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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 — missed cards come back until you master them.

Read the first 7 E-commerce Strategy & Planning flashcards as text
  1. A brand's repeat purchase rate is 15% while industry average is 40%. Which strategic initiative should the consultant recommend first?

    Answer: Implement a post-purchase loyalty and retention email program

    Low repeat purchase rate indicates weak post-purchase engagement; retention email sequences and loyalty programs directly address this gap.

  2. What does 'contribution margin' measure in e-commerce financial planning?

    Answer: Revenue minus variable costs, before fixed overhead

    Contribution margin isolates the per-unit or per-order profit available to cover fixed costs after accounting for variable costs like COGS and shipping.

  3. A consultant is advising on exit strategy options for a profitable e-commerce brand. Which buyer type typically pays the highest multiple?

    Answer: Strategic acquirer in the same vertical

    Strategic acquirers pay premium multiples because they can extract synergies—customer overlap, shared infrastructure, cross-sell—that financial buyers cannot.

  4. Which e-commerce strategy uses behavioral and demographic data to show different homepage content to different customer segments?

    Answer: Personalization

    Personalization dynamically adapts on-site content, product recommendations, and messaging based on individual user data to increase relevance and conversion.

  5. What is the strategic purpose of a competitive pricing audit in e-commerce?

    Answer: To ensure prices remain competitive while protecting margin

    A competitive pricing audit benchmarks your prices against rivals so you can adjust dynamically to remain attractive without unnecessarily sacrificing margin.

  6. An e-commerce brand has a 70% cart abandonment rate. Which tactic has the most proven impact on recovering these lost sales?

    Answer: Sending an automated cart abandonment email sequence

    Automated cart abandonment emails recover an average of 5–15% of abandoned carts and are consistently among the highest-ROI retention tactics.

  7. Porter's Five Forces framework is used in e-commerce strategy primarily to:

    Answer: Assess the competitive intensity and attractiveness of a market

    Porter's Five Forces evaluates supplier power, buyer power, competitive rivalry, threat of substitutes, and new entrant barriers to gauge market profitability.