SOURCE: Warp 9, Inc.

Warp 9, Inc.

October 22, 2014 03:01 ET

Warp 9 Stresses Importance of E-Commerce Holiday Readiness to Online Retailers

The Company Backs IBM's Belief That Now Is the Time for Online Retailers to Invest in Mobile; A Proper Strategy Can Increase Conversion Rates and Drive Revenue

SANTA BARBARA, CA--(Marketwired - Oct 22, 2014) - Warp 9, Inc. (OTCQB: WNYN), the premier provider of mobile and desktop e-commerce solutions for midsize online sellers, today commented on IBM's Holiday Retail Readiness Report and the importance for online sellers to prepare adequately for the upcoming holiday season.

IBM recently published its seventh annual report discussing industry benchmarks and best practices. According to the report, online retail has seen substantial gains during the holiday season, as the average cost of an online order rose to $132.71 in November 2013 (+9.3 percent over 2011) and $122.46 in December 2013 (+13 percent over 2011), showing the willingness of shoppers to ditch long lines and shop digitally.

U.S. sales over mobile devices also skyrocketed, as Black Friday 2013 jumped nearly 43 percent year-over-year, and accounted for nearly 22 percent of all site sales, while mobile sales on Cyber Monday 2013 leapt 55 percent from the previous year, totaling 17 percent of total online spending. Consumers' eagerness to shop on mobile devices relates to convenience, and the desire to not miss valuable holiday sales from being away from a store or computer.

Even more, Forrester Research projects a compound annual growth rate of nearly 10 percent for U.S. online retail through 2018, when average annual spend per buyer is expected to exceed $2,000. There are major dollars out there for online retailers if they prepare themselves correctly.

"While there's still excitement over standing in line and getting great deals, it's evident that a large number of consumers are happy to stay home with their families, avoid the crowds, and do their holiday shopping online," said Andrew Van Noy, CEO of Warp 9. "Still it's shocking how many merchants out there don't have mobile sites. It is imperative to create streamlined experiences across devices so that customers can easily find what they are looking for, when they want it. Online merchants must invest now so that they don't lose a large portion of potential mobile shoppers."

The IBM Report points out that without preparation, online retailers can hit roadblocks -- most notably converting page views to sales. Conversation rates fell to a three-year low of 2.5 in September 2013, vaulting cart abandonment to a new high of 72.1 percent in July of 2013.

Cart abandonment occurs for many reasons, including limited payment options, non-working coupon codes, forcing customers to create accounts, or not displaying shipping charges upfront. It's also thought that consumers are using online shopping carts as "wishlists," which drives up abandonment rate. Still, a proper plan can help drive the conversions that have been lacking.

"If you don't understand a shopper's path to purchase, then rising cart abandonment and declining conversion rates can be considered a growing concern," Van Noy continued. "However, given that 90 percent of users 'multi-screen,' or switch between devices to complete their goal, abandonment rates may be misinterpreted. The best way to truly understand your customer's path to purchase is if they are logged in to your site as a registered user. This provides the data to show which devices they are logging on to, and when they are making purchases. We encourage merchants to incentivize customers to create an account or log in with discounts or specials."

IBM's Holiday Retail Readiness Report is based on IBM Digital Analytics Benchmark, a cloud-based service that captures online marketing results and commerce data from approximately 800 contributing US retail websites.

Earlier this year, Warp9 launched WarpMobile Magento, its mobile-focused product offering that ensures online retailers are able to keep up current trends in the online retail space.

About Warp 9

Since 1998, Warp 9, Inc. is the premier provider of mobile and desktop e-commerce solutions for midsize online sellers. Offering fully managed Software-as-a-Service web and mobile e-commerce technology, Warp 9 allows customers to focus on their core online businesses, rather than on technical implementations. To learn more about Warp 9, please visit www.warp9inc.com or on Twitter at www.twitter.com/warp9inc, or on Facebook at www.facebook.com/warp9inc

Safe Harbor Statement

Matters discussed in this press release contain statements that look forward within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such statements that look forward. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the statements that look forward contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These statements that look forward are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.

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