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LOGICMONITOR BLOG

Leading Analyst Firm Reveals the Real Cost of Internet Disruptions

E-commerce companies lose $6M+ yearly to Internet disruptions. A Forrester study reveals how full visibility into the Internet delivery path cuts losses by over half.

3–5 minutes
Denton Chikura

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E-commerce companies average 72 Internet disruptions per month, and 42% are losing over $500K monthly as a result.

  • 83% of e-commerce companies report losing more than $100K every month to Internet disruptions, including downtime and latency.

  • Only 32% of companies have full visibility across the Internet Stack, leaving most to troubleshoot blind when problems strike.

  • Companies with full-stack Internet Performance Monitoring report 54% fewer losses than those without it.

  • Disruptions can strike anywhere across the Internet Stack, and without visibility into CDNs, APIs, DNS, routing, cloud, and third-party services, teams are forced to troubleshoot with incomplete information.

“Without the internet, Digital Experiences do not exist,” begins Increase Revenue and Improve Customer Experience with Internet Performance Monitoring, a study commissioned to quantify the financial damage Internet outages inflict on e-commerce companies. At first glance, that statement might seem obvious.

But it carries more weight than it appears. The digital experience today isn’t just an aspect of the business. For most e-commerce companies, it is the business. And when that experience degrades, the financial impact is immediate.

For e-commerce leaders, the findings in this study are a wake-up call. Internet disruptions, whether outright downtime, persistent latency, or sluggish page loads, are quietly draining millions from the bottom line. Most companies don’t realize the extent of the damage.

What the Forrester study found

The study, based on a survey of 261 e-commerce and technology leaders, reveals how widespread and costly Internet performance problems have become.

  • Internet disruptions are frequent: E-commerce companies average 72 disruptions per month, each one hitting revenue and customer trust.
  • Revenue and loyalty take a direct hit: 65% of leaders say slow web pages are as damaging as full outages, and 69% report increased customer churn from disruptions.
  • Visibility is limited: Only 32% have full visibility across the internet stack that powers their digital experiences.

The financial cost of Internet disruptions

The numbers tell a clear story. The majority of companies surveyed are losing millions of dollars each year to Internet disruptions, including both downtime and latency.

Estimated monthly losses due to Internet disruptions

  • 42% of companies lost over $500K in just one month, equating to $6M+ per year
  • 83% reported losing more than $100K monthly

The root cause: poor visibility into the infrastructure that connects users to digital experiences.

Monitoring gaps leave businesses exposed

Most e-commerce firms monitor some aspects of Internet performance, but the study reveals comprehensive visibility is rare. Only about one in three companies monitor the full internet stack, across their enterprise, and even fewer do so successfully.

The internet stack is the collection of technologies, systems, and services that make possible and impact every digital user experience, from the core Internet systems like BGP, network technologies like TCP/IP, security technologies like SASE, protocols like QUIC or POP, cloud services, third-party dependencies including APIs and web services, and SaaS applications. The term refers to all IP-based networks including the public Internet, private networks, and everything in between.

The study states: “Without the appropriate technologies and tools, gaining visibility into the internet stack is challenging, if not impossible, but with so much to lose, that’s no excuse. The Internet is the life force of e-commerce, and monitoring performance to identify and fix disruptions quickly should be a top priority.”

In practice, most businesses are still reacting after the damage is done, often with incomplete data, manual troubleshooting, and no clear way to pinpoint the source of an issue.

Full Internet visibility delivers measurable results

Companies that invest in robust internet performance monitoring (IPM) are seeing real results. The study defines successful IPM as the ability to quickly identify the source of disruptions, allowing teams to fix issues fast and restore normal operations.

The data backs this up. Companies monitoring the full Internet delivery path report 54% fewer losses than those without IPM, and 14% fewer than those who only monitor their most critical systems. Losses of at least $1 million are down by a third among these leaders.

The positive business impact of identifying Internet disruptions quickly

But while the benefits are clear, few companies are implementing it well. Only 32% monitor the full Internet delivery path across their enterprise. That gap represents a significant opportunity for organizations willing to invest in deeper visibility.

LogicMonitor Digital Experience provides the visibility e-commerce companies need to close this gap. By extending monitoring across CDNs, APIs, DNS, routing, cloud infrastructure, and third-party services, teams can pinpoint disruptions at any layer of the Internet delivery path, rather than troubleshooting blind.

Gaining visibility across the full Internet delivery path

The study highlights a critical gap: disruptions can happen at any point across the Internet delivery path, whether in CDNs, APIs, DNS, routing, cloud infrastructure, or third-party services outside a company’s direct control. Without visibility into these layers, most companies are operating with incomplete information when problems arise.

While 100% of study respondents agree that internet performance monitoring has a positive business impact, only a small fraction are achieving full-stack observability today. LogicMonitor’s platform helps close that gap.

See how full Internet visibility protects your revenue.

LogicMonitor Digital Experience, including Synthetics and Internet Performance Monitoring, gives your teams a single view from user to code, so you can spot disruptions sooner, understand where they’re coming from, and fix them before they turn into lost revenue.

 

FAQs

How many Internet disruptions do e-commerce companies typically experience?

According to the Forrester study, e-commerce companies average 72 Internet disruptions per month. These include full outages, latency spikes, and slow page loads, all of which directly impact revenue and customer trust.

What is the Internet delivery path, and why does monitoring it matter?

The Internet delivery path refers to the full collection of technologies that power digital experiences, from BGP and DNS to CDNs, APIs, cloud services, and third-party dependencies. Monitoring only parts of the path leaves blind spots that delay troubleshooting and extend outages.

How much can Internet Performance Monitoring reduce losses?

The study found that companies monitoring the full Internet delivery path report 54% fewer losses than those without Internet Performance Monitoring. Losses of $1 million or more dropped by a third among companies with comprehensive visibility.

By Denton Chikura

Content Marketing Manager

Denton Chikura is a Content Marketing Manager for LogicMonitor Digital Experience, where he drives content on observability, Internet performance, and digital experience. He writes for SREs, IT operations teams, and business leaders, turning performance data into guidance they can act on.

Disclaimer: The views expressed on this blog are those of the author and do not necessarily reflect the views of LogicMonitor or its affiliates.

By Denton Chikura

Content Marketing Manager

Denton Chikura is a Content Marketing Manager for LogicMonitor Digital Experience, where he drives content on observability, Internet performance, and digital experience. He writes for SREs, IT operations teams, and business leaders, turning performance data into guidance they can act on.

Disclaimer: The views expressed on this blog are those of the author and do not necessarily reflect the views of LogicMonitor or its affiliates.

© LogicMonitor 2026 | All rights reserved. | All trademarks, trade names, service marks, and logos referenced herein belong to their respective companies.

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