Chapter:10

E commerce practice
Traffic analysis:
It is the analysis in the e commerce which basically provides with all the data regarding the
no. of transactions that were carried out, failed transactions, incomplete transactions,
maximized revenue resources, which products actually sell, products popular yet not sold
etc.
Such collective information helps to properly analyze the steps that can be taken to
maximize profits in the most proficient manner. Also, this reports throws light on the aspects
of advertising i.e. as to which advertisement programs are generating sales and other such
information.
Web traffic is the amount of data sent and received by visitors to a website. This is
determined by the number of visitors and the number of pages they visit during their
session.
Website traffic refers to web users who visit a website. Web traffic is measured in visits,
sometimes called "sessions," and is a common way to measure an online business
effectiveness at attracting an audience.
Such analysis helps to get answers for the
following:
• How long did users stay?
Bringing in huge amounts of traffic is ultimately meaningless if users leave after mere
seconds. Metrics such as bounce rate and time on page pant a picture of how users behave.
• What % of users made a purchase?
For an online business to flourish, it needs a large audience. But it also needs to be the right
audience. Determining how many users buy products, commonly measured by conversion
rate, shows whether an ecommerce store is effectively selling marketing their product
offerings.
• How much does it cost to bring in a visitor?
Some web traffic is free, but many online stores rely on paid traffic — such as PPC or
affiliates — to support and grow their business. Cost of Acquiring Customers (CAC) and Cost
Per Acquisition (CPA) are arguably the two most important ecommerce metrics. When
balanced with AOV (average order value) and CLV (customer lifetime value), a business can
assess and adjust its ad spend as necessary.
How is website traffic actually recorded?
• When someone visits a website, their computer or other web-connected
device communicates with the website's server. Each page on the web is made
up of dozens of distinct files. The site's server transmits each file to user
browsers where they are assembled and formed into a cumulative piece with
graphics and text. Every file sent represents a single “hit”, so a single page
viewing can result in numerous hits.
• It is not only the traffic on the website's homepage that is monitored. Rather,
all segments of the website are constantly monitored by the server to
determine exactly how many hits each receives. In web vernacular, a single
visit is known as a “session”. The minutia of each session varies, yet each has a
beginning and an end point.
• Servers are able to compile every request for a web page, arming its operator
with the information needed to determine how popular the site is and which
pages receive the most attention. When a web server processes a file request,
it makes an entry in what is known as the “server log” on the server's hard
drive. The log gathers entries , forming a valuable database of information that
the site owner can analyze to better understand the website's visitor activity.
Search engines have become a ubiquitous element of the online experience for
millions of use.
93% of online activity begins with a search. Avoiding search engine
optimization could quickly place you in the minority of online experiences, a
status which could be lethal to your ecommerce goals. As such, online
businesses have pushed to optimize their search engine strategies to better
target the right kinds of traffic to great success.
Search engine optimization has reached such a degree of familiarity that even
individuals whose profession falls far outside the territory of digital marketing
can still explain the relationship between keywords and their listing on search
engine results. With that in mind, it would initially seem to be somewhat of a
‘no-brainer’ that business owners should optimize their on-page content in
order to make themselves more competitive within the online arena. This
should not come as a surprise. Internet technology and industry best SEO
practices have evolved far more rapidly than users have been able to assess its
full potential. You must translate a basic understanding of SEO into an
actionable set of tactics to build E-commerce traffic.
• Search engine traffic refers to the visitors who arrive at a website by clicking
search results leading to that particular website. Using a Web analytics program, a
website’s overall search engine traffic can be segmented to show the percentage
of search engine traffic for individual Web pages or site sections. Search engine
traffic is used to describe traffic that a site has not paid for, in contrast to paid
search engine traffic, which results from people clicking through on a sponsored
search result or ad.
• A high volume of search engine traffic is a generally a positive thing for a website.
It means that the content is good enough to build up a strong search engine rank
that results in views. The percentage of these views compared to traffic from
other sources, such as bookmarking, non-search referral and so on, shows how
reliant a particular site is on search engines to produce page views. Being search
dependent is not necessarily a serious weakness; it merely means that any
changes in search engine rank will have a large impact on the site's page views.
This makes maintaining up-to-date white hat SEO policies essential for websites
that rely on search engine traffic.
• Search engine marketing (SEM) is a form of Internet marketing that involves
the promotion of websites by increasing their visibility in search engine results
pages(SERPs) primarily through paid advertising. SEM may incorporate search
engine optimization (SEO), which adjusts or rewrites website content and site
architecture to achieve a higher ranking in search engine results pages to
enhance pay per click (PPC) listings.
• Search analytics is the use of search data to investigate particular interactions
among Web searchers, the search engine, or the content during searching
episodes. The resulting analysis and aggregation of search engine statistics can
be used in search engine marketing (SEM) and search engine
optimization (SEO). In other words, search analytics helps website owners
understand and improve their performance on search engines, for example
identifying highly valuable site visitors, or understanding user intent. Search
analytics includes search volume trends and analysis, reverse searching
(entering websites to see their keywords), keyword monitoring, search result
and advertisement history, advertisement spending statistics, website
comparisons, affiliate marketing statistics, multivariate ad testing, et al.
Search engines typically focus on things like:
• Efficient indexing: used to quickly locate data without having to
search every row in a database table every time a database table is
accessed
• Fuzzy query matching: approximate string matches (e.g. “rmabo” vs
“rambo”)
• Stemming: getting words to match each other even if they are not in
the exact same form (e.g. run/runs/running/ran or cat/cats)
• Tokenization: the process of breaking a stream of text up into words,
phrases, symbols, or other meaningful elements called tokens
• Dynamic pricing model is the concept of selling the same product at different
prices to different groups of people. Dynamic pricing is a partially
technology-based pricing system under which prices are altered to different
customers, depending upon their willingness to pay.
• Dynamic price management is primarily gaining ground in online retail at the
moment, but has also been common practice in the prices of flights, travel and
accommodation for a long time.
• Factors like capacity utilization, season, time and the behavior of competitors
influence the price here, for example. Even in classic retail, digital displays on
shelves are increasingly replacing conventional price tags and likewise enabling
pricing to become flexible and largely automated.
• Dynamic pricing models occur in almost every area of commerce. It’s often not
possible to get around the flexible prices – for example, due to seasonal
factors, prices rise before coming back down. In many cases, we also benefit
from flexible prices – for example, with discounts for loyal customers. So,
dynamic prices can certainly be consumer-friendly, even though it may seem
that they are business-friendly only.
Several examples of dynamic pricing are:
• Airlines. The airline industry alters the price of its seats based on the type of seat, the number of seats remaining,
and the amount of time before the flight departs. Thus, many different prices may be charged for seats on a single
flight.
• Hotels. The hotel industry alters its prices depending on the size and configuration of its rooms, as well as the
time of year. ( increase of room rates over the Christmas holiday.)
• Electricity. Utilities may charge higher prices during peak usage periods.
• Difference in Ncell voice packs.
Some industries, such as airlines, use heavily computerized systems to alter prices constantly, while other industries
institute pricing changes at longer intervals. Thus, dynamic pricing can be adopted along a broad range, ranging
from constant to infrequent pricing changes.
Dynamic pricing works best in the following situations:
• When it is used in concert by all of the major players in an industry. Thus, if a single hotel were to keep its prices
low during the peak tourist season, it could likely steal business away from competitors.
• When demand fluctuates considerably in comparison to a relatively fixed amount of supply. In this situation,
sellers reduce prices as demand falls and increase it as demand increases.
• Advantages of Dynamic Pricing
• The following are advantages of using the dynamic pricing method:
• Profit maximization. If a seller constantly updates its prices with
dynamic pricing, it will likely maximize its potential profits.
• Clear out slow-moving inventory. Dynamic pricing involves a
considerable amount of inventory monitoring, with price reductions
in response to higher inventory levels. This approach tends to
eliminate excess inventory quickly.

SALE…………………………………………….. SALE
Disadvantages of Dynamic Pricing
• Customer confusion. If prices change constantly, customers can become confused
by the situation and be attracted to those sellers who do not use dynamic pricing.
Thus, it can result in a loss of market share.
• Inventory management. Sudden changes in price can alter the demand for goods,
which makes it difficult to plan for inventory replenishment.
• Increased marketing activity. It may require an expanded marketing presence in
the marketplace to communicate pricing changes to customers.
• Printed price changes. If used in a retail environment, it requires considerable
activity to update prices on products as soon as the system alters prices.
• Competitor monitoring. If the entire industry adopts dynamic pricing, then a
company must invest in competitor price monitoring systems, to see if its prices
are similar to those offered by competitors.
•Today, all businesses are accepting digital marketing
strategies. Whether it is posting a promotion online or
having a website or social media page, these efforts are
working well in this era. However, this shift of focus
towards technology has also seen many businesses
forget about the traditional marketing strategies that
existed a couple of decades ago. Even though they are
old, they still have their advantages and can still boost
sales.
 Integrating Traditional and Digital Marketing
• The easiest and commonest approach to bringing these two strategies together is by
adding your digital accounts on the printed ads. For instance, we have all seen advertisers
including their website address, social media accounts and any other online address on a
billboard like ad ,poster ,flier etc. As people become attracted by the colors, images and
writing on the printed ad, they also see a Facebook or Twitter page address written below.
This is effective because people can always search the addresses the next time they go
online using their smartphones or PCs.
• Using TV ads to draw people to the appropriate landing page of your website is becoming
common. We all know that TV ads are expensive and run only for a short time. However,
they are highly effective and fast. According to reports, over 20 percent of the viewers may
become interested in watching a TV advertisement. Therefore, it is crucial to quickly
highlight the appropriate page or website they can visit to view more information. This has
worked perfectly, and it is predicted to be an effective marketing trend now and in the near
future.
Integrating Traditional and Digital Marketing
• Another popular trend in print media advertisements is the inclusion of a barcode or QR
code that leads to your appropriate web page or social media page. People still read
newspapers and printed magazines. They are sold all over or placed in barber shops and
beauty parlors for people to read as they receive services. If you read the ads section
today, you are likely to find a barcode or QR code that you can scan with your phone and
be directed to a specific page without having to type any address. This is an effective way
of bringing traffic to a webpage for more sales.
• Businesses can also run digital newsletter and magazine campaigns using direct emails.
After collecting such contact details from various sources, why not have a newsletter,
digital brochure or flyer sent directly to their inbox? Today, most organizations are
working hard so that they can convert their printed media into digital media and send the
digital media to people’s email addresses. Others are shared on social media pages and
websites effectively.
• Lastly, word of mouth, which is an effective traditional marketing method, can be used to
inform people of the existence of social media pages or a website. In most cases, this
happens at the point of sale where the sales agents make all the efforts to ensure that the
customers know this. It is also at this point that people can be informed that the business
has an online buying platform, which is convenient.
• Multilevel marketing :A business model in which a distributor network is needed to build
the business. Usually such businesses are also multilevel marketing in nature in that
payouts occur at more than one level.
• Network marketing is a business model that depends on person-to-person sales by
independent representatives, often working from home.Network marketing is a type of
business opportunity that is very popular with people looking for part-time, flexible
businesses.
• Network marketing programs feature a low open investment--usually only a few hundred
dollars for the purchase of a product sample kit--and the opportunity to sell a product line
directly to friend, family and other personal contacts. Most network marketing programs
also ask participants to recruit other sales representatives. The recruits constitute a
representative's "downline," and their sales generate income for those above them in the
program.
• Network marketing is known by a variety of names, including multilevel
marketing, cellular marketing, affiliate marketing, consumer direct
marketing, referral marketing, or home-based business franchising.
• Companies that follow the network marketing model often create tiers of
salespeople—that is, salespeople are encouraged to recruit their own
networks of salespeople. The creators of a new tier (or "upline")
earn commission on their own sales and on sales made by the people in the
tier they created (the "downline"). In time, a new tier can sprout yet
another tier, which contributes more commission to the person in the top
tier as well as the middle tier.
• Thus, the earnings of salespeople depend on recruitment as well as product
sales. Those who got in early and are in a top tier make the most.
 Challenges of network marketing
• Incentives to build network by putting more associates under you and encouraging
them to do the same rather than selling product.
• Overpriced product: In a pyramid, the product or products sold by representatives
are overpriced. For example, a company may sell a jar of multivitamins at three times
the cost of what women expect to pay for supplements at a drugstore. The inflated
prices are necessary for the payment of commissions on multiple levels of sales
representatives. Having to sell products or services with average quality or a
relatively weak value proposition.
• Emphasis on recruiting instead of sales: Legitimate direct sales companies support
representatives in making sales to customers. Unethical companies place a greater
focus on encouraging representatives to recruit new salespeople.
• Representatives encouraged to spend money on inventory: Another feature of
direct sales companies that operate like pyramids is that they encourage
representatives to purchase large quantities of product regardless of how successful
the representative is in selling to end-users.
Work/Life Balance
• Finding that balance can be one of the biggest challenges. But you don’t
have to allow your MLM business to take over. Searching can be done
while you are out and about enjoying life.
• Also, making a daily plan can give you a road map so you do not neglect
one priority for another.
Duplication
• Training your new recruits properly can always be challenging. Yes, you
may find a recruiting system that works for you but if your recruits
cannot duplicate that system, it really is no use using it. You must use a
system that you can easily show your recruits who can show their
recruits, so on and so forth.
 Selling internationally:
1. Find your target markets.
Like any new venture, it pays to do your homework. Your first step is to learn who your international customers are, what
they buy, and how they shop.
Gather market intelligence. Start by looking at your own data to see from which countries people are already buying your
products. Try expanding your reach into these markets, even if only to test selling specific products.
Research demand for your product and local buying trends. To help inform your target markets, look into the top countries
that have strong demand for your product and niche specialty. Is there demand or a gap in the market? Are there specific
holidays during which your product might be popular? While you’re at it, try to learn as much as you can about consumers’
spending patterns and from which countries they typically buy.
2. Consider how customers want to pay.
Next, start thinking about how you’ll get paid. And as you research payment providers, consider how your buyers prefer to
pay, and a payment provider’s reputation.
• Research local buyers’ preferred payment methods. These vary significantly depending on the country. It probably won’t
surprise you that most people prefer paying in their local currency. Some payment providers will let you list products in a
number of different currencies. If you can’t offer payment in local currency, make sure to give a currency conversion so
customers can see what they’re paying.
• Choose a payment provider with a reputation for security. Look for a payment provider with a strong global
reputation. PayPal, for instance, consistently ranks among the top payment methods buyers choose for international
payments – because it’s a secure way to pay. .
3. Pay close attention to regulations.
Of course, selling internationally brings a whole new set of rules. Once you’ve decided where you’ll sell,
take the time to look into specific rules and regulations for that country. A few key areas to consider:
• Duties and taxes. Find out if duties and taxes will affect the prices of items you plan to sell in target
markets. Make sure you understand the rules that apply to your products so you can let your customers
know about any expenses they’re expected to pay from the outset.
• Customs. All your international shipments will have to make their way through customs, the agency that
regulates shipments entering a country or region. Each package will need a customs form on the outside;
some shipping services even help take care of this – do some checking to see if yours does.
• Free-trade agreements. These agreements are good news for international sellers because they help
reduce or eliminate tariffs for some products. The US has agreements with 20 countries.
4. Think about shipping and returns.
The best practices you already apply to shipping are even more important when selling internationally.
• Set clear delivery expectations. International shipping can take longer and cost more for customers, so it’s
vital to keep them in the loop. Give accurate delivery estimates based on country and list shipping costs
in an easy-to-find place.
• Establish a return policy, and when putting your policy together, consider:
• Any requirements as detailed by local consumer laws.
• Refund conditions, like when you’ll issue them and whether you’ll give store credit or a cash refund
• Time limit for returns
• Restocking, return delivery, or other fees.
5. Plan your market entry.
When you sell products online, you have several options for entering the international market,
including:
• Starting small on an existing online marketplace. Established sites like eBay can often give you
better reach for lower cost. They allow you to test demand for your products before
committing a large sum to re-developing your site. Also, consider other online marketplaces
that may be popular in your target market.
• Optimizing your current website. A slightly more advanced option is to optimize your current
website for international buyers. You can start by simply highlighting your ability to accept
international orders with information on countries served and the shipping costs. Once you
have more experience, you can look into listing your products in local currencies for those
with a non-US IP address, and maybe eventually install a multi-language toggle for your
website.
• Creating a custom website for certain markets. The most advanced option is to build a
website designed to appeal to specific overseas customers. This can include investing in a
local domain name. The products and strategies that work in the US may not necessarily work
in other countries, so a targeted website gives you full flexibility to test the best presentation
of your items. It’s also a chance to optimize for the most popular search engine in the country
in which you’re selling. (It might not be Google.)
• If you take this route, just remember to test the experience, so you make sure that elements like text
translation, currency conversion, and calculation of delivery costs work correctly.
 Thanks
And all the best