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E-commerce Strategy & Planning Flashcards

7 cards from real CEC practice questions. Tap to flip, then mark Knew It or Still Learning โ€” missed cards come back until you master them.

Read the first 7 E-commerce Strategy & Planning flashcards as text
  1. A DTC brand wants to reduce dependency on Amazon. Which strategic move best diversifies their sales channels?

    Answer: Launch a branded Shopify store with loyalty rewards

    Launching a branded own-domain store builds direct customer relationships, captures first-party data, and eliminates marketplace fees.

  2. Which metric best indicates whether a customer acquisition cost (CAC) is sustainable for an e-commerce business?

    Answer: CAC to LTV ratio

    A CAC:LTV ratio below 1:3 typically signals that acquisition costs outpace the long-term revenue generated per customer.

  3. An e-commerce consultant is evaluating a market entry strategy for a US apparel brand expanding into Germany. What is the MOST critical compliance consideration?

    Answer: Complying with EU GDPR data privacy regulations

    GDPR requires strict data handling, consent mechanisms, and privacy policies, with heavy fines for non-compliance across all EU markets.

  4. Which pricing strategy involves setting a high initial price and gradually lowering it over time?

    Answer: Price skimming

    Price skimming extracts maximum revenue from early adopters before reducing price to attract more price-sensitive segments.

  5. A startup e-commerce brand has limited budget. Which customer acquisition channel typically delivers the highest ROI at early stage?

    Answer: Email marketing to an owned list

    Email marketing to an owned list has near-zero per-send cost and consistently delivers among the highest ROI of any digital channel.

  6. What does a SWOT analysis help an e-commerce strategist identify?

    Answer: Internal strengths/weaknesses and external opportunities/threats

    SWOT maps internal capabilities (Strengths, Weaknesses) against external market conditions (Opportunities, Threats) to inform strategic planning.

  7. Which business model charges customers a recurring fee in exchange for ongoing product deliveries or service access?

    Answer: Subscription commerce

    Subscription commerce (e.g., Dollar Shave Club) generates predictable recurring revenue and improves LTV by locking in repeat purchases.