This week, retailers will begin the busiest time of the year. According to recent data from the National Retail Federation, “the holiday shopping season is expected to represent approximately 19.2 percent of the retail industry’s annual sales with online sales growing between 8 -11 percent this year.”
It’s no secret that retailers have been making significant investments on their ecommerce operations to meet the needs of constantly connected customers. As an example, this year companies are expected to spend $125 billion in online advertising to queue people up to their online stores. However, despite all the investments, ecommerce conversion rates hover around 3% on desktops and decline to 1% on smartphones with tablet users converting somewhere in the middle. On the other hand, in-store conversion rates range between 20 to 30 percent. Considering the gap in conversion rates between online and in-store, we need to ask what’s driving the low conversion rate for eCommerce?
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