Yottaa, Inc., the leading cloud platform that accelerates digital commerce experiences, today announced the publication of its annual report. E-commerce technology buyer's guide Designed to help retailers explore and evaluate technology to understand its impact on overall site performance, shopper engagement, and conversions.
Third Party Technology. App. tag. cartridge. ISV. In e-commerce, they are known by different names, but their purpose is the same. It's all about making your digital commerce site more attractive and profitable. Third parties promise to improve your experience, increase traffic, or simply improve operational efficiency. And as site traffic declines and spend per visit increases, adding a third party can help your ecommerce team get the most out of every visit. However, if left unchecked and unoptimized, third parties can have a devastating impact on your site experience. The cumulative impact of dozens of third parties and the marginal value of adding more can result in poor site performance, bouncing shoppers, and lower conversion rates.
2024 E-Commerce Technology Buyer’s Guide, This study was conducted by Leading Lights, a leading e-commerce industry research firm, and examines the impact on site performance of 650 of the most widely adopted e-commerce third parties. Data for this report was collected over a one-month period (December 2023) representing 14 billion page views from approximately 2,000 e-commerce sites. Site performance violations by individual third parties were used to create a performance impact rating (PIR) for each third party evaluated in the report. Using these PIRs, red, yellow, and green color codes were assigned to third parties across the most frequently adopted e-commerce technology categories. Third parties that load slowly are labeled red, neutrals are yellow, and technologies that load quickly are labeled green.
Below are some of the key findings from the 2024 eComm Tech Buyer's Guide.
- Third parties have mitigated the impact but are still causing significant delays – In this year's report, most third-party technologies received slightly better PIR scores compared to last year, moving from red to yellow scores. However, there is still a long way to go as more than half of third parties are in yellow and red positions. If left unchecked, these third-party technologies will slow down your site's performance, slow page loads, increase bounce rates, and reduce conversions. According to the report's data, 50% of third parties have a negative impact on site performance.
- 3x difference between fast and slow third parties – A slow-loading “red” third party has nearly three times the impact on a site’s performance than a fast-loading “green” third party. If not optimized or checked, red third parties can push your site into the “poor” category of Largest Contentful Paint (LCP), Google's Core Web Vitals key benchmark for page performance.
- Death By A Thousand…App – Many e-commerce sites have over 50 third-party technologies in place, and their impact on page performance grows rapidly. Even a small number of influential third parties can significantly change LCP rankings.
- Optimization = faster site and more conversions – To realize the full potential of third-party technologies, each should be optimized to limit the negative impact on your site’s performance. Research shows that three page load optimizations can reduce page load times by just one second.rd Parties reduce bounces by 9% and increase conversions by 6%.
“In 2023, the call for technology stack consolidation will reverberate across the e-commerce ecosystem, and it will be a big reckoning. – Brands and retailers will scrap large amounts of third-party technology in the name of cutting costs. But the purge never materialized,” said Rick Kenney, managing director of Leading Rights and author of the 2024 E-Commerce Tech Buyer's Guide. “Instead, third-party technology continues to be at the heart of the shopping experience and a critical component of the e-commerce stack.” We focus on Contentful Paint and analyze the impact of third-party technologies on e-commerce site performance.”
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