Online commerce has some unique characteristics that impact the likelihood of a customer making a purchase. Addressing what makes an online brand different will help business owners improve their profits.
1. Offer Free Shipping
One of the easiest ways to increase profits in e-commerce is by improving the shipping options available. Surveys show 66% of customers expect free shipping, regardless of the total cost of their order. In fact, shipping charges can be a big cause of cart abandonment.
Finding a way to offer free shipping can help put customers at ease when they’re shopping. They know the cost of the items they choose is the price they will pay, with no extra shipping charges attached. Offering free shipping may even encourage shoppers to spend a little more money on their orders.
2. Streamline the Landing Page
The e-commerce equivalent of a window display is the site landing page. It should feature the highlights the business has to offer. For example, a business owner could advertise their best-selling products on the landing page. This page should give shoppers an overview of what the shop offers and what the brand is all about.
Streamline the business’s landing page so it’s as welcoming as possible. Think of it less like a one-page stop and more like a window display designed to entice shoppers to see what else is in stock. An approachable landing page will help get shoppers engaged and excited to make a purchase rather than overwhelm them.
3. Use Clear, Descriptive Product Details
One big issue many e-commerce businesses face is excessive returns. Not only are these expensive and time-consuming to process, but they also eat into profit margins. E-commerce businesses can address high return rates by improving their product descriptions.
For example, thorough sizing details on clothing items are essential. Business owners have many options for describing their sizing system, too. They can use digital fitting room tools to show customers how an item might look in different sizes. AR and digital try-on are both popular with customers, as well.
These features increase customers’ likelihood of making an informed sizing decision, reducing the probability of a return. Regardless of the product type, improving item descriptions ensures shoppers have as much information as possible before purchasing.
4. Advertise Sales and Limited Supply
A great way to improve profits is to encourage shoppers to complete their purchases using sales and limited supply notifications. Surveys show 81% of shoppers are looking for great value when they shop, from start to finish. Knowing a product is on sale can be a fantastic motivator for a few reasons.
A sale gives customers the satisfaction of getting a great deal. Additionally, sales create a burst of excitement through the experience of good luck or good timing. Customers may feel it’s their lucky day when they realise the product they’re interested in is on sale. Third, sales create urgency — knowing a product will cost more later encourages shoppers to finish their purchase now.
5. Optimise for Mobile Shoppers
Every business should care about its mobile website, but it’s crucial for e-commerce businesses. If the business’s mobile website is poorly designed or doesn’t function smoothly, shoppers are more likely to leave. Poorly designed mobile websites reduce trust and create a frustrating shopping experience.
So, e-commerce business owners need to polish and optimise their website so it runs excellently on phones and tablets. This is particularly important for a successful social media marketing campaign, which will pull in many customers browsing specifically on mobile devices.
6. Reduce Operating Costs
Ecommerce business owners can improve their profit margins by reducing their operating costs. While this doesn’t directly increase sales, it does mean less money is necessary to make a sale. There are several tools business owners can use to minimise their operating costs.
For example, any business owner can create an Amazon Business account, even if they don’t want to sell their products on Amazon. An Amazon Business account gives business owners access to discounts and special pricing on thousands of products, including many that are essential to running a business.
Similarly, ecommerce businesses can consider allowing their employees to work entirely remotely. Not only will this eliminate the need to rent office space, but it will also be a perk to many employees.
Creating a Better Digital Shopping Experience
Ecommerce businesses can improve their profit margins by addressing key aspects of the customer experience. Factors like shipping costs, product value and mobile shopping experience can also heavily influence whether or not a shopper completes their purchase. By improving these critical performance indicators and features, customers will be more likely to buy from the business.
