Magento: A Year in Review
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1 Magento: A Year in Review Magento Presents: Community Insights Brought to you by:
2 Magento is proud to present Community Insights to help merchants develop strategies and tactics to better serve their customers. The Magento Partner Community is a trusted network of consulting and technology companies that help merchants grow their business, and create engaging customer experiences with the Magento Platform. These organizations provide valuable insights and practical takeaways from their real world experiences with merchants like you.
3 2017 MAGENTO YEAR IN REVIEW Teaser Edition A Preview Into ecommerce Trends from Magento Merchants in 2017
4 INTRODUCTION Between February 2016 and March 2017, the number of websites (1) powered by Magento increased by over 48,000. And with over 250,000 (2) merchants worldwide using Magento to power their online business, it s important to take a step back and analyze how a platform of this magnitude delivers across several key areas of an ecommerce business. Using Nosto s proprietary data (over 900 million visits to Nosto powered stores running on Magento), we ve created the Magento Year in Review report. This benchmark report deep dives into the state of ecommerce on one of the world s most powerful platforms. By analyzing core ecommerce KPIs, Magento users new and prospective can learn actionable tips to drive business growth on this platform. But first, a teaser of our findings to help get you started... (1) (2)
5 EXECUTIVE SUMMARY Desktop still reigns supreme - but mobile is here to stay. Nosto data shows that the biggest share of online traffic for retailers on Magento belongs to mobile an increase from 43.7% in 2016 to 46% in Tablet usage, in the meantime, remains on a decline, with both traffic and revenue dropping by over 3% per year and currently making up 10% of overall traffic (some of it absorbed by mobile). While desktop is second to smartphone usage in terms of traffic, it remains the most powerful channel for driving ecommerce revenue, conversion and AOV. This is an indication that retailers continue to struggle with creating a fluid shopping experience on mobile - a channel typically used for smaller, on-the-go purchases. Desktop still reigns supreme - but mobile is here to stay.
6 TRAFFIC VISITS SPLIT ACROSS DEVICES % MOBILE TABLET 10.7% 46% 43.3% DESKTOP ANALYSIS The gap in traffic percentage between mobile and desktop between 2016 and 2017 continues to widen over time. However, we ve found that despite the rise in mobile traffic, the decrease in sales on desktop is slower than expected. As ecommerce websites continue to put mobile first, we predict consumer traffic via tablet will continue to decline. Retailers should use this shift towards mobile as an advantage to increase customer engagement, conversion and retention.
7 Citizens of Humanity leverages the popularity of fashion influencers to drive customer engagement and traffic to their store.
8 CONVERSION RATE DESKTOP 2.5% TABLET CONVERSION RATE % 2.0% 1.5% 1.0% 0.5% MOBILE 0% 2.5% 1.2% 2.0% ANALYSIS While tablet usage is not the most favorable channel for driving revenue, its conversion rate still surpasses that of mobile. In fact, mobile s conversion rate decline from 2.3% in 2016 to its 1.2% in 2017 may come as a surprise for Magento retailers. Traffic volume on this channel continues to rise, but the decline in conversion power proves that many online retailers continue to struggle with creating a fluid mobile shopping experience.
9 Kate Somerville offers a clear and concise mobile journey for their customers - plus plenty of product information and customer reviews to support their offerings.
10 AVERAGE BASKET SIZE (ABS) DESKTOP AVERAGE BASKET SIZE (ITEMS) items 3.5 items MOBILE 4.11 items TABLET ANALYSIS Mobile shoppers may be less hesitant to purchase in greater volume on a smartphone device due to the following reasons: A lack of comfortable screen size A slow-loading site Purchases on mobile are typically made while on-the-go - which leaves little time to shop for multiple products.
11 AVERAGE ORDER VALUE (AOV) DESKTOP AVERAGE ORDER VALUE (USD) MOBILE $ $ $ TABLET ANALYSIS Desktop and tablet are the more browse-friendly channels, surpassing mobile in that of size and optimization potential. Mobile shoppers show to be least inclined to make larger-volume purchases. ecommerce merchants continue to struggle with fully engaging their customers on mobile; as a result, this platform remains a channel suited for impulse buys on-the-go.
12 THERE S PLENTY MORE VALUABLE INSIGHT TO DISCOVER... ACCESS THE FULL 2017 MAGENTO YEAR IN REVIEW REPORT HERE Uncover additional insights into the world of ecommerce on Magento, including: Revenue Bounce Rate Cart Abandonment Rate Average Rebuy Frequency Expected Customer Lifetime Value Plus, actionable personalization strategies to improve your growth and conversions!
13 IS YOUR MAGENTO STORE PREPARED TO DELIVER STRONG RESULTS IN 2018? Book a 1:1 session with one of our ecommerce experts to discuss how you can maximize your ecommerce success on Magento. Nosto is a Magento Premier Technology partner since OUR SOLUTION IS EMPOWERED BY: Proprietary machine learning algorithms Ecommerce platform agnostic and out-of-the box integrations Dedicated account managers, front-end designers, and product specialists experienced with optimizing hundreds of Magento stores for ultimate performance lightbul Book a session!
14 Get started with Magento (855) Schedule a Demo
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