E-commerce players have tried everything from cash-on-delivery to one-day delivery and from free returns to no question asked returns to engage customers. With all these offerings the cart abandonment rate is still averaging 60-80%.
While some e-commerce platforms average at 60%, for some cart abandonment rate goes up to 80%. Why some sites have a higher abandonment rate while some have low? What are the metrics marketplaces are continuously working upon to offer better experience and control return rates? What are the technologies and methodologies that stores have leveraged to leap past their competitors? Competitor benchmarking can answer all these intricate questions, which otherwise are tough to comprehend.
A TechCrunch study from 2018 revealed, “People spend more money on Amazon than all other marketplaces combined”. Amazon is an epitome of the marketplace and perhaps the best site to gauge and benchmark varied metrics like customer experience, customer lifetime value and conversion rate. Taking a cue from, how Amazon or other big players deal with varied challenges like cart abandonment, customer churn, and return can help marketplaces improve immensely.
Why E-commerce Players should invest in Competitor Benchmarking?
Ever since Statista predicted that by 2022 e-commerce revenue will touch $6.54 trillion, players have started working on their shortcomings. With multiple unicorn e-commerce start-ups trying to grab a piece of the pie, the competition has stiffened.
By benchmarking KPIs that are deemed important against global or local competitors, e-commerce players can increase their market share. When implemented correctly, competitor benchmarking can show the path for establishment transformation.
How to grow a Marketplace using Competitor Benchmarking?
The global e-commerce industry is growing annually at 23% and it is expected to have 2 billion customers by the end of 2020. If you don’t ramp up your on-site features to offer an improved customer experience, the likes of Amazon, eBay, Etsy and Walmart will steal the entire thunder.
Since players like Amazon have deep pockets and abundant resources to invest in analytics and innovation, other players need to rely on competitor benchmarking. By benchmarking varied metrics against their competitors, e-commerce players can discover missing links.
In the customer service industry, competitor benchmarking is the most preferred way of analyzing performance and improving it. By benchmarking against the best, organizations can improve efficiency, cost-effectiveness, and output of their varied processes.