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Shopify Performance: The Importance of Server-Side Event Tracking

Updated: Apr 10


In the competitive e-commerce landscape, understanding customer behaviour is paramount to success. Shopify, one of the leading e-commerce platforms, offers many tools to help merchants optimise their stores. Event tracking is crucial among these tools, providing insights into customer interactions that can drive strategic decisions. In this article, we'll delve into the nuances of event tracking on Shopify, focusing mainly on two pivotal events: 'Added to Cart' and 'Did Not Purchase'. Furthermore, we'll explore the significance of server-side tracking over traditional methods, particularly in light of impending changes in online tracking technology.


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Understanding Event Tracking on Shopify

1. Added to Cart Event: This event occurs when a customer adds an item to their shopping cart. It signifies an intent to purchase and is a crucial indicator of product interest.

 

2. Did Not Purchase Event: This event signifies a missed conversion opportunity. It occurs when customers add items to their cart but fail to complete the purchase, providing insights into potential friction points in the checkout process.

 

Differentiating First-Party and Third-Party Cookies

1. First-Party Cookies: These cookies are set by the website domain the user visits. They are primarily used for site functionality, session management, and personalisation.

 

2. Third-Party Cookies: Third-party cookies are set by domains other than the user is visiting. They are often utilised for tracking across multiple sites, ad targeting, and analytics.


 

The Vital Role of Server-Side Tracking

Server-side tracking offers several advantages over client-side tracking methods like cookies:

1. Accuracy: By bypassing browser limitations and privacy settings, server-side tracking provides more accurate data, ensuring no missing events or transactions.

2. Privacy Compliance: With increasing regulations like GDPR and phasing out third-party cookies, server-side tracking offers a privacy-friendly alternative, safeguarding user data while providing valuable insights.

3. Reliability: Server-side tracking is less susceptible to ad blockers and browser restrictions, ensuring consistent data collection across all user interactions.

 



 

The Importance of Data Accuracy for Cost of Sales

Accurate data is foundational for calculating the cost of sales and optimising marketing efforts. Server-side tracking ensures that every transaction and interaction is recorded, enabling precise attribution and ROI analysis.

 

Addressing the Challenges with Google and Cookie Changes

In 2024, Google announced significant changes to its tracking technology, phasing out third-party cookies in favour of privacy-preserving alternatives. This shift underscores the importance of server-side tracking, providing a reliable solution unaffected by browser restrictions.

 

In the evolving landscape of e-commerce, understanding customer behaviour is paramount. Shopify's event tracking features offer invaluable insights into user interactions, particularly regarding critical events like 'Added to Cart' and 'Did Not Purchase'. Moreover, server-side tracking emerges as a vital tool, ensuring data accuracy, privacy compliance, and reliability in changing tracking technologies. As merchants navigate these transitions, investing in robust server-side tracking solutions will drive growth and maximise ROI.

 

By prioritising server-side tracking and leveraging Shopify's event-tracking capabilities, merchants can gain a deeper understanding of their customers, optimise their marketing strategies, and stay ahead in the dynamic world of e-commerce.


 



Here are three common questions about server-side tracking and Shopify:


Understanding Event Tracking on Shopify

1. Added to Cart Event: This event occurs when a customer adds an item to their shopping cart. It signifies an intent to purchase and is a crucial indicator of product interest.

2. Did Not Purchase Event: This event signifies a missed conversion opportunity. It occurs when customers add items to their cart but fail to complete the purchase, providing insights into potential friction points in the checkout process.


Addressing Common Questions About Server-Side Tracking and Shopify

Q1: Why is server-side tracking preferable over client-side methods like cookies?

A: Server-side tracking offers several advantages over client-side methods. Unlike cookies, which are subject to browser restrictions and privacy settings, server-side tracking ensures more accurate data collection by bypassing these limitations. Additionally, server-side monitoring is more reliable and less susceptible to ad blockers and browser-based hindrances.

 

Q2: How does server-side tracking comply with privacy regulations like GDPR?

A: Server-side tracking aligns well with privacy regulations like GDPR by prioritising user consent and data protection. Unlike third-party cookies, which are often associated with privacy concerns, server-side tracking operates within the boundaries of user consent and provides a privacy-friendly alternative for data collection.

 

Q3: With Google phasing out third-party cookies, how does server-side tracking future-proof e-commerce businesses?

A: Google's decision to phase out third-party cookies underscores the importance of server-side tracking in future-proofing e-commerce businesses. As traditional tracking methods become obsolete, server-side tracking offers a reliable solution unaffected by browser restrictions. By investing in server-side tracking solutions, companies can adapt to evolving privacy regulations and technological changes while maintaining accurate data collection practices.

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