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What Is An eCommerce Sales Funnel And How Does It Work?

What Is An eCommerce Sales Funnel And How Does It Work?

There are several terminologies and operations you would come across as it relates to business and sales. One of these vocabularies is the sales funnel closely related to eCommerce. It is no news that running a retail store online has significant differences from what is obtainable at strictly physical stores. 

The eCommerce sales funnel is one of those setups to automate the sales cycle from raising awareness to the final purchase. E-marketers often employ it to drive sales while expending only minimal effort.

In this article, we explain eCommerce sales funnels and break down all you need to know about the sales funnel.  

What Is An eCommerce Sales Funnel?

 A sales funnel, otherwise known as a conversion funnel, is a system designed to use data and certain interactions to guide users and convert them from potential customers to buyers and subsequently repeat customers. 

Usually, your prospective customers come in through the top of the funnel and become repeat customers at the end of the funnel. This is achieved by representing the movement from a lead generation to the final conversions into sales. 

For the different kinds of business, the sales funnel might vary in length and sections as determined by the peculiarities and all that the commerce entails. There is no one-size-fits-all when it comes to sales funnels.

Why Is An eCommerce Sales Funnel Important?

An eCommerce sales funnel is an excellent tool for optimizing your commercial operations as it helps you visualize and track every stage of the sales cycle. 

While visualizing, you can find steps and track underperforming areas that need to be improved. You can also discover areas that are performing excellently and leverage on them to make the most out of the sales journey.

An excellent pre-designed sales funnel helps you understand what potential customers think and do at each stage of their purchasing journey. Essentially, it gives you an insight into your customer journey online and can foster the division of strategies that can lead to more sales. 

How Does An E-commerce Sales Funnel Work?

An e-commerce sales funnel works through following certain progressive stages. According to the type of business, each funnel may contain subsections. There are five major stages of the sales funnel, and while businesses might have an extra stage, the basic five are outlined below.

1. Awareness Stage 

This is the first stage of the sales funnel which initiates the access of potential customers to the rest of the funnel. At this stage, the prospects are only starting to get aware of your business.

It is usually attained through advertising either organically or by employing paid advertisements, a referral from customers, or any other means that your customer becomes aware of your product or service. 

Typically, for the success of this stage and possible promotion to the next stage of the funnel, you should present your business in a way that makes a good impression and reflects usefulness.

2. Interest Stage

The interest stage follows the awareness stage in the market funnel, and basically, this reflects when something in the awareness catches the interest of the potential customer. 

At this stage, the rise in interest pushes the prospect to learn more about the product and gather relevant information. In this stage, a business can leverage the interest by providing additional information about the products or services to sustain the interest of the consumer to the next funnel stage. 

3. Consideration Stage

 This is often referred to as the mid-funnel and is also a very significant stage of the entire funnel and is critical to determining if sales will hold. 

After a prospect has shown interest in your product, it is essential to provide further persuasive information such as testimonials, descriptions, and all the benefits of your products or services. You can also include offers and discounts or make a strong call to action to drive the customer down the funnel further.

4. Action Stage

This stage must be the most favorite for any e-commerce merchant. At this point, your prospect is transitioning into a customer. This is where they get to seal the deal and act after nurturing from the lead level. 

To learn more about Ecommerce call to action and how it can benefit your business, read our blog "What Is eCommerce CTA And Why Is It Important?"

5. Engagement Stage

Engagement is critical to maintaining a long-standing, beneficial customer relationship. After-sales, do not assume this is the end of the road. Every eCommerce merchant looking for sustainability should understand that this last stage of the funnel is crucial. 

Engagement can be attained through continuously sharing content through emails, obtaining feedback, making special offers, and all the ways you can connect and retain your customer. This part of the phone is often vital to keeping the happy customers in a loop, and a happy customer is instrumental to getting more customers for your brand.


There is no doubt that the internet offers several tools that can ease the sales process and improve brand awareness; this is not usually the same case for physical commerce and thus gives eCommerce vendors an upper hand. 

The sales funnel is a beneficial operation that can aid businesses in understanding the cycle of sales and the peculiar journey of customers. It is important to leverage the benefits that can be obtained from creating adequate sales commerce to fulfill your business needs.

This article explains how your eCommerce funnel is more significant than your website checkout. It includes all customer touchpoints affecting your metrics, including awareness, acquisition, activation, revenue, retention, and referral. You can contact us, and we'll assist you with reaching your business goals with DG1.

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