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E-commerce Marketing Funnel - A comprehensive guide

e-commerce marketing funnel

e-commerce marketing funnel

Four steps make up a typical e-commerce conversion funnel. The consumer makes decisions at each level based on how they perceive your brand, your product, and the competition. 

You may focus on those areas and improve your funnel by identifying the factors that have the greatest impact on conversions. Customer retention, upselling, cross-selling, and subscription-based business models also comes in a conversion funnel.

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What Is an Ecommerce Marketing Funnel?

Simply put, the ecommerce marketing funnel is a visual representation of the journey customers take as they go through the buying cycle. It's a way of describing a specific kind of ecommerce customer journey—one that is often used when ecommerce marketers feel stuck trying to optimize their marketing.

The funnel begins with Awareness, where potential customers are introduced to your product or service. From there, they move on to Interest, where they learn more about what you have to offer. Desire follows, where customers become excited about what they've seen and are ready to buy. Finally, Action is taken, and customers complete their purchase.

Each stage of the funnel is important, as it helps move potential customers closer to becoming actual customers. And when done correctly, the ecommerce marketing funnel can generate sales by turning leads into buyers.

How Do You Create an Ecommerce Marketing Funnel?

When it comes to eCommerce, your funnel is everything.

A funnel is a visual representation of a customer's journey from beginning to end, and if you want to see success, you need to have marketing activity specifically designed to fuel each stage of the funnel.

There are four main stages to an eCommerce sales funnel: Awareness, Consideration, Purchase, and Retention. And to move customers through each stage, you need marketing activity that is specifically tailored for that stage.

For example, if you're looking to increase awareness, you'll need content like blog posts and social media posts that introduce potential customers to your e-commerce products. If you're looking to increase consideration, you'll need content like product pages and demonstrations that help customers learn more about what you offer.

The bottom line is this: your eCommerce sales funnel is the key to success, and you need marketing activity specifically designed to move people through each stage of the funnel.

What Are the Stages of an Ecommerce Marketing Funnel?

When you're building an e-commerce marketing funnel, it's important to identify and map the stages of your funnel. This will help you understand how potential customers move through the awareness and decision-making process.

There are different stages that a customer goes through in order to make a purchase. The Awareness stage is when potential customers first encounter your business. They may have seen your ad, or heard about you from a friend.

The next stage is Evaluation, where customers are researching their options and comparing different products. They might be looking at reviews or reading product descriptions.

The Decision stage is when customers have made a decision and are ready to buy. They might be adding items to their cart or filling out checkout forms.

Finally, there's the Purchase stage, where the customer has completed the purchase and is enjoying their new product or service.

What Are the Best Practices for Each Stage of an Ecommerce Marketing Funnel?

Now that you understand an eCommerce funnel, let's talk about the best practices for each stage.

To create a sales funnel, you need to have marketing activity specifically designed to move people through each stage.

Marketing activities are designed specifically to fuel each stage of the funnel and move people through each stage. In the Awareness stage, your goal is to get people interested in your product or service. You can do this by creating helpful content that's relevant to your target audience, running ads, or doing social media outreach.

In the Interest stage, you want to move people closer to buying by helping them learn more about what you have to offer. This might involve providing product demos, offering discounts or free shipping, or creating detailed product pages.

In the Desire stage, you want to make it as easy as possible for people to buy by removing any roadblocks. This could mean offering multiple payment options, shipping worldwide, or giving customers a satisfaction guarantee.

And in the Action stage, you want to seal the deal and make sure people actually buy from you. You can do this by sending them purchase confirmation emails, following up with them after they buy, or offering post-purchase support.

How Can You Measure the Success of Your Ecommerce Marketing Funnel?

So, how can you measure the success of your e-commerce marketing funnel? One way is to track key performance indicators (KPIs). By measuring these key metrics, you'll be able to hit your profit goals, stay competitive, and grow your business.

Some of the most important KPIs for e-commerce businesses include the conversion rate, the average order value, and the bounce rate. By tracking these metrics, you'll be able to see how well your funnel is performing and make necessary adjustments.

But it's not just about measuring these KPIs. It's also important to calculate customer value. To do this, simply multiply the average purchase value by the average purchase frequency rate. This will give you an idea of how much each customer is worth to your business.

By understanding these concepts, you'll be able to fine-tune your marketing funnel and improve your bottom line.

What Are Some Common Ecommerce Funnel Mistakes to Avoid?

There are a few common eCommerce funnel mistakes that you want to avoid.

For starters, failing to satisfy an existing market need is a big no-no. You also don't want to have an unclear marketing funnel, as this can lead to confusion among buyers and loss of sales. And speaking of loss of sales, high customer acquisition costs can be a deathblow for any eCommerce business.

But perhaps the most important thing to remember is that you need to know your target audience. If you don't, you'll end up wasting time and money on marketing efforts that don't produce results.

How Can You Use an Ecommerce Marketing Funnel to Increase Sales?

An e-commerce marketing funnel visualizes your customer journey, from awareness to purchase to retention. It's a process that takes potential customers from knowing almost nothing about your business to becoming a loyal customer.

The funnel is cone-shaped, with the top wide (representing many potential customers) and the bottom narrow (representing the few that become loyal customers).

To increase sales, you need marketing activity designed to fuel each funnel stage. Awareness stage marketing activity might include creating content that targets people who don't know about your business. Interest stage marketing activity might include creating targeted ads for people who have visited your website but haven't made a purchase yet. And so on.

The key is to focus on your target audience and create marketing content and activities that appeal to them. If you can do that, you'll see an increase in sales and more loyal customers.


When it comes to selling online, you need to clearly understand the ecommerce marketing funnel. This funnel will help guide your marketing efforts and ensure you're targeting the right people at the right time.

The ecommerce marketing funnel is made up of four steps: attracting attention, engaging with potential customers, persuading them to buy, and turning them into loyal customers. By understanding these steps, you can create a marketing strategy that is more likely to result in sales.


1. What are the 5 stages of the marketing funnel? 

1. Awareness: Prospects become aware of a problem or challenge that they have. 

2. Interest: Prospects become interested in a possible solution to their problem or challenge. 

3. Consideration: Prospects consider various solutions to their problem or challenge. 

4. Intent: Prospects express an interest in a particular solution to their problem or challenge. 

5. Purchase: Prospects purchase the solution to their problem or challenge.

2. How do I create an eCommerce funnel? 

There is no one-size-fits-all answer to this question, as the best eCommerce funnel for your business will depend on your specific products, services, and target audience. However, there are some general tips that can help you create an effective eCommerce funnel for your business: 

1. Start with a strong offer. Your eCommerce funnel should start with a strong offer that will entice your target audience to take action. This could be a discount, free shipping, or a free trial of your product or service. 

2. Use effective marketing techniques. Once you have a strong offer, you need to promote it effectively to your target audience. This could involve using email marketing, social media marketing, or paid advertising. 

3. Create a landing page. Your offer should be directed to a landing page on your website where customers can learn more about your product or service and take action. This landing page should be designed to convert visitors into customers. 

4. Use an effective follow-up system. After a customer takes action on your offer, you should follow up with them to ensure they are satisfied with their purchase and to encourage them to buy more products or services from you in the future. An effective follow-up system could involve using email marketing, retargeting ads, or personal phone calls.

3. What are online sales funnels? 

A sales funnel is a process that leads a customer from initial awareness of a product or service to the point of purchase. Online sales funnels typically use marketing techniques such as email marketing, content marketing, and social media advertising to drive traffic to a landing page, where customers can enter their contact information and purchase a product or service.

4. Do sales funnels actually work? 

Sales funnels can be effective if they are able to generate leads and drive conversions. The effectiveness of a sales funnel will depend on various factors, such as the offer, the copy, and the overall design of the funnel.

5. What is Facebook marketing funnel? 

A Facebook marketing funnel is a process that businesses use to turn potential customers into paying customers with the help of Facebook advertising or organic social media marketing. The funnel starts with awareness, where businesses create content that gets potential customers interested in their product or service. From there, businesses move potential customers through the stages of interest, desire, and action, until they finally make a purchase.

About Bruno Gavino

Bruno Gavino is the CEO and partner of Codedesign, a digital marketing agency with a strong international presence. Based in Lisbon, Portugal, with offices in Boston, Singapore, and Manchester (UK) Codedesign has been recognized as one of the top interactive agencies and eCommerce agencies. Awarded Top B2B Company in Europe and Top B2C company in retail, Codedesign aims to foster personal relationships with clients and create a positive work environment for its team.  

He emphasizes the need for digital agencies to focus on data optimization and performance to meet the increasingly results-driven demands of clients. His experience in digital marketing, combined with a unique background that includes engineering and data, contributes to his effective and multifaceted leadership style.

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About Codedesign

Codedesign is a digital marketing agency with a strong multicultural and international presence, offering expert services in digital marketing. Our digital agency in Lisbon, Boston, and Manchester enables us to provide market-ready strategies that suit a wide range of clients across the globe (both B2B and B2C). We specialize in creating impactful online experiences, focusing on making your digital presence strong and efficient. Our approach is straightforward and effective, ensuring that every client receives a personalized service that truly meets their needs.

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