Every year companies race to post their predictions and reports for eCommerce trends. We’ve seen a great deal of these reports, but so far the best we’ve found is by the product review company, Yotpo. They released their state of eCommerce benchmark report earlier this week and we think their findings are worth sharing.
The data is based on 65 million orders, $2 billion in transactions and more than 120,000 eCommerce stores. All this to say – their findings are realistic and reliable.
Check out the highlights of their findings. And if you want to download for yourself, you can right here!
Current State of eCommerce Marketing
Understanding the trends of your customers can be like finding a needle in a haystack (or like Sales Manager Jessica says “hail on a need stack”). As elusive as this may seem, there are certain questions you can ask yourself to help direct you to the path you need to take.
- Do I have healthy traffic distribution?
- Which traffic channels bring the most engaged traffic?
- How does traffic compare between different sources?
If you fall into the patterns of the majority of online sellers – here are your answers.
And the winners are….. Direct, Search & Referral. But just because you get the most visitors from these sources, this does not mean they are converting. In fact, one of the smallest sources of traffic (Email) is actually the highest sources of engagement.
Email and Instagram are the clear winners in this category…despite the fact that both email and social combined do not equal the amount of traffic of Search or Direct.
Imagine if you spent more time on your more engaged channels like email – you may have quite the lift in revenue. Just a thought.
No explanation necessary on this one.
eCommerce Sales Stats
Alright – we know where our traffic is coming from and who is ‘engaged’. But none of this tells us where our revenue is coming from. We may get the most traffic from search, but is that where our revenue is coming from?
This is the most important piece for online retailers. Traffic rates are vanity metrics if you cannot answer which channels drive the most revenue. Below you will find the averages across many industries which is helpful, but not necessarily reflective of your unique business.Shameless plug here – Kevy helps bridge this gap by integrating sales with marketing efforts. You’ll know exactly how much revenue (down to the penny) each email, popup or trigger drove for your business. Too many marketers are flying blind when it comes to results. That is why Kevy exists, to help you engage, retain and convert — because you know what works and what doesn’t. Alright, soap box done, and moving on!
When you are ready to examine sales – ask yourself these questions:
- Should your average order value increase over time?
- How much is each customer worth?
- How do ratings impact sales (plug for Yotpo – but great intel)
Average Order Value:
Long story short – AOV varies, and despite the increase in eCommerce sales, there has been no significant change in AOV across products, shops or industries since 2014.
It is no question that you should be investing more in improving customer retention.
- About 15% of customers are returning…..but the account for 1/3 of the total spend!
- Returning customers spend 2.92 times more than one-time shoppers.
- Average time to return is about 41 days.
Stars = cash. The better your ratings, the higher your sales. It is without question that reviews have direct impact on your sales. Having an email or follow up strategy to gain reviews should be a key focus for 2016.
This is just a snapshot of what the benchmark report has to offer. If you want the full report, check it out here.
And if you are curious as to how Kevy can help you create more effective emails, build loyalty or increase personalization on your store – let us know. We love chatting with online retailers!