Common Factors Affecting Suboptimal Performance in Your Online Sales

It’s 2024, and the eCommerce landscape is evolving at a rapid pace with technologies like artificial intelligence, chatbots, augmented reality, and iBeacons making headlines. Amidst the excitement and buzz, it’s easy to be drawn to the latest innovations, hoping they’ll revolutionize your eCommerce sales. However, before diving into the newest trends, it’s crucial to step back and ensure that you have the foundational elements in place to maximize your sales. While these basics may not be groundbreaking, many are becoming essential, and neglecting them now could put you at a disadvantage compared to competitors who have their fundamentals well-established.

As we are aware, enhancing eCommerce sales revolves around conversions (and, of course, retention). In the upcoming articles, I will be publishing a series of articles focusing on the complete conversion funnel. While people may use different terms for the conversion funnel, here’s the breakdown I’ll be covering in the upcoming articles:

• Boosting website traffic
• Convincing more visitors to become shoppers (add items to the cart)
• Converting shoppers into customers (complete a purchase)
• Retaining customers post-purchase for repeat business

Here is the initial article, zeroing in on one of the most vexing eCommerce challenges: the notorious shopping cart abandonment!

Quit Abandoning me!

Shopping cart abandonment rates, depending on the data source, range from 60-80%. It’s a concerning statistic that shouldn’t be dismissed. If you believe that many visitors are just browsing, consider this: according to the Baymard Institute, a well-designed checkout process could lead to a 35.26% increase in the conversion rate for an average large-sized e-commerce site.

Let’s apply that 35% improvement statistic to the hypothetical Power Transactional Company (PTC), shedding light on the tangible financial benefits and the substantial impact you can achieve by enhancing your eCommerce sales:

PTC Overview:

• Website revenue: $100 million
• Average order value: $225
• Total cart abandonment rate: 70%
• Number of visitors who add items to the shopping cart: 1.48 million.
• Number of visitors who add items to the shopping cart but don’t complete the purchase: 1.04 million (70%)
• Number of visitors who make a purchase: 444,444 (30%)

Small Adjustments Lead to Significant Revenue

Baymard Institute suggests a potential 35% increase in conversions with an enhanced checkout process. However, for a conservative estimate, let’s consider a quarter of that figure – an 8.75% improvement.

Enhancing the Checkout Experience for PTC Yields a $29.2 Million Revenue Boost

**** 129,500 new customers (1.49 million visitors x 8.75%) x average order value of $225

There’s a potential additional revenue of $29.2 million by solely concentrating on improving the checkout process. Now, how can this be achieved? It might not be effortless, but it’s certainly achievable.

We will concentrate on essential elements that you might not have implemented yet, for reasons such as budget constraints, resource limitations, or time constraints. As demonstrated in the PTC example, dedicating effort to refining your checkout process can significantly boost conversion rates and, consequently, enhance your ecommerce sales. Skeptical? Explore the impressive results our clients have achieved.

Some shoppers may be: Not ready to make a purchase and simply exploring the product offerings. Comparing prices before deciding. Intending to finalize the purchase in-store.

Checkout funnel

Some elements are so fundamental that we presume they are already part of your setup

1. Providing clear visibility of the shopper’s position in the checkout process, signaling their progression, and instilling a sense of accomplishment!
2. Provide a variety of suitable payment methods. When transitioning to a new site, consider incorporating third-party systems such as PayPal, Visa Checkout, or Amazon Pay. Ensure that the Visa Checkout option is well-suited, encompassing more than just credit cards or bank account details. Establishing trust is paramount!
3. Enable returning customers to conveniently choose shipping and billing details from their account.
4. Present pricing information for all available shipping options.
5. Provide shipping promotions and show qualifying messages when customers are near the threshold for free shipping discounts. The shopping bag is an ideal location for displaying this messaging, as shoppers often seek free shipping offers for orders over a certain value.
6. Ensure a streamlined checkout process by minimizing distractions, allowing shoppers to concentrate on completing their purchase effortlessly.
   • Opt for enclosed checkouts with minimal distractions, featuring only essential elements like a logo, progress bar, and a streamlined footer. Keep in mind the shopping preferences, as women tend to focus on the bigger picture and may easily get distracted, especially since they handle a significant portion of the shopping. Simplify the process and maintain a clean design.
   • Strategically display promo codes, preferably on the cart page, and consider leaving them there unless your business model involves frequent promotions. Shoppers appreciate feeling they’re getting the best deal.
   • Eliminate unnecessary steps and avoid requiring shoppers to register before making a purchase. Opt for a one-step registration process, capturing password information toward the end of the purchase flow for a smoother experience
   • Avoid displaying product recommendations and third-party ads during the checkout process.
   • Provide clear inventory messaging to prevent any false impressions about the timely delivery of merchandise.
   • Implement email campaigns targeting users who haven’t returned to the site within a specific timeframe. Consider offering personalized promotion codes at the beginning of the checkout process to incentivize their return.
   • For gifting sites, ensure support for multi-shipments and multi-payments, allowing users to purchase the same gift for different recipients with various payment types within a single transaction.
   • Boost trust and credibility by prominently displaying privacy and security statements on the site.

Business stakeholders must prioritize essential elements that may have been overlooked due to constraints like budget, resources, or time. The example of PTC demonstrates that even with a targeted effort to enhance the checkout process, significant improvements in conversion rates and overall eCommerce sales can be achieved.

Optimal Pricing Strategy

Recall the TV show ‘The Price is Right’? Well, the pricing must be just right, or you run the risk of losing customers. In today’s digital age, shoppers can easily open a new tab and swiftly determine if your product offers the best price. To stay competitive with giants like Amazon, it’s crucial to have price comparison software that consistently assesses and adjusts your prices to match or beat those of other websites.

Price comparison software have certain apps that you can scan the barcode and look for prices at certain retailers. Some sites do have their Price match feature that you can submit the form online. If the difference is <5%, they honor the price right there. If more, they need to validate against the form.

Seamless Site Navigation

Seems straightforward, doesn’t it? Yet, it’s not as simple as it sounds, or everyone would be doing it. Have you ever received advice from your ecommerce partner saying, ‘Your site needs to be intuitive for the user’? But what does that truly mean? It means anticipating my next move, understanding my needs, and providing the best path along with all the necessary information for a quick and easy purchase. Avoid making me leave the page, questioning what to do next, or causing distractions!

1. Minimize distractions:
   • If starting from the cart page, clicking on checkout, and proceeding to the shipping page, the user should only see the logo and a trimmed-down version of the header.
   • Avoid displaying anything outside of that screen to prevent distractions.
   • Limit calls-to-action (CTAs) to just the logo.
   • Considering that women tend to be gatherers and see the bigger picture, it’s important to keep the checkout process simple, focused, and free from unnecessary distractions, especially since women are significant contributors to shopping trends.
2. In the fashion industry, where 70% of website visitors are women and 30% are men, a real-time personalization strategy is crucial. The focus is on enticing women with products and articles, but once items are added to the cart, minimizing distractions becomes imperative.
3. Payment methods should align with user preferences. For new sites, incorporating third-party systems like PayPal or ensuring the integration of the right Visa checkout is essential. The emphasis is not just on credit cards or bank accounts.
4. Streamlining the checkout process involves using trimmed headers and footers, ensuring a seamless experience for users.
5. For gifting sites, supporting multi-shipments, multi-payments, and various payment types within a single transaction becomes important.
6. Promotions, such as free shipping for orders above a certain amount, require personalized strategies. Displaying the closest qualifier to free shipping helps users track their progress.
7. Displaying promo codes is done strategically, preferably in the cart page, unless the business model involves frequent promotions.
8. Updating shipping information in real-time as customers provide their addresses enhances the overall user experience.
9. Streamlined UI navigation is essential, avoiding clutter on the site for a cleaner interface. This is particularly critical for mobile and tablet designs, ensuring a seamless experience without the need for pinching and zooming. The right call-to-action buttons, such as “Proceed to Checkout” on the cart page, contribute to easy navigation.
   • Ensure both desktop and mobile experiences are tailored for optimal responsiveness.
   • Utilize HTML and responsive design to support compatibility across all platforms.
   • Distinguish between mobile web and mobile app experiences; the mobile web targets visitors, while the mobile app is geared towards established customers.
   • In industries like fashion, where cultivating loyalty is key, having a dedicated app, especially for a youthful audience, can be advantageous.
   • Recognize the desire for apps as part of building customer loyalty and convenience.
10. Monitor Key Performance Indicators (KPIs) diligently to ensure quarterly and yearly objectives are met, aiming for a specific percentage increase. Utilize analytics tools for continuous tracking and evaluation. While tools like Google Analytics provide valuable insights, it’s essential to go beyond static data. Look for dynamic analytics that provide detailed information, such as the number of purchases within a specific age group or category, enabling a comprehensive understanding of user behavior.