Maximizing eCommerce ROI with Synthetic Monitoring
October 06, 2015

Priyanka Tiwari
SmartBear Software

Share this

This is Part 1 of a multipart blog series explaining trends in eCommerce as a result of underlying trends in technology and how ecommerce providers can maximize ROI with the help of proactive performance monitoring.

eCommerce is growing at 17% per year. Last year, the US holiday season rang up more than $600 billion dollars in revenue, and online and eCommerce generated $102 billion of that. But unfortunately eCommerce is stereotyped as an online version of the retail industry. It is much more than that. In 2013 Gartner produced a report laying out various industries by their eCommerce potential. Retail, wholesale, travel and entertainment made it to the top. No surprises there. But some were surprised by seeing traditional industries such as mining, agriculture, government, education etc. on there.

A lot has changed in the past two years; the not so eCommerce-y industries have come a long way in terms of online presence. Those who don't provide online shopping see the offline sales are being influenced by the online presence. We've seen feed manufacturers, steel distributors, and even utility providers using eCommerce to expand the geographical reach. Automotive and aerospace go the eCommerce way in the aftermarkets. All things said, eCommerce is relevant across all industries and it's growing at an exponential rate.

Everyone who provides eCommerce understands the significance of website or mobile application performance and how it directly hits the bottom line. And those who are new to eCommerce have started realizing the monetary consequences of page loads and bounce rates. When Amazon was down in 2013, they lost more than $60K per minute. BestBuy faced a huge social media backlash when shoppers couldn't use during holiday season. On the flip side:

"By reducing page load time to 1.2 seconds from whopping (!) 6 seconds, Shopzilla saw 12% increase in revenue"

" increased conversion rates by 9% by cutting down the load time by half."

You get it; poor eCommerce performance directly hits your bottom line. No matter what industry you are in, you should be monitoring your websites, web applications and mobile applications to ensure that your customers and end users can do what they wish to do.

Poor eCommerce is no different than going to a physical store, and seeing that it's closed or only few checkout lanes are open and there is a huge line. What do you do if it takes too long? You switch the lanes or you go to a different shop. That other lane in the eCommerce world is a different website, a different eCommerce store, maybe a competitor.

eCommerce Ecosystem

Modern eCommerce heavily relies on external and third-party components for critical functionalities such as search, cart and payment etc. And how can we forget the online advertising and social media plugins that bring traffic? Last holiday season, more than 30% of eCommerce traffic was routed by social media plugins. Companies that provide the following important eCommerce functionalities via plugins, APIs, applications or tools are important players in the eCommerce ecosystem.

If your company is part of the eCommerce ecosystem, the enormity of the eCommerce opportunity and growth applies to you! Google maps, PayPal, Elasticsearch, Evernote, Flickr get more than billion calls every day. Expedia quoted that 90% of its revenue comes from API business. In 2013, Salesforce generated 50% of its $3B revenue via APIs. Let's say you are the provider of payment processing API. It is your responsibility to ensure that your API is available 24x7, performing per your consumer's requirements and is returning right data at the right places. A poor performing API slows down the adoption, results in poor rating and reduced brand equity, finally reducing revenue.

As an eCommerce provider or part of the eCommerce ecosystem, you can leverage the entirety of eCommerce opportunity with proactive monitoring.

In the upcoming parts of this blog series, we will cover the trends in eCommerce as a result of trends in technology, the special case of peak season and how you can maximize the eCommerce ROI with proactive performance monitoring.

Read Part 2: Maximizing eCommerce ROI - Understanding the Latest Trends

Priyanka Tiwari is Product Marketing Manager, AlertSite, SmartBear Software.

Share this

The Latest

March 04, 2024

This year's Super Bowl drew in viewership of nearly 124 million viewers and made history as the most-watched live broadcast event since the 1969 moon landing. To support this spike in viewership, streaming companies like YouTube TV, Hulu and Paramount+ began preparing their IT infrastructure months in advance to ensure an exceptional viewer experience without outages or major interruptions. New Relic conducted a survey to understand the importance of a seamless viewing experience and the impact of outages during major streaming events such as the Super Bowl ...

March 01, 2024

As organizations continue to navigate the complexities of the digital era, which has been marked by exponential advancements in AI and technology, the strategic deployment of modern, practical applications has become indispensable for sustaining competitive advantage and realizing business goals. The Info-Tech Research Group report, Applications Priorities 2024, explores the following five initiatives for emerging and leading-edge technologies and practices that can enable IT and applications leaders to optimize their application portfolio and improve on capabilities needed to meet the ambitions of their organizations ...

February 29, 2024

Despite the growth in popularity of artificial intelligence (AI) and ML across a number of industries, there is still a huge amount of unrealized potential, with many businesses playing catch-up and still planning how ML solutions can best facilitate processes. Further progression could be limited without investment in specialized technical teams to drive development and integration ...

February 28, 2024

With over 200 streaming services to choose from, including multiple platforms featuring similar types of entertainment, users have little incentive to remain loyal to any given platform if it exhibits performance issues. Big names in streaming like Hulu, Amazon Prime and HBO Max invest thousands of hours into engineering observability and closed-loop monitoring to combat infrastructure and application issues, but smaller platforms struggle to remain competitive without access to the same resources ...

February 27, 2024

Generative AI has recently experienced unprecedented dramatic growth, making it one of the most exciting transformations the tech industry has seen in some time. However, this growth also poses a challenge for tech leaders who will be expected to deliver on the promise of new technology. In 2024, delivering tangible outcomes that meet the potential of AI, and setting up incubator projects for the future will be key tasks ...

February 26, 2024

SAP is a tool for automating business processes. Managing SAP solutions, especially with the shift to the cloud-based S/4HANA platform, can be intricate. To explore the concerns of SAP users during operational transformations and automation, a survey was conducted in mid-2023 by Digitate and Americas' SAP Users' Group ...

February 22, 2024

Some companies are just starting to dip their toes into developing AI capabilities, while (few) others can claim they have built a truly AI-first product. Regardless of where a company is on the AI journey, leaders must understand what it means to build every aspect of their product with AI in mind ...

February 21, 2024

Generative AI will usher in advantages within various industries. However, the technology is still nascent, and according to the recent Dynatrace survey there are many challenges and risks that organizations need to overcome to use this technology effectively ...

February 20, 2024

In today's digital era, monitoring and observability are indispensable in software and application development. Their efficacy lies in empowering developers to swiftly identify and address issues, enhance performance, and deliver flawless user experiences. Achieving these objectives requires meticulous planning, strategic implementation, and consistent ongoing maintenance. In this blog, we're sharing our five best practices to fortify your approach to application performance monitoring (APM) and observability ...

February 16, 2024

In MEAN TIME TO INSIGHT Episode 3, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at Enterprise Management Associates (EMA) discusses network security with Chris Steffen, VP of Research Covering Information Security, Risk, and Compliance Management at EMA ...