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BizReport : Ecommerce : November 16, 2012

Report: Where ecomm traffic originates

Real estate is no longer the only place where location is key. New data out from Monetate shows where the bulk of ecommerce traffic originates - and underlines how important it is for retailers to include geographic targeting and other location-based options to their online arsenal.

by Kristina Knight

Location, location, location. As any real estate professional and they'll tell you the location of a home or business can make or break its success. The same is true of retail, especially in the online space where location really shouldn't matter. Because consumers can buy online from anywhere, right?

For example while a shopper in Oregon can buy from a retailer in Florida, location still matters - especially in the advertising. Oregonians might not want the latest sandals in January, for example, but that Florida retailer with the cute shoes could engage that shopper with boots if the targeting is correct.

First, though, they need to know where the traffic originates. New data from Monetate sheds light how where shoppers are logging on and from which states retailers are getting the highest conversions. No, the two are not necessarily the same.

Monetate researchers found:

• Wyoming shoppers shop least online (0.15% of ecommerce traffic) but convert at the highest rates (5.02%)
• California shoppers shop most online (13.47% of traffic) but convert the least (2.89%)
• New York, Texas, Florida and Pennsylvania shoppers are likely to look online
• Alaskans and North and South Dakotans are among the least likely to shop online
• North Dakota, Montana and West Virginia make up the highest converting states along with Wyoming

The study also shows that ecommerce traffic from mobile and tablets is on the rise. In 2011 about 4.3% of traffic came from smartphones while 4.02% came from tablets (Q4 2011). At the end of Q3 2012, 10% of traffic came from smartphones with 8.37% coming from tablets.

How can this type of data benefit etailers?

Knowing where traffic comes from tells the retailer how to advertise. Go back to the sandals versus boots analogy above. Using weather data a retailer can display relevant products to the right consumer at the right time. Retailers can also use geo-targeted messaging about local store delivery or approximate ship times (prior to purchase, when shipping is finalized) or could even display positive product reviews from the area in which the shopper is shopping.

Tags: ecommerce trends, Monetate, retail traffic

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