Your eCommerce website is costing you revenue. You probably think you have your website optimized for performance.
There is an area you are missing. That is network latency and controlling your Internet connection.
This is about to get technical.
The Internet is Broken
The first topic to understand is the Internet is broken.
It is broken because of a something called BGP. This is border gateway protocol, and it is how Internet traffic is routed. It is a problem because it routes Internet traffic unintelligently. It can only send traffic the shortest logical distance.
I would like you to think about the Internet like a series of roads. You can understand the shortest distance when driving a car is not always the fastest. Also, if there is an accident, nobody is going anywhere fast.
The same applies to the Internet. This can become a serious problem for your eCommerce business. It is a problem during peak video streaming hours when Netflix is hogging the Internet. It is also a problem when there is a huge eCommerce shopping day, such as Cyber Monday.
How much? Let’s take a look.
Network Latency is Hurting Your Revenue
The problems caused by the Internet we described above are issues in network latency. Network latency is the time it takes for a data packet to travel from one point to another. There is a limitation to this speed. It is the speed of light. Data can only move so fast over long geographical distances.
Over these long distances, BGP may not be sending your website traffic over the fastest route. This means your website is slow, with no way for you to control the speed. You have lost control of the user experience. The result is loss in revenue.
Dynamic content is where network latency effects your performance.
The Largest Effects on Your Website
Websites are becoming more dynamic. Dynamic content in a website provides customer personalization. This personalization leads to more revenue. Your network could be hindering you from unlocking the full potential of that revenue. For your business, there are 5 areas of your website effected by network latency.
- Initial website loading times
- User accounts
- In website search
- Shopping carts
- Payment and check out
The geographical fix of a CDN cannot solve for these areas. This is leaving you vulnerable in 5 key conversion points.
Using Network Latency for eCommerce Conversion Optimization
Taking control of your network connection is the next area to increase the speed of your website. It is using network latency for eCommerce conversion optimization.
Amazon has made it a well-known fact that 100 ms in latency is 1% in revenue. Wal-Mart sees a 1 second improvement in page load times as 2% in revenue.
Given this, we can see how network latency is effecting page load times. The amount of speed directly attributable to latency can be seen in the images below.
The ms number represents network latency in milliseconds. The “100” represents how many times the ms time needs to occur for a page to load. The last number, “4”, represents how many simultaneous trips can be made at once. A decrease in ms, a decrease in the number of trips, or an increase in simultaneous loads, can all have an effect on your page load. This provides an idea of the size of improvements.
In the past, the network latency number was unchangeable. As Internet technology develops, companies are making this accessible to any size business.
Take a competitive advantage by making your eCommerce site faster. The answer lies in taking control of your Internet connection for eCommerce conversion optimization.
To learn more about eCommerce optimization, download the eCommerce Conversion Optimization Whitepaper.