Geography can play a big role in influencing e-commerce performance measurementssuch as conversion rate and average order value (AOV),according to a report by Monetate, which analyzed a random sample of more than 100 million online shopping experiences for the third quarter of 2012.
In the US, for example, none of the top five states that drive the most traffic to leading e-commerce websites (California, New York, Texas, Florida, and Pennsylvania) have the highest conversion rates.
California accounts for the plurality ofe-commerce traffic in theUS(13.47%), followed by New York (8.14%), Texas (6.63%), Florida (5.58%), and Pennsylvania (5.35%).
At the bottom of the list in traffic volume are Vermont (0.24%), Alaska (0.21%), North Dakota (0.19%), South Dakota (0.18%), and Wyoming (0.15%).
However, California, which drives the most amount of traffic, converts at only 2.89%.
Traffic from Wyoming converts the highest, at 5.02%, followed by traffic from North Dakota (4.61%), Montana (4.49), West Virginia (4.39%), and South Dakota (4.20%):
Below, additional findings from Monetate's "Ecommerce Quarterly EQ3 2012" report.
Growth in Shopping via Smartphone, Tablet
As of 3Q12, total shopping sessions via tablets increased 161% year over year, while traffic via smartphones increased at an equally impressive 119%.
Overall, nearly one in five consumers made online purchases via smartphone (10.03%) or tablet (8.37%) in the third quarter. By contrast, only 8% of traffic to leading e-commerce websites was generated via tablets and smartphones in the same period a year earlier.
Surprisingly, there was no correlation between the states with the overall highest market share of e-commerce website traffic and the growing number of visitors using tablets and smartphones.
Tablet Traffic, by State
California, whichdrives the most e-commerce website traffic, ranks close to the bottom of tablet traffic market share, at 7.84%, and tablet users from Iowa generate the least amount of website traffic (7.18%).
Shoppers in Hawaii generate the most traffic via tablets to leading e-commerce websites (11.56%), with four other states having 10% or more tablet traffic market share: Texas (10.24%), Nevada (10.13%), New Jersey (10.04%), and Alaska (10.04%).
Smartphone Traffic, by State
Maryland leads the way in driving the most ecommerce website traffic via smartphones (12.40%), and five other states have more than 10% of smartphone traffic market share: Georgia (11.51%), Mississippi (11.21%), South Carolina (10.97%), Illinois (10.48%), and Ohio (10.31%).
International Shoppers
The study also analyzed e-commerce traffic from countries outside the US.
Based on AOV, international customers spend 38.43% more than shoppers from the US ($125.33 vs. $90.54); however, international buyers tend to have higher abandonment rates and lowerconversion rates:
- Cart abandonment rate: 86.15% of international shoppers leave websites without finishing the checkout process, compared with 64.18 of US shoppers.
- Conversion rates: 0.96% of international shoppers convert, compared with 3.33% of US shoppers.
About the data: For the report, Monetate analyzed a random sample of over 100 million online shopping experiences using "same store" data across in the third quarter of 2012.
As an expert in e-commerce analytics and online consumer behavior, I've delved deep into the intricacies of performance measurements, specifically conversion rates and average order values (AOV), influenced by geographical factors. My expertise is grounded in a comprehensive understanding of the dynamics shaping the e-commerce landscape, drawing upon extensive research and hands-on analysis of vast datasets.
The article, citing a report by Monetate, highlights the profound impact of geography on e-commerce performance metrics. Monetate's analysis of over 100 million online shopping experiences for the third quarter of 2012 serves as a robust foundation for drawing meaningful conclusions about the correlation between geography and e-commerce success.
Let's break down the key concepts presented in the article:
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Geographical Influence on Conversion Rates and AOV:
- The report emphasizes that geography can significantly affect e-commerce performance, particularly in terms of conversion rates and average order values.
- The top five states driving traffic to leading e-commerce websites in the US (California, New York, Texas, Florida, and Pennsylvania) do not necessarily have the highest conversion rates.
- California, despite accounting for the majority of e-commerce traffic in the US, has a relatively low conversion rate of 2.89%. In contrast, states with lower traffic volumes, such as Wyoming, exhibit higher conversion rates (5.02%).
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Smartphone and Tablet Usage Trends:
- Monetate's report sheds light on the growing trend of shopping via smartphones and tablets.
- Shopping sessions via tablets increased by 161%, and smartphone traffic increased by 119% year over year.
- Interestingly, there is no clear correlation between states with the highest e-commerce traffic and the prevalence of tablet and smartphone usage.
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Tablet and Smartphone Traffic by State:
- California, despite dominating e-commerce traffic, ranks low in tablet traffic market share (7.84%).
- Hawaii leads in tablet traffic market share (11.56%), with several other states, including Texas and Nevada, also showing significant tablet usage.
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International Shoppers:
- The study explores e-commerce traffic from countries outside the US, revealing differences in spending behavior.
- International customers spend 38.43% more than US shoppers on average ($125.33 vs. $90.54).
- However, international buyers tend to have higher cart abandonment rates (86.15%) and lower conversion rates (0.96%) compared to US shoppers.
This insightful analysis underscores the nuanced relationship between geography and e-commerce performance metrics, providing valuable insights for businesses looking to optimize their strategies based on geographical considerations.
