Conversion Rate Secrets of the Internet Retailer Top 1000

Transcription

Original Research by
Conversion Rate Secrets
of the Internet Retailer Top 1000
Insights into what’s driving growth in sales conversion
among America’s leading web merchants
Executive summary
Helping web merchants succeed
one shopper at a time
E-commerce and parcel delivery tied the knot in their permanent relationship
shortly after the first web retailer took its first order. Now, it is projected that one out of 10 U.S. retail dollars
will be spent shopping online by 2017. The largest driving force in the global economy is e-commerce,
and it is expected to continue to grow by leaps and bounds. FedEx is fortunate to be a trusted consultant
and shipping provider for many e-tailers around the world, and we value the insights we’ve gained from
working directly with those customers. From specialized delivery offerings and packaging solutions, to
returns configuration and information technology assistance, we’ve worked with our customers on solutions
designed to navigate the dynamic online landscape.
David K. Payton,
vice president of
product marketing and
e-commerce services
FedEx
We know web merchants need access to key market facts, analysis and best practice information that will
help them to successfully growth their business. That’s the impetus behind this report, which is based on
exclusive research and data from Internet Retailer, publisher of the leading magazine and web news source
in the field of e-commerce.
What follows is an examination of conversion rates, by way of original research through a survey of web
retailers, data culled from the thousands of metrics Internet Retailer collects on its Top 1000 retailers ranked
in the Top 500 Guide and Second 500 Guide, and analysis by Internet Retailer’s seasoned researchers and
journalists. This report also features case studies of retailers who are continually testing, deploying and
upgrading strategies and tactics to improve conversion rates.
Here are just a few key findings in this report:
The secret to conversion rate success. There is no single tactic that raises a retailer’s conversion
rate. It takes a combination of effective web site design, marketing and customer service to convert more
first-time visitors into buyers, and turn more once-only shoppers into repeat customers.
E-retailers know the score. An exclusive survey of Top 1000 merchants for this report by Internet
Retailer found that, aside from e-mail, direct navigation to web sites converts best for respondents—it was
cited by 45.2% of them—followed by paid search (35.6%), affiliate marketing (24.7%), natural search
(21.9%) and social media (11.0%). And 49.3% of survey respondents cite free shipping as the most effective
customer service or web site feature for converting visitors into buyers.
Mining the Top 1000 data. Consumers like to shop on tablets. For the 30 retailers ranked in the 2014
Internet Retailer Mobile 500 that supplied details on conversion rates by device, the average conversion
A Thought Leadership Report
Commissioned by FedEx
E-Commerce
Thought Leadership
rate for tablet shoppers was 2.63%, 2.5 times higher
than the 1.01% for smartphone shoppers. This is
especially true for the three largest mobile merchants
that supplied data. Crate & Barrel, for example, which
gets 80% of its mobile sales from tablets, reported a
2.35% conversion rate for tablet shoppers, compared
with 0.92% on smartphones. Flash-sale discounter
Beyond the Rack, which gets around 57% of its mobile
sales from tablets, says 1.92% of visits from a tablet
end in a purchase versus 1.04% on smartphones. And
luxury apparel and accessories brand Tory Burch has a
1.5% tablet conversion rate—three times as high as
its 0.5% conversion rate for smartphone shoppers.
Individual success stories. At Carolina
Rustica better conversion begins with responsive
design. Designing the new site took five months of
development and testing and cost up to $100,000.
In the month that followed, Carolina Rustica
experienced a 22% increase in the average time of
visits per consumer, along with a 13% increase in
its conversion rate and a doubling of online revenue.
The most significant gains came from tablet and
mobile shoppers.
I hope you find this report insightful, and are able
to apply the lessons learned into growing your own
online business.
Continued success,
David K. Payton
Vice President Product Marketing and E-Commerce
FedEx
Which customer service or web site features
are the most effective for you in converting
more visitors to buyers? (check all that apply)
Free shipping
49.3%
Customer service call support
31.5%
E-mail
23.3%
Live chat
19.2%
Toll free number
15.1%
Shipment tracking
12.3%
Account status/history
11.0%
Express checkout
11.0%
Return policy posted
9.6%
Overnight shipping
4.1%
Outlet center
2.7%
Ship to multiple addresses
2.4%
Toll free number
1.4%
Source: Internet Retailer
About this report
All third-party sources that supply Internet Retailer with data for its Top 500 Guide and
Second 500 Guide (Top 1000) provide full consent to Internet Retailer to use their data, which
is outlined in the methodology disclaimer in each research project. Once provided by the
third-party data partner, all permissions to publish the information is the responsibility of
Internet Retailer. In addition, Internet Retailer surveys thousands of retailers for its annual
global e-commerce research reports. If a retailer does not provide a certain metric in a given
period of time for a particular project, Internet Retailer will create estimates based on past
research histories of retailers and merchandise categories, analyst interviews and other data.
Internet Retailer estimates are noted as such. Retailers are given the opportunity to respond
to estimates, and Internet Retailer updates its estimates with any information provided by the
merchant. Retailers are given full awareness of the reporting of the data in the Internet Retailer
research products that are provided for public consumption. All Internet Retailer research and
methodology is publicly available in print and digital formats and on www.internetretailer.com
and www.top500guide.com. Retailers have been providing data for Internet Retailer’s various
e-commerce research reports for an average of 5 years. Some data has been collected directly
from web merchants for more than 10 years, as in reference to the Top 500 Guide®, which was
published in its 11th annual edition in April 2014.
For more information about FedEx and e-commerce,
go to fedex.com/us/ecommerce
3
Conversion rate success begins
Top 1000 web merchants with the best conversion rates
target the right consumers, make shopping easy
and remove any obstacles to purchasing.
SmartSign.com CEO Blair Brewster doesn’t mince words
when talking about how his online sign store boosted its conversion rate by 28% in one year. For
SmartSign.com, the key to achieving higher conversion is following a formula of engaging marketing,
great customer service, and giving consumers an informative and easy web shopping experience.
“Successful sales conversion is a balancing act,” Brewster says. “We can’t just do one thing well,
because everything has to be perfect.”
The conversion
rate from
personalized
Honest Co.
e-mails is
170% greater
than for nonpersonalized
e-mails.
In 2013, SmartSign.com grew web sales 19% to $30 million and site conversion to 3.7% by thinking
smarter and acting quicker, Brewster says. SmartSign.com looked at better ways to manage paid search
to drive more targeted traffic to its web site. Brewster added more specific keywords and phrases to
make its keyword inventory more relevant to repeat sign buyers such as safety managers that needed to
purchase multiple emergency and safety first signs.
Next SmartSign.com rolled out new web site features, including live chat and customer reviews. Finally
Brewster updated key product pages with more technical specifications and product images, along with
videos that advise consumers and businesses on the best ways to create and purchase the right sign.
“A satisfied customer is an informed buyer,” Brewster says. “We fine-tuned a lot of what we were doing
to engage shoppers.”
Like SmartSign.com, many web retailers have recognized that there is no single tactic that raises a
retailer’s conversion rate. It takes a combination of effective web site design, marketing and customer
service to convert more first-time visitors into buyers, and turn more once-only shoppers into repeat
customers. And that approach appears to work for retailers throughout the Top 1000, which includes
the biggest online retailers, best up and comers and top niche web merchants ranked by Internet
Retailer in its Top 500 Guide and Second 500 Guide. And that’s a big range: the Top 1000 vary in
size from No. 1 Amazon.com with 2013 total revenue of $74.5 billion to No. 1000 Chalkfly with
annual web sales of $75,000.
Tactics vary among the conversion leaders. Many are analyzing their paid search marketing to make
sure they bring in the consumers most likely to buy. Some are finding that new ad formats introduced by
Facebook and Twitter can bring in shoppers ready to buy. Retailers also are personalizing e-mail messages
4
E-Commerce
Thought Leadership
and ends with engaged buyers
to spark a response from shoppers who have already purchased. They’re making sure their web sites
load quickly and are easy to navigate, and offer help for consumers who hit a snag. And an increasing
area of emphasis is making sure shopping is easy for consumers on smartphones and tablets.
Improving conversion rate starts with finding the kind of consumers who are likely to be
interested in a retailer’s products, and ready to buy. SmartSign.com looked for ways to make its
Google Product Listing Ads—retailer listings that Google places in a horizontal array high up on
the first search results page for a product query—stand out more prominently. Previous versions of
the ads were too generic, Brewster says. Now safety managers looking for specific signs such as
“Emergency Shut Off,” see SmartSign.com PLAs in bolder colors. SmartSign.com also updated its
data feed to Google for PLAs with more specific product keywords and descriptions. Frequent A/B
testing has resulted in better-designed landing pages that have been updated with easier-to-read
pricing, more technical content, live chat and product recommendations. By doing a more focused
job with paid search, from keyword bidding through the landing page, the conversion rate on some
products has doubled, Brewster says.
“We spend a lot time looking across the board at what we are doing to convert more traffic into
engaged shoppers,” Brewster says.
For such other Top 1000 conversion rate leaders as online grocer Peapod.com and
coffee roaster and brewer manufacturer Keurig Green Mountain Inc., more effective targeted
marketing and site design also are top priorities in maintaining a high conversion rate. Among
Top 1000 web-only merchants Peapod has one of the highest overall sales conversion rates of
14.9%. That’s not surprising, given that 79% of traffic to the web grocer’s site is from existing
customers, according to Internet and e-commerce research firm Millward Brown Digital. But
Peapod has spent the past year focusing on boosting the conversion rate among the new shoppers
that make up the other 21% of its visitors.
“We spend
a lot of time
looking across
the board
at what we
are doing
to convert
more traffic
into engaged
shoppers.”
SmartSign.com CEO Blair Brewster
Beginning with the 2008-09 recession and continuing over the next four years, the conversion rate
of first-time shoppers on Peapod.com dropped from an average of 12% to as low as 10%, says
director of marketing Brad Porter. “We weren’t attracting and converting as many new shoppers as
we once did because it was a tougher sell for people with less disposable income to give us a try,”
Porter says. “It was a challenge coming up with new ways to boost conversion.”
Peapod worked with a tag management applications developer to more effectively track how
shoppers navigate Peapod.com. Armed with that data, Peapod targeted new shoppers with more
relevant coupons. With better targeted marketing, Peapod recently has been able to boost its
5
What steps are you taking to cut back on shopping cart
abandonment? (Choose all that apply)
Reducing clicks required to complete a purchase
56.2%
Offer more promotions
31.5%
Displaying security seals and/or satisfaction guarantees
20.5%
Making return policy more prominent
20.5%
Showing tax and shipping fees earlier in the purchase path
19.2%
Add more shipping options
16.4%
Offering additional incentives during checkout
16.4%
Other
6.8%
sales conversion rate for newcomers back to around 11% and aims to meet or exceed its previous rate of 12% in
2014. “We are making our shopping experience for newcomers faster and more personal,” Porter says. And increasing
areas of emphasis are making sure shopping is easy for consumers on smartphones and tablets and offering more
free shipping and diverse options. In a recent Internet Retailer survey, 49% of web merchants ranked free shipping,
customer service or web site features as their most effective strategy in converting more visitors to buyers. Nearly
20% of all retailers taking part in the survey also are showing tax and shipping fees earlier in the purchase path as one
tactic to reduce shopping cart abandonment, and 16% are adding more shipping options.
At Keurig Green Mountain, which boasts a relatively high 13% conversion rate, an expansion of its online selection has
prompted a new look at how the web and catalog merchant converts browsers to buyers. In recent years the addition
of new types of coffee makers and several new brands of coffee, tea and other beverages has produced a much larger
online inventory of about 500 products compared to several hundred just a few years ago. And that bigger inventory
has Keurig Green Mountain thinking about the several steps a consumer takes before she clicks the Buy button, says
senior vice president of marketing and digital George Neill. “We think of successful conversion as a journey that
engages a customer at key milestones along the way,” Neill says. “The first milestone is driving traffic through search,
e-mail marketing and social media, the second is getting them quickly and easily to the products they want, and the
third is creating a unique and easy shopping experience.”
To maintain a high conversion rate, Keurig Green Mountain has crafted a broad a plan to identify more web
shoppers looking for a new coffee maker and attracting more tea, coffee and hot chocolate drinkers to its growing
portfolio of beverage brands, Neill says. For its Google PLAs, Keurig Green Mountain now includes clearer images taken
by professional photographers of a specific type of coffee maker or beverage. When a shopper clicks on a Google ad, she
is now directed to updated landing pages that feature more detailed information on a particular appliance or beverage,
customer reviews, related product recommendations, and deals, such as free shipping on orders for $45 and up.
In recent months Keurig Green Mountain also has been doing a better job of analyzing the behavior of online shoppers who
buy specific products and brands. That allows it to better segment shoppers, and to send them more personalized e-mails with
reminders and coupons to reorder or try a new blend of coffee or tea, says vice president of digital and direct Tammy Hegarty.
Keurig Green Mountain overhauled its site taxonomy in 2013, which is how web merchants categorize their
products on various pages and in a site search engine. Hovering over main navigation tabs on the home page of
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E-Commerce
Thought Leadership
GreenMountainCoffee.com pops up new dropdown menus that let a shopper quickly find a particular type of coffee, such
as dark, light or medium roast. The left-hand navigation also has been updated with more specific categories such as roast
style, brand, caffeine, qualities and region of origin for coffee. “There are multiple touch points that go into successful
conversion,” she says. “It’s a journey of successfully engaging the shopper from the start of the buying cycle to the end.”
Top 1000 sales conversion leaders pay close attention to e-mail marketing and social media to generate more new
and repeat business. The Top 1000 merchants with the highest conversion rate send out an average of eight monthly
e-mail campaigns compared with seven campaigns for all Top 500 and Second 500 merchants. But Top 1000 conversion
rate leaders also broadcast highly targeted e-mail messages that include personalized subject lines, social media
and videos links, and coupons based on the recipient’s buying history. The Honest Company, an e-retailer of natural
bath and personal care products, is finding it can convert more new site visitors into customers, and more quickly,
when it personalizes the welcome e-mails it sends them. The e-retailer applies data from a new customer’s visit and
aggregated data from other visitors to show her in the welcome e-mail message offers that are most likely to appeal
to her, says Sue Cho, manger of e-mail marketing for Honest Co. When a consumer first visits Honest.com, the site
requests her e-mail address. If she provides it, she soon gets the first of six e-mails in Honest Co.’s welcome series.
Crate &
Barrel
reported
a 2.35%
conversion
rate for
tablet
shoppers.
The message she receives, and the ones that follow, are personalized based on the data Honest Co. and its predictive
analytics vendor cull from her visit. For example, the four photos in the e-mail may vary depending on what she clicked
on the site or how she arrived. “We are showing the offer that makes the most sense based on how they are opening
and clicking,” Cho says. “Instead of going from a trial offer and waiting to convert to a bundle, we now see people
subscribing to a bundle right away.” Jao adds that consumers who receive personalized e-mails typically sign-up for
subscriptions a day or two earlier than consumers who do not.
As a consumer opens more Honest Co. e-mails and returns to the site, the messages become more personalized.
They are also sent based on an algorithm that determines when she is most likely to open it. Previously, all welcome
messages were sent on a pre-programmed schedule, Cho says. The conversion rate from personalized Honest Co.
e-mails is 170% greater than for non-personalized e-mails, Cho says.
Top 1000 conversion rate leaders are avid users of social media channels such as Facebook which can yield
highly qualified shoppers for retailers that know how to find them. Web-only flash-sale site retailer NoMoreRack.com is
an example of a retailer that is drawing the right kind of consumers from its Facebook campaigns. NoMoreRack is on a
roll, with e-commerce sales that grew 250% in 2013 to $350 million and a conversion rate that grew to 6% in the last
year from 1.4% in 2012. And a key reason for that conversion rate success is the company figuring out better ways to
convert visitors from Facebook, says CEO Deepak Agarwal.
NoMore
Rack.com
grew its
conversion
rate to
6% from
1.4% in
12 months.
NoMoreRack is selling more to consumers who click from Facebook because the e-retailer now views the social network
as a way to directly boost sales, and not just build brand awareness, says Agarwal. The majority of its posts focus on a
specific product. That’s also true for most of the posts it pays for to promote via Facebook’s Promoted Posts ad unit—the
main ad product it uses—which lets a marketer pay to ensure that a particular number of targeted consumers see a post
in their newsfeeds, the first page they see on Facebook. The shift in its approach has led to 35% of the retailer’s traffic in
a typical month in 2013 stemming from social networks, Agarwal says. And that traffic is lucrative.
“When we look at the last click from Facebook, shoppers are typically buying an item they saw on their newsfeed,” he
says. “It’s really purchase-driven, whereas non-social traffic is more about browsing.”
7
What are you doing to increase your conversion rate?
(Choose all that apply)
Web site redesign
65.8%
Improved product pages
54.8%
Improved site navigation
53.4%
Drive higher quality traffic through better use of paid search, search engine optimization and social media
50.7%
Better site search
39.7%
Enhanced shipping options
20.5%
Adding security seals and privacy guarantees
15.1%
Enhanced returns program
Other
9.6%
4.1%
That was particularly true during the 2013 holiday season. NoMoreRack.com generated $32.3 million in online sales
during the five-day span between Thanksgiving and Cyber Monday—topping the $29.1 million it generated for the entire
period between Nov. 1 and Cyber Monday 2012, its previous best sales window. During the corresponding 31-day start to
the 2013 holiday season, the discount products retailer’s sales grew 168%, topping $78 million. Social media marketing
was a big part of the retailer’s success, as roughly 25% of those sales stemmed from shoppers clicking from Facebook
and other social networks to the retailer’s web site, says Agarwal. The retailer generated about $19.5 million in sales
from consumers coming from social networks in November and the first two days of December, he says.
Just as they’ve adapted to the growing amount of time consumers spend on social networks, retail leaders in
conversion also are responding to the growing amount of time consumers spend online using smartphones and tablets.
One thing is clear: Consumers like to shop on tablets. For the 30 retailers ranked in the 2014 Internet
Retailer Mobile 500 that supplied details on conversion rates by device, the average conversion rate for tablet
shoppers was 2.63%, two and a half times higher than the 1.01% for smartphone shoppers. This is especially true
for the three largest mobile merchants that supplied data. Crate & Barrel, for example, which gets 80% of its mobile
sales from tablets, reported a 2.35% conversion rate for tablet shoppers, compared with 0.92% on smartphones.
Flash-sale discounter Beyond the Rack, which gets around 57% of its mobile sales from tablets, says 1.92% of visits
from a tablet end in a purchase versus 1.04% on smartphones. And luxury apparel and accessories brand Tory Burch
has a 1.5% tablet conversion rate—three times as high as its 0.5% conversion rate for smartphone shoppers.
For Top 1000 merchant Wine.com, figuring out how consumers use mobile devices as well as computers has played
a big part in boosting conversion rate. In particular, the web-only retailer has boosted results by making it easy for a
consumer to begin shopping on one device and complete the purchase on another.
Today about 42% of all traffic to Wine.com comes from a mobile device. But compared to its Internet Retailerestimated conversion rate of 4% for desktop e-commerce, the conversion statistic across mobile devices was lower,
says Wine.com chief marketing officer Peter Elarde. To boost overall conversion rates, Wine.com implemented simple,
but effective, design and marketing changes.
Wine.com first analyzed its mobile traffic and segmented its mobile e-mail list into groups of buyers such as Cabernet
lovers. It then began sending those buyers coupons for discounts off their favorite wine. Wine.com also retooled its
8
E-Commerce
Thought Leadership
mobile shopping cart to make it easy for repeat shoppers with stored payment and shipping information to purchase
wine in as few as two or three clicks.
Wine.com developers and designers next implemented another change that enables a shopper to begin a purchase on
her mobile device, store the pending transaction on Wine.com and finish the purchase later on her smartphone, tablet
or desktop computer. The marketing and design changes took several months to implement. But they paid off with a
42% boost in overall conversion, Elarde says.
What’s more, Elarde is confident the conversion rate will remain higher now that shoppers begin and end transactions
anywhere they like, and on any device. “We are changing with how consumers shop, and that’s increasingly mobile,”
Elarde says. “We will convert more shoppers going forward because we are taking more of the obstacles out of the
way and making buying easy.”
Not all changes that Top 1000 retailers make to improve conversion are major. But most conversion rate improvement
programs start by analyzing data. That was the case at e-retailer FootSmart.com, which redesigned its shopping cart
as part of a project to reduce cart abandonment. A recent survey of 74 Top 1000 merchants by Internet Retailer reveals
that 45.5% of all retailers have a cart abandonment rate of 25% and 14.7% a rate of more than 60%.
FootSmart.com reduced its shopping cart abandonment by 10% by revamping the shopping cart, and that action in turn
was a big reason the company’s overall conversion rate of 5% held steady in 2013, says CEO Alan Beychok.
“It’s a
journey of
success
fully
engaging
the shopper from
the start of
the buying
cycle to
the end.”
Keurig
Green Mountain
vice president of
digital and direct,
Tammy Hegarty
The new streamlined shopping cart automatically enters a promotion code for deals such as free shipping
for shoppers that click through from an e-mail message. A return shopper now can complete an order in a few clicks,
with FootSmart.com entering the customer’s stored payment and shipping information. Another new cart tweak
automatically enters shipping information and shipping costs rounded to the nearest whole numbers.
“Little changes can boost conversion and keep shoppers from abandoning a cart,” Beychok says. “If we send a shopper
a targeted message with a great offer to come and buy, they shouldn’t need to worry about entering codes or whether
shipping is $29.90 or $30, they just want a quick and easy shopping experience.”
At Balsam Brands, a web retailer of high end artificial Christmas trees with an average ticket of $270, any metric
affecting conversion rate is open for discussion and improvement, says CEO Thomas Harman. The site’s overall
conversion rate is about 1.7%. But Harman puts what might seem to some observers to be a low conversion number
into perspective, by pointing out web sales increased 46% in 2013 to about $51.3 million while the conversion rate for
some buyer groups doubled. By more effectively using paid search and other forms of marketing, Balsam Brands’ was
able to reach out to more of its best customers: affluent women between the ages of 50 and 65 who own their homes.
“By looking at conversion rate numbers from different angles what we are really doing is figuring out how to target
our best customers and new visitors most likely to buy, and shepherd them successfully all through the purchasing
process,” Harman says. “We look at the whole process and not just at individual pieces.”
At SmartSign.com the company will continue to explore ways to boost conversion rate, Brewster says. But he believes
he already knows the secret to conversion success: Build and maintain an e-commerce site that’s fast, fun, and easy
to shop, and follow through with good customer service. “We never want our customers to be more than two or three
clicks from the ideal product,” he says. “You gain authenticity and credibility with a great site and attention to detail. In
turn, that means a higher conversion rate.” 
9
INTERNET RETAILER SURVEY
From visitors to buyers
Boosting conversion rates means retailers have to
examine all aspects of their e-commerce program.
What is your
average conversion rate
(for all products) on your
primary e-commerce site?
0.5% or less
16.2%
0.51% to 1%
25.0%
1.1% to 1.5%
8.8%
1.6% to 2%
2.1% to 2.5%
2.6% to 3%
10.3%
Never take for granted the selling power of trends and
celebrities. They can help online retailers boost their conversion rates—just ask
Coastal Contacts Inc., a web-only retailer of contact lenses, designer frames and other eyewear.
Over the past year the company has focused more on marketing to online shoppers by luring
them with better web content. That includes beefing up its blog, called theLOOK, with meatier
information about how TV and movie stars wear their glasses. The blog also features testimonials
from employees about their eyewear and other personal tastes.
7.1%
12.8%
3.1% to 3.5%
7.4%
3.6% to 4%
2.9%
4.1% to 5%
2.0%
5.1% to 6%
1.5%
6.1% to 10%
1.5%
10.1% 20%
1.5%
20.1% to 30%
1.5%
More than 30%
1.5%
The e-retailer, which could already brag about a 14.5% conversion rate and an $85 average ticket,
according to the Internet Retailer 2013 Top 500 Guide, finds that consumers who read the blog buy
more than other site visitors.
“Individuals who are reading the articles and visiting the blog convert higher with a higher average
order size than the average site visitor,” says Coastal vice president of marketing Curtis Petersen.
“We’ve seen a 25% lift in average order size and an increase in time on site from these customers.
Those who visit our blog are much more valuable, so we’re focusing on integrating our blog into our
site more to get our content in front of people, while also driving more traffic to the blog.”
Other retailers are also finding that social tactics boost conversion rate. Indeed, 50.7% of the
74 retailer respondents to a new and exclusive Internet Retailer survey report driving higher-quality
traffic through better use of social media, paid search and search engine optimization. And 11% of
respondents say that after e-mail marketing, social media brings in the best-converting web traffic.
But there’s no single method that guarantees a high conversion rate. The survey shows retailers
are using a variety of tactics to encourage more site visitors to buy. They include site redesigns,
improved product pages, free shipping offers and keeping their paid search programs in tune
with how Google Inc. presents search results. The Internet Retailer survey not only sheds light on
the conversion-rate tactics of top e-retailers but imparts the equally important knowledge of the
defects in an e-commerce site that retailers recognize dissuade shoppers from buying.
10
E-Commerce
Thought Leadership
What is your primary merchandise category?
Apparel/Accessories
17.6%
Automotive Parts/Accessories
5.9%
Books/Music/Video
Computers/Electronics
Flowers/Gifts
Food/Drug
Hardware/Home Improvement
Health/Beauty
Housewares/Home Furnishings
5.9%
13.2%
2.9%
5.9%
10.3%
4.4%
10.3%
Jewelry
2.9%
Mass Merchant
2.9%
Office Supplies
5.9%
Specialty
4.4%
Sporting Goods
5.9%
Toys/Hobbies
1.6%
Key findings from the survey include:
 25% of respondents report an average conversion rate of
between 0.51% and 1% for all products sold via their primary
e-commerce sites. That represents the largest single bulge
of responses to that question. 16.2% report an average
conversion rate of 0.5% or less, while 8.8% report a rate
of 1.1% to 1.5%.
 For first-time visitors to primary e-commerce sites, average
conversion rates stand at between 0.51% and 1% for 30.9%
of survey respondents. The average rate for newbie shoppers
stands at 0.5% or less for 11.8% of respondents, and between
1.1% and 1.5% for 22.1% of respondents.
 Free shipping is the customer service or web site feature
49% of all retailers say is their most effective tool in
converting more visitors to buyers.
 Aside from e-mail, direct navigation to web sites converts
best for respondents—it was cited by 45.2% of them—
followed by paid search (35.6%), affiliate marketing (24.7%),
natural search (21.9%) and social media (11.0%).
Keeping conversions high requires that retailers win and
maintain the loyalty of customers, says Howard Wyner, CEO
of web-only fragrance retailer Scentiments, with an Internet
Retailer-estimated conversion rate of 4.89%. That’s especially
true for products such as perfume and cologne that are not
normally bought daily, weekly or even monthly.
Compared with your direct competitors, is
your overall conversion rate:
About the same
40.9%
Lower
30.3%
Higher
28.8%
To keep customers coming back, the e-retailer is combining its
Scentury Club loyalty program with social media marketing.
Scentiments offers Scentury Club members points to follow
or connect to Scentiments on Twitter and Facebook, to refer
friends, to make purchases and for other tasks. The retailer,
11
What is your conversion rate for repeat
shoppers on your primary e-commerce site?
working with its loyalty club technology vendor, determines
the unused loyalty points carried by Scentury Club members
and uses that information to drive additional sales. When club
members get an e-mail nudging them to spend unused loyalty
points, their average order value jumps to more than 30% the
non-club site average.
0.5% or less
4.4%
0.51% to 1%
4.4%
1.1% to 1.5%
20.6%
1.6% to 2%
11.8%
2.1% to 2.5%
2.6% to 3%
7.4%
10.3%
3.1% to 3.5%
8.8%
“It’s all about keeping them loyal to you,” Wyner says. Sure,
retailers can face significant costs getting such programs
off the ground; for instance, LoyaltyPlus subscriptions start
at $2,000 per month. (The vendor hosts the software and
clients like Scentiments connect to it via the Internet, through
the software-as-a-service hosting model.) “But the ROI
is there,” he says.
3.6% to 4%
2.9%
4.1% to 5%
8.8%
5.1% to 6%
7.4%
Not every conversion gain requires a formal loyalty club. Look
at free shipping: 49.3% of respondents to the Internet Retailer
survey cite it as the most effective customer service or web
site feature for converting visitors into buyers. Other features
that pack a punch include customer service call support
(31.5%), e-mail (23.3%), live chat (19.2%), a toll-free customer
service number (15.1%) and shipment tracking (12.3%).
Respondents could select multiple answers.
What is your shopping cart abandonment rate
for all shoppers?
E-retailers also have to get shoppers who put items into
online shopping carts to follow through with the purchase.
Respondents report doing so by reducing the clicks required
to complete a purchase (cited by 56.2%), offering more
promotions (31.5%), displaying security seals and satisfaction guarantees (20.5%), and making return policies
more prominent (also 20.5%). Respondents could select
more than one answer. Other tactics involve showing tax
and shipping fees before checkout (19.2%), adding more
shipping options (16.4%) and offering additional incentives
during checkout (also 16.4%).
12
6.1% to 10%
7.4%
More than 10%
5.8%
1% or less
2.9%
1.1% to 5%
11.8%
5.1% to 10%
7.4%
10.1% to 15%
10.3%
15.1% to 25%
16.2%
More than 25%
26.5%
More than 50%
10.3%
More than 60%
14.6%
E-Commerce
Thought Leadership
What is your conversion rate using retargeted
marketing after a cart is abandoned?
0.5% or less
27.7%
0.51% to 1%
12.3%
1.1% to 1.5%
9.2%
1.6% to 2%
15.4%
2.1% to 2.5%
7.7%
2.6% to 3%
7.7%
3.1% to 3.5%
3.7%
3.6% to 4%
1.5%
4.1% to 5%
3.1%
5.1% to 7%
4.6%
7.1% to 10%
3.1%
More than 10%
4.0%
Offering consumers more choice can help ensure that those
shoppers buy, says Richard Sexton, president of Carolina
Rustica, which in late 2012 was bought by Mattress USA
Inc. One example is offering multiple payment methods. For
Carolina Rustica, that includes eBay Inc.-owned PayPal and
Amazon Payments.
Sexton will not share the retailer’s conversion rate but says it
was up as much as 40% in the first quarter of 2014 compared
with the first quarter of 2013. He credits part of that to
focusing, and spending, more on Google’s Product Listing Ads.
These are the paid ads that appear in the center of a Google
Turn “just browsing”
into “just bought.”
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What is your shopping cart abandonment rate
for repeat buyers?
1% or less
search results page—in the area once reserved for natural
search results that could not be bought—and that replaced in
late 2012 unpaid displays of products available from various
retailers relevant to the search term. Retailers like Sexton are
recognizing that they can’t rely as much on appearing high in
natural search results, now that those paid Product Listing
Ads draw the eye of many shoppers. “As the amount of
organic search space has shrunk,” he says, “you have to find
the highest ROI.”
The retailer also has embraced responsive design, which
detects the type of device requesting a page and then
formats text, images, product data and site features to fit that
device—a concept with increasing appeal for e-retailers as
more consumers shop from multiple web-connected devices,
often over the course of purchasing a single product. The
responsive redesign cost the furniture retailer about $100,000,
Sexton estimates. The money could end up being well spent,
as it addresses one of the major factors that retailers see as
discouraging conversion.
According to the survey, 34.2% of respondents cite poor site
design as a factor that discourages visitors from converting.
Only poor site performance (39.7%) and high prices (32.9%)
rank higher. By comparison, limited product availability—
shoppers are no doubt used to the seemingly endless aisles
offered by the likes of Amazon.com Inc. and eBay—was
cited by 31.5% of respondents.
But the key takeaway from the survey is that there is
no single way to boost conversion. Boosting conversion
rates means retailers have to examine all aspects of their
e-commerce program, and find those areas where they can
perform better than the competition. 
1.1% to 5%
10.4%
5.1% to 10%
22.4%
10.1% to 15%
10.4%
15.1% to 25%
16.4%
More than 25%
13.4%
More than 50%
7.6%
More than 60%
11.9%
What percentage of orders from your
site are delivered with “free shipping”
to the consumer in the fourth quarter
(October through December)?
10% or less
17.9%
10.1% to 25%
11.9%
25.1% to 50%
16.4%
50.1% to 75%
20.9%
75.1% to 100%
13.4%
All
13.4%
None
6.0%
What percentage of orders from your
site are delivered with "free shipping" to
the consumer in the first three quarters
(January through September)?
10% or less
20.9%
10.1% to 25%
14.9%
25.1% to 50%
16.4%
50.1% to 75%
17.9%
75.1% to 100%
14.9%
All
10.4%
None
14
7.5%
4.6%
E-Commerce
Thought Leadership
Case study: Carolina Rustica
A responsive approach
Conversion strategy:
Carolina Rustica needs
a better site design to
appeal to the growing
number of consumers
using mobile devices
Highlights:
 A 2013 redesign that
focused on responsive
design techniques
 Developing and
testing took five
months, and the
project hit speed
bumps
 The effort has helped
produce double-digit
conversion gains
Turning site
visitors into
shoppers requires
m.carolinarustica.com). Regardless of how you view our [new] site, it’s
the same site at the same URL.”
e-retailers to understand
consumers and respond
accordingly, not only via online
marketing but through site
design. That’s why furniture
retailer Carolina Rustica last
year sought to improve its
conversion rate by embracing
responsive design.
Designing the new site took five months of development and testing
and cost up to $100,000, he estimates. “We used a small independent
contractor who was familiar with our Magento-based site,” Sexton
says. “Our initial post-launch experience was pretty rough, because
we tested various individual components but not the holistic site itself.
After some considerable cosmetic tweaks, we re-launched at the end
of 2013 and the results were much more favorable.”
The term refers to technology
that detects the type of device
requesting a page and then
formats text, images, product
data and site features to fit
that device. The idea is to make it easy for a consumer to browse
and buy no matter if she is using a laptop computer, smartphone or
tablet. Google says that 85% of online shoppers start shopping on one
device and finish on another, highlighting the importance of a retailer
presenting its web site effectively on the growing variety of webconnected devices shoppers use today.
Carolina Rustica unveiled its responsive design site in November
2013, says president Richard Sexton. “We had been experiencing
some deterioration in conversion rates as more of our traffic
switched to tablet and mobile devices,” he says. The retailer
lacked separate sites for smartphone and tablet shoppers, resulting
in what he calls “clunky” navigation and search for consumers
using those devices.
Carolina Rustica sought to have one uniform site across all platforms
and devices. “Your entire site is equally represented on an iPhone
as it is a tablet, desktop or laptop,” Sexton says. “It is the same site
using the same data, user interfaces, graphics and text information,
just re-arranged differently. A dedicated mobile site does not do this
because it’s a completely different site, with a different URL (such as
In the month that followed, Carolina Rustica experienced a 22%
increase in the average time of visits per consumer, along with a 13%
increase in its conversion rate and a doubling of the retailer’s online
revenue, he says. The most significant gains came from tablet and
mobile shoppers.
While he will not share the retailer’s overall conversion rate he says
it was up as much as 40% in the first quarter of 2014 compared with
the first quarter of 2013. Carolina Rustica in late 2012 was bought
by Mattress USA Inc., and that company has an Internet Retailerestimated conversion rate of 1.0%, according to the 2013 edition of
the Top 500 Guide. The retailer’s average ticket stands at $650, a
reflection of its relatively pricey product range.
“Every retailer needs to look at their own model, their own customer
base, and decide for themselves on a responsive design site, or a
specialized mobile
site, or a native
app,” Sexton says.
He adds that the
responsive design
site holds special
appeal to the
retailer’s more
affluent consumers.
“It’s good because
they love their
iPads.”
15
Case study: Orchard Brands Inc.
Easy shopping, easy buying
Update site design
and payment options
to keep shoppers
moving toward the
transaction
Not long ago
a consultant with a major ad
agency told Orchard Brands
Corp. executives their web
sites needed a redesign, in
part, because the shopping
Highlights:
cart and search box were in
 Tabs on each site to
the same place as everyone
link shoppers with all
else’s. That meant shoppers
other brands
 Shopping cart that
would quickly find the cart and
follows shoppers from
search, instead of spending
site to site
time looking around and
 Multiple payment
“engaging” with the site,
options
which this consultant viewed
as preferable. The consultant’s
strategy was just the opposite of what has made the apparel,
housewares and health products cataloger successful, says Bill Bass,
co-president and chief marketing officer.
“Our customers are not trying to find site features, they want to buy
something,” Bass says. “Our goal in site design is to make it easy to
find products and check out. We don’t want ‘sticky’ pages, we want
Teflon pages, so the shopper can slide right through to checkout.”
Ensuring a frictionless shopping experience is part of the reason the
merchant’s conversion rate holds steady at about 8.5% across its
14 e-commerce sites, including NormThompson.com, Blair.com and
Appleseeds.com. Its target audience is men and women over age 50.
Catalogers like Orchard Brands tend to report higher conversion rates
than other online retailers because they reach shoppers—and repeat
customers—through two channels; their paper catalogs drive buyers
to e-commerce sites. For Orchard Brands, product mix is another
advantage, as the retailer sells its own private-label merchandise.
“It comes down to having proprietary products,” Bass says.
“Our conversion is better than general merchandise retailers’ because
more people window shop their sites.”
Orchard Brands’ conversion rate is more than triple the median rate of
16
2.50% for e-retailers listed in Internet Retailer’s 2014 Top 500 Guide
and more than double the 3.50% median among 75 catalogers.
In addition to its inherent advantages, the retailer has also taken
several steps to achieve that high conversion rate. For example, the
company broke down some conversion obstacles when it began
adding tabs at the top of each of its sites linking to all the other sites.
The project, which was completed in summer of 2013, eliminated the
need for shoppers to log in and check out of separate web sites with
different carts. The results had a “positive” effect on Orchard Brands’
conversion rate, but Bass declined to be specific.
Multiple payment options also lead more consumers to complete
a purchase. In addition to the usual credit and bank cards, Orchard
Brands has private-label credit cards for its brands that include rewards
certificates for every $150 spent, a 25% birthday month discount and
access to invitation-only shopping events. The merchant introduced
PayPal in early 2013 to provide an option for those shoppers who prefer
that online payment method. Surveys show some consumers fearful of
giving an e-retailer a credit card number prefer to use PayPal. PayPal
now accounts for about 10% of sales, Bass says.
About a third of visitors to Orchard’s sites use the on-site search box.
And the merchant also has recommendations algorithms in place to
provide alternatives in site search results if a product is out of stock.
“If a customer is looking for a blue dress and we don’t have one we
want to suggest another,” Bass says.
Keeping its
conversion rate
up requires a
blend of tactics;
there’s no single
on that stands
out, Bass says.
“It’s like making
soup—it’s how all
of the ingredients
interplay.”
E-Commerce
Thought Leadership
Case study: RealTruck.com
Many routes to conversion
Increasing the
percentage of site
visitors who buy by
updating smartphone
and tablet sites to
appeal to mobile
shoppers and
increasing YouTube
parts installation videos
geared to bringing
customers back
Highlights:
 Over 3.7 million
views on YouTube
 Mobile site
conversion rate is
0.7%, desktop site
conversion is 1.7%
 38% return shoppers
Converting site
visitors into
buyers at a high rate is
no easy task for an auto parts
and accessories retailer like
RealTruck.com. The e-retailer
offers 550,000 SKUs, many
popular products have price
tags in the hundreds of dollars
and there are seemingly
infinite ways to filter product
search results. Each of
those factors can prevent a
customer from completing
a purchase.
Given those obstacles, most
auto parts retailers are
happy with a conversion rate
approaching the Top 1000 category average of 1.8%. RealTruck’s
desktop conversion rate sits at 1.7%—1.27% including mobile
devices, up slightly from 1.25% in 2012, says president Jeff
Vanlaningham. The retailer is trying a variety of ways to improve
that statistic, as any uptick in conversion can have a major
impact on sales for a retailer whose average ticket is a relatively
high $239.
One key tactic is improving its smartphone and tablet sites, which
account for 38% of RealTruck’s 737,500 average monthly visits.
In the past, RealTruck shoppers tended to use mobile devices to
browse for products rather than buy, but that is starting to change as
they become increasingly familiar with mobile phones and tablets,
Vanlaningham says.
The retailer’s mobile conversion rate is about 0.7%, but he expects
that to go up now that his mobile sites let visitors narrow searches
by vehicle make, model and year. RealTruck is also redesigning
its e-mails to be easier to view and click on for shoppers
on mobile devices.
The retailer expects mobile conversion to be lower because
RealTruck highlights the “Click-to-call” button on its smartphone site,
knowing that some shoppers prefer to order higher-priced items over
the phone. Vanlaningham says the click-to-call function does lead to
sales, but the retailer does not factor it into mobile conversion rate.
Designing mobile-friendly e-mail campaigns is also a priority for
RealTruck. The retailer sends two promotional e-mails each month,
and that number may increase this year because more customers
are opening those e-mails on smartphones, Vanlaningham says.
While visitors who arrive at RealTruck via e-mail to a smartphone
currently convert at a slightly lower rate than those on a desktop,
Vanlaningham knows the rapid growth in mobile traffic, and mobile
e-mail open rates, cannot be ignored. He says the company has
tweaked e-mail designs to be more device-responsive and fingerfriendly in recent months.
RealTruck also keeps a close eye on two key forms of marketing:
pay-per-click search engine advertising and social media marketing.
Vanlaningham says that for RealTruck, paid search is important
because the retailer can control the landing page the visitor arrives
on. That’s not the case with natural search results, where the search
engine determines which page to link to. Visitors from paid search ads
convert at a higher rate, but he did not provide metrics.
RealTruck gets 38% of its site traffic from returning shoppers, and
Vanlaningham would like to bring that percentage up, as previous
buyers convert
more often than
first-time visitors.
A strong presence
on YouTube
may be the key.
“YouTube, and our
installation videos
especially, have
proven a giant
positive influence,”
he says.
17
Case study: BookPal LLC
Communication to conversion
BookPal needed a
new design and better
features to convert
more visitors to
buyers
A year ago,
on a good day
for book wholesaler BookPal
LLC, a shopper might order as
much as $2,000 online, says
president Tony DiCostanzo.
Highlights:
Today, $5,000 orders are
 The old site was able
common, and the site’s
to display only the final
conversion rate is up by
cost of a bulk order
during checkout
40%, he says. “As simple as
 Advanced search
the sale of books is, when
narrows a few million
you start dealing with it in
titles to one or
the business-to-business
two books
 Today, $5,000 orders
environment, it takes on
are common, and the
a whole new dimension,”
site’s conversion rate
DiCostanzo says. BookPal,
is up by 40%
which requires a minimum
order of 25 copies, discounts
prices in tiers depending on the number of books and the title, he
says. “We were really struggling to communicate that as simply
as possible on our previous platform,” he says. “People were
abandoning too much.”
The old site was able to display only the final cost of a bulk order
in the cart during checkout, not on the product pages as a shopper
browsed, DiCostanzo says.
In contrast, a product page on the new Book-Pal.com lays out clearly
in a table the bulk pricing tiers, with per-unit costs and discounts
according to the order size range. As a shopper types different
amounts of copies for that book into a box next to the table, it
automatically highlights the appropriate pricing tier with a label
reading, “your price.” Above the table, the new subtotal for the order
also updates as the order size changes.
In the first 90 days after the site went live last April, the improvements
boosted average order values by 19%, BookPal says. Bounce
rates—which measure the percentage of consumers who leave the
site after visiting only one page—also dropped by 15%. About 60%
18
of BookPal’s sales come from the web, with the rest via mail order or
phone, DiCostanzo says.
On product pages, shoppers can also fill out a form to request
BookPal to match the price of another seller, select an item and
compare it side-by-side with others, or save the item to buy later.
The product comparisons tool is uniquely suited for B2B, DiCostanzo
adds, because it helps a shopper to quickly pull up and see in a
table the differences between various formats of books as well as
various titles. For instance, a Shakespeare play might come in several
lengths of abridgements, with or without translations, by different
translators—all factors a high school department head might find
crucial to the selection.
The new site also offers an advanced search tool that can narrow
a few million titles to one or two books based on a single typed-in
phrase. For instance, a customer can enter in the site search window
“To Kill a Mockingbird” and only get results related to that book,
instead of also getting results about books on mockingbirds and killers
or creeks referred to as kills, the retailer says.
“Web sites are like houses, there’s always work to be done,”
DiCostanzo says. His staff communicates with BookPal’s new
design firm at least every other day by phone or e-mail, he says.
The development
firm handles
everything from
minor display
changes to building
new functionality.
For example, in two
months BookPal will
debut the ability to
order digital books
in bulk, and it will
offer mobile reading
apps that the
development firm is
designing, he says.
E-Commerce
Thought Leadership
Case study: Farfetch
Dressing up conversions
Added behaviortriggered messages
to increase traffic and
sales conversion
Highlights:
 Behavior-triggered
messages increased
traffic to the edits
pages by 14.3 times
 Displaying
information on certain
policies boosted
conversion rates
up by 7%
 Customers who visit
the shopping edits on
the site convert at a
higher rate than those
who do not
Online fashion
retailer Farfetch
sells high-end clothes for men
and women from designer
boutiques in 24 countries,
with single items priced from
the low hundreds of dollars
to $3,000 or more. Customers
arrive on the site from more
than 170 countries, and
convincing them to make such
expensive purchases on the
web requires building trust
in the retailer’s shopping,
shipping and returns policies,
says Kelly Kowal, digital
marketing director.
With help from its behavioral
analytics company the retailer found a way to do it. Farfetch ran
A/B tests based on customer segments identified by measuring site
visitors’ behaviors. In the first, it displayed a screen overlay with
information about its shopping and shipping policies to customers
who were new, but also highly engaged with the site—they’d
viewed five to 10 pages in one visit. Those shoppers’ conversion rates
increased by 17%, Kowal says.
“I didn’t think it would have as high an uplift as it did,” she
says. “It sounds so simple—just showing people more info
about your policies.”
In a similar test, displaying information about the retailer’s policies
to all new web site visitors, conversion rates went up by 7%, Kowal
says. That test displayed the information in a different type of pop-up
overlay known as a lightbox, which doesn’t cover the whole screen.
In addition to explaining the retailer’s global shipping and returns
policies, the overlays in both tests also used a customer’s location to
tell her whether the prices she’s viewing include country-specific taxes
or duties, Kowal says.
Farfetch is now testing a way to help customers who seem hesitant
or confused, which its analytics provider identifies by measuring how
long they hover over a product listing. After a certain amount of time
spent hovering, the retailer displays a message to those shoppers
suggesting that they “shop our edits,” or try browsing through one of
its men’s or women’s collections.
“We have a lot of products—it can be overwhelming if you’re new,”
Kowal says. “So for new users who we can tell are engaged but
not really finding what they’re looking for, we serve them an overlay
asking if they need inspiration, which then takes them to a part of the
site that’s a bit more curated.”
So far, adding these behavior-triggered messages has increased traffic
to the edits pages by 14.3 times, which is in turn boosting conversions,
she says, without giving the exact rate, as the test is ongoing. In
general, though, she says customers who visit the shopping edits on
the site convert at a higher rate than those who do not.
The analytics vendor provides a web-based dashboard for Farfetch to
measure customers’ site behavior and segment them into groups for
A/B testing. However, Farfetch mainly relies on its weekly calls and
communications with its vendor’s account managers to get the custom
reporting it needs
and to discuss
strategies for
running new tests
on the web site,
Kowal says. The
web dashboard does
provide a tool that
her team can use
to query on its own
when it chooses to.
“They’ll even give
us the raw data if
we want to do the
analysis ourselves
or cross-check it.”
19
Conversion rate leaders by principal market
Company
2012
Conversion Rate
2012 Web Sales
2012
Monthly Visits
2012 Monthly
Unique Visitors
2012
Average Ticket
Apparel/Accessories
AmeriMark Direct LLC
$73,900,000
1,000,000
700,000
$55
Mason Companies Inc.
10.00%
8.50% 1
$144,480,000 1
1,600,000 1
1,000,000 1
$64 1
Orchard Brands Corp.
8.46%
$240,000,000
3,260,000
2,356,000
$73
L.L. Bean Inc.
8.10% 1
$1,140,000,000 1
15,000,000 1
6,000,000 1
$150 1
CustomInk
8.00% 1
$115,000,000
1,641,210 2
1,027,230 2
$77 1
40,506 2
33,577 3
$160 1
1
Automotive Parts/Accessories
Shock Warehouse Inc.
4.00% 1
$3,823,226 1
Discount Ramps.com LLC
3.00%
$23,639,862
568,632
JuicedHybrid.com
2.50% 1
$4,989,000
120,000 1
80,000 1
$110 1
AutoZone Inc.
2.40% 1
$181,300,000
5,471,802 2
3,302,193 2
$140 1
Styles Logistics Inc.
2.39%
$5,800,000
409,918
125,000
$173
90,000
$185
1,300,000 1
700,000 1
$25
600,000
1
300,000 1
$3 1
Books/Music/Video
MovieMars.com
14.00% 1
$58,000,000
comiXology
13.00%
1
$2,808,000
School Specialty Online
6.50% 1
$133,200,000
Redbox Automated Retail LLC
6.00%
1
Follett Higher Education Group
5.20%
1
1
2,500,000 1
1,500,000 1
$60 1
$14,859,608
1
9,644,942
2
5,036,812
3
$2 1
$423,000,000
1
4,000,000
1
3,000,000
1
$163 1
$16 1
RitzPix.com
12.00% 1
$16,157,500 1
500,000 1
350,000 1
FireFold
11.00%
$4,500,000
53,000
37,000
$108
Goja LLC
8.00%
$4,800,000
285,000
222,000
$22
CablesForLess LLC
7.50% 1
$4,011,111 1
70,000 1
60,000 1
$60 1
PC Connection Inc.
5.90% 1
$790,000,000 1
1,250,000 1
500,000 1
$800 1
1-800-Flowers.com Inc.
16.90% 1
$515,200,000
4,000,000 1
1,025,165 2
$70 1
FTD Group Inc.
13.90% 1
$340,010,000 1
2,220,565 3
1,646,961 3
$65 1
CTA Inc.
9.30%
$5,700,000
49,000
28,000
$100
FlowerShop.com
7.69%
$914,561
9,595
7,597
$82
Potpourri Group Inc.
6.70%
$150,100,000
2,065,000
1,476,000
$91
Peapod LLC
14.90% 1
$525,000,000 1
1,700,000 1
Keurig Green Mountain Inc.
13.00%
$365,000,000
3,128,000
2,161,000
$66
Harry and David Holdings Inc.
12.10%
$171,900,400
1,126,000
687,000
$91
Edible Arrangements International LLC
12.05%
$258,682,347
2,463,868
1,545,404
$72
Myotcstore.com
11.36%
$32,851,429
1,022,729
641,534
$30
Flowers/Gifts
Food/Drug
1
500,000 1
$155
Interline Brands Inc.
34.04%
$273,808,826
169,811
49,736
$395
Appliance Zone
8.00%
$18,736,418
369,784 2
299,448 3
$55
National Trade Supply
6.73%
$32,716,180
437,683
329,132
$95
MSC Industrial Supply Co. Inc.
6.00%
$966,000,000
2,000,000
OverstockDeals LLC
5.50% 1
1
$14,000,000 1
2
100,000 1
2
499,034
$575 1
60,000 1
$233 1
Source: Top500Guide.com
20
E-Commerce
Thought Leadership
Company
2012
Conversion Rate
2012
Monthly Visits
2012 Web Sales
2012 Monthly
Unique Visitors
2012
Average Ticket
Health/Beauty
1-800 Contacts Inc.
18.40% 1
$392,000,000 1
1,200,000 3
567,398 3
$120 1
Coastal Contacts Inc.
14.50%
$196,100,000
1,300,000
800,000
$85
PureFormulas.com
10.74%
$30,750,000
329,791
1
Botanic Choice
9.24% 1
iHerb Inc.
9.00%
1
$3,675,000 1
$99,510,000
1
1
249,824
75,936 2
900,000
1
1
$70
54,841 3
513,498
$42 1
3
$90 1
Miles Kimball Co.
9.70% 1
$94,316,000 1
680,710 3
484,147 3
$58 1
WaterFilters.Net LLC
6.66% 1
$37,400,000
300,000 1
175,000 1
$150 1
Stony Creek Brands
5.10%
1
$9,244,756
110,000
1
60,000
1
$115 1
Williams-Sonoma Inc.
5.00%
1
$1,656,000,000
12,000,000
1
6,500,000
1
$200 1
DezignWithaZ.com
5.00% 1
$4,604,306 1
98,601 2
82,807 3
$50 1
Limoges Jewelry
5.10% 1
$19,778,592 1
318,056 3
221,741 3
$90 1
Jewelry Television
5.00%
699,608
3
$90 1
Artbeads.com
4.50% 1
$21,840,000 1
600,000 1
350,000 1
$59 1
BodyArtForms LLC
4.50%
1
$3,472,875
1
60,907
2
35,014
3
$60 1
Tiffany & Co.
3.30%
1
$227,700,000
1
1,500,000
1
728,281
2
$350 1
1
Jewelry
1
$113,232,000
1
2,319,585
3
Mass Merchant
ShopHQ.com
11.70%
$268,167,600
2,209,613
PersonalizationMall.com
6.22%
$95,812,099
2,790,365
1,820,702
$56
SkyMall Inc.
6.10%
$77,982,636
788,811
594,237
$136
Sears Holdings Corp.
5.00% 1
Ozbo.com
4.81%
1
$4,200,000,000 1
$24,812,500
1
663,146 2
60,000,000 1
165,000
1
20,000,000 1
120,000
$144
$150 1
1
$65 1
Office Supplies
OvernightPrints.com
9.95% 1
$95,256,000 1
244,305 2
149,994 2
$103 1
Office Depot Inc.
9.60% 1
$4,060,000,000 1
17,000,000 2
7,500,000 1
$185 1
Staples Inc.
8.90%
W.W. Grainger Inc.
American Stationery Co. Inc.
$10,300,000,000
8.70%
1
$2,700,000,000
8.25%
1
$5,462,080
PetMed Express Inc.
8.30% 1
$178,687,500
VetDepot
8.00%
Total Pet Supply
8.00% 1
ID Wholesaler
7.50%
$23,881,000
Shutterfly Inc.
7.00% 1
$640,600,000
20,861,299
13,737,228
9,871,609
1
110,000
$430 1
3,691,864
1
80,000
$280 1
1
$40 1
1,608,160 3
$82 1
Specialty
1
2,104,176 3
$6,822,000
68,480
$3,753,242 1
55,000 1
45,000 1
59,931
44,228
2
58,659
3
$82 1
$82 1
$433
22,679,088 2
6,670,264 2
$28 1
160,000 1
70,000 1
$110 1
Sporting Goods
Billiards.com
5.00% 1
Cat5 Commerce
$9,004,000 1
4.00%
1
$18,500,000
BikeSomeWhere.com
4.00%
1
300,000
Best Kiteboarding LLC
4.00%
1
Blade HQ
4.00% 1
$3,711,028 1
Scrap Your Trip
8.00% 1
$3,847,277 1
U.S. Toy Co. Inc.
7.50%
$15,642,110
American Girl LLC
5.00% 1
$203,000,000 1
SensationalBeginnings.com
5.00%
1
Beadaholique Inc.
5.00%
1
$7,150,000
1
43,200
$5,011,304
1
14,000
1
150,000
1
34,000
$170 1
1
$800 1
123,646 2
45,641 3
$100 1
54,567 2
36,143 3
$40 1
1
5,500
$125 1
Toys/Hobbies
$14,405,530
1
$6,928,160
1
185,000
142,000
2,306,651
1,102,187
240,000
1
101,083
2
$115
$125 1
180,000
1
$87 1
55,567
3
$50 1
Source: Top500Guide.com
21
Conversion rate leaders
2012
2012
2012 Monthly
Company
Conversion Rate 2012 Web Sales Monthly Visits Unique Visitors Merchant Type
Interline Brands Inc.
34.04%
$273,808,826
169,811
49,736 Catalog/Call Center
1-800 Contacts Inc.
18.40% 1
$392,000,000 1
1,200,000 3
567,398 3 Catalog/Call Center
1-800-Flowers.com Inc.
16.90% 1
$515,200,000
4,000,000 1
1,025,165 2 Catalog/Call Center
Peapod LLC
14.90% 1
$525,000,000 1
1,700,000 1
500,000 1 Web Only
Coastal Contacts Inc.
14.50% 1
$196,100,000
1,300,000 1
800,000 1 Web Only
MovieMars.com
14.00% 1
$58,000,000
1,300,000 1
700,000 1 Web Only
1
1
3
FTD Group Inc.
13.90%
$340,010,000
2,220,565
1,646,961 3 Web Only
comiXology
13.00% 1
$2,808,000 1
600,000 1
300,000 1 Web Only
Keurig Green Mountain Inc.
13.00%
$365,000,000 1
3,128,000
2,161,000 Catalog/Call Center
Harry and David Holdings Inc.
12.10%
$171,900,400
1,126,000
Edible Arrangements International LLC
12.05%
$258,682,347
2,463,868
1,545,404 Retail Chain
RitzPix.com
12.00% 1
$16,157,500 1
500,000 1
350,000 1 Web Only
ShopHQ.com
11.70%
$268,167,600
2,209,613
Myotcstore.com
11.36%
$32,851,429
1,022,729
641,534 Web Only
FireFold
11.00%
$4,500,000
53,000
37,000 Retail Chain
PureFormulas.com
10.74%
$30,750,000
329,791
249,824 Web Only
FreshDirect LLC
10.50% 1
$400,000,000
2,000,000 1
1,200,000 1 Web Only
AmeriMark Direct LLC
10.00%
$73,900,000
1,000,000
OvernightPrints.com
9.95% 1
$95,256,000 1
244,305 2
149,994 2 Web Only
Miles Kimball Co.
9.70% 1
$94,316,000 1
680,710 3
Office Depot Inc.
9.60% 1 $4,060,000,000 1
17,000,000 2
7,500,000 1 Retail Chain
CTA Inc.
9.30%
$5,700,000
49,000
Botanic Choice
9.24% 1
$3,675,000 1
75,936 2
54,841 3 Web Only
iHerb Inc.
9.00% 1
$99,510,000 1
900,000 1
513,498 3 Web Only
Staples Inc.
8.90% $10,300,000,000
20,861,299
W.W. Grainger Inc.
8.70% 1 $2,700,000,000
9,871,609
Mason Companies Inc.
8.50% 1
$144,480,000 1
1,600,000 1
1,000,000 1 Web Only
Orchard Brands Corp.
8.46%
$240,000,000 1
3,260,000
2,356,000 Catalog/Call Center
FragranceNet.com Inc.
8.40% 1
$145,000,000
2,000,000 1
1,058,785 3 Web Only
1
3
PetMed Express Inc.
8.30%
$178,687,500
2,104,176
American Stationery Co. Inc.
8.25% 1
$5,462,080 1
110,000 1
L.L. Bean Inc.
8.10% 1 $1,140,000,000 1
15,000,000 1
CustomInk
8.00% 1
$115,000,000
1,641,210 2
1,027,230 2 Web Only
Goja LLC
8.00%
$4,800,000
285,000
222,000 Web Only
Appliance Zone
8.00%
$18,736,418
369,784 2
299,448 3 Web Only
Vitacost.com Inc.
8.00% 1
$331,000,000
3,500,000 1
1,569,041 3 Web Only
Databazaar.com
8.00% 1
$72,450,000 1
275,000 1
60,683 2 Web Only
1
2
VetDepot
8.00%
$6,822,000
68,480
58,659 3 Web Only
Total Pet Supply
8.00% 1
$3,753,242 1
55,000 1
45,000 1 Web Only
Scrap Your Trip
8.00% 1
$3,847,277 1
54,567 2
36,143 3 Web Only
FlowerShop.com
7.69%
$914,561
9,595
7,597 Web Only
Discount Dance Supply
7.50%
$41,000,000
910,450
Title Nine
7.50%
$40,000,000 1
450,000
CablesForLess LLC
7.50% 1
$4,011,111 1
70,000 1
60,000 1 Web Only
1
1
1
Envelopes.com
7.50%
$18,200,000
175,000
100,000 1 Web Only
ID Wholesaler
7.50%
$23,881,000
59,931
44,228 Web Only
U.S. Toy Co. Inc.
7.50%
$15,642,110
185,000
OfficeMax Inc.
7.45% 1 $3,200,000,000 1
11,500,000 1
5,000,000 1 Retail Chain
1
1
2
Benchmark Brands Inc.
7.06%
$110,853,000
1,600,000
Cookies by Design Inc.
7.00% 1
$16,000,000
300,000 1
175,000 1 Retail Chain
InkSell.com
7.00% 1
$12,708,390 1
140,000 1
65,000 1 Web Only
1
2
Shutterfly Inc.
7.00%
$640,600,000
22,679,088
6,670,264 2 Web Only
Category
Health/Beauty
Flowers/Gifts
Food/Drug
Health/Beauty
Books/Music/Video
Flowers/Gifts
Books/Music/Video
Food/Drug
Food/Drug
Food/Drug
Mass Merchant
Food/Drug
Health/Beauty
Food/Drug
Apparel/Accessories
Office Supplies
Office Supplies
Flowers/Gifts
Health/Beauty
Health/Beauty
Office Supplies
Office Supplies
Apparel/Accessories
Apparel/Accessories
Health/Beauty
Specialty
Office Supplies
Apparel/Accessories
Apparel/Accessories
Health/Beauty
Office Supplies
Specialty
Specialty
Toys/Hobbies
Flowers/Gifts
Apparel/Accessories
Apparel/Accessories
Office Supplies
Specialty
Toys/Hobbies
Office Supplies
Apparel/Accessories
Food/Drug
Office Supplies
Specialty
Source: Top500Guide.com 1. Internet Retailer estimate 2. Monthly avg., comScore 3. Monthly avg., Compete Inc.
22
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Conversion Rate Secrets of the Internet Retailer Top 1000

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