E Commerce business analysis- Various terms

1. NAME - SOUMA MAITI
ROLL NO - 27500120016
SUBJECT- E COMMERCE AND ERP
SUBJECT CODE- OEC-CS802A
YEAR- 4TH SEM-8TH

2. INTRODUCTION
Defination:
E-commerce (electronic commerce) is the buying and
selling of goods and services, or the transmitting of funds
or data, over an electronic network, primarily the internet.
The Importance of eCommerce in
business:
 E Commerce helps you reduce your costs.
 E Commerce helps businesses go global.
 E Commerce can be done with fewer overheads &
fewer risk.
 E Commerce can broaden your brand & expand your
business.
 Your online store will stay open 24*7.
 Personalise your shopping experience.

3. Key Metrics for E-commerce Analysis
Average Order Value (AOV):
Average order value (AOV) is an e-commerce metric that calculates the average amount in dollars
that a customer spends when making an order on your website. Measuring the AOV is simple:
You divide the total amount of revenue over a given period by the number of orders in that
period.
ConversionRate:
An e-commerce company's conversion rate is the percentage of website visitors who become
paying customers of your business. The e-commerce conversion rate can be calculated by dividing
the number of customers by the total number of visitors to your website.
Customer Acquisition Cost (CAC):
A high conversion rate is a good sign that your business is doing something right — but what if
you're spending too much money to convert those customers? The customer acquisition cost
(CAC) is an e-commerce metric that measures the price of converting the average customer. You
can calculate CAC by dividing your total marketing expenses over a period of time by the total
number of customers acquired during that time.
Customer Lifetime Value (CLV):
The good news is that a high CAC may be balanced out by repeat customers who make many
purchases on your website. The customer lifetime value (CLV) is an e-commerce metric that
estimates how much the average customer will be worth to your business (i.e., the total revenue)
throughout the entire future relationship.

4. Analyzing E-commerce Data
 Improved customer experience
 Proper inventory management
 Effective marketing strategy evaluation
Tools and techniques for data collection:
• Surveys
• Email newsletters
• Blog subscriptions
• Chatbots
• Customer transaction and purchase history
• Social media
• Website tracking tools
• Customer relationship management (CRM) software

5. E-commerce Strategy Development

6. THANK YOU