How to make an e-store profitable

 

Why  some online shops have buyers coming back on and on, and others close almost immediately having even lower prices and favorable conditions? What attracts or disaffects users?

 

1) Website Design & Usability

Despite all the psychological tricks of marketers, people love with their  eyes and  site design still plays a key role in choosing an online store: 93% of buyers consider the visual appeal of the site as a key factor in making a decision to make a purchase. As they say, you will not have a second chance to make a first impression, so special attention to design and usability should be paid. 52% of buyers leave and never return to sites if  they do not like it for aesthetic reasons.

By the way, the work on the usability pays off at times – the ROI comes up to 83%. For example, such simple step as forced registration canceling can increase a number of purchases to 45%. 

Another important fact – the speed of site  loading. According to Amazon research, every 100 milliseconds of loading cost the store 1% of sales, and customer satisfaction falls by 7% after each additional second of  loading.

And don't forget about using video materials – 96% of shoppers find videos useful when they make an online purchase decision, and 73% of shoppers are more likely to make a purchase if they can watch a video about the product or its use.

It is an interesting fact  that about 40% of buyers make 25% of purchases using mobile devices in the world, and in China and India– 80% and 65% respectively.

 

2) Customer service and abandoned carts

Each year, due to the problem of abandoned carts  retailers lose from 2 to 4 trillion dollars.

Buyers still have a lot  of doubts: whether the size fits or the item will look the same as in the photo, etc. So, the possibility of a return of commodity  plays a significant role for most customers. 63% of US buyers check their return policy before making a purchase, and 48% of buyers are willing to buy more from online retailers which offer an easy return process.

 

3) Feedback and customer engagement

One more  factor in making a decision about the purchase – reviews of other users who have purchased the product. 77% of customers study product reviews before making a purchase. Adding reviews to the site increases conversion by 34% and provides sales growth by 18%.

 

4) Discounts and loyalty programs

A loyal customer brings more revenue over time. On average, a buyer, who has been with the store for several years, spends 67% more in the period of 31-36 months compared to the first half of the year.

As for bonuses, 40% of customers prefer to get a discount on their purchase instead of bonuses or gifts.

Free shipping should be mentioned as well, because this is the main criterion for most buyers while making a purchase. 47% of buyers say they will stop buying if during the fill in process it turns out that free shipping is not included.

 

5) Company image

The image of the company in the media  and its social and environmental policy play an important role in the purchase  decision. 

Customers like to follow brands in social networks, but 37% of online buyers note that the company's activity in social media is not a significant factor in the process of making purchases. The company's blog is an important link in the buying path for only 7% of customers.

But the social activity of the company means much more: 66% of users in the world are willing to pay more for the goods and services of companies involved in social initiatives or environmental protection.

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