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Aug 17, 2022

What's the difference Between GA4 and UA for E-Commerce?

Through Google's entire suite of tools, we frequently see minor modifications that alter only the functionality or features offered by the platform. However, this change from Universal Analytics to Google Analytics 4 is a top-to-bottom modification to the service. The two platforms are fundamentally different--most notably in their data models.

  • The Universal Analytics: UA data is driven by certain "hit kinds." If a visitor "hits" your website (such as with a page view, social media click, or even an online transactions), Google Analytics collects the relevant data from the action and categorizes it according to the type of hit.
  • Google Analytics 4: GA4 data is event-based. When an event is triggered within GA4 The platform will gather, store and process data without consideration for labels, categories, or actions.

The brand new GA4 data model is also an alternative to traditional funnels for data. Universal Analytics was designed to analyze and quantify the effectiveness of online sales in terms of the number of new customers or conversions you acquire. However, up to 65% of a company's revenue comes from previous customers, according to statistics of Review 42.

With the new data collection model in Google Analytics 4, e-commerce companies can gain a better understanding of a customer's journey using streams of data. Alongside your efforts in attracting new customers, this platform will aid in evaluating your progress towards getting repeat customers to join your business and increase the overall revenues.

The advantages of GA4 for E-Commerce

    Data Privacy and Real-time Tracking

The new laws, social media rules, and technology companies are moving to protect data privacy. Through Universal Analytics, accurate tracking came at the expense of the privacy of users (and vice-versa). However, GA4 is the best combination of both, providing more precise, granular data with added security for privacy of users.

    Monetization vs. Conversions

    Improved Quality of User Experience as well as Data Accuracy

Naturally, it might take some time to learn how to use GA4 and then warm up to GA4 (especially during this early stages of development). But, GA4 is expected to outperform Universal Analytics long term. GA4 is designed to make it easier for companies to use, better for consumers (with the added privacy controls and security) as well as more precise & granular in the data that it collects.

Pros and Cons of GA4 for E-Commerce

    A little groundwork is required

The data model fundamentally differs in GA4, users must manually migrate their data collection into the new platform. Users who are still getting the hang the concept of Universal Analytics or have already started the process of creating their UA property--learning and implementing the new system may feel like a chore. Thankfully, Google provides a variety of tools that can help you along the process.

At present, Google encourages e-commerce sites to have both UA and GA4 tracking. While building and implementing the Google Analytics 4 property, you must leave your Universal Analytics property and implementation in place (for time being).

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, you will need to set up and create duplicate events using the new GA4 name and parameter. You can find Google's guide to transferring e-commerce data collection into GA4 by clicking here.

    The Unpredictable Future of E-Commerce Tracking Features

The features for tracking e-commerce on Universal Analytics have been continuously growing over the past 10 years. The most recent enhanced tracking features collect greater amounts of data than previously and lets customers look at this information through multiple lenses with multifaceted reporting choices.

While UA4's tracking tools and capabilities are in the early development phase. There are a number of unanswered issues for online business owners. For instance:

  • Which e-commerce features will be part of GA4?
  • What date will the GA4 e-commerce capabilities be finalized?
  • How challenging will it be to learn and implement these brand new tracking features for e-commerce?

It is likely that Google may have features comparable with those offered by UA fully implemented prior to the cut-off or prolong 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 capabilities and will update our members on the latest developments.

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