Cohort Analysis OR Reporting for E-Commerce Websites

Cohort Analysis OR Reporting for E-Commerce Websites

Before understanding the cohort analysis for E-Commerce websites, we need to understand the what exactly is E-Comemrce, how does it work and what are the important metrics to know while analysing data and improve performance for E-Commerce business.

What is An E-Commerce Business ?

E-commerce is a transaction of buying or selling online. So any business which buys or sell products through World Wide Web, Mobile or any other mode where transactions are happening through electronic medium is e-commerce. 

For any online business it is very much important to understand how user behave on their site, what products are searched or liked most, products which drive maximum revenue, what time user buy the product most and people who bought came to our website on one particular day/Week or month what was their behaviour on the site in coming days. 

Understanding the consumer transaction cycle or buying pattern is very much important from any E-commerce business point of view.

Answer to All the E-Commerce analysis and Data requirement is Cohort Analysis/Reports.

Ecommerce Cohort Report

There are some e-commerce specific metrics that can be analysed with the Cohorts report. 

• Revenue per User
• Transactions per User
• Total Revenue

1. Cohort report always provides the data based on the first date when the user was acquired on the site or app.
2. Cohort report also helps in understanding the every small detail related to a customer buying cycle or transaction pattern on the site.

So for example if you want to analyse customers who are buying expensive products on your platform and what is the frequency of those items to be purchased then switching to weekly or monthly cohort report will provide more accurate data.

Weekly Cohort, User revenue, last 12 weeks

Weekly Cohort, Transactions per User, last 12 weeks

If your customers purchase less expensive items, then their transactional cycle might be more regular for that using cohort over 30 days will provide more efficient data.

Daily Cohort, User revenue, last 30 days

Daily Cohort, Transactions per User, last 30 days

Cohort reports for any e-commerce business helps in understanding different campaigns behaviour, time taken by users for conversion, transactions happening particular day of the week. So analysing cohort reports are very much required to improve the performance and revenue of any online business.