{"id":9843,"date":"2018-11-06T02:15:26","date_gmt":"2018-11-06T02:15:26","guid":{"rendered":"https:\/\/lavellenetworks.com\/?p=9843"},"modified":"2025-09-17T18:10:48","modified_gmt":"2025-09-17T18:10:48","slug":"how-much-network-downtime-to-retail","status":"publish","type":"post","link":"https:\/\/lavellenetworks.com\/blog\/how-much-network-downtime-to-retail\/","title":{"rendered":"Losing Millions in Minutes: How much Network Downtime costs to Retail industry?"},"content":{"rendered":"

In 2017, Retail e-commerce sales worldwide amounted to 2.3 trillion US dollars. By 2021 it is projected to grow to 4.88 trillion US dollars. With Retailers paying heavy price for network Downtime, can the retail industry achieve the estimated trillion dollars mark? 72% of Retailers reported loss in sales, rise of customer Dissatisfaction and low business productivity during Network Downtime.<\/b><\/h3>\n

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July 16th<\/sup>\u00a02018<\/strong>, online shoppers across United States were all set to make the most from Amazon\u2019 Prime Day Sale. However, what happened next simply turned out to be a disaster for shoppers and Amazon.<\/p>\n

The online extravaganza kick started at 3PM ET. Within no time online traffic boomed. Minutes later, around 3:05 PM ET, the ecommerce giant started experiencing issues with their website.<\/p>\n

Soon Amazon started receiving complaints from shoppers \u2013 in particular from California, New York and the Pacific Northwest – on all social channels. By then it was clear that it was an outage! Amazon\u2019s website started crashing due heavy online traffic.<\/p>\n

So how much did the ecommerce giant loose from this Downtime?<\/p>\n

The Answer is a massive $34 Million per Hour.<\/em><\/p>\n

Last year the online sale extravaganza managed to generate\u00a0an estimated $1 billion<\/strong><\/a>\u00a0in sales<\/a>\u00a0in just 30 hours i.e. approximately around $34 million every hour.<\/p>\n

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8 October 2018<\/strong>\u00a0to hit the 1 million daily order mark restaurant search, discovery, and online food ordering platform Zomato launched \u201cNo Cooking Sunday\u201d campaign offering users 50% discounts on delivery across several cities in India. Within few hours customer complaints of service disruptions started pouring.<\/p>\n

Later the company was quick to issue a statement claiming that there was an outage as a result of heavy traffic flow that the platform witnessed on Sunday.<\/p>\n

\u201cWe are quite overwhelmed with the positive response; it has significantly exceeded expectations. We have comfortably crossed the million order milestone on Sunday – and would have ended up at closer to a 2.5 million mark had we not seen the outage. While the extraordinary volumes may have delayed our responses, we are committed to resolving all customer queries to their satisfaction and will resolve all queries this time around as well,\u201d said Mohit Gupta, chief executive, Food Delivery Business.<\/em><\/p>\n

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\"Retail<\/a>

DOWNLOAD CASE-STUDY: High-Speed Network to deliver High-Tech Customer Experience<\/strong><\/a><\/p><\/div>\n

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The Wrath of Network Downtime<\/strong><\/h2>\n

Online Retail businesses deal with high level data transactions. Short term network outages have long term impacts. Network Downtime for a minute can makes a company lose millions of dollars<\/p>\n

According to Gartner, The average cost of network downtime is around $5,600 per minute. That is around $300,000 per hour. Apart monetary costs, IT downtime can significantly results in overall business productivity<\/p>\n