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27. August 2013

How much is each second worth in ecommerce? - Check out these 15 Stats!

“Time is money” is not just an expression when it comes to ecommerce, every second can literally be translated into dollars. If you were trying to log on to Amazon just before noon (PST) last Monday (Aug 19th), you probably noticed that the site was down. So what kind of financial impact  could it potentially have on the online retail giant? Let’s do the math… Amazon posted $15.7 billion in revenue last quarter, which roughly breaks it down to $120K per minute. According to Geekwire, the site was down for about 40 minutes. So if we were to convert the amount of down time to dollars, it would be about $4.8 million in lost revenue. Of course this is just an estimation that is based on a very simple calculation and didn’t factor in if customers returned when the site was back up, if it was a peak shopping time, sales impacts from other regional sites etc… The point is every second of down time translates into potential dollars lost. Most online retailers don’t operate on the same scale as Amazon, but they all understand the negative impact that every second of lag or downtime can potentially have on sales. To get a better understanding of the different types of impact that every second of delay can have on ecommerce sites here are 15 stats that are worth reviewing:

  1. The median load-time for top U.S. retail sites is 7.25 seconds, more than double the optimal 3 second time [tweet this]
  2. 39% of e-retailers claimed they lost money last year due to performance or stability problems [tweet this]

Revenue & Sales

  1. Cutting just 3 seconds off load time generates a revenue increase of 7-12% [tweet this]
  2. If an e-commerce site is making $100,000 per day, a 1 second delay in the average site load time could potentially cost the site owner $2.5 million in annual lost sales [tweet this]
  3. Amazon's calculated that page load slowdown of just one second could cost it $1.6 billion in sales each year [tweet this]
  4. Shopzilla increased page load time from 6 seconds to 1.2 seconds and increased revenue by 12% and page views by 25% [tweet this]
  5. Slow page loading speeds cost online retailers globally more than £1.7 billion in lost sales (about 2.7 billion U.S dollars)  [tweet this]

Abandonment

  1. 24% of online shoppers abandoned shopping carts because a website crashed [tweet this]
  2. 21% of online shoppers abandoned shopping carts because the process was taking too long [tweet this]
  3. 15% of online shoppers  abandoned shopping carts due to website time out [tweet this]
  4. 66% of mobile shoppers abandoned an ecommerce shopping cart because it was either loading too slowly or it never came up at all [tweet this]
  5. Four in 10 Americans give up accessing a mobile shopping site that won't load in just three seconds [tweet this]

Conversions

  1. A site that loads in three seconds experiences 22% fewer conversions than a site that loads in one second [tweet this]
  2. A site that loads in five seconds experiences 38% fewer conversions than faster competitor sites  [tweet this]
  3. A one second delay in mobile page load time equals a 7% loss in conversion [tweet this]

As these stats have proven, time is a critical component of success to ecommerce sales. Slow loading sites can lead to shopping cart abandonments (loss of customers), fewer conversions, and an overall negative impact on sales. Online shoppers are expecting faster loading sites and will not tolerate even a millisecond of delay. Time is money! A simple reduction in load time and delays can make a significant difference in revenue. Download the Whitepaper, Empowering Ecommerce Through Fast Website Performance

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