tech
E-Commerce
Selling products or services online - via your website, marketplaces, or platforms.
Definition
E-commerce is the practice of selling products or services online. It includes direct-to-consumer (DTC) websites (Shopify, custom builds), marketplaces (Amazon, Etsy), social commerce (Instagram Shop, TikTok Shop), and B2B e-commerce platforms. Key metrics: conversion rate (typically 1-4% for DTC), average order value, cart abandonment rate (~70% industry standard), return rate, ad ROAS. The competitive game in DTC has shifted from 'launch a brand' to 'profitable customer acquisition at scale' - acquisition costs have risen and only operationally tight businesses survive.
In your business
- →Track conversion, AOV, and CAC together - none of them work in isolation
- →Cart abandonment recovery (email sequence) typically recovers 10-20% of abandoned carts - free money
- →Profitability in DTC depends on repeat purchase - one-and-done customers don't pay back CAC