Report: Online Retailers at Risk of Losing $2.1 Billion this Holiday Season

September 27, 2017

Report: Online Retailers at Risk of Losing $2.1 Billion this Holiday Season

September 26, 2017

Namogoo Report Warns Retailers of the Impact Online Journey Hijacking Can Have on Holiday E-commerce Sales in the U.S.

Boston, MA – September 26, 2017 – A new report from Namogoo reveals an immediate threat to online revenue for retailers this holiday season. Unauthorized product ads are being injected into consumer browsers, causing competitive ads to appear on retailer sites, distracting prospective consumers from the retailer’s offerings and cutting directly into their revenue. This disruption of the customer experience – known as online journey hijacking – could cost retailers $2.1 billion this holiday season.

In the report, The Impact of Online Journey Hijacking on E-Commerce Q4 Sales in the U.S., Namogoo predicts a significant rise in unauthorized product ads during Q4 2017. According to the findings, 15 to 25 percent of all e-commerce customer sessions are exposed to unauthorized ads while browsing retailer sites, and that number increases to 20 to 30 percent of all sessions during peak shopping seasons. In addition, 80 percent of the displayed ads during peak season are competitive product ads, sending a retailer’s traffic directly to its competitors.

“Amazon isn’t the only threat to retailers this holiday season. Online journey hijacking is a serious issue for online retailers, not just from a revenue standpoint but also in terms of brand experience and loyalty,” said Chemi Katz, co-founder and CEO of Namogoo. “The amount of lost revenue resulting from such tactics is astronomical and can be devastating, particularly at such a pivotal shopping time as the holiday rush.”

The Holiday Rush: A Busy Season for Everyone…Even Journey Hijackers
Just as online retailers invest substantially in making this time of year as profitable and enjoyable for their customers as possible, malware developers are pulling out all the stops to increase their reach and optimize their ads to generate more clicks and revenue. While retailers are devoting time, money and energy to increasing sales revenue, conversion and customer retention, malware is working its hardest to steal it away.

The report includes an analysis of last year’s rates, which determines that online journey hijacking will likely remain steady at the 15 to 25 percent mark in September/early October, and increase exponentially during busy shopping periods such as Black Friday, Cyber Monday and Christmas. With holiday sales expected to reach $111 – 114 billion this year, online journey hijacking could result in $2.1 billion in lost revenue.

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