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Strategy Dec 08, 2024 • 4 min read

Why 'Fast' is the only feature that matters

Amazon found that every 100ms of latency cost them 1% in sales. Here's why speed is your most important asset.

Why 'Fast' is the only feature that matters

In the digital economy, speed isn't a luxury—it's the currency of conversion. It's the silent killer of sales and the invisible driver of loyalty.

The 100ms Rule

Amazon, the world's largest e-commerce retailer, conducted a landmark study as early as 2006 demonstrating a direct correlation between page load time and revenue. They discovered that a mere 100-millisecond delay in page load time resulted in a 1% drop in sales.

To put that in perspective: In 2006, that 1% loss was estimated at $107 million. Today, with Amazon's revenue in the hundreds of billions, that same split-second delay would cost them roughly $3.8 billion annually.

Google’s Data on Bounce Rates

Google has long used page speed as a ranking factor, but their data on user behavior is even more telling. They found that as page load time increases from one second to three seconds, the probability of a user "bouncing" (leaving immediately) increases by 32%.

If that delay stretches to five seconds? The bounce probability skyrockets to 90%. In a world where 47% of consumers expect a page to load in 2 seconds or less, patience is nonexistent.

The Bottom Line

A Deloitte study in collaboration with Google found that a 0.1-second improvement in load time can boost conversion rates by 8.4%. Speed is not just a technical metric; it is a fundamental business asset.

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