, from email marketing and paid Google Ads to the actual purchase event on your preferred ecommerce platforms like Amazon or Shopify.

Ecommerce analytics aims to provide actionable insights that allow you to improve your customer experience, increase conversion rates, and ultimately grow your bottom line.

In an earlier post called Unlocking The Power Of Digital Shelf Analytics, we discussed a holistic view of this process. That post highlighted how to use data to discover new opportunities to optimize retail operations, media, and user experiences to drive sales performance.

The bottom line? Ecommerce analytics helps retailers figure out what works and doesn’t work about their user experience, operations, and marketing campaigns. As a result, Ecommerce sales analytics provides the insights needed to understand product performance so you decide on future product development and marketing strategies.

Why Undertake Data Analysis For eCommerce?

Analyzing your Ecommerce efforts helps you create better products, services, content, and user experience. The analysis leads to insights into how customers behave, including gaps and issues with the customer journeys or the user flow in purchasing products/services so they can make data-driven optimizations.

Here are a few core benefits to harnessing your data for analysis;

  • Measuring the effectiveness of your marketing campaign. Analytics can help ecommerce companies measure their online sales, improve customer service, gain more omnichannel traffic, and inform holistic business decisions.
  • Analyze the trends or patterns in the data so you can predict accurately. Ecommerce analytics help you to know better how your business is doing now and how it will perform in the future. This knowledge allows you to set up your business for success by ensuring that the right things are available when needed.
  • You are optimizing your pricing, up-selling, and sell-through strategies. With Ecommerce analytics, you can gain insights into which products drive sales and which don’t. You can then adjust prices accordingly.
  • You are personalizing individual experiences by using customer data. It’s essential to understand how customers behave when they visit your site so you can optimize your product pages and improve the buying experience for everyone.
  • Use data-based insights to inform your strategy. One additional advantage of Ecommerce analytic tools is that they provide insights into what’s going on in your business and the industry at large, which gives you an idea of what might happen next and whether there are any potential risks you need to take into account.

This list is not exhaustive but reflects a few primary areas teams look to explore.

What Do You Measure In Ecommerce Analytics?

Several areas of Ecommerce analysis allow you to understand your business and its markets better.

Audience

Have you identified your target market? Who do you want to reach? What demographic groups do you want to attract? Once you’ve identified your target market, you must analyze your audience. How old are they? Where do they come from? Which social media platforms do they use? Do they read blogs? Are they interested in specific types of news stories?

These questions will help you identify who your ideal customer is.

Next, you’ll want to find out what kind of person they are. What do they value? What motivates them? What problems do they face? What issues do they care about?

By answering these questions, you’ll be able to align your product positioning that matches their needs.

Finally, you’ll want to consider the competition. Analyze your competitor’s strengths and weaknesses. What are they doing? Why are they successful? What strategies do they employ? How do you position yourself against competitors? How does your potential customer view you?

Acquisition

You can also track customer acquisition using data related to the acquisition of customers, which helps you understand where you’re losing potential customers. It’s important because you’ll learn about how your people became aware of your products and where that occurred.

  • Do most of your traffic comes from social media posts? Instagram, Twitter, Facebook?
  • How many website visits do you generate through email marketing?
  • What does the average post convert ratio look like for your blog?
  • Does paying for Google Ads, Facebook Ads, or other paid media bring in most of the people who visit your site?

This data will help you determine which marketing channel is best for your business and where to spend your time and money.

Behavior

It would be best if you also considered looking into consumer behavior data.

  • Which product lines do customers buy?
  • How many people visit your site but close their browsers without clicking through any pages?
  • Which page do visitors usually click on first?
  • Which types of marketing content get people to take action?
  • What kinds of product ideas get lots of attention from people but don’t sell well?
  • On average, how long do visitors stay on your site?

Are your products easy to navigate? Do your customers know where to go after viewing an item? If users leave your site without finding what they’re looking for, you might have a problem with page design, content, positioning, or images. If your customers cannot figure out what they’re looking for after visiting your site, you’ll need to make changes to improve your conversion rate.

Conversions

We’ve talked about conversions but haven’t defined exactly what they mean. These are vital questions you’re asking about conversion analytics.

  • How long does it typically take for someone to become a paying customer?
  • Which type of customer converts most often?
  • Customers usually purchase items after just one visit to your online shop. However, they may return later if they don’t see something they want.
  • Repeat purchases from customers?
  • How many customers abandon shopping carts before they’re converted into paying customers?

This data is vital because it allows you to determine which discounts and deals will appeal to your current customer base. Knowing the specifics helps to inform your marketing strategy so you can decide which message to send out and how to communicate it to people best.

Paid Marketing Activities

Another critical aspect to consider when evaluating your analytics is your paid advertising efforts. This will allow you to calculate your ROI for different types of paid ads.

  • How much has your business generated from its social media ads? Does Instagram drive more revenue than Twitter?
  • Did you earn more income from the ad campaign than you spent on creative and ad spend?
  • How much has your business grown as a result of your PPC campaigns?
  • What about your email campaigns?
  • Other paid media efforts? Influencers?

If you don’t evaluate your current paid advertising efforts, you’ll only be able to invest in ads that aren’t working for your business.

For example, Amazon Advertising is the go-to for Amazon Sellers. You have direct access to campaigns, keywords, targets, ads, and many other data points for your paid media investment on Amazon.

Amazon Ads makes data available as manual downloads or via Amazon Advertising API Automation. Also, see Amazon Advertising Reports: Performance Data for a deeper dive into the available data.

How Do You Undertake Ecommerce Data Analytics?

Business metrics like average order value, revenue, and unique visitor count are important indicators of how well you’re doing. But many different types of metrics measure success across multiple channels. For example, acquisition channels are places where people find products and services online. These include social media sites, review platforms, blogs, ecommerce stores, and more.

Several KPIs exist, including transaction, revenue, customer satisfaction, and conversion.

Transaction metrics will often include:

  • Average basket size.
  • The number of products sold daily.
  • Total sales volume over a given period.

Revenue metrics have a

  • net profit margin
  • gross profit margin and
  • gross profit percentage

Customer satisfaction metrics include things like

  • customer retention rate
  • return rate, and
  • customer lifetime value

Conversion metrics have

  • cart abandonment rate
  • purchase frequency, and
  • checkout conversion rate

Marketing Channel Analysis

Marketing analytics help companies know what works and which marketing tactics are effective. This knowledge can improve product development, advertising strategies, and brand management.

A marketing channel is a way to reach customers. For example, a customer could use social media, email, text messages, billboards, TV ads, radio spots, etc., to contact you. Each channel has a different purpose and offers another type of audience.

Marketing channel analysis aims to identify where your best prospects are coming from. You do this by analyzing the data from each channel. If you find that a specific channel isn’t working for you, you’ll know exactly why. Then, you can make adjustments to improve performance.

For instance, if you find people clicking on your Facebook ad but not converting, you might adjust budgets, creative, or target audience. Or maybe you notice people sign up for your newsletter but are not engaging. In this case, you’d probably change the frequency of your emails or add additional value to your newsletter.

Each channel has metrics, including conversion, bounce, and abandonment rates. Conversion rates show a marketing campaign’s success at getting leads into the funnel. Bounce rates indicate whether someone left the site without buying anything. Abandonment rates tell how likely someone will abandon a purchase once they reach checkout.

Ecommerce Funnel Analysis

A funnel analysis gives insights into how visitors arrive in your purchase funnel, where they go, and what happens next. This exercise aims to identify opportunities to optimize your marketing and customer journey efforts. This effort will help ensure you get the maximum number of potential customers to convert.

First things first, you should identify your business’ overall objective. Once you’ve done that, go through each part of the journey and figure out how people can get from one point to another. Make sure they know what path leads where. You may discover that one area isn’t getting much traffic, so you could create an easy link to draw people towards it.

Once you’ve identified your goals, it’s time to build a funnel. Start by defining the steps involved in reaching each goal. Each step represents one stage in your funnel. In addition to the name of the action, including the URL that leads to it. Then, write down the conversions associated with each step. Finally, label each step according to whether it’s leading toward success or failure.

After completing the funnel diagram, dig into the data and analyze it. How do visitors behave once they reach your store? Are they staying on the site long enough to complete a transaction? Do they bounce away immediately? Is there a clear path from the homepage to the checkout process? Once you understand your visitors’ behavior, you can decide how to change things.

For instance, if you found that most visitors never complete their transactions, you might consider adding additional information on the home page to help them. Or, if you noticed that most of your visitors bounced away without even looking at your offers, you might try changing the layout of your offers, refining the copy, or creative to make them more compelling.

If you aren’t making it easy for your visitors to navigate through your funnel, you’ll lose a lot of potential customers.

Ecommerce Analytics Best Practices

With an understanding of how beneficial ecommerce analytics is for your business, you will now need to implement the core KPIs and tools correctly so they can help you achieve success.

Benchmarks

A benchmark is a specific target that helps you understand how well you are doing against competitors. You can use measures to establish goals, track performance, identify areas for improvement, and compare yourself to others.

Benchmarks can help you determine whether you’re meeting your objectives and provide valuable data for measuring progress. For example, you might want to know how many leads you’ve generated per month or how much revenue you’ve earned over a quarter. Benchmarking gives you a way to quantify your success and make sure you’re making good decisions.

Collect all of your marketing data from all of your different sources and channels

You may start with some messiness, but you must organize everything into one place to easily access it.

If you have been working with data manually, you are likely feeling overwhelmed. That’s okay! Make a list of where all of your data resides. Here are some examples:

  • Email providers
  • Customer relationship management platforms
  • ERPs
  • Google Ads
  • Facebook Ads
  • Amazon
  • Shopify

The good news is that this information can be easily pulled together and exported in one place. With a pre-made connection, you can get your data from any source without much work. This saves you time and effort to focus on what matters most — growing your business.

Ecommerce Analytics Tools

Thankfully, Ecommerce analytics tools provide the software to discover new opportunities while surfacing a wealth of information about your operations, visitors, and sales.

Using these tools for analyzing data, you can see how customers interact with your products and services and determine whether certain features or actions drive sales.

The best ecommerce analytics software helps your teams gain velocity in decision-making efficiently and flexibly.

An analytics tool provides insights into your current campaign performance. It lets you compare your metrics against industry benchmarks, monitor the impact of changes to your campaigns, and generate reports tailored to your needs. By analyzing your data, you can make better decisions about your marketing activities and optimize your return on investment.

Analytics tools help you analyze your data and make intelligent decisions based on those findings.

Self-Service Ecommerce and data analytics Tools

Ecommerce data analytics help businesses understand what customers want and what drives sales. There are many different ways of measuring ecommerce performance, including transaction volume, basket size, product views, and revenue per visitor. These tools collect data from the entire site and offer insight into customer behavior and conversions.

You can increase your chances of selling more products online by making better decisions.

Here is an example of paid media analysis using Tableau:

In addition to media performance, you can construct a deep dive on product performance as well:

While these examples show the power and flexibility of Tableau, they demonstrate more broadly what is possible with tools like Tableau. The following is a collection of some of the best ecommerce analytics tools for self-service insights efforts;

  • Google Data Studio
  • Tableau
  • Power Bi
  • Looker
  • Sisense

The tools reflect industry leaders and the best analytics software for ecommerce for those who want to own their insights efforts. Combine these tools with your data unified in a cloud data warehouse or data lake; you create a powerhouse ecommerce analytics platform tailored to your needs.

Examples of prepackaged ecommerce analytics software

Unlike self-service tools, packaged Ecommerce analytics tools provide pre-built visualizations and reports. While less flexible, they can offer a wealth of information about your visitors and sales quickly.

These tools will often prebuild ecommerce analytics dashboards that can package KPIs and offer insight into customer behavior and conversions. They will provide different ways of measuring ecommerce performance, including transaction volume, basket size, product views, and revenue per visitor.

Here are a couple of examples of this category of tools:

Summary

Analytics in ecommerce should provide insight into your current performance and actionable recommendations that inform actionable strategies. In addition to providing valuable insights about your key metrics in campaign performance, it will show you where there are gaps, which areas need improvement, and how you optimize for ecommerce metrics that increase your ROI.

As an ecommerce business using analytics, you can make better-informed decisions that will help your business grow and succeed. From adjusting advertising investment to refining content for popular products, analytics delivers data-driven insights so you can see where your business is thriving and where it needs improvement.

You have several options when choosing an ecommerce analytics tool. However, the key is getting started. You cannot know if something is working unless you measure it.

Getting Started With Ecommerce Analytics

Unifying and owning your data allows you to build a view of sales over time, and understand buyer behavior more deeply. Data-driven insights mean your sales funnel will be full, your content strategy aligned, and traffic potential optimized.

If you are looking for data pipelines for your eCommerce data, Openbridge offers no-code, fully automated data pipelines.

Unify your eCommerce data and start your analysis journey today.

Sign up for a 30-day free trial of our fully-automated ecommerce data feeds today!


Kickstart Ecommerce Analytics: A Beginners Guide was originally published in Openbridge on Medium, where people are continuing the conversation by highlighting and responding to this story.



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