The constant state of innovations and changes in the dynamic E-commerce retail sector has meant that small and large E-commerce businesses turn to technology to maintain their competitive advantage. Data-driven business insights are becoming crucial for any online retailer to gauge the changing market trends and customer behaviour.

While data or business analytics is crucial for any industry domain, data analysis for small E-commerce businesses in the form of E-commerce analytics has assumed an important role in the growth (or even survival) of these players in an increasingly competitive market space.

Overall, the industry perception around data science in E-commerce is that this technology is only useful for the bigger players. This is why around 77% of the smaller E-commerce players do not have any strategy for data analysis and restrict themselves to limited business insights from free tools like Google Analytics. Moreover, the cost of hiring a full-time data analyst or data scientist makes the adoption of full-scale E-commerce analytics unfeasible for most small to medium players in the E-commerce sector.

In the following section, let’s evaluate how E-commerce analytics can benefit even smaller companies and why they should consider outsourcing the data analysis function to professional companies.

What are E-commerce Analytics and how are they relevant to smaller companies?

In simple terms, E-commerce analytics (or Ecommerce analytics) is a set of any data analysis tools or methods used to derive valuable business insights from vast volumes of data generated by the E-commerce business. With the right E-commerce analytics tool, you can set and measure your business goals through the proper KPIs and metrics that work for your business.

How are E-commerce analytics important and beneficial to small and medium-sized E-commerce websites?

  • Effective SEO management that can target and attract over 40% of online shoppers who search for retail products through an online search. Data analytics tools help in measuring crucial KPIs like search volumes, cost-per-click, click-through rates, and conversion rates.
  • Better Customer Retention through methods focussed on building customer loyalty, repeat purchases, and customer satisfaction. Customer retention is the lifeline of any E-commerce business as according to the industry statistics, 80% of future revenue will be generated from the top 20% of existing customers. Through E-commerce analytics, you can track various KPIs like the percentage of returning visitors, social sharing, and modeling of the customer lifetime value (or CLV).
  • Website optimization based on data insights provided by analytics tools on how online shoppers interact with your E-commerce website. This includes key focus areas such as user navigation, ease of product check-outs, product presentations, rate of abandoned shopping carts, and the overall usability.

How does any E-commerce business analyze its data particularly as it is generated from a wide variety of data sources? Here are some of the most effective data sources:

    • Mouse track data including online clicks, click maps, and page scrolls
    • Live chat data including purchase intentions, product information, and customer feedback.

Sales funnel data including the percentage of shoppers who move (or drop out) to the checkout page

Why should small to medium E-commerce retailers consider outsourcing their data analysis function? Let’s discuss that in the following section.

5 Reasons why E-commerce companies must outsource data analysis

Despite the ease of use of many data analytics tools, small-to-medium businesses (or SMBs) in the E-commerce fail to leverage the use of its large data volumes for business benefits like predicting customer behavior, purchasing patterns, and improving productivity.

To improve the returns from data analysis, small E-commerce businesses should consider outsourcing data analysis-related tasks to third-party data analytics providers or companies. Here are the top 5 reasons why they must do so:

Reduces costs

This is probably the biggest reason for the growth of the outsourcing model and is no different for E-commerce analytics. For SMBs, hiring an in-house data analytics team comprising of data analysts, data scientists, and project managers can be both expensive and time-consuming.

Apart from the cost of hiring, SMBs outsourcing to professional data analytics providers do not have to worry about employee training or attrition-related costs.

Focus on their core business goals

By outsourcing data analytics-related functions to an external party, business leaders and executives in E-commerce companies can focus on their core business goals like increasing customer engagement and retention. Third-party data analytics solutions can remove the unnecessary clutter around large and complex data sets and present useful and relevant data insights and results for a more informed decision-making process.

More accurate data analysis with professional expertise

Professional data analytics solution providers are equipped with a variety of data analytics tools used to analyze, interpret, and visualize E-commerce data. Additionally, experienced professionals trained to handle E-commerce clients specifically will also have the necessary expertise and skills to undertake data-driven solutions (or projects) that can benefit you with accurate data analysis and relevant insights.

This can also significantly reduce your time and costs trying to hire and train full-time data analysts or the time spent in evaluating and choosing the data analytics tools that would be the right fit for your business needs.

Keeps your data secure

As an E-commerce vendor, your business data is the most valuable asset of your business. This typically includes all your customer profiles, recent purchases, product catalogs, purchase orders, delivery status, and much more. Losing this data can negatively impact your business operations and reputation at least for some period of time.

Professional data analytics companies invest in the latest storage technologies that can keep your data safe and confidential. Through efficient data management, data analytics agencies collect and store large volumes of your business data generated from a variety of online sources.

Saves time and effort

To increase sales or brand value, E-commerce companies often go for online marketing initiatives such as a limited-period marketing campaign, a festive offer, or a new product launch. The success of such initiatives depends on the availability of the right digital marketing and data analytics team (that can measure if the initiative was a success or a failure).

By outsourcing your data analytics, you are assured of the immediate services of a professional analytics team specifically for immediate marketing initiatives. This saves a lot of your time and effort in organizing and planning for your business analytics.


This article highlights the impact of effective data analysis in the E-commerce industry. E-commerce analytics is transforming this evolving industry domain in the form of a business understanding of customer behavior, online shopping patterns, customer service, and improving website usability.

For small to medium E-commerce retailers, investing in a comprehensive data analytics solution and the team can drain their resources and divert their focus from the core functions of the E-commerce business. This article lists the business benefits of outsourcing your data analytics to a third-party analytics company.

As a well-established data analytics and business intelligence provider, Countants has enabled its E-commerce clients to scale and grow with the right business insights from data analyzed by its core team of skilled and experienced data analysts. By customizing dashboards like the user behavior or the conversion analysis report specifically for the E-commerce sector, Countants has proven its expertise in the field of data service and data management.

Looking for the E-commerce analytics solutions that work for your business? Contact us now!