The shop analysis – potential for success in the online shop

The shop analysis – potential for success in the online shop

A shop analysis helps to find out potentials but also weaknesses of your own online shop. In this article you will learn which analysis questions can be used to implement the potential of your shop within the framework of a shop analysis. If you would like support in carrying out the analysis or in realizing optimization potential, the E-commerce Institute will be happy to advise you. Simply send your non-binding inquiry to post@ecommerceinstitut.deShopanalyse

Shop analysis – the basics

An online shop is the highly visible access to a company, its brands and its products for customers and users. The structure and contents of an online shop reflect almost all aspects of the e-commerce business model as well as the strategy, online marketing and logistics that an e-commerce company has developed. In the shop analysis, current statuses are recorded for all essential aspects that make up the structure and operation of an online shop and a look is taken at whether they deviate from planned ideas or from the level of competing companies. The result is instructions for action to optimize the online shop.

Business model

The question of the business model is also central in e-commerce. The corresponding answer provides information about the value proposition of a company, about channels and customer relationships as well as assets, activities and network partners. But the decisive factor is value – what unique contribution does a company make to the values of its customers with its e-commerce? Which structure of communication, sales and distribution channels is chosen? Are the right characteristics for the service portfolio derived from this structure?

An ideal instrument to document the business model and to identify deficits and potentials is the Canvas business model by Osterwalder and Pigneur. By documenting the existing business model and checking its consistency, significant potential for optimisation can usually be identified.

Competitive situation and unique selling propositions

The next step after the business model has been recorded and described is the analysis of the competitive situation and the description of the unique selling propositions. Since competition in e-commerce is much more intense than in traditional retail due to customer access via the Internet, “more of the same” and the lack of unique selling points are a serious problem. This should be identified in the shop analysis and solutions developed.

Conversion performance and potential

An online shop has the task of organizing product sales. Consequently, conversion is the central service of an online shop. The ability and performance of the shop to convert visitors into customers is therefore the central operational challenge.

Is the conversion rate enough?

The analysis of the conversion performance is based on the performance values of the online shop in terms of conversions. For this purpose, the number of visitors must be measured and offset against the sales achieved at the conversion rate. A benchmark, for example to the industry average conversion rate, helps to assess the quality of your own online shop. Even more important than a benchmark, however, is the effectiveness and efficiency of the online shop in relation to corporate goals. If the online shop is profitable, the conversion rate is sufficient to

online marketing costs
direct costs for goods and shipping
pro-rata overheads
Share of profits

to finance this? A simple calculation shows the leverage that increasing the conversion rate has on the success of the shop. To determine the marketing costs per conversion, the CPO (cost per order), the following expression is sufficient:

CPO = Cost per Visit/Conversion Rate.

Cost per visit is approximately the click price in paid online advertising. If this is e.g. 1.50 Euro and the conversion rate is only 3%, the CPO is 50 Euro. This is a very high expense that can be refinanced with only one conversion in only a few online shops.

Conversion optimization

Conversion optimization is an important task if the conversion rate is insufficient and leads to online marketing costs that cannot be refinanced. The shopping process is examined from back to front. The aim is to identify and eliminate deficits in usability and user experience. In this way, the conversion rate can often be improved in the short term.

online marketing position

After the conversion performance, it is important to analyze in which channels, at what cost and with what results visitors come to the online shop. An analysis of the channels with regard to their conversion contribution and the costs incurred is recommended. However, this also includes first of all assigning the conversion success to the participating channels. This necessary attribution modeling takes into account a complex customer journey, in which a customer comes into contact with different channels of the shop not only once but several times.

Web Analytics – Performance parameters of the shop

Both the verification of the conversion performance and the determination of the online marketing position make it clear whether the online shop is captured with a powerful web analytics tool. This tool and its setup, which is adapted to the company’s objectives, is an essential prerequisite for managing the online shop correctly. In this respect, it makes sense in the shop analysis to also check the web analytics solution and organization and to develop suggestions for improvement.

System & Logistic Excellence

System & Logistic Excellence represents a large test field. The System Excellence represents the quality of the entire backend and the system components, i.e. the software of the online shop. Logistic Excellence, on the other hand, is measured by the speed and service level of the dispatch, but also by the efficiency of the fulfillment. Purchasing and disposal are also part of the logistics service spectrum.

In the shop analysis, both areas must be examined against the background of the state of the art and given benchmarks. As a result, optimization and expansion potentials can be identified and suggested.

Web design – usability and user experience

Closely related to conversion optimization is the analysis of the web design and the associated usability and user experience. In addition to the direct effects on conversion, both levels of the user interface also have strategic importance for the competitive position and customer loyalty. As a result of the shop analysis for the web design, its strategic position in comparison to the competitors and the ability to develop on existing or new platforms will have to be examined. The result of usability and user experience must be enthusiastic and above all loyal customers. If these are lacking, the shop analysis will certainly be able to develop suggestions on how customer loyalty can be increased.

Legal requirements

High competitive pressure and transparency have led to the fact that the vast majority of online shops operate legally unproblematic sites. However, a shop analysis should also be used for a regular check of legal positions on the shop pages. In particular, upcoming legal adjustments can be better planned and prepared in this way.

The Shop Analysis – Timetable to shop success

Depending on capacity, a shop analysis can be carried out annually or every two years. Carried out correctly and in a targeted manner, it leads to a comprehensive catalogue of measures that improves the strategic and operational performance of the online shop and the e-commerce system including logistics and online marketing.

Are you interested in an exchange for the analysis of your online shop. You are welcome to send us a message to info@ecommerceinstitut.de.

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