The 80/20 Rule In eCommerce


The concept: 80% of your revenue comes from 20% of your customers.

This article includes a simple yet useful infographic to help you understand where your online revenue comes from.

 

The 80/20 rule is no new concept. Developed by Vilfredo Pareto in 1906, the idea is that for many events, roughly 80% of the effects come from 20% of the causes. This concept has been applied to various different areas such as business, health, and even eCommerce! For example, in the IT sector, about 12% of shoppers use on-site search. However, that 12% of shoppers account for 41% of total revenue!

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