- What is root cause analysis in e-commerce?
- Root cause analysis means tracing a revenue or margin change back to a single primary cause — e.g. acquisition (CAC, ROAS), conversion, retention, or margin (shipping, returns) — instead of guessing from multiple dashboards.
- How do you find the root cause of a revenue drop?
- List levers (paid acquisition, organic, conversion rate, AOV, shipping, returns, retention). For the period revenue dropped, compare each lever to baseline. The lever that moved first or most is the candidate cause; then test one change to confirm.