‘Top Quartile’ Retailers Drive Industrywide E-Commerce Growth

  • April 7, 2015 at 12:00 PM EDT
  • By Glenn Taylor
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RR RJMetrics ImageTop quartile (Q1) e-Commerce businesses exceed competitors from a revenue perspective, according to RJMetrics. They earn more than $600,000 in revenue within six months of their first order, which is 329% higher than the average of all other companies.

These top performers also have an average order value (AOV) 36% higher than their competitors ($102 compared to $75). After three years, Q1 companies have approximately four times the number of monthly orders, resulting in 279% more orders overall, according to the 2015 E-Commerce Growth Benchmark Report.

Results for the report were based on anonymized data from more than 200 e-Commerce retailers that have handled up to $25 billion in transactions. The data suggests that there is no typical “average growth rate” for e-Commerce retailers, and that they have to be split into quartiles for growth to be measured accurately.

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Q1 retailers fuel a large percentage of their revenue growth through customer acquisition. Within a six-month period, these businesses gained 3.8 times more customers per month than their competition. Their acquisition rates also remained steady throughout the first three years of operation, outdoing the other three quartiles by 196%.

Characteristics Of Top-Performing Businesses

To close the report, Blake Lyon from Lerer Hippeau Ventures outlined the key characteristics of top-performing organizations. For one, Lyon noted that successful e-Commerce businesses blur the lines between products and services to create a frictionless buying experience.

Best-in-class companies also are building vibrant, passionate communities for their consumers to share interests and foster brand loyalty, Lyon added. These companies blend content and commerce by reimagining their catalog and converting it into an editorial experience.

Finally, Lyon stated that more Q1 businesses offer a “try before you buy” experience, citing examples such as Warby Parker, which provides home try-on kits prescription glasses.

Click here to access the report.

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