Factors Affecting E-commerce Growth In Central And Eastern Europe
Every region of the world has witnessed an exponential rise in the e-commerce in the past few years. If one was to look at Europe, contrary to the common assumption, central and eastern Europe have seen a great growth in the industry and continue to dominate the European economy.
According to a study conducted with 93 e-commerce websites from eastern Europe, central and eastern Europe generated about $1.3 billion in online turnover across 530 million sessions from October 2016 to September 2017. The analysis of the data generated during this period provides a deep insight into how a customer interacts with an e-commerce site and what do the marketers need to do to help improve their digital marketing strategies.
As surprising as it may be, more number of people accessed the online market sites through their mobile phones. The percentage of sessions doubled in 2017 and generated 86% of the revenue. Also, the percentage of purchases through mobile also grew and the conversions grew by 67% from 2016.
Hence, marketers need to optimize their websites for mobile phones if they wish to capture a major chunk of the business.
Google search results
Google remains the main source of traffic and the de facto search engine for millions of people across the planet. It also drives the largest amount of profit in e-commerce and hence, in 2017 its share in sales had increased. The organic traffic share generated 74% of the revenue and the sessions share grew by five per cent which is quite a number as far as sessions share is concerned.
With customers trusting Google search results more than any other search engine, marketers need to analyse their SEO to command a good position in the Google search engine results.
Website loading speed
Believe it or not, slow loading websites repel customers. Website load speed affects conversion, both on the computer and mobile platforms. The average page loading speed for e-commerce websites is around three seconds. When the loading speed is more than 8 seconds, the study saw only 1% of desktop conversion and 0.6% of mobile conversion.
The marketers need to optimize the page loading speed if they do not want customers to get irked and ultimately exit their websites.
New customers or retaining customers
This is an inevitable question for every business owner. Luckily, the study has found an answer for e-commerce owners. According to the study, a returning customer has 25% higher conversion rate and generated about 69% of the traffic during the study period. First-time visitors only generated 51% traffic and significantly less revenue.
Business owners need to focus on retaining the customers. As they say, customer grapevine is pretty solid. Satisfy one and he shall bring in more business.
Channels and revenues
With so many marketing techniques, channels and platforms, it can be a daunting task to understand which is the most effective. As per the data of the study, organic search results and channels generated the highest volume of traffic (37%), followed by CPC (33%), direct (12%), email (2.5%) and referral (5%). One of the most shocking revelations was that social media generated only 2% of the traffic during the study period.
Organic results brought in the highest revenue (34%), followed by CPC (26%), Direct (17%) and email (6%). Again, social media generated only 2% of the revenue.
Traffic on different channels
Here social media tops the list with 152% more traffic followed by CPC (121%) and email (73%). Advertisers spent more than their budget on AdWords and social media to generate knowledge amount the potential customers.
Social media marketing and AdWords will continue to dominate and hence special attention needs to be paid to these two channels.
This may come as a surprise to people who do not open those newsletters in their inboxes, but email marketing is one of the most effective to generate traffic. More than 50% of the e-commerce owners did not have email marketing and had lost out substantially.
Focus on setting up this channel as it directly affects repeated sales.
Books were bought most online followed by children’s items and car accessories. The average volume of e-commerce has grown significantly over the last one year and it is safe to say that if a business is not online, sooner or later it’ll be eliminated.