The global ecommerce market is exploding, and 2022 is shaping up as the year of the accelerator.
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I first learned about the world of ecommerce through a friend’s side hustle. He was working on an ecommerce storefront selling headbands for girls designed and produced by his wife. They raked in $2 million in their first year. When I asked how they did it, I learned that their success didn’t just come from the quality of the headbands, but also from extensive data research into how to reach the right customers and get them to purchase.
At the time, leveraging data science to scale ecommerce programs was novel. But now, it’s becoming table stakes for brands that hope to command their fair share of the exploding $6 trillion global ecommerce market . What exactly is ecommerce acceleration?
Ecommerce acceleration is the process of applying data-driven technology and expertise to increase revenue growth across major online commerce channels, including ecommerce marketplaces like Amazon , Walmart , Target, Tmall and eBay . Companies that specialize in providing such services are called ecommerce accelerators .
While the term is nascent, leading global brands are already leveraging many of the practices and technologies involved in ecommerce acceleration to achieve unprecedented growth. How do ecommerce accelerators work?
It all boils down to a simple (but powerful) equation: Revenue = traffic x conversion x price.
An accelerator’s job is to maximize traffic and conversion on product listings by using data to uncover the relationship between them and any number of adjustable on-page and off-page variables available on each marketplace or digital channel. As those relationships are uncovered, brands can apply an accelerator’s technology and expertise to spin up traffic and conversion.While a brand could achieve acceleration on its own, the typical ecommerce team […]
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