Friday, July 8, 2016

ASEAN - New report highlights importance of speed, mobility in e-commerce

The Asia-Pacific region is set to become the leading region for e-commerce around the world, led by countries such as China, India, Japan and South Korea, according to analyst firm Frost & Sullivan.

Is your IT up to it?

Unfortunately, the IT infrastructure of businesses are not necessarily up to scratch, and the slow loading of Web pages is one of the main reasons why customers switch e-commerce company, says the firm.

This was outlined in a new report produced in collaboration with a content delivery network (CDN) provider. While it offers suggestions on the selection of a CDN service, the report also outlined some noteworthy pointers on the importance of fast loading websites.

The report pointed to a recent study in which 47% of consumers surveyed said they expected the Web site to load within 2 seconds. Another 40% stated that they would leave if it did not load within 3 seconds.

In addition, another study inferred that close to 60% of ASEAN consumers would look for an alternative place to purchase a product if the Web site failed to load on time.

If your business entails selling online, then it is worth knowing that there are already more than a million online retailers in ASEAN, or Association of Southeast Asian Nations. The pie is skewed towards the bigger players at the moment, though, with the top 20% of e-commerce retailers provide 63% of the total revenue.

Finally, up to 30% of e-commerce sales globally is attributed to mobile and smartphone devices alone. In a similar vein, mobile payments is 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 growing Internet penetration, faster Internet services, [Wi-Fi hotspots] and mobile 4G, customers will value convenience and the ability to make faster purchase over the discounts and deals offered by e-commerce players," said Ajay Sunder, the vice president of ICT at Frost & Sullivan, Asia Pacific.

In conclusion, while the responsibility for e-commerce systems and support for mobility typically resides with the IT department, marketers can take a hit if these systems perform poorly.


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