What is an e-commerce funnel?
An e-commerce funnel is a model that describes the different steps a customer goes through in the purchase process on a Web shop. It helps companies understand how customers behave on their Web site and where they might drop out. The funnel consists of different steps a customer goes through from the moment he first sees a product to the moment he makes a purchase. These steps provide insight into how well a webshop is performing and where improvements can be made.
The main steps in an e-commerce funnel are usually: view item list, view item, add to basket, view basket, start checkout, and finally purchase. It starts with view item list, where a customer views an overview of products, such as a category page. Then the customer clicks on a specific product, which is registered as a view item. If the product is interesting enough, the customer adds it to the shopping cart, which is the add to basket step. After this, the customer can view the shopping cart (view basket) and decide to start the checkout process (begin checkout). If all goes well, the customer ends the process with a purchase, or purchase.
Analyzing this funnel with marketing tools can provide businesses with valuable insights. For example, if many customers add products to their shopping cart but do not proceed to purchase, that could be a sign that something is wrong with the checkout process or that shipping costs are too high. By closely monitoring the funnel, companies can make targeted improvements, such as simplifying the checkout process or adjusting product information. The goal is to guide as many customers as possible through the entire funnel, from initial contact with the product listing to the final purchase, increasing conversion and revenue.
