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
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.
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.
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.
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.
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.
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.
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.