E-COMMERCE

The impact of Web Analytics on E-Commerce



The impact of Web Analytics on E-Commerce

Introduction

With the rapid growth of information technology and cyber space over the past few years, the E-commerce has introduced and gained popularity in various business organizations. Nowadays, most organizations rely on their dynamic and attractive websites for selling their products. For serving the purpose of effective sales, organizations utilize the effective online media marketing techniques. As the e-commerce processes highly depend upon these websites, the need of evaluating these websites emerges (Shannak R.O., and Qasrawi N.H, 2011, pp.90). Web Analytics is the process, used to study the impact of websites on a business. In this paper, we discuss the impact of web analytics on e-commerce activities of the organization.

Discussion

The information technology has reshaped the business processes including marketing and sales. Majority of the organizations use websites for online marketing and sales incorporating E-commerce techniques. The websites require evaluations, so the organizations come to know that how successful these websites are, in driving the customers and ultimately in increasing revenues.

From the internet or website's perspective, e-commerce defines as the technology which provides the capability of buying and selling products or services through the company's website. E-commerce effectively emphasizes on generating new business opportunities, as this is the age of information where everyone and prospective customers remain connected most often. Therefore, if something affects the e-commerce in a positive way, it would undoubtedly have positive effects on the progress of the overall organization. E-commerce depends upon the visits of customers on the websites, the more customers will visit the website; more is the chance of sales.

Web Analytics are used for measuring, analyzing and collecting information about the website traffic. It is the study of traffic pattern to determine the success of website based on the collected data. The organization becomes able to find out the impact of its website on the overall efficiency improvement. Web analytics tools can be used for various popular applications (Watts D. J., 2007, pp.489), but these are typically used for supporting website research or market research. The organizations rely on these tools for monitoring the progress and efficiency of their e-commerce strategies and processes. Whether the organization looks forward for boosting up the e-commerce sales, generating more awareness about its product line, or creating the market leadership strategy, the web analytics provide valuable and reliable information in the online environment.

The information provided by the web analytics software includes the customer's perspectives about the website. It includes information such as how many customers visit the website, how many times did they visit, how did they know about the website, which links did they click and how much time did they spend on the website. This information helps the web developers to make the website more attractive for the customers, which certainly helps in optimizing the e-commerce activities.

Web analytics is important for e-commerce as it helps to monitor the customer behaviour regarding the use of the ...