Many people believe that all it takes to sell products online is to design a professional looking website and post pictures with adequate descriptions of their products. They genuinely believe that once these things are done, people will magically flock to their website and begin ordering away. However, if youíve been selling products online for very long, then you know this isnít the case.

Every successful internet marketer understands that there is a science behind acquiring large sales. Part of a winning online marketing strategy does include having a pleasant website that appeals to visitors as well as great product descriptions and corresponding pictures. However, another important part of the equation is having the ability to understand and utilize web analytics to generate more sales.

What is Web Analytics?

Before you can understand everything behind web analytics, you must first know what web analytics is. Then, you can begin to comprehend all the ways that it can help you and your online sales. Web analytics is basically a set of tools that will help you evaluate, or analyze, every aspect of your website so you can see what needs to be done to covert more of your visitors into paying customers.

Web analytics will help you analyze a variety of different things regarding your website. Itís important that you take the time to understand each of these things because they all impact your online sales. Below you will find the areas in which web analytics analyzes your website performance.

What Information Can Web Analytics Show You?

Who Is Visiting: The first thing you need to know is what types of people are visiting your website. You need to know this because this is the only way that you will find out whether or not youíre attracting your target audience. If your website isnít reaching your target audience, then you need to find out why and make the necessary changes.

With web analytics, you will be able to see what businesses are visiting your website as well as where your visitors are located geographically. You can see the businesses that visit your website by checking for their domain names. This may not be that beneficial for the small-time online entrepreneur, but for people selling products to businesses, this can be important.

How Visitors Found Your Website: Another great feature of web analytics is having the ability to find out where your visitors are coming from. You can actually go in and find out if your visitors are finding your website by typing in a keyword phrase into Google, typing your domain name directly, if they came from a referring site, or from another source. This information is an excellent way for you to determine which advertising methods are working best and what keywords visitors are finding you through.

Length of Stay: You can also use web analytics to monitor how long your visitors are staying on your website. When you look at this information, you need to also take a close look at what pages they are visiting the most, the longest, and which ones they are exiting from the most. This information can tell you what pages hold your readersí attention and which pages donít. What this essentially tells you is what pages you need to work on Ė whether it be the page layout and design, the language, or the keyword phrases being used. The fact is, if youíre having a high bounce rate on one or more of your pages, then something needs to change.

What Keywords Work: Most online entrepreneurs understand the importance of using the right keyword phrases in their online content. When the right keywords are used properly, your traffic will increase. Not only will the traffic increase, but your sales should, too.

Your web analytics provider has the ability to show you exactly what keyword phrases visitors are typing into Google to find your website. This tells you what keywords you should continue using in your websiteís content. However, web analytics will also show you which keywords have the highest conversion rate for online sales. This is where your money is. Once you know the ďmoney-makingĒ keywords to use, your sales should increase.

How to Use the Information Provided by Web Analytics

Once you have began using web analytics and understand how to read the information itís providing you with, you are ready to start turning a profit with it. To do this, you will need to take the information provided by your web analytics software and make the necessary changes to your website and/or content. Below are a few of the changes that you may need to make based on your websiteís analysis.

Change Your Keywords: One of the biggest issues people face when selling products online is getting the right kind of traffic to their sites. Once you know the keyword phrases that are attracting your target audience, you can begin to effectively place them throughout the content on your website in order to continue driving traffic to the site.

Additionally, you will be able to see what keywords are making you money through conversions. This is crucial for your online success. So, take those specific keywords and begin to use them more throughout your website as well.

Review/Change Your Information: Once you have the information in front of you that shows you what pages your traffic is landing on and its corresponding bounce rate, you will immediately know what information captures (and keeps) your visitorsí attention. Therefore, when you see that you have a high bounce rate when visitors land on your home page, you can begin to review, and possibly, change the information found on that page. Sometimes all that needs to be done to the information is to add interesting headings, a few subheadings, and do a little rewording.

Make Cosmetic Changes: Sometimes people find out (with web analytics) that they are using the right keywords and have great content, but still arenít converting their visitors into customers or holding their attention for very long. Generally, this problem can be fixed by making a few minor changes to the appearance of your website.

While these are simple cosmetic changes, they can have a huge impact on the amount of business you do online. However, without good web analytics software to show you that youíre doing everything else right, you may make big mistakes by changing your keywords and rewriting your online content. Web analytics can play an important part in diagnosing cosmetic issues to generate more online sales.