In a span of three months, between July and September 2015, Occasion's merchant partners processed $1,000,000 worth of orders online (industry standard term is gross merchant volume, or GMV) via their webites, social media and email marketing. This is 10x bigger than what we saw last year during the same time period.
What's even more interesting is to see at least 50% year-over-year growth in GMV for merchants that signed up for Occasion before July 2014. For example, if a merchant partner did $50,000 in GMV between July-Sept 2014; they did at least $75,000 in GMV between July-Sept 2015.
This growth among mostly "offline-to-online" businesss can be traced to one reason - businesses are abandoning online shopping carts for simpler e-commerce experiences.
SHOPPING CARTS ARE DEAD
More than 80% of merchants using Occasion switched from a shopping-cart based e-commerce software. Let's quickly recap the problems with shopping carts first,
- More than 70% abandonment rates on checkout on desktop
- More than 90% abandonment rates on checkout on mobile
Abandonment rates among top e-commerce retailers is already in the tens of billions of dollars. These e-commerce sites are deploying "cart-recovery software" that can cost thousands of dollars a year. Small businesses, that moving sales online from offline, can't afford shopping cart's high abandonment rates nor can they afford to pay for the recovery of transactions. So, they are adopting simpler e-commerce experiences.
Other than abandonment rates, ask yourself, how do you buy services in a shopping cart? It's not a natural checkout flow at all. It's not, for sure, what's practiced in the physical world. In our day-to-day, we book services by way of having a conversation. Occasion's checkout experience feels like a conversation between two parties and thus, has over 65% checkout completion rate.
More merchants are becoming aware of their gaps in mobile experience. These merchants are also focusing on improving the mobile purchase experience for their customers. And, shopping carts do not fit their mobile strategy. Shopping carts are multi-step checkout experience. This experience is at the opposite end of the spectrum, where a mobile-user acts more as an impulse buyer. Leaders in mobile e-commerce cater to this impulse buyer by delivering a "one-click" purchase experience. Similarly, merchants deploying Occasion's one-step checkout experience to their consumers have a winning mobile strategy in place.