Competing with Amazon, addressing privacy issues linked to collection of data by third-party technologies and improving site speed to boost sales are top priorities identified in a new study from ecommerce platform provider Yottaa.
Yottaa asked retail executives to identify their key ecommerce initiatives, particularly focused on website performance and site optimization. Brands interviewed included Abercrombie & Fitch, Crate & Barrel, Dick’s Sporting Goods, Nordstrom, Old Navy and Williams-Sonoma.
Closing the order and distribution management gap with Amazon is a priority for 77% of respondents, with 46% open to considering merging their fulfillment networks with those of other brands to better compete. However it happens, the report suggests Amazon Prime-style free same-day shipping will become widespread among brands in 2020.
“The best way for brands to compete with Amazon is providing a standout online shopper experience, an area where Amazon is lacking,” Yottaa said in the report. “For example, personalization, ratings and reviews, user-generated content create lasting impressions that get shoppers to buy now and return for more.”
Among survey respondents, 67% expressed concern that customer data captured by third parties on their sites will impact privacy law compliance, and 92% said they will invest in new third-party technologies in 2020. Just over half of the brands surveyed spend between $500,000 and $4 million on such systems each year.
Improving site speed is another priority, as 65% of respondents agreed they have only 2-3 seconds to capture a shopper’s attention before 50% or more leave a site. Faster site performance results in higher conversion, 61% of respondents believe.
“Since 2012 the industry has been talking about modern microservices architecture, and in 2020 headless commerce will finally become a reality,” Yottaa said in the report. Sixty-two percent of respondents said headless commerce can significantly improve engagement and conversions, with 61% of ecommerce retailers using or planning to use headless commerce architecture in 2020.
“In order to compete in 2020 and beyond, ecommerce leaders need to address
the macro trends in the industry such as artificial intelligence, privacy compliance, personalization, mobile experience, headless commerce, mar-tech optimization and how to compete against Amazon,” Jon Nordmark, co-founder and CEO of innovation services provider Iterate said in the report.
The 2020 report from Yottaa combined primary research data gathered from online retail executives with findings from the Ecommerce Third Party Technology Index, published in October. It examined the performance impact of close to 400 of the most widely adopted technologies.