What Is E-Business Benchmarking?

E-business benchmarking allows an online business to set company goals based on specific e-commerce industry standards. The Computerworld Magazine website names company expenses and business status as important information to consider for e-business benchmarking.

Significance

E-business benchmarking enables an online business to measure progress. For instance, say a company sets the goal to double traffic to the company's website within a year. The online business would use a website traffic tracker to determine the goal's progress.

Benefits

Effective e-business benchmarking entails regular progress evaluation to determine whether the company is on schedule to meet the set goals. This evaluation allows the company to determine if any e-commerce strategies need amendment. For example, a low income company might decide to sell advertising space on the company website to earn additional revenue.

Tips

Volusion, an online business software company, recommends establishing long term goals before short term goals. For instance, a self-published author might set the goal to sell 1,200 books a year through his website. To accomplish this goal, the author might set the short term goal to sell 100 books a month.

References

• Computerworld: E-Commerce Benchmarking
• Volusion: The Importance of Benchmarking