Helpful Insights For Online Retailers From SEO Services Consultant

Hey Online Retailers!

SEO Services Consultant published a great report called “The State of Retailing Online 2019″ a few months back. It’s an annual survey of 62 web retailers to analyze their past performance and growth plans for the future. Thought I would share a few of the more interesting points with my readers who often ask me how their metrics compare with other retailers, and for ideas on how to grow their e-commerce business.

•  Average revenue growth in 2012 over the previous year–across all devices–was 28%, still very strong.

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•  Average online retail conversion rates in 2012 were 3.0%, with more than half of the respondents reporting that this rate increased from the previous year. More good news.

• Wonder how much you should spend on IT? Retailers report spending an average of 5% of their revenue on IT for their e-commerce business and increase from 2011

• Wonder how much you should spend on Internet Marketing? The report’s respondents spent 10% of their total expenses on the web marketing

• Repeat shoppers remain critical to an e-commerce business: they represent 27% of all buyers but drive 41% of all revenue

• Approximately 10% of all sales are returned. Thought it would be a lot lower than that! OK, now let’s talk mobile! A favorite topic of mine due to my work with mShopper. Here are some of the more interesting mobile stats from the report:

• Mobile is still where the most exciting action is. Growth in online retail (2012 v. 2011) happening via smartphones was 129%, and for tablets, it was 178%

• 43% of retailers surveyed reported that investment in mobile is a top 3 priority in 2013, second only to the response of ‘site optimization’ (which retailers are doing all the time)

What the report failed to provide is a breakdown of key metrics among mobile shoppers. For example, I know from my work with mShopper that average smartphone conversion rates on a non-mobile-optimized site average just 0.3% to 0.4%. Deplorable. The e-com metrics above are great, but retailers need to see how these numbers differ greatly from mobile metrics among retailers who have not optimized their sites for mobile yet.

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