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The impact of digital sales channels on web sales: evidence from the USA's largest online retailers

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  • Ravi Narayanaswamy
  • Richard A. Heiens

Abstract

The present study uses aggregate data from the USA's 100 largest online retailers to examine the effectiveness of the various e-commerce digital sales channels. These digital sales channels include direct website visits, display ads, e-mail, organic search, paid search, referrals, and social media. The focus is on examining the direct effects of each traffic channel specifically on web sales performance. Hypothesis testing is done using a log-log model with a Box-Cox transformation, and the average ticket value is used as a control variable. The findings indicate that all digital sales channels have a direct effect on web sales. However, the slope of each equation suggests some degree of differentiation between digital sales channels, with implications for determining the most efficient portfolio of digital sales channels when faced with limited resources.

Suggested Citation

  • Ravi Narayanaswamy & Richard A. Heiens, 2021. "The impact of digital sales channels on web sales: evidence from the USA's largest online retailers," International Journal of Electronic Marketing and Retailing, Inderscience Enterprises Ltd, vol. 12(3), pages 306-322.
    • Handle: RePEc:ids:ijemre:v:12:y:2021:i:3:p:306-322
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