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The State of eCommerce: Yotpo Benchmark Report

ecommerce-benchmark

This is a report which collected from 65 million orders and over $2 billion in transactions of 120,000 eCommerce stores. This report will bring to you many informations of ecommerce world and you will know where your business stands. Hope that through this report, you will get the useful informations to help you become a winner in the war of ecommerce.

PART 1: THE CURRENT STATE OF ECOMMERCE MARKETING

With eCommerce, both businesses and consumers are doing on internet, on websites. Traffic of website is an important indicator, so do you think that you have a healthy distribution of traffic?

traffic-broken

And, what is the most quality traffic to get high engagement rates?

average-seconds-visit

Do you know about the ratio of Mobile traffic vs. Non-Mobile traffic?

mobile-non-mobile

And then, here is the distribution of Mobile vs. Non-Mobile page views:

mobile-page-views

The chart above shows us that certain traffic sources lean heavily in one direction, the social network like Facebook, Instagram, and Pinterest… has a high percentage of page views from a mobile device than other.

PART 2: ECOMMERCE SALES BENCHMARKS

Here is the chart of Monthly Average Order Value (AOV)

monthly-aov

There is a hypothesis that along with the growth of eCommerce globally, people will spend more on average per order when buying online. But, if your AOV isn’t increasing, don’t be afraid because you are not the only one.

Some people said that keeping a current customer is more cost effective than trying to get a new one. So, how much are returning shoppers really worth?

returning-shopper

As we can see from the data, the returning customers are truly valuable. In fact:

  • Return customers spent $356M during 2015
  • Returning customers spend 2.92 times more than onetime shoppers.
  • There are only 15% of customers are repeat customers, but these customers account for 1/3 of the overal spent.
  • The average number of days between a returning shopper’s purchases is 41 days

Next, we will discover the impacts of reviews in social commerce. Look at the chart below:

cvr

We can see that the conversion rate is increased at least 2.49% when businesses shared their reviews to social networks. Especially with Twitter, the conversion rate is improved 6.46% with reviews shared, such an amazing number. And in fact, with reviews, the conversion:

  • 3x higher for LinkedIn
  • 40% higher for Facebook
  • 4 times higher for Twitter

You may wondering that how the good (5 stars) reviews impact sales, to find out that, let’s analyze one million reviews for 8.6 million purchases made on 6,623 products across multiple verticals and stores.

Then, the results show that:

average-star-ratings average-star-review

The products with higher star (5 stars) reviews have higher volume of sales, and also have more reviews than other products. According to the data, the products with high ratings have a huge impact on the ability of sales, more stars – higher sales.

But what about the negative reviews? Look at the pie below:

average-star

Wow, the good news is there are 75% of all reviews are 5-stars reviews. It means that the vast majority of reviews are positive. Same as positive reviews, the negative reviews also have impact your sales, but don’t worry because the data shows the chances are slim.

People are more likely to write a review for products with higher average ratings. However, make sure that always bring to customers the best products/services with the best experience in order to get more positive reviews.

But how you can take advantages of the 5-stars reviews? Here are some suggestions for you:

  • Don’t worry about negative reviews. The chances of receiving them are slim, and negative reviews can still have positive effects.
  • Low star ratings can signal possible weaknesses in your shop that you can correct in order to grow sales. Don’t be afraid to find out why a product isn’t doing so well: Ask your customers what you can do to make the experience five stars.
  • Share your reviews everywhere as you can! It can help to create the social proof for your business.

Credit by Yotpo

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