2020 proved that e-commerce is important for the survival of the business. Businesses that did not go online before the pandemic had no choice but to shut down operations as nations enforce restrictions to control the virus. Those that already had a well-established shopping website or app prior to the economic crisis were able to continue operating.
Amazon is the big winner this year. The company posted $75 billion in revenue during the first quarter of the year, up from $35.8 billion from the same period last year.
The company said that there was a significant increase in demand for online grocery deliveries. As lines in supermarkets grew longer and stocks for necessities, particularly toilet paper, became scarce, consumers turned to online stores to provide their needs.
This demand for internet-based services will likely continue even after the pandemic. The number of online shoppers is expected to grow to 2.14 billion by 2021, or over a quarter of the entire human population.
Website Design Leads to Conversion
However, having an internet presence is not enough. Your e-commerce platform has something called a conversion rate which is the percentage of consumers who go to your site or app and push through with a transaction.
Several factors affect conversion rates, including website design. An e-commerce platform developed by professional small business web design services will likely be packed with features that encourage interested customers to click “Add to Cart” and “Check Out” by the end of the visit.
If the site is not optimized to be easy to use and responsive to a customer’s individual needs, it may turn away consumers. It will lower the online store’s conversion rate.
A low conversion rate means that the site may be giving a bad impression, is not adapting to different mobile screen sizes, difficult to navigate, or just not engaging at all. Whatever the reason is, your business is losing opportunities to profit.
Using low-quality pictures and a vague company will also discourage customers from making a purchase. Since there is no way for consumers to test-drive the quality of the product online, the store should provide every relevant detail.
Average Conversion Rates
Having a 100% conversion rate is not possible. On average, the conversion rate for e-commerce platforms ranges from 1% to 2%. However, the number of changes based on what products are being sold by the site.
Sites that specialize in health and well-being products have the highest average conversion rates at 3.58%. It is followed by arts and crafts stores that have 3.31% average conversion rates.
Pet care (2.98%), kitchen and home appliances (2.63%), and electronic and commercial equipment (2.15%) all have above 2% conversion rates.
Give Away Coupon Codes
Offering coupon codes to interested customers is an old, but effective way to encourage a customer, especially those who may be having second thoughts, to push through with a purchase.
Scientists have looked at how coupon codes and other freebies affect consumers psychologically. They found that store promotions trigger the release of oxytocin, the hormones that regulate mood. In short, people feel elated whenever they receive good deals.
It also boosts revenue. Whenever there is a discount, shoppers are less likely to abandon their cart. The number of new sign-ups and customers increases every time there are coupon codes to be redeemed.
Run Cart Abandoned Software
Some customers sign up, look around, select products they want to buy, but never check their cart out. For these instances, the cart abandoned software may convince them to go back and complete a purchase.
The software has the capacity to track customers who may have products left on their carts. It reminds customers of the items they want to buy. It can also send special discounts and incentives to make customers go back to the e-commerce platform and shop.
Ship Their Purchases to Their Doorsteps for Free
One factor that may make customers abandon their cart in the first place. People are willing to purchase products that are above the $50 mark but may feel apprehensive paying an extra couple of dollars for shipping.
Free shipping, therefore, would lead to higher conversions. If the store only offers free shipping above a certain amount, it may encourage consumers to buy more products, too.
If it is too expensive, businesses can balance the expense by adding it to the cost of the products.
In the increasingly digital world, e-commerce is important for businesses across all industries. Consumers are more interested to shop online rather than in traditional retail stores. E-commerce platforms are also more likely to weather economic crises such as the 2020 COVID-19 pandemic.
However, the success of an online business lies in its conversion rate. If the conversion rate is low, there may be a problem. Adopting the strategies mentioned above will increase conversion rates.