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Aug 17, 2022

What is the Difference between GA4 and UA for E-Commerce?

Through Google's entire suite of tools, we frequently see minor updates that modestly change the features of Google Analytics or their functionality. The shift from Universal Analytics to Google Analytics 4 is a top-to-bottom overhaul of the services. Both platforms are fundamentally different--most notably in the way they model data.

  • Universal Analytics: UA data is triggered by certain "hit kinds." If a visitor "hits" your website (such for example, the page's view, social media click, or e-commerce transaction), Google Analytics collects the information from this event and classifies it according to the kind of interaction.
  • Google Analytics 4: GA4 data is event-based. When an event is triggered in GA4, the platform will gather, store and process data with no regard to categorical labels or other actions.

The new GA4 data model also presents an evolution away from the conventional data funnel. Universal Analytics was designed to monitor and evaluate the success of e-commerce by the number of new customers you gain or the number of conversions you make. However, up to 65% of a company's revenue comes from previous customers, according to statistics of Review 42.

The new data collection model in Google Analytics 4, e-commerce firms can understand the customer's journey using streams of data. Apart from your effort in attracting new customers the platform can aid in evaluating your progress towards increasing repeat business as well as your revenue overall.

The advantages of GA4 for E-Commerce

    Data Privacy + accurate tracking

The new laws, social media rules, and technology companies are taking steps to safeguard privacy and data security. With Universal Analytics, accurate tracking could have been detrimental to privacy for users (and vice-versa). However, GA4 is the best of both worlds--providing more accurate, granular data with added privacy protection for users.

    Monetization as opposed to. Conversions

    Better Quality of User Experience as well as Data Accuracy

It is likely to take some time to learn how to use GA4 and then warm up to GA4 (especially at this initial development stage). Yet, GA4 is expected to be better than Universal Analytics long term. GA4's new design is expected to make GA4 easier for companies to use, better for clients (with an added privacy protection and protection) as well as more precise and precise in the information it offers.

Cons of GA4 on E-Commerce

    Some Groundwork is required

The data model fundamentally is different in GA4, users must transfer their data manually into the new platform. Users who are still learning the ropes the concept of Universal Analytics or have already started the process of creating their UA property, adjusting to an entirely new system could be a hassle. Thankfully, Google provides a variety of tools to assist you on your process.

Currently, Google encourages e-commerce sites to include both UA as well as GA4 tracking in place. While building and implementing your Google Analytics 4 property, you must not change the Universal Analytics property and implementation on hold (for now).

To get started, log into your account (analytics.google.com) and follow Google's on-screen guidance to create a GA4 property. For tracking your sales within GA4 the first step is to set up and create duplicate events using new GA4 events and their parameters. You can find Google's guide to migrating e-commerce data collection to GA4 here.

    The Future is Unpredictable of E-Commerce Tracking The Features

The tracking capabilities for e-commerce in Universal Analytics have been continuously evolving over the past 10 years. The latest enhanced tracking collects more data than ever before and allows users to look at this information through many lenses, with multiple reporting options.

In the meantime, UA4's e-commerce tracking features and capabilities remain in the research phase. This leaves a lot of questions for e-commerce business owners. For instance:

  • What e-commerce features are expected to be part of GA4?
  • When will the GA4 E-commerce capabilities be finalized?
  • How challenging will it be to learn and implement these new e-commerce tracking capabilities?

Most likely, Google is likely to include features that are similar to those of UA fully implemented before the cut-off date or extend the cut-off deadline. There isn't a way to predict with the certainty of how this is going to take place. Our experts will keep following Google's implementation of GA4 e-commerce features and keep our community posted.

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