Faster Speeds Generate $1.5B, but Technical Issues Cause $11.B Loss

Speed Isn't Everything

Years ago online retailers discovered that a 1 second reduction in website load time equated with a 7% increase in conversions. The eCommerce industry has been obsessed with speed ever since.

In Shoppimon's State of eCommerce Report, data captured across approximately 1,000,000 site visits, to the world's leading online retailers, shows how speed optimization has been taken to extremes. In fact, based on this data from the OSHU Index, we estimate that performance improvements leading up to last year's holiday shopping season generated an additional $1.5B in sales. 

Yet this hyper-focus on speed has resulted in a lack of time and resources being dedicated to preventing, identifying and resolving the technical and content issues experienced by eCommerce site. And these problems resulted in approximately $11.8B of lost online sales. 

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117 Sites in the OSHU Index experienced 7,000 unique issues, and 85,000 issue occurrences.

State of eCommerce

(by the Numbers)

Average Slowdowns per Site

~51 


OSHU Score

89.28



Average Interactive Time

1.58 Seconds


Methodology

Data was collected for this report using Shoppimon's proprietary artificial intelligence to experience eCommerce sites from the perspective of a real shopper. Data shared in this report was observed over the course of approximately 1,000,000 site visits to 117 of the leading online brands across 9 different retail categories. It was collected between October 1st and December 31st, 2017.

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Power of the Custom Build

(Top 10 OSHU Sites)

9 of the Top 10 OSHU sites are custom builds. 

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THE OSHU INDEX 

STATE OF ECOMMERCE

LESSON FROM THE WORLD'S LEADING ONLINE RETAILERS

State of eCommerce

Bottom 10 OSHU Sites

The average site in the Bottom 10 experienced double the number of slowdowns when compared to sites in the Top 10. They also suffered from 140% more severe issues, and were an average of 8X slower than their top performing counterparts. 

However, being constantly plagued by a plethora of different speed and health issues over the last three months is not the only way for a store to land in the bottom 10. In fact, a very small number of serious errors can drive down a store's OSHU Score and rank very quickly.

One King's Lane is an excellent example of this. While on the whole this is not a fast store, with an average interactive load time of a meandering 3.87 seconds, its general health is good, and it suffers few issues. Yet during this past quarter, when things did go wrong, they went very wrong. In fact, this was one of the only sites to completely crash at one point over Black Friday and Cyber Monday weekend. 

Like the Top 10, the Bottom 10 is made up of multiple retail verticals. However, eCommerce platforms are much more common here than custom builds. Just half of these sites are custom with the other half built with various eCommerce platforms. 

It's worth noting that the top 2 Sites, Birchbox and Summit Racing, are in a league of their own, having experienced only one slowdown each, interactive load times under 0.2 seconds, and no severe issues over a 3 month period. The speed and consistency of the shopping experience they provide for their customers is truly exceptional. W

hile there are speed and health trends unique to different retail categories, there is no one category that stands out within the Top 10. Instead, multiple retail verticals are represented in this list, from Home & Garden, to Beauty, Automotive and more. 

That said, there is a clear winner in terms of best performing eCommerce platform within the Top 10 OSHU sites. That is completely custom built stores. while leading retail platforms such as Hybris, Adobe Commerce, Magento, and Salesforce Commerce Cloud are all represented in the Index, 9 of the Top 10 stores appear to be custom builds. 

This suggests that when companies look to create a high-speed, flexible site that successfully copes with large influxes of traffic, they move away from out of the box eCommerce solutions, and build their own websites from the ground up. 

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