Wednesday, 11 November 2015

Online sellers guide to ecommerce in 2015: Study

http://www.whisbi.com/blog/google-glass-retail-revolution/
Yotpo recently released its annual study titled ‘The state of ecommerce’, which managed to number crunch its way through 65 million orders after analysing 120,000 online stores. We bring you the key insights of the study.

Traffic lighting up ecommerce

We all know online traffic is needed to generate sales, but where exactly should we be concentrating our efforts. According to the report, direct, search and referral methods still bring greater rewards in terms of traffic than social.
  • Direct = 40%
  • Search = 34%
  • Referral = 10%
  • Social = 6%
  • Paid = 5%
  • Email = 3%
  • Other = 2%
When it comes to average time spent on a site, Instagram has the highest stickiness, followed by email, while direct is 3rd and referral 4th.

Upward mobility

A lot has been written about ecommerce v/s. mcommerce. While Non-mobile traffic with 62% still trumps mobile traffic with 38%, there is no denying that mcommerce is making inroads. Online sellers would be wise to dedicate marketing efforts on both platforms.
Depending on which platform you use will also determine your success on that particular site. For example 95% of Linkedin traffic comes from non-mobile, but on the other hand 97% of Instagram traffic is from mobile devices. Email is generally the same on both mobile and non-mobile.

Retaining loyal customers

It was found that the value of returning shoppers is very important to the contribution of sales. Although returning shoppers only contributed to 14.4% of shoppers, they made up 33.3% of the spend, which accounts to an amazing 3x more than one time shoppers. This proves that it definitely pays to take good care of existing customers on your database.

Popularising Reviews

Sharing customer reviews to social media is a big thumbs up according to the report. Twitter especially scored very high with a conversion rate of 6.46%. Reviews shared to Facebook had a conversion rate of 2.58%, while Linkedin was just behind with a 2.46% conversion rate.

It’s written in the stars

It was found that star ratings for products greatly influenced customers, as more stars resulted in higher sales and more reviews. 75% of the 65 million transactions had accomplished 5 stars.
  • 5 star = 75%
  • 4 star = 11%
  • 3 star = 5%
  • 2 star = 3%
  • 1 star = 6%

Final Thought

Some very interesting incites to excite and ignite you into action. For some of you online sellers the results from the report would just be confirming what you already suspected, but remember this was not an India centric study.
We would like to know if you have any marketing strategies that have particularly worked wonders for you? Please share with your Indian Online Seller community!

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