Just like most technology industries, the ecommerce space is in a constant flux and highly competitive. Innovation, changes in policy, human behavior and economics are only some of the forces which are pushing the survivors forward and leaving the rest to wonder what happened. I’m a strong believer that knowledge is power, and without power you rely on luck to compete against the thousands of sites out there who are vying for your market share around the clock.
In this post I have provided 5 stats straight from the collective data of over 20,000 ecommerce sites that make up Yotpo’s user base. The social media takeaways will give you the knowledge and hence the power to fight for survival in the ever competitive ecommerce space.
Online stores that have a social presence have 32% more sales on average than stores that don’t
Most online businesses today understand the importance of having a social presence, but how significant is it really? According to our data, stores that have at least one social account (Facebook and/or Twitter) have 32% more sales on average than stores that don’t use Facebook and/or Twitter.
There have been a number of reports on the % of sales from social, but the majority of them rank social traffic very low in regards to amount of traffic and conversion rate.
Our data suggests that implementing social media in your online marketing plan can have a much larger effect on your success than simply being a new source of traffic and sales to your site. Taking the decision to use social media in your marketing will often lead you to engage more with existing social media communities around your platform, communicate for the first time with your customers, help you learn more about online marketing tricks and tactics, and many other benefits which will add to your success.
Social Media Stat #1: If you’re not yet using social media to market your online store then stop reading this post and head over to Facebook and create a new page for your business. After that I recommend you learn the basics of building an online community.
The average e-commerce site is publishing 4.55 posts a week on their Facebook page
And 4.55 posts a week comes out at 0.65 posts a day, which is quite far off the 1 post a day that should be the minimum for most online brands. Since Facebook introduced its famous (infamous if you are an online marketer) Edge Rank, only around 16% of your fans will see your posts. With this in mind I would recommend that online storeowners start publishing more often on Facebook and see how your community reacts and if it has a positive effect on the growth and engagement of your community.
The low stat also shows us that many small-medium e-commerce sites are slacking off when it comes to actively posting regular, high quality content on their business’ Facebook pages. This is an opportunity in of itself, and this figure of 0.65 posts a day can be a benchmark that every online store owner should aim to beat.
Social Media Stat #2: Aim to post at least once per day to your Facebook page and start experimenting with more than one post a day.
The average e-commerce site’s Facebook community is growing by 8% each month
There are a number of metrics that are important to track as an online storeowner, but often the growth rates of a store’s social communities are ignored. According to data gathered from analyzing the Facebook pages of over 4,000 e-commerce sites, the average growth rate from month to month is 8%. This is an interesting number, because it should be relative to the size of your businesses’ Facebook following. A newer page should aim for a growth rate much higher than 8%, as it will take you 60 months to reach your first thousand if you started with 10 fans. Large communities that have great engagement shouldn’t focus too much on growth as even a monthly growth rate of 5% will bring large numbers of new fans and potential customers within your reach.
Social Media Stat #3: e-commerce sites with a small number of Facebook fans should aim for a growth rate higher than 8%, while established communities that have a few thousand fans or more should aim for a 5-8% growth rate month over month.
Of the e-commerce sites that have a Facebook account, 60% are also using Twitter
Twitter is an extremely popular social network among businesses, but I was surprised to see that only 60% of sites that are using Facebook are also using Twitter. This statistic shows us that there is definitely opportunity for e-commerce sites to create a strong presence on Twitter and use the social network to increase brand awareness and to help establish themselves as an authority in their niche.
I recommend that you make a list of your top 20 competitors and try and find each one on Twitter. If you find that a minority of them are active on the social network, then I would consider opening an account and start engaging with your target audience. The POST framework is a great tool for first time users.
Social Media Stat #4: There is less competition on Twitter for the e-commerce space in general, so analyze your niche and see how strong it is on Twitter. If there is opportunity there then dive in and start crushing it with Twitter.
The average e-commerce site owner expects customers to have their orders within 14 days of making their purchases
When given the option of choosing the number of days after a customer makes a purchase to email the customer for feedback on the product, most online storeowners decided on 14 days. This indicates that most online storeowners expect their customers to have their products well within 14 days of shipping their products. We can learn from this number that if the entire process of processing your orders, dispatching them and shipping time is longer than 14 days, then you should take a long, hard look at how your business is functioning and make necessary changes.
Social Media Stat #5: Make sure that the minute a customer makes an order, they don’t wait longer than 14 days before they have their purchase in their hands.
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