If you are the owner of an e-commerce site you know that every product has a different price and a different profit margin. When you’re only using AdWords conversion tracking, in some cases you might not be able to see the exact revenue that comes from each conversion.
You might not be able to see what products were sold nor to calculate the profit margin either.
These metrics are crucial in order to optimize your online revenue and make the most out of your ad budget.
This is why every single e-commerce site should have its own Analytics e-commerce tracking. E-commerce Tracking in Google Analytics allows you to check out costs, revenue, transaction value and a certain number of unique purchases among other features to have a good overview on investment return and current profit margins.
4 Key Benefits of E-commerce TrackingMany advertisers aren't aware of the amount of opportunities that e-commerce tracking from Google Analytics offers. I have identified 4 key benefits to make you understand the essentials of e-commerce tracking in order to be successful in your business.
1) Google Analytics Calculates the Exact Performance of Your AdWords, SEO and other Advertising
E-commerce tracking allows you to view all the metrics that are relevant and necessary for any online store such as amount of transactions, total revenue, quantity, average price and much more.
These metrics will allow you to have a segmented view on the performance of many sources and mediums such as:
- AdWords campaigns
- Organic searches
- Bing Ads campaigns
- Email marketing
- Facebook marketing
- Display Banners
AdWords appear to have a lot less clicks but is still outperforming organic searches to almost 2-to-1.
Pivot Tablets Bring Perspective To your Analytics Data
Through the use of pivot tables you can even measure out performance in revenue and compare periods in order to determine significant changes.
One of our biggest clients, a natural cosmetics company, keeps asking us to review their numbers in order to make sure current revenues are beating previous years’ revenue. We can do this very easily by going to the e-commerce tab and comparing in the date range the same period for previous years:
2) Google Analytics Allows You to Calculate Exact Returns
Another client, a major Wood Veneers Supplier offers all range of products from reconstituted veneers with prices starting at $50 as well as veneer glues starting at $20.
As a result of our AdWords efforts, e-commerce tracking allows us to see the revenue on each single item as all their different products obviously also have very different conversion values.
It also allows us to measure advertising costs on specific products vs. the current revenue and helps us determine whether it is worth advertising a product in AdWords.
In this particular case, we were able to see that advertising for maple veneer produced $495 in the past 90 days with an AdWords expenditure of $60.36 on all maple veneer keywords, giving us a new profit margin of 87.88%.
By using Google Analytics e-commerce tracking we were able to allocate a higher portion of our budget to the maple veneer keywords and increase the overall revenues derived from AdWords.
3) Create The Most Amazing Reports with E-commerce Tracking
By enabling e-commerce tracking on an account for any online store, reporting to upper management becomes much easier.
You can customize your report based on the most relevant metric, which in most cases is revenue, and tailor this to show which campaigns generated most returns as well as which keyword and which match type worked best.
The available options for downloading these reports are PDF, CSV, TSV, once you have them set up to your needs.
4) Use Your Budget More Wisely With Revenue Tracking
You will be able to optimize your campaigns by being able to have a granular look at your sales. This will allow you to see the current expenditure on certain keywords along with the revenue you get from these rather than just having a conversion view where current value and return on investment are not known.
As mentioned earlier on, e-commerce tracking will show you exact numbers on performance for different sources.
If we go back to the example that we used before, then we noticed that the amount of transactions from AdWords were super low compared to other keywords we were running.
It has only produced two transactions as opposed to dozens of transactions for other keywords.
We were about to pull the plug on this campaign until we checked out the same campaign in our Analytics. We noticed that it had produced $600 in revenue. Although our conversion rate was visibly low at 0.34%, we had an insight into the actual value of the campaign and we knew that the next step was a proper optimization of this campaign rather than shutting it down altogether.
Comparatively, another campaign for the same client had 7 conversions within the same month and a total revenue close to $679 with an average order value of $97. This particular campaign was actually below budget, which allowed us to allocate funds into the aforementioned campaign.
How To Set Up Google Analytics E-commerce Tracking
Setting up e-commerce tracking is incredibly easy. All you need to do is to go straight to your Analytics account and follow two simple steps:
- Enable ecommerce tracking
- Go to the Admin Tab under Analytics
- Click on the profile
- Click on the profile settings tab
- Scroll to E-Commerce Settings and choose on the drop down menu the option “Yes an E-commerce site”.
Step 2: Add the E-Commerce Tracking to your website
I would strongly advise to get help from your Webmaster for this particular step. .
You need to be adding a code to the adequate pages in order to successfully track all metrics in your online store. Please refer to Google link in order to get detailed instructions on how to add this to your website and/or mobile apps:
Or Just Get A Shopify Site
If you wish to just skip altogether the whole process of installing e-commerce tracking to your site, having your website built by Shopify is your best bet.
Shopify is completely set up to be tracked in Analytics. All you would need to do once you have your Shopify website is enter your Analytics UA ID and turn on the ecommerce tracking option in your Analytics account as illustrated in Step One.
So Should Any Ecommerce Site Be Untracked?
No e-commerce site should be left untracked unless the words revenue, average transaction value and expenditure mean nothing to you.
You can be 100% sure that enabling this in your site will open up plenty of possibility once you have properly learned to read the metrics and to assess what’s actually working for you and what is not. Tracking every single detail in the transactions happening on your site will not only let you see how much you are actually earning, but will also show guide you on how to exploit opportunities.