As online merchant, you have access to a wealth of business and customer information that was previously undiscovered and uncaptured in the traditional retail space. But with new information comes new responsibility to do something with that data and use it to grow your business.
With all that info, where do you focus? Here are 3 vital ecommerce statistics that you should track and understand to build and manage your online business. Ready? Let’s go!
Know Your Conversion Killers: Shipping Charges and Account Creation
It’s a fact: 28% of shoppers will abandon their carts if they encounter sudden and/or unexpected shipping cost – and it’s the number one reason for cart abandonment. It’s not that shoppers won’t or don’t want to pay for shipping (they know it costs money to have something driven or air-freighted from the other end of the country!), but when the costs are not stated upfront, it can be upsetting. Be open, upfront and clear about shipping costs and display them before checkout.
Account creation is another conversion killer. Lengthy forms, too many details and compulsory registration are a sure deterrent. 23% of users will abandon checkout if they have to create a new account. So, be understanding, and allow customers – especially first-timers – to check out as a guest and get their stuff without much hassle.
Cart abandonment is a perennial problem, and the 2015 abandonment rates stands at a high 68%, according to IBM. That accounts for nearly three-fourths of all customers who add items to their carts! Cart abandonment rates have always hovered between the 59%-71% mark, and the main reasons are, as mentioned above, unexpected shipping costs and compulsory account creation. Most abandonment problems arise at the final phase of the checkout process because shoppers have to enter data they don’t want to share or aren’t prepared to share, or they encounter an unexpected cost.
Average Order Value
Newsflash: you need to keep an eye on your average order value. Simply put, the higher your AOV, the better. It’s not about high levels of traffic (although consistent high traffic is nice, since it increases the likelihood of a conversion!), it’s about how much revenue you can generate with that traffic. By keeping an eye on AOV, you can figure out how much revenue you can generate when you’ve identified your conversion rate. Plus, you can better figure out ways to increase that AOV with add-ons, suggested products, and bundling. If you have more lower-value orders, you can identify ways to ramp it up and increase the dollar amount.
What ecommerce stats are you tracking to improve your online retail operations?