If you run an online shop, it's essential to integrate Google Analytics and leverage its advanced features to maximise your data's potential. In this guide, we will walk you through the initial steps of setting up Google Analytics for your online store and highlight some essential features to utilise right from the beginning. 

We would like to inform you that Google has recently introduced a new version of Google Analytics, known as Google Analytics 4. As of the date of this writing (25/5/21), the majority of e-commerce platforms, including Shopify, have not yet integrated support for Google Analytics 4 properties in their built-in features. Consequently, this guide is focused on Universal Analytics properties for now. To learn more about Google Analytics 4, check out our article titled “What is Google Analytics 4 and what are my next steps?” ” 

1. What makes Google Analytics data essential? 
Data serves as the backbone for numerous thriving e-commerce enterprises. Making well-informed choices about where to invest your time and resources will drive growth in e-commerce. Just as your sales data guides important choices regarding which products to stock (and when) and how to price them, website analytics data should steer decisions about your marketing efforts and the user experience on your site. 

In an online marketplace, customers can easily abandon their shopping carts or switch to a competitor with just a click.

To boost your sales, you should:

attract the right customers to your store in a budget-friendly manner 
encourage them to make a purchase (through effective messaging, suitable products, and competitive pricing) 
ensure the user experience is seamless and efficient to boost conversions and reduce abandonment rates 
The positive aspect is that Google Analytics can offer you the insights necessary to:

gain insights into what is effective or ineffective on your website, enabling you to make educated choices about allocating your marketing budget 
discover effective messaging strategies and enhancements to boost your online sales 
2. A quick reminder – what exactly is Google Analytics?
Google Analytics is a complimentary platform from Google that monitors the online behaviour of visitors to your website or online store. It functions by incorporating snippets of JavaScript tracking code into the backend of your website. After that, you can access reports regarding your website visitors and their activities on your site through your Google Analytics account.

3. Choosing what to monitor 
To maximise the benefits of the tool, it is essential to concentrate on monitoring and evaluating the data that is directly linked to your sales.
The essential information to focus on is the data that provides actionable insights regarding your customers, your online sales, and your marketing channels.
Here, we highlight the essential areas to concentrate on and the questions that need addressing.
User profile and on-site engagement 
First, gather and examine data regarding your users. It is essential to identify your existing visitors and assess if they align with your intended audience. It is essential to comprehend the actions of visitors on your website – are they engaging in the manner you require? And if not, then what holds you back?

Important aspects to explore include:

Traffic volume: What is the amount of traffic coming to your website? 
Geographic location: From which areas is your traffic originating?
Most popular pages: Which pages are attracting the highest number of visitors on your website? 
User journeys: What paths are users navigating on your website? 
Landing pages: Which pages are users accessing when they visit your site? 
Digital sales and conversion rates 
One of the ways that Google Analytics can provide significant benefits is by assisting you in understanding how to boost conversions in your online store. Your conversion rate is a crucial metric for your business – it represents the percentage of visitors who successfully make a purchase.

There are numerous factors that impact conversion rates, including essential elements like the relevance of your traffic, the quality of your products, delivery options, pricing, and more.

Nonetheless, the conversion rate is influenced by the content and design of your website – including your product images, sales messaging, user experience, and the effectiveness of your calls to action. Your Google Analytics data can provide valuable insights into the obstacles hindering conversions on your site, enabling you to address and resolve these issues effectively.

Important aspects to explore include:

Transactions and revenue: What is the total number of transactions conducted on the platform, and what revenue has been generated from these activities?
Ecommerce conversion rate: What is the percentage of total visitors that are currently turning into sales? 
Goal conversion rate: What portion of visitors are achieving other non-purchase objectives (like signing up for newsletters)?
Examine the checkout process and goal funnels: What is the drop-off rate at each stage of your checkout process?
Sources of traffic 
A crucial aspect of data, when aiming to enhance your marketing effectiveness and boost onsite conversions, is understanding your customer acquisition channels – the traffic sources that bring users to your website. This will assist you in identifying the channels that are generating the highest traffic, such as organic search, social media platforms, or direct visits from the browser. Additionally, it is crucial to determine which of these channels are contributing to your sales and which are not.

As you expand your business and consider launching advertising campaigns, these reports will be essential in guiding your advertising budget allocation.

They provide valuable insights into how effective your advertising campaigns are at attracting traffic, how that traffic converts on your website, the cost of acquiring customers through each channel, and the role each channel plays in your customer journey. For instance, certain channels excel at creating awareness, drawing in customers during the initial phases of their buying journey. While this may not result in immediate conversions, it can pave the way for future sales. It is essential to evaluate each channel individually and establish your goals and targets in alignment with that assessment.

Important aspects to explore include:

Traffic generation avenues: Which avenues are bringing in the highest traffic? 
Sales-driving avenues: Which avenues are generating the highest volume of sales?
Ecommerce conversion rate: Which channel delivers the highest sales conversion (the ratio of sales to users)?
4. Initiating your tracking process 
With a clearer understanding of the data to prioritise, it's crucial to establish your Google Analytics account to guarantee reliable insights. Setting up Google Analytics is quite straightforward without any customisation. However, it is crucial to ensure that the tracking is installed correctly and to take advantage of the enhanced features available. 

Here are some essential steps to help you set up your analytics effectively, ensuring you capture valuable and actionable data.

Step 1 – Create your Google Analytics account and establish your property 
Begin by setting up a Google Analytics account (if you haven't done so already) and create a new property within this account to monitor your website's performance.

It is important to remember that the standard setting in Google Analytics is for all newly created properties to be designated as a new-style Google Analytics 4 (GA4) property. In this example, we will be setting up a default GA4 property alongside a Universal Analytics property.

Access Google Analytics 
Log in using your Google account credentials if you possess one (for example, the login you utilise for other Google services like Google Ads).
If you do not possess a Google account, please create one by following the on-screen instructions. (Please be informed that you can set up an account using your existing email address by simply clicking on ‘use my current email address instead’.) 
After signing in, click on ‘start measuring’ 
Choose a name for your account, typically reflecting your business or website name.
Determine your preferred method for sharing data with other Google products and understand the implications of your choices. Then, adjust your ‘account data sharing settings’ accordingly (refer to this Google help article for further details).
Click next to proceed to the next step – setting up a ‘property’ (this will generate both a GA4 and a Universal Analytics property) 
Provide a name for your property (for instance, your website's name).
Choose the reporting time zone and currency that matches your online store (for example, ‘India’, ‘IST’ and ‘Indian Rupee INR ₹’) 
Click on ‘show advanced options’ to access the option for creating a universal analytics property.
Enable the option to create a universal analytics property.
Select the option to ‘Create both a Google Analytics 4 and a Universal Analytics property’ 
Provide the details that align most closely with your enterprise 
Press ‘Create’ 
Please review and accept the terms and conditions before clicking ‘I agree’ 

Step 2 – Integrate the tracking script 
After setting up your account, the next step is to integrate the tracking script into the back-end of your website. The approach you take will vary based on the construction of your site.

To obtain your tracking code:

In your GA account, dismiss the pop-up displaying the GA4 tagging details and proceed to select your new Universal Analytics property from the ‘property’ dropdown menu.
In the property section, select ‘tracking info’ and then click on ‘tracking code’.
This will provide you with your Google Analytics tracking ID (formatted as UA-xxxxxxxxx-x) along with the code snippets that need to be incorporated into each page of your website.
To incorporate your tracking code:

If your website is created on platforms like Shopify, Squarespace, or WooCommerce for WordPress, it probably comes with a built-in integration feature. The built-in integrations allow you to easily add the tracking code to your website directly from your web builder platform. This is typically done by enabling Google Analytics and inputting your GA tracking ID. The specific steps for this may differ based on the platform your website is built on, so be sure to refer to the guidance provided in your provider’s help section for linking Google Analytics.
If your website was created by a developer and you lack access to the platform or backend, it's essential to reach out to your developer to facilitate the installation of Google Analytics.
If you haven't utilised a website builder but feel assured in your ability to add the code independently, refer to these guidelines from Google on how to incorporate the tracking code into your site.
If Google Tag Manager is set up on your website, you can utilise it to incorporate the tag.

Step 3 – Implement advanced ecommerce tracking 
Ecommerce tracking is an essential feature to incorporate into your new property, allowing you to monitor purchases in your Google Analytics reports. There are two methods available for monitoring ecommerce data in your GA – the standard ‘ecommerce tracking’ and the upgraded ‘enhanced ecommerce tracking’. 

Both options enable you to monitor completed purchases through your GA account, but the enhanced tracking provides deeper insights into customer behaviour both prior to and following the purchase. 

If your online store is created using Shopify, WooCommerce, or Magento, enhanced ecommerce features are readily supported through built-in integration, making it easy to implement on your site (just follow the guidelines in your provider’s help section). However, if your shop is not built on one of these platforms, you will likely need assistance from a developer to integrate the enhanced tracking into your site, as it requires more technical expertise to implement correctly. If this isn't feasible, opting for basic e-commerce tracking could be a simpler choice, though you might still need assistance from a developer.

To utilise either version of ecommerce tracking, you must activate them in your Google Analytics account:

Navigate to the admin section of your GA account.
In the ‘view’ column, select “ecommerce settings” 
Turn on both the “Enable Ecommerce” and “Enhanced Ecommerce Reporting” options, then click save.
For additional details on enhanced ecommerce, please refer to the Google Help Centre.

Step 4 – Include a referral exclusion list 
At times during a shop's user journey, customers may be redirected to a third-party website and then returned (for instance, when using a payment gateway like PayPal). If allowed to operate independently, Google Analytics would categorise these returning visitors as entirely new, initiating a new session and resulting in the loss of all data linked to the previous visit, including the initial traffic source. This indicates that a significant portion of your converting traffic is coming from the referring site ‘PayPal’. This situation is not beneficial, as it obscures the true source of the sale—be it an ad, email, or another channel—thereby affecting your marketing channel ROI assessments!

Fortunately, there is a method to reduce this issue, which involves adding all these third-party domains to the ‘referral exclusion list’. This setting in GA enables you to specify a list of domains that should not be considered as a new session. When establishing a Universal Analytics property, ensure that your primary domain is automatically configured as a referral exclusion to prevent any self-referrals. 

To establish your referral exclusion list:

Navigate to the ‘admin’ section in your Google Analytics account 
In the property section, navigate to ‘Tracking info’ and select ‘Referral exclusion list’ 
Click on ‘add referral exclusion’, enter the domain you wish to exclude in the provided box, and then click ‘create’. 
Think about including:
Your very own domain – for example. Yoursite.com (if it is not included automatically) 
o All payment gateways you utilise, such as paypal.com, pay.google.com, and others. 
Your ecommerce platform link – for example, yoursite.shopify.com or youruniquedomainid.squarespace.com 
o Any payment domains specific to platforms, such as shop.app, checkout.shopify.com, pay.yourplatform.com, etc. 
Additionally, consider any other third-party domains that need to be excluded, as they are integral to your user journey.
Review any additional entries you might have overlooked in your GA reports under ‘Acquisition’ > ‘All Traffic’ > ‘Referrals’ report.

Step 5 – Establish objectives and pathways 
Another crucial step in setting up your Google Analytics is to create goals within your Google Analytics account. Goals help you monitor the actions completed on your website, including successful purchases, newsletter sign-ups, contest entries, and more. Ensure that you establish a clear goal for every action users can take on your website that indicates their intent and where they have provided you with something valuable—be it financial contributions, their contact information, or other forms of engagement. 

Just like your ecommerce tracking, goals enable you to monitor conversion rates in relation to traffic sources and specific pages. By establishing goals, you can also create funnels – this enables you to track the steps users take to achieve these goals and helps you identify where drop-offs occur between each step.

The process of establishing your goal will differ based on the structure of your website, the platform you are utilising, and the specific goal you aim to monitor. Check your ecommerce platform’s help section for detailed guidance on setting up goals for your checkout process.

Here is an illustration of the process for establishing a goal and funnel:

Access your Google Analytics account, navigate to ‘Admin’, and in the ‘View’ section, select ‘Goals’.
Press the “+New Goal” button 
Select ‘custom’ and then click ‘continue’ 
In the goal description, assign a clear and descriptive name to your goal (for example, ‘purchase completed’ or ‘registration’).
Choose ‘destination’ and press ‘continue’ 
Choose ‘equals to’ from the dropdown menu and input the completion URL or your preferred action (for example, the URL of the thank you page or the purchase confirmation page for a sale). 
For example, /sign-up/thank-you, /checkout/thankyou, and so on. (Refer to your ecommerce platform’s help section to verify the URL if necessary.) 
For additional details on establishing goals and funnels in Google Analytics, please refer to the Google Analytics help section.

Step 6 – Connect your Google search tools 
To gather more insights about your organic search traffic and any PPC ads you are managing, Google Analytics seamlessly integrates with other Google tools, such as Search Console and Google Ads. Connecting your search console property with your Google Ads account provides access to enhanced reports in Google Analytics, offering deeper insights into your SEO and PPC traffic and their interactions with your website. 

Connect your search console with Google Analytics 

To enhance the organic rankings of your online shop through SEO, it's essential to set up Search Console for your website. Make sure to use the same email that you utilised for your Google Analytics account.

Search Console is a complimentary service offered by Google that equips you with tools and insights to enhance your understanding of how your website performs in Google search rankings. Discover the steps to establish and confirm your Search Console here.

After establishing and confirming your account, you can connect Search Console with Google Analytics:

In Google Analytics, navigate to ‘Admin’, and then select ‘property settings’ in the property column.
Scroll down to the Search Console section and click on ‘Adjust Search Console’ 
Your URL will be displayed on the following page, provided you have set up and verified your search console using the same email address linked to your Google Analytics account. 
Choose the ‘view’ you wish to enable it for 
Press ‘Save’ 
Connect Google Ads to Google Analytics 

Google Ads is the advertising platform from Google that enables businesses to execute pay-per-click advertising (the sponsored results on Google search) and display ads (which appear on websites within Google’s advertising network). PPC ads can be a fantastic tool for online retailers to attract targeted traffic to their digital shopfronts. However, to maximise the benefits of this channel, it's essential to grasp how your ads are performing and how to optimise your expenditure effectively. As highlighted, a highly effective method for evaluating your PPC and display ad performance is to monitor them within your Google Analytics account.

If you're utilising Google Ads, follow these steps to connect your Ads account with Google Analytics:

In Google Analytics, navigate to ‘Admin’.
Click on ‘Google Ads linking’ located in the property column.
Choose the ads account you wish to link and click ‘continue’ 
Note: Admin access to the Ads account is required to link them.
For additional details on connecting Google Ads with Analytics, please refer to the Google Analytics support page.

Step 7 – Monitor incoming traffic 
Google Analytics can monitor certain traffic sources by default. These include direct traffic, traffic from referral websites, organic search traffic, and paid traffic from Google (CPC). However, if you are managing digital advertisements (such as Facebook ads), conducting email campaigns, or utilising images to direct traffic to your website, it is essential to incorporate extra tracking parameters into your URLs. This will allow Google Analytics to accurately determine the source of the traffic.

These parameters are known as UTM codes – sequences of text that can be appended to the end of a URL directing traffic to your website. Feel free to modify the components of this text to include particular information regarding the traffic source, like the advertisement content, the platform used, the campaign details, and so on. If you don't implement UTM tracking codes, all traffic from these sources will be categorised as 'direct', making it difficult to determine which traffic originated from your emails or Facebook advertisements.

Be aware that certain email tools can automatically append tracking codes to the links directing to your site from within emails, provided this option is enabled in the tool's settings. If that's the case, that's fantastic, and there's no need to include anything further. However, certain email tools may not offer this feature, so be sure to explore your email platform’s help section for further details.

To set up UTM tracking:

Visit Google's Campaign URL Builder 
Please include the complete URL of the page where you will be directed after clicking the ad or email. 
Enter the parameters that will be included in the URL to inform Google Analytics about the source of this traffic.
It is essential to include these three parameters:
Campaign source: to determine the specific site, content, or platform from which this traffic originates, such as 'Facebook'. 
Campaign medium: to determine the specific type of channel being used, such as 'social-ad' or 'email', etc.
Campaign name: Specify the unique campaign or promotion, such as ‘summer21-sale’, ‘pre-launch’, etc.
If you wish to include additional details, you may also incorporate 'campaign term' and 'campaign content'. 
Essential advice:
Ensure that these parameters are clear to you, as they will be reflected in your Google Analytics reports.
Ensure that you name your mediums consistently. For example, if you designate your Facebook ads medium as ‘social-ads’, maintain this naming convention for all social ads in the future to prevent any confusion in your reports.
Use all lowercase to maintain consistency 
o Use a ‘-’ in place of a space between words 
After entering your parameters, you will find your tracked URL displayed at the bottom of the page, which will include a string of text starting with “? utm_source=” (or “&utm_source= if your landing page URL already has a ‘?’) 
Take the URL provided at the bottom of the tool and utilise it as the landing URL for your advertisement or email. 
For additional details on UTM tracking, refer to this helpful article from Google Analytics.

Step 8 – Grasp the concepts of PII, privacy, and GDPR 
When tracking users on your website with JavaScript cookies and tracking code, similar to how Google Analytics operates, it is crucial to be aware of your legal responsibilities and the rights of consumers that are protected. This holds especially true for online retail platforms. This can be a challenging domain, and it's essential to invest the necessary time to ensure accuracy. For instance, obtaining consent to track users is essential, and it is crucial to ensure compliance with GDPR and adhere to all privacy and data protection regulations. For additional details, you can visit the Information Commissioner’s Office website as well as refer to this e-commerce guide.

While utilising Google Analytics, it is crucial to ensure that you do not gather any personally identifiable information (PII) in your GA reports, such as credit card details, addresses, email addresses, names, and so on. This is something that could unintentionally occur based on how your shop is configured when you set up Google Analytics. For further insights on this topic and ways to prevent it, refer to the help resources provided by Google.


5. Additional assistance 
Given the crucial role of data in e-commerce, it's essential for you to invest time in mastering Google Analytics. The tool is quite easy to use, but it may require some time to navigate and fully grasp the insights provided by the various reports.

This guide outlines the essential steps to kickstart your journey and introduces some key features to utilise initially. Google Analytics, however, is a robust tool that offers an extensive array of features for more in-depth analysis. It is advisable to deepen your understanding of the daily operations of Google Analytics and explore some of its advanced features to ensure you maximise the benefits from your data.

For additional guidance and assistance on every facet of your digital marketing, processes, and platforms, explore our DigitalBoost programme. Providing complimentary one-on-one consultancy, digital resources, training sessions, and webinars to support businesses in India in their development and growth.