Ecommerce - The Scepticism Dissolves
Analysing The Industry's Experience in On Line Selling
Ecommerce has been with us for quite a while now and it has ridden many waves; economic, social and technological. Salient data has been taken from new reports that make for some interesting reading especially if you are budgeting for your business and looking at the best way of achieving new growth.
When we look closely at the figures that are presented here it is no longer a question of 'if' but 'when' to take your retail business on line.
Ecommerce Growth by Revenue
Many companies face being left behind if they only stick with traditional sales channels when they could be thriving through on line sales. Early adopters of on line sites appear to have ‘come out of nowhere’ to steal market share and even overtake their rivals who may have been around for a lot longer. In some cases, this longer standing structure is often holding them back and restricting their thinking and possibly their pricing thinking with traditional overheads coming into play where modern on sellers are more lean and agile.
From recent studies, top performing eCommerce businesses have edged away from their natural competition, attaining revenues over 330% higher than everyone else. Top performing ecommerce companies have an Average Order Value to the level of 35% higher than other market players. Top performing companies are seen to create a “renewable resource” of loyal customers. By the end of year three in such a business initiative, the majority of their revenue is coming from repeat purchases. After three years, companies in the top quartile have almost quadrupled monthly orders, resulting in 280% higher number of all-time orders.
While ecommerce is progressing in market share in the retail industry, the level of acceptance differs significantly in other segments. It would seem then, that retail category would play a role in a company’s ability to grow, but this doesn’t seem to be the case. Across the categories that were explored in recent research, there is no significant difference in their growth rates.
Factors Driving Faster Growth in Ecommerce
This insight is a significant help to companies in two ways:-
- Date: 20 August, 2015
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