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

Thom O'Leary / E-Commerce

Five ways to buy valuable time for a replatforming project

Fast-growing retailers are often racing against the clock as they move from one e-commerce platform ...

FPO

JoJo Rowden / Mobile Commerce

Wearable fashion: Hot or not?

The potential for wearable fashion is endless and exciting. But brands promoting these web-connected wearables ...

FPO

Vebeka Guess / Mobile Commerce

Mobile: Get on-target by going off-channel

An Adobe executive offers five key tips to create mobile shopping experiences that boost mobile ...

FPO

Bill Siwicki / Mobile Commerce

Promote your mobile app with paper?!

A visit to Starbucks turned me on to a new app thanks to a stack ...

Advertisement

Advertisement