What You'll Learn
Analysing the profile of the traffic (website visitors) that comes to an ecommerce property is a crucial part of any ecommerce due diligence, and we recommend this be part of all due diligence engagements.
SEO & Organic Search
Organically ranking highly for search terms related to the good or service sold by an ecommerce property is obviously highly valuable. Essentially, this is "free" traffic, and although a business can run very successfully on paid advertising alone, having a substantial portion of traffic come from organic searches or direct traffic is usually a sign of a healthy business.
Paid Search Advertising
Paid search advertising, such as Google Adwords, is the main way in which a lot of ecommerce businesses acquire customers. Despite this, many large ecommerce companies do not handle search advertising in-house, prefering instead to outsource this task.
Social Network Presence
A robust social network presence can be a powerful driver of traffic and customer loyalty. However, it is very often poorly utilized by even pretty large ecommerce companies.
An effective content strategy can amplify both organic and paid advertising efforts, decrease the cost of customer acquisition as well as increase customer loyalty, brand awareness and repeat purchases.
Analytics & Business Intelligence
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Einar Vollset is a seasoned technology operator specializing in due diligence of, and strategic advisory services for, middle market and private equity owned companies with significant eCommerce channels. Dr Vollset is the co-founder of a YCombinator backed company acquired by Google, holds a PhD in Computer Science and used to be a professor of computer science at Cornell University.