Latest Ecommerce Benchmarks you should know
When it comes to running an E-commerce website, your strength lies in your ability to understand your numbers, how they measure up with that of your competitors and what you can do to remedy any glitches that might exist to improve sales and reach your goals. That is why knowledge of the latest E-commerce benchmarks is key to the overall success of your Ecommerce business.
While you may be familiar with E-commerce benchmarks like Page Views and Average website visits – and probably understand how these individual metrics affect the growth of your business, we’ll like you to take a look at three other benchmarks that should be of utmost concern for you as the decade kicks off.
Average Order Value (AOV)
Average order value tracks the average dollar a customer spends each time he/she places an order on a website or mobile app.
AOV is an important metric that online businesses employ to measure and understand their customers’ buying habits on their websites or app.
Why it should matter to you
As an Ecommerce business, knowing your company’s average order value enables you to evaluate your overall online marketing efforts and price strategy by providing the ecommerce benchmarks you need to measure the long term value of each customer.
It is important to stress here that your AOV will depend on the type of products you sell. For instance, it is a lot easier to scale a business on $100 orders than it will be on $5 orders. Hence if your order value is too low, a solution might be to cross/upsell more aggressively or consider new products with higher-order values.