A lot of Ecommerce marketers look at ROI from ads as one single metric which makes it very hard to analyze why it's high or low. Instead if you break it up into individual parts, the dependencies becomes much clearer.

Incase of e-commerce ads, detailed look at the funnel metrics as Impressions -> Link clicks -> Landing page views -> No. of product views per session -> Cart additions -> Checkout -> Purchases. Analyzing drop rates at each stage will give valuable insights on how overall efficiency can be improved.

As you can find in the above funnel, your website plays a major role in each sales that you generate starting from increasing page views to final purchase. So, having a good website can actually increase your returns from Marketing spends drastically by multiple times and you will be able to scale your ecommerce business in quick time. 

A general rule of thumb is that Higher the website conversion rate, higher will be your returns from Adspends.

Having said that a good conversion rate is important, are you wondering what are the factors of an ecommerce website that affects conversion rate? Following are a set of few recommendations that will help you increase your website's conversion rate.

 

1. Increase landing page views to Link clicks ratio - Enhance your Website Speed.

 

 

 

2. Increase No. of product viewed per session - Include Similar Product Recommendations.

 

 

 

2. Increase Cart Additions - Improve your product page to avoid distraction & drop-out.