Internet Disruptions Cost E-Commerce Retailers Millions Annually
April 05, 2023

Howard Beader
Catchpoint

Share this

Recent data from eMarketer projects that U.S. retail ecommerce sales will accelerate each year through 2027, reaching more than $1.7 trillion and comprising one-fifth of total retail sales. The great societal shift online is no longer an emerging trend, it's how we live, work and play.

Now that so much of our lives take place online, consumers have increasingly higher expectations about online experience. The consequences of poor experience are significant for e-commerce retailers, affecting sales, revenue, and stock price. New research conducted by Forrester Research on behalf of Catchpoint shows that one cause of poor experiences are disruptions across the "Internet stack," including routers, firewalls, ISPs, DNS, CDNs, cloud services, website payment providers, and video hosting services — which are particularly costly for e-commerce retailers.

The survey found that nearly 40% of e-commerce retailers suffer customer-impacting disruptions, as many as 76 per month on average, and these can cost up to $1 million per month. Despite the frequency and costs of disruption, however, many e-commerce retailers have been slow to adopt new solutions to proactively reduce or eliminate instances and increase their Internet resilience. Less than one-third of respondents in the survey monitor their full Internet stack today.


But the winds are shifting, with more e-commerce retailers adopting new technologies to gain visibility outside their traditional network infrastructure. 61% of survey respondents say they require tools to anticipate, detect, and fix Internet performance problems quickly, indicating a need for better management of Internet performance.

While monitoring the entire Internet stack isn't easy, with thousands of blind spots dispersed geographically that could become disruptions or affect experience, doing nothing isn't an option. This is precisely why adoption of Internet Performance Monitoring (IPM), which provides those capabilities e-commerce retailers say is missing, is growing.

The survey findings make a strong case for IPM, quantifying the consequences of not closely monitoring all aspects of a customer's experience and addressing issues before they happen. With so much at stake, from slow site loading to abandoned shopping carts, there must be zero tolerance for disruption. And this starts with proactive monitoring that anticipates problems instead of reporting on them retrospectively.

As I've written before, the Internet is your new network, and if you're an e-commerce retailer — or any company for that matter, Internet resiliency is critical to the quality and consistency of your digital experience. Our survey shows that e-commerce retailers acknowledge the importance of proactively monitoring the Internet stack, and this industry pivot is certainly a hopeful sign.

You can review the entire findings of the survey HERE. You can also learn more about the benefits of IPM by watching the Increase Revenue through Internet Resilience Webinar.

Howard Beader is VP of Product Marketing at Catchpoint
Share this

The Latest

April 25, 2024

The use of hybrid multicloud models is forecasted to double over the next one to three years as IT decision makers are facing new pressures to modernize IT infrastructures because of drivers like AI, security, and sustainability, according to the Enterprise Cloud Index (ECI) report from Nutanix ...

April 24, 2024

Over the last 20 years Digital Employee Experience has become a necessity for companies committed to digital transformation and improving IT experiences. In fact, by 2025, more than 50% of IT organizations will use digital employee experience to prioritize and measure digital initiative success ...

April 23, 2024

While most companies are now deploying cloud-based technologies, the 2024 Secure Cloud Networking Field Report from Aviatrix found that there is a silent struggle to maximize value from those investments. Many of the challenges organizations have faced over the past several years have evolved, but continue today ...

April 22, 2024

In our latest research, Cisco's The App Attention Index 2023: Beware the Application Generation, 62% of consumers report their expectations for digital experiences are far higher than they were two years ago, and 64% state they are less forgiving of poor digital services than they were just 12 months ago ...

April 19, 2024

In MEAN TIME TO INSIGHT Episode 5, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses the network source of truth ...

April 18, 2024

A vast majority (89%) of organizations have rapidly expanded their technology in the past few years and three quarters (76%) say it's brought with it increased "chaos" that they have to manage, according to Situation Report 2024: Managing Technology Chaos from Software AG ...

April 17, 2024

In 2024 the number one challenge facing IT teams is a lack of skilled workers, and many are turning to automation as an answer, according to IT Trends: 2024 Industry Report ...

April 16, 2024

Organizations are continuing to embrace multicloud environments and cloud-native architectures to enable rapid transformation and deliver secure innovation. However, despite the speed, scale, and agility enabled by these modern cloud ecosystems, organizations are struggling to manage the explosion of data they create, according to The state of observability 2024: Overcoming complexity through AI-driven analytics and automation strategies, a report from Dynatrace ...

April 15, 2024

Organizations recognize the value of observability, but only 10% of them are actually practicing full observability of their applications and infrastructure. This is among the key findings from the recently completed Logz.io 2024 Observability Pulse Survey and Report ...

April 11, 2024

Businesses must adopt a comprehensive Internet Performance Monitoring (IPM) strategy, says Enterprise Management Associates (EMA), a leading IT analyst research firm. This strategy is crucial to bridge the significant observability gap within today's complex IT infrastructures. The recommendation is particularly timely, given that 99% of enterprises are expanding their use of the Internet as a primary connectivity conduit while facing challenges due to the inefficiency of multiple, disjointed monitoring tools, according to Modern Enterprises Must Boost Observability with Internet Performance Monitoring, a new report from EMA and Catchpoint ...