Industry Insights: Essential E-Commerce Brand Strategy

  • 5 Mins Read
  • December 17, 2024
  • Branding
  • Research

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Summary: In this comprehensive, data-driven guide to naming and branding in e-commerce, we presented 12 questions to a representative audience of American consumers. We gained insight into: the most credible domain names for e-commerce companies, which names build the strongest connection with customers and the key branding trends in e-commerce.


Key takeaways:

  • .com is perceived as the most credible domain extension.
  • Of alternative extensions, .shop is stronger than .store.
  • 88% say an add-on word in a domain harms the credibility of a brand.
  • Single English words build the most interest in an e-commerce brand.
  • Compound, two-word names are also strong names.
  • 53% say they trust an e-commerce brand with a one-word name more than other name types.
  • 68% say it’s important for an e-commerce brand to have a social, ethical or environmental mission.
  • Mission-driven branding is the most impactful branding trend.
  • Branding with AI is the least impactful trend.

Objective: In the online e-commerce environment, competition thrives. With often little to differentiate e-commerce companies, branding plays a primary role in winning over customers and building loyalty. Our goal is to help new and rebranding e-commerce brands understand customer perception of names, domain names and brand positioning.

Audience: A representative panel of American consumers aged 18 – 64. We asked a qualifying question to ensure our panel are engaged with e-commerce industry brands: all respondents  “frequently” or “occasionally” purchase from online stores or e-commerce brands.

Our Results

Domain Name

With a business model that exists entirely online, domain name is an integral part of every e-commerce company’s brand identity. We have found that domain name is an important factor for 77% of consumers, and a strong domain name plays an important role in building trust and credibility with your audience, as well as being discovered online. For a deep dive into data-driven domain choice, explore our core research on domain names here.

  • .com is, overwhelmingly, perceived as the most credible domain extension.
  • Of alternative extensions, .shop is stronger than .store.
  • 87% say a longer .com domain is more credible than a shorter .shop domain.
  • 88% say an add-on word in a domain harms the credibility of a brand.

Rank the following domain extensions from most to least credible for an e-commerce brand.

For a retail website, which domain name is more credible?


How does an add-on prefix or suffix word in a domain name (e.g., shopbrand.com or brandapp.com, vs. brand.com) impact your perception of an e-commerce brand’s credibility when shopping online?

Naming an E-Commerce Brand

Your brand name plays a key role in building a connection with your customers, as well as indicating your potential to investors. Explore our core research on business names — including what venture capitalists look for in a name when deciding where to invest.

  • Memorability is the most important aspect of an e-commerce name.
  • Single English words build the most interest in an e-commerce brand.
  • Compound, two-word names are also strong names.
  • 53% say they trust an e-commerce brand with a one-word name more than other name types.
  • 55% prefer names that mix creative and descriptive elements.
  • 55% say a name should evoke trust and reliability.

Rank the following aspects of an e-commerce brand name based on their importance to you. 1 is the most important, and 5 is the least important.

Rank the following name types based on how curious they make you about an e-commerce brand. 1 is most curious, 5 is least curious.

Which naming style builds more trust when you’re hearing about an e-commerce brand?

Do you prefer an e-commerce brand name that describes the product/service or a more creative name?

What emotions should an e-commerce brand name evoke for you to feel connected to the brand? Choose up to two.

Brand Identity

From a compelling origin story to your mission and values, every e-commerce entity needs to have a brand identity that connects with its customers. Understanding and following the most influential branding trends can have a big impact on customers’ feelings about your brand, and their ability to recall your services when they’re ready to buy.

  • 68% say it’s important for an e-commerce brand to have a social, ethical or environmental mission.
  • Mission-driven branding is the most impactful branding trend.
  • Branding with AI is the least impactful trend.
  • Customer service has the #1 impact on customer-brand relationships.
  • 70% say it’s important for an e-commerce brand to express an understanding of customer lifestyle and values.

How important is it for an e-commerce brand to have a clearly articulated social, ethical or environmental mission?

Rank the following branding trends from most to least impactful for an e-commerce brand.

Rank the following in order of how important they are in building a relationship with an e-commerce brand.


How important is it that an e-commerce brand expresses an understanding of your lifestyle and values?

How likely are you to buy a product that you want from an e-commerce brand that does not align with your values?

Want to learn more about building your brand identity? Explore further with our core research on branding in 2025.


Conclusion

From name and domain name to your brand’s mission, values and connection to your customers’ lifestyles, e-commerce brands have many opportunities to build a powerful connection with their audience. To maximize memorability and drive curiosity, e-commerce brands should explore single English word names with .com extensions.

For those on a budget, compound names combining two synergistic words also make strong e-commerce brand names and are more readily available in trusted top-level domains. Get started by exploring Atom’s collection of e-commerce and retail domain names now.

If you’re interested in digging deeper into our findings, or asking your own questions on consumer, branding and worklife topics, contact thom@atomradar.com to learn more.

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About The Author
Thom Davies

Thom Davies is a researcher at AtomRadar and content strategist for Atom.com. His background in quantitative and qualitative analysis is the foundation for data-led brand strategy.

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