E-Commerce Benchmarks - Standard E-Commerce Sites
The global e-commerce benchmarks found are the following: 1) the conversion rates is 1.85%; 2) the checkout abandonment is 69.57%; 3) the average order value is $107.59; 4) the customer lifetime value is about $1,300; 5) the customer acquisition cost is $45.27(paid search) and $65.80(display advertising); 6) the average purchase per year is 15.4 transactions.
- According to a study by Wolfgang, where they analyzed over 250 million website sessions from July 2017 to June 2018, the overall conversion rate is at 1.85%.
- According to Wolfgang, conversion rates in Europe was 1.51%, 1.37% in the US, and 1.78% in the UK.
- According to Monetate report, the global conversion rate for Q1 of 2018 was 2.59%.
2. Checkout abandonment
- According to Baymard Institute, the average documented online shopping cart abandonment rate sits at 69.57%.
3. Average order value (proxy for average cart size)
- According to Monetate report, the global average order value for Q1 of 2018 is at $110.32.
- The average order value (AOV) or average basket size is a KPI for an e-commerce site.
- According to Littledata, AOV for a US e-commerce website is $97.15.
- According to Littledata, the AOV for a UK e-commerce website is $118.18.
4. Purchase per year
- Generation X (people born between 1966-1981) make more online purchases than any other age group, averaging nearly 19 transactions per year.
- Baby boomers makes 15.1 online transactions per year on average.
- Millennials makes 15.6 online purchases per year on average.
- The average number of online purchases per year in North America is 19.
- The average number of online purchases per year in Asia is 22.1.
- The average number of online purchases per year in Western Europe is 18.4.
- The average number of online purchases per year in Latin America is 9.2.
- The average number of online purchases per year in Africa and Middle East is 11.
- The average number of online purchases per year in Eastern Europe and Russia is 11.9.
- The average number of online purchases per year in Australia and New Zealand is 16.1
- The global average online purchases per year based on the 7 regions above is 15.4 [(19+22.1+18.4+9.2+11+11.9+16.1)/7].
5. Customer lifetime value (LTV)
- Since the customer acquisition cost varies significantly depending on the company and products, a good reference point is to aim for a lifetime value of your customers (LTV) that is three times bigger than the cost of acquisition.
- LTV/CAC benchmark is supposed to be at a 3:1 ratio.
- In a study by RJMetrics, top-performing businesses (those that have a $45 million in revenue in first few years) have an average of $3641 LTV which is five times higher than other business.
- Across all companies, the CLV is about $1,300. For example, Amazon Prime has a CLV of $2,500, while non-Prime only has a CLV of a $1,000.
6. Customer acquisition cost (CAC)
- Cost per acquisition (CPA) is a related metric to CAC, which focuses on the total cost of acquiring a new customer via a specific channel or campaign. [s4]
- The average CPA of the e-commerce industry via the google display network is $65.80.
- The e-commerce average paid search CAC is $45.27.
- The e-commerce average display advertising CAC is $65.80.
- For the average cart size, we made use of the average order value since it was more commonly reported in industry reports than the average cart size.
- For the customer lifetime value, we also presented the customer lifetime value and customer acquisition cost ratio benchmark at 3:1 since studies show that the customer lifetime value varies significantly depending on company and products. We still provided the average CLV for top performing businesses, calculated to be $3641.
- For the purchase per year, we considered the survey study presented by KPMG. We estimated the global average by getting the average of all 7 regions' purchase per year.