July 28, 2010, 2:08 PM

No m-commerce site? You're losing sales—big time

A prominent e-commerce figure tells how to figure out your mobile revenue.

Lead Photo

I had a chat yesterday with a prominent figure in web retailing, Scot Wingo, president and CEO of ChannelAdvisor Corp. Talk turned to m-commerce, and he offered a thought-provoking tidbit I just had to share.

“If 5% of your traffic is coming from mobile devices and not generating orders,” he says, “apply your normal conversion rate and that will give you the size of the opportunity you have today if you build a viable mobile store.”

OK, you don’t have a mobile-optimized site, and 5% of your traffic is bouncing—bouncing to some other retailer that does have a mobile site that enables these shoppers to buy then and there. Let’s be conservative. Say your average ticket is $100, the industry average according to Forrester Research Inc. Say your conversion rate is 3%, the industry average according to Forrester. And your monthly unique visitors tally is 500,000—a modest number among Internet Retailer Top 500 e-retailers. 5% (the percent of traffic coming from mobile devices) of 500,000 is 25,000. 3% (the conversion rate) of 25,000 is 750. 100 (the average order value) times 750 is 75,000.

You’re losing $900,000 a year by not offering mobile device users an m-commerce site. And the percent of traffic from mobile devices is only going to increase—substantially.

Is this a no-brainer, or is it just me?

comments powered by Disqus

Advertisement

Recent Posts from this Blog

FPO

Kaus Mukherjee / Mobile Commerce

Making online auctions fun for mobile millennials

Younger consumers love to be engaged in new and interesting ways that include a friendly ...

FPO

Margie Kupfer / Mobile Commerce

How retailers can build successful summertime mobile campaigns

Keep in mind that consumers are more likely to be near tourist attractions than the ...

FPO

Udayan Bose / E-Commerce

3 major takeaways for e-retailers from Google’s big event

Mobile and social are a big focus. And Google provides a new kind of customer ...

FPO

Peter McLachlan / Mobile Commerce

Why Google-backed Progressive Web Apps matter for retail

A Progressive Web App is effectively an app that streams to your customer’s device and ...

Advertisement

Advertisement