Retailers Plan to Spend Big on Bettering E-commerce in 2021
Retailers will invest much more in e-commerce initiatives in 2021 when compared to 2020 — in fact, most brands are increasing investments by over 50%.
That’s according to a new survey by Yottaa Inc., a Waltham, Mass.-based company that offers a cloud platform for accelerating e-commerce. Yottaa’s survey and subsequent report gathered data from online retail executives to identify their key e-commerce initiatives for 2021. Yottaa interviewed over 115 leaders from a wide range of e-commerce sites both online and via telephone during December.
According to Yottaa, brands pivoted to address rapidly changing retail environments with immediate decision making in 2020, and retailers worked tirelessly to digitally transform their operations and, as a result, many retail priorities shifted. The report examines the technology investments retailers are making to successfully adapt to changing conditions in 2021.
Here’s what else Yottaa found:
• Top investment areas: Security, mobile, site speed, single-page applications/progressive web applications, third-party technologies and shipping.
• Online revenue growth: Most of the retail executives surveyed stated they experienced a 54% increase in year-over-year online revenue.
• The pandemic’s impact on e-commerce: With online shopping increasing at a faster rate during the pandemic, 91% of retailers are changing their digital strategies this year.
• Amazon is even stronger: 45% of respondents think the global pandemic has made the competitive gap between retailers and Amazon even bigger.
• Significant e-commerce architecture investments: More than half of respondents listed single-page applications and progressive web applications as key initiatives in 2021.
• Brands continue to invest in third-party technologies: Retailers will spend (on average) $1.1 million on third parties to improve online shopper experiences.
• E-commerce login pages a big concern: 40% of brands do not realize that one of the biggest data breach vulnerabilities is having unnecessary third parties on checkout and login pages.
• Browser extensions cost brands big money: 39% of respondents say they have lost up to $400K annually due to some browser extensions giving unintended discounts.
• Site speed matters: Most respondents were unaware that more than 50% of shoppers will leave a site if it takes longer than three seconds to load.
• Speed equals revenue: 70% of brands agree that faster site performance results in higher conversion rates.
Click here to download the full report.