Frost & Sullivan: Speed & Mobility Crucial To Ecommerce Success

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Foster & Sullivan states that the Asia-Pacific region is set to become the leading region for ecommerce, led by China, India, Japan and South Korea according to Enterprise Innovation,

Despite the ecommerce growth potential, the IT infrastructure of businesses in the region is not quite up to the growth speed. Slow web load time is one of the main reasons why customers close the web pages. The report pointed to a recent study in which

47% of consumers surveyed said they expected websites to load within 2 seconds, while another 40% stated they would exit the site if it didn’t load within 3 seconds.

Another study showed that 60% of online shoppers in ASEAN would look for alternatives if the website didn’t load on time.

Mobile payments are also expected to account for more than 10% of total payment transactions in Asia Pacific by 2020 with emerging countries showing higher growth. With factors such as increasing internet penetration, more internet services, Wifi hotspot and 4G on mobile, it will more convenient than ever to stop online.

In order for businesses to really take off in this climate then, a lot of emphasis and importance needs to be placed on the IT department to ensure that marketers don’t take a hit due to poorly performing landing pages on ecommerce sites. In Southeast Asia, the ecommerce pie is skewed slightly towards bigger players, with the top 20% of ecommerce retailers providing 63% of the revenue. Makes sense, deeper pockets allow them to afford pricier web developer teams. A missed sales opportunity due to network problems can also have negative consequences as a study in 2014 reveals that 93% of respondents said it would affect change consumers’ brand perception if they experienced technical difficulties during browsing online.

A version of this article appeared in Enterprise Innovation on July 7. Read the full version here.