Magento Presents:Community Insights

Magento: A Year in Review

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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.

2017 - MAGENTO YEAR IN REVIEW - TEASER EDIT ION

2017MAGENTO

YEAR IN REVIEWTeaser Edition

A Preview Into eCommerce Trends from Magento Merchants in 2017

2017 - MAGENTO YEAR IN REVIEW - TEASER EDIT ION

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 2017 - 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.

(1) https://trends.builtwith.com/shop/Magento(2) https://magento.com/advantage

But first, a teaser of our findings to help get you started...

2017 - MAGENTO YEAR IN REVIEW - TEASER EDIT ION

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 2017. 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.

2017 - MAGENTO YEAR IN REVIEW - TEASER EDIT ION

TRAFFIC

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.

VISITS SPLIT ACROSS DEVICES %

DESKTOP

MOBILE

TABLET

46%

43.3%

10.7%

2017 - MAGENTO YEAR IN REVIEW - TEASER EDIT ION

Citizens of Humanity leverages the popularity of fashion influencers to drive customer engagement and traffic to their store.

2017 - MAGENTO YEAR IN REVIEW - TEASER EDIT ION

CONVERSION RATE

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.

2.5%

2.0%

1.5%

1.0%

0.5%

0%

CONV

ERSI

ON R

ATE

%

2.5% 1.2% 2.0%

MOBILE

TABLET

DESKTOP

2017 - MAGENTO YEAR IN REVIEW - TEASER EDIT ION

Kate Somerville offers a clear and concise mobile journey for their customers - plus plenty of product information and customer reviews to support their offerings.

2017 - MAGENTO YEAR IN REVIEW - TEASER EDIT ION

AVERAGE BASKET SIZE (ABS)

ANALYSIS

Mobile shoppers may be less hesitant to purchase in greater volume on

a smartphone device due to the following reasons:

Ą A lack of comfortable screen size

Ą A slow-loading site

Ą Purchases on mobile are typically made while on-the-go - which leaves

little time to shop for multiple products.

5.00

4.00

3.00

2.00

1.00

0

AVER

AGE

BASK

ET S

IZE

(ITE

MS)

4.96items

3.5items

4.11items

MOBILE

TABLET

DESKTOP

2017 - MAGENTO YEAR IN REVIEW - TEASER EDIT ION

AVERAGE ORDER VALUE (AOV)

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.

200

175

150

125

100

AVER

AGE

ORDE

R VA

LUE

(USD

)

$198.80 $167.05 $180.02

MOBILE

TABLET

DESKTOP

2017 - MAGENTO YEAR IN REVIEW - TEASER EDIT ION

Uncover additional insights into the world of eCommerce on Magento, including:

Ą Revenue

Ą Bounce Rate

Ą Cart Abandonment Rate

Ą Average Rebuy Frequency

Ą Expected Customer Lifetime Value

Plus, actionable personalization strategies to improve your growth and conversions!

THERE’S PLENTY MORE VALUABLE INSIGHT TO DISCOVER...

ACCESS THE FULL 2017 MAGENTO YEAR IN REVIEW REPORT HERE

2017 - MAGENTO YEAR IN REVIEW - TEASER EDIT ION

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 2017.

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

Book a session!

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