eretail12 - Jorij Abraham - ecommerce foundation

Introducing The eCommerce BenchmarkAmsterdam, 8th of March 2012 Jorij Abraham

Agenda

› Why the eCommerce Benchmark?

› What is the eCommerce Benchmark?

› Some preliminary results?

› What’s in it for you?

Introducing the eCommerce Benchmark

Why the eCommerce Benchmark?Getting insights into your eCommerce Performance…

Who am I….Introducing the eCommerce Benchmark

How am I doing?Introducing the eCommerce Benchmark

Conversion Ratio

Page views

Bo

un

ce

s

Email base

CTR

Open ratioOrder lines

Order value

% ReturnsAbandonment

Mobile commerce

Facebook shop Calls handled

Pickup ratio

# Product managersICT Sourcing

Growth strategy

TabletsF

ulf

ilm

en

tc

os

tsF

TEH

TM

L 5

CP

S

PSP

On

lin

e s

ha

re

InternationalizationICT budgetContent costs

Order lines

Order lines

© eCommerce Foundation | Page 5

What is the eCommerce Benchmark?A Mirror to Compare your Company‘s eCommerce Performance

What is the eCommerce Benchmark?

Total

3.5

Financial

(4,6)

Internal

(2,9)

Innovation

(2,2)

Channels

(4,4)

© eCommerce Foundation | Page 7

Everybody is focusing on product loyalty management, why aren’t we?

Our conversion ratio is slightlyabove industry average.

My PSP cost per order are much lower than average.

Our average order value is market average

We are growing faster than the market.

Our e-commerce department is relatively small

Our competitors have SEA/SEO experts in house. Should we too?

We are behind in mobile payment.

Introducing the eCommerce Benchmark

TotalBenchmark

Financial

Perspective

Internal

Perspective

Innovation

Perspective

Channels

Perspective

We should strive for a CPC

of € 0.16 or lower.

Our average CPC of

€ 0.21 for traffic is

much higher than

average.

Our fulfillment cost per order

of € 4.25 is better than average.

We should hire a SEA

expert like the others.

We should create a

competitive advantage

out of our fulfillment costs.

Let’s increase our

fulfillment scale further.

© eCommerce Foundation | Page 8

How can the Benchmark help You?Introducing the eCommerce Benchmark

Compare:Where am I now?

Create a roadmap: How do I get there?

Set targets:Where should I be?

The eCommerce Foundation:

The eCommerce Foundation is a non-profit organization

created with the intent to help both companies as well as

whole industries improve their e-commerce activities, by

sponsoring research studies, facilitating knowledge sharing

and supporting benchmarking efforts. The eCommerce

Benchmark is our first initiative and is being rolled out globally.

The eCommerce Foundation is committed to protecting any

data and/or personal information submitted to the eCommerce

Benchmark. It guarantees the anonymity of all figures

provided, and also that these will not in any case be disclosed

to others including sponsors, media partners, etcetera.

© eCommerce Foundation | Page 10

Introducing the eCommerce Benchmark

Our Partners

Industry Organizations

Business Partners Media Partners

Participants*

* All participants shown in this presentation have given the eCommerce Foundation explicit authorization to display their logos

Introducing the eCommerce Benchmark

Who is Participating?Preliminary Results

Participation by CountryWho is Participating?

0

50

100

150

200

250

127

36

9 9

23

248

6

59

99

46

6

N = 560

© eCommerce Foundation | Page 16

Participation by Company SizeWho is Participating?

0

50

100

150

200

250

300

1 to 10 FTE 11 to 25 FTE 25 to 100 FTE 100 to 250 FTE 250 to 1000 FTE 1000+ FTE Unspecified N = 560.

© eCommerce Foundation | Page 17

Participation by Industry

0

50

100

150

200

250

300

350

400

Finance Production Retail Travel & Leisure Wholesale Unknown

© eCommerce Foundation | Page 18

Who is Participating?

N = 560

Participation within the Retail Industry

20

36

101

13

58

14

94

22

0

20

40

60

80

100

120

Department stores Electronics- Fashion Food Home & garden Media (books, DVD, CD, Games)

Specialty stores Unspecified

© eCommerce Foundation | Page 19

Who is Participating?

Participation by Retail Sub-Industry

0

5

10

15

20

25

30

35

© eCommerce Foundation | Page 20

Who is Participating?

Channel PerspectivePreliminary Results

0

10

20

30

40

50

60

70

80

90

100

…

Search Engine - Organic

Search Engine - Paid

Referrals - Other Paid

Referrals - Non Paid

Referrals - Email Newsletter

Referrals - Affiliates

Referrals - cps

Referrals - cpc

Direct

© eCommerce Foundation | Page 22

Traffic SourcesChannel Perspective

Traffic Sources

Referrals - cpc, 3%

Referrals - cps, 1%

Direct, 22%

Referrals - Affiliates, 4%

Referrals - Email Newsletter, 6%

Referrals - Non Paid, 4%

Referrals - Other Paid, 2%

Search Engine - Organic, 37%

Search Engine - Paid, 21%

© eCommerce Foundation | Page 23

Channel Perspective

Average number of Page Views per VisitorChannel Perspective

0

50

100

150

200

250

0 <5 <10 <15 <20 <25 <30 <35 <40 <50 >50 unspecified

© eCommerce Foundation | Page 24

Fashion: 7.8

Home & Garden: 8.1

Specialty Stores: 11.9

Shopping Card Abandonment Rate (Retail)Channel Perspective

0

5

10

15

20

25

30

Shopping Cart Abandon Rate Retail (categories)

<10%

11 to 20%

21 to 30%

31 to 40%

41 to 50%

>50%

© eCommerce Foundation | Page 25

Average Abandonment Rate in the Retail industry is 41.7%.

Fashion: 49.5%. Home & Garden: 32.3%. Specialty Stores: 35.2%.

Conversion Ratio per Retail Sub-IndustryChannel Perspective

0.7%

3.3%

5.1%

0.1%

1.5%

0.4%

4.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Department stores Electronics Fashion Food Home & garden Media (books, DVD, CD, Games)

Specialty stores

N = 358.

© eCommerce Foundation | Page 26

Email Open and Click Through RatioChannel Perspective

0

5

10

15

20

5 10 15 20 25 30 35 40 45 50

Email Click Through %

Email Open %

© eCommerce Foundation | Page 27

Frequency

PercentageAverage Click Through Ratio in the Retail industry is 14.89%

Email Open Ratio is 28.68%.

The Ideal Emailing Frequency…Channel Perspective

N = 79

Email Frequency

Email Open ratio Not / rarely Once a month

Once every three

weeks Bi-weekly Once a week

More than once a

week

Differs per customer

(segment) Unspecified

0 4 1

1 1

3 1

10 2 1 1 3

14 1 1

14.5 1

15 1 1 1

17 1 1

18 1

19.29 1

20 1 2 1 2 1 4

21.8 1

22 2

23 1

24 1

25 5 1 2

26 1

28 1

30 1 1 1 1

33 1 2

34.93 1

35 2 1 1

36 1

40 1 2 1 1

43 1 1

45 1

52 1

60 1 1 1 1

67 1

71 1

75 1© eCommerce Foundation | Page 28

Organization PerspectivePreliminary Results

Size of the eCommerce TeamOrganization Perspective

0

5

10

15

20

25

<1 FTE 1 FTE 2 to 10 FTE 10 to 25 FTE 25 tot 50 FTE >100 FTE

N = 68.Average E-commerce Team = 7,43 FTE

© eCommerce Foundation | Page 30

Frequency

How is eCommerce Organized?

-5

5

15

25

35

45

55

Completely centralized Completely decentralized Mainly centralized Mainly decentralized Mixed / hybrid Other

© eCommerce Foundation | Page 31

Organization Perspective

Where is eCommerce Placed?

0

5

10

15

20

25

30

35

40

Differs across the organisation

ICT Is an independent unit

Logistics Marketing Sales Other

© eCommerce Foundation | Page 32

Organization Perspective

Financial PerspectivePreliminary Results

Web Order Value per Sub-IndustryFinancial Perspective

0

1

2

3

4

5

6

7

8

9

10

<50 50 to 100 100 to 150 150 to 200 200 to 250 250-300

Fashion

Specialty stores

© eCommerce Foundation | Page 34

Average Web Order Value in Fashion is € 98,-.

For Specialty Stores: € 44.10.

Order Mutation RatioFinancial Perspective

0

5

10

15

20

25

<5 5 6 to 10 11 to 20 21 to 30 31 to 40

© eCommerce Foundation | Page 35

Average Mutation Ratio in Fashion is 2.8%. Specialty Stores: 3.4%.

B2B companies have far higher Order Mutation Ratio’s.

Order Return Ratio

0

5

10

15

20

25

30

35

<10% 10 to 20% 21 to 30% 31 to 40% >50%

© eCommerce Foundation | Page 36

Financial Perspective

Average Return Ratio in Fashion is 20.6%. Specialty Stores: 12.6%.

Number of Order Lines

0

2

4

6

8

10

12

14

<2 2 3 4 5 >5

Home & garden

Fashion

Specialty stores

© eCommerce Foundation | Page 37

Average Number of Order Lines Fashion is 2.0.

Specialty Stores: 2.9. Home & Garden: 2.5.

Marketing budget spend on OnlineFinancial Perspective

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% marketing budget for promition website

Production

eRetail

Retail

Travel & Leisure

Wholesale

© eCommerce Foundation | Page 38

We are Just Starting…Please Join for Free & Anonomously

Total7.3

Financials

(9,6)

Internal

(5,9)

Innovation

(4,8)

Customer

(8,9)

Join 250 other Companies!

Get immediate

results

Receive an email when new entries

are made

Fill in the questionnaire

Just register at

www.ecommercebenchmark.org

© eCommerce Foundation | Page 40

We are Just Starting

And get your Anonymous and Free Benchmark

Interested? Questions? Please Contact Us!Introducing the eCommerce Benchmark

Board Member

Jorij.Abraham@eCommerceFoundation.org

+31 6 5234 2568

Jorij Abraham

Benoit Mouret

Research Manager

Benoit.Mouret@eCommerceFoundation.org

+31 6 2437 5762

© eCommerce Foundation | Page 41