eCommerce / Electronic Commerce
All business activity conducted online — showcasing products, ordering, payment, shipping, and post-sale service. The backbone of every online store.
In practice
It's not just the website — it's everything that happens before and after the click. From the moment someone sees an ad to the moment the package arrives at the door. If one link breaks (slow loading, a stuck checkout, a late shipment), the entire experience breaks.
Common misconception
People think eCommerce equals a nice-looking website. In practice, 70% of customers abandon before paying — due to a clunky checkout, lack of trust, a surprise shipping fee, or simply a slow site.
How to fix it
If sales stall, check in this order: (1) Google Analytics to identify where people leave, (2) Hotjar to watch session recordings, (3) check load time in PageSpeed Insights. Don't guess — follow the data.
Example
A clothing store added one extra checkout step ('what's your size?') — conversions dropped 18%. Removing the step restored the previous conversion rate within 48 hours. Every small friction costs money.
Priority
Step 0 before any advertising: make sure the site loads within 3 seconds on mobile, checkout works with every payment method, and the return policy is clear.
Related terms
Keep learning. Metrics that touch the same area:
- FulfillmentOperationsThe entire process from receiving an order to delivery: pick, pack, label, ship.
- CPC – Cost Per ClickMarketingThe price an advertiser pays each time a visitor clicks the ad. Influenced by competition, Quality Score, and landing page relevance.
- CPM – Cost Per MilleMarketingThe cost of advertising per 1,000 ad impressions. A key metric in awareness-focused and brand-building campaigns.
- CPA – Cost Per AcquisitionMarketingThe amount it costs to get a customer to complete a desired action. A core profitability metric — if CPA exceeds gross profit, the campaign loses money.
- CAC – Customer Acquisition CostMarketingTotal marketing and sales spend divided by the number of new customers. Always compare to LTV. A healthy ratio: LTV at least 3x higher than CAC.
- ROAS – Return on Ad SpendMarketingRevenue generated divided by ad spend. A ROAS of 4 means $4 in revenue for every $1 spent on ads.
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