Costs
Part of Ecommerce marketing strategy: a working plan and checklist
Common ecommerce marketing strategy questions: a method
Common ecommerce marketing strategy questions on CAC, LTV, retention, shipping and endorsements, with formulas, legal obligations and a decision-record method.
What to take away
- A strategy question needs a decision, definition, evidence, and owner.
- Marketing promises must match delivery, returns, service, and review practices.
- Platform results do not replace commerce and finance records.
Common ecommerce marketing strategy questions often sound simple because important definitions are missing. In ecommerce marketing strategy, what counts as a sale, new customer, delivery promise, review, profit, or repeat purchase? Write the unit, period, source, exclusions, and decision before answering.
Common ecommerce marketing strategy questions to answer
- How should we calculate customer acquisition cost (CAC)?Divide acquisition spend by the new customers acquired in the same period. State whether spend includes only media or other acquisition costs, and define who counts as a new customer.
- What are customer lifetime value (LTV) and LTV:CAC?Define LTV as the contribution a customer generates over a stated observation window, not simply revenue. Compare contribution-based LTV with CAC using the same customer population and time basis; the ratio alone does not establish payback or profitability.
- What are average order value (AOV) and return on ad spend (ROAS)?AOV is consistently defined sales divided by orders; ROAS is attributed revenue divided by ad spend. State the attribution window and treatment of discounts, cancellations, and returns. ROAS is not profit: compare campaign results with contribution after variable costs.
- What is the repeat purchase rate, and how should we define churn?For repeat rate, divide customers in a defined cohort who purchase again within the observation window by eligible customers in that cohort. For subscription churn, define which cancellations count and divide them by the subscribers eligible at the start of the stated period. Compare cohorts over the same elapsed window.
- Which retention programs should we consider?Ask whether post-purchase, replenishment, winback, or cart-abandonment email and SMS flows, loyalty, or subscriptions suit the customer and economics. Check consent, suppression, margin, and service capacity before expanding a program.
- How should we assess cart abandonment?Define eligible carts and the observation window, then track which carts do not become orders. Treat that result as a signal to investigate—not proof that every uncompleted cart was a lost sale—and suppress recovery messages after purchase.
Can a store advertise an estimated shipping time?
The FTC's Mail, Internet, or Telephone Order Merchandise Rule covers shipment promises for orders placed by mail, internet, or telephone. If no shipment time is stated, the seller generally must ship within 30 days of receiving the order; if it cannot meet the deadline, it must send an option notice allowing the customer to accept a delay or cancel for a prompt refund, as described in the FTC's shipping-rule summary. For refunds under specified provisions of the Rule, “prompt” means the refund is sent by first-class mail within seven working days after the buyer's right to a refund vests, under the Rule's prompt-refund definition. The federal rule does not cover every contract, carrier, marketplace, or jurisdictional requirement.
| Question | Working answer |
|---|---|
| Is traffic demand? | No. Traffic is measured activity; demand is a customer need and ability to buy. |
| Is an order revenue? | Not automatically. Payment, cancellation, return, tax, and accounting status matter. |
| Is ROAS profit? | No. It normally omits product, fulfillment, returns, service, and other costs. |
| Is every buyer new? | Only under a documented identity and lookback rule. |
| Should every channel sell directly? | No. Give each channel a defined job and measure. |
Can customer endorsements carry marketing claims?
The FTC's Guides Concerning the Use of Endorsements and Testimonials in Advertising (16 CFR Part 255) address endorsements and material connections. Endorsements must reflect honest experience, and material connections may require clear disclosure. A customer statement does not give a retailer permission to repeat a claim it could not make directly.
Other recurring questions need the same discipline. Set allowable acquisition cost using defined contribution, the payback period the business can support, and its required profit buffer; do not treat a revenue-based LTV or ROAS as profit. Judge retention by cohorts and repeat behavior over a stated observation window, not by message volume. Evaluate agencies through account ownership, evidence quality, access, cost, and exit. Test only when the result can change a decision.
Keep a dated question log and use a decision record for each question. Record the question and decision; metric definition, formula, unit, and exclusions; population or cohort and observation window; evidence source; owner; alternatives; result and limitations; action; and review date or change that would trigger an earlier review. Assign each answer to marketing, operations, finance, legal or compliance, customer service, or leadership. If evidence is incomplete, state the gap and choose a reversible action.
Resolve the question with a decision record
For an ecommerce marketing test, define the decision first, then choose evidence and a design that can answer it. A result from one audience, offer, or period does not automatically establish what will happen elsewhere.
For US campaigns, check whether the CAN-SPAM Act applies to commercial email, whether Telephone Consumer Protection Act rules apply to calls or text messages, and whether the California Consumer Privacy Act, as amended by the California Privacy Rights Act, applies to the store and activity. The General Data Protection Regulation may also apply when its territorial scope reaches a retailer's processing; it is not a default rule for every US store. Confirm the law's scope and store configuration before changing customer-data, measurement, or campaign practices. Privacy principles can guide that review, but they do not replace governing law.
A useful answer identifies the decision owner, eligible population, evidence period, method, and action. It states what the result cannot establish. Save the definition and date with the answer.
If the same question returns, compare records before changing the metric. That exposes a changed population or source instead of treating every difference as new behavior. Versioned events and mature orders make that comparison possible, so ecommerce analytics teams keep a written record.
A strategy answer is only as good as its record. File evidence beside the decision so a reviewer can reproduce the reasoning without memory, and set a next review date with the change that would trigger an earlier check.
Log rejected options and the chosen path; the original constraint may later change, and use identical definitions in interface, export, meeting note, and correction log. Close unused reports and permissions once the cycle ends.
Common questions
What is the difference between a goal and a metric?
A goal describes the intended business result. A metric is one defined observation used to judge progress or risk.
Should strategy start with a channel?
No. Start with the customer, buying situation, offer, economics, and operational ability, then choose channels.
Can a benchmark answer these questions?
A benchmark can provide context only when definitions and populations match. It does not decide what is profitable or responsible for one store.
