While your Ecommerce shop may be successful, it’s likely there are still areas where you could save money. Here is a look at some of the common ways online stores are losing money. These are some of the analysis from Webnexs Ecommerce Solution that can help you to boost profit from your Ecommerce store.
1. Poor Conversion Rates
The Impact:
• 84% of online shoppers review at least on social media site before making a purchase
• Using product videos can boost product purchases by 144%
• Inaccessible websites account for a loss of 2.5 million ticket sales annually in UK music industry
How to boost Conversion Rates?
There are various methods to boost your conversion rates, but the following are a good place to begin:
• Design the site for ease of use. Make sure the “Add to cart” and “Checkout” buttons are easy to find
• Make sure it is accessible to those with certain disabilities
• Create videos and image gallery for your products
• Be honest. For instance, if something is out of stock, let your customers know
To earn your customer’s support, you can follow these:
• Pointing them to testimonials and recommendations on your social media sites
• Providing a phone number that connects them to an actual person
• Providing a privacy policy
• Using security badges that show you have a secure checkout process
Pro Tips:
• Offer multiple payment methods like credit, debit card, PayPal, etc.
• Notifying them when package is shipped
• Sending tracking number
2. Handling Returns
The lack of a return policy that benefits both you and your customers can become costly
The Impact:
• 30% of online purchases are returned die to poor return policy
• Returns account for 81% of sales for the average retailer
• 66% of consumers read the return policy before making a purchase
• 81% of online shoppers want a simple and fast return process
How to improve your policy?
• Allow more time for returns
• By increasing the amount of time, customers have to return the product, you are building trust and making the feel more comfortable about their purchase
• Many companies have tried this method and seen an increase in sale
Pro Tips:
• Include a link to your policy at the top and bottom of your website so it’s visible and easy to access
• Keep the return policy simple and easy to understand
3. Shipping
Customers may leave your site if they are not satisfied with the shipping cost or delivery time
The impact:
28% of online shoppers will abandon their cart if the shipping costs are too high
How to improve Shipping costs?
• Work with your vendors, the less you pay for them for shipping, the less you can charge your customers. They may offer discounts for larger purchases.
• Negotiate with shipping companies. If you ship large amounts, you can negotiate with different carriers
• Use your carrier’s packaging instead of your own. This can save you from extra charges
Pro Tips:
Pay for your shipping online. You can save 16% on priority mail orders from USPS and 60% on express mail
4. Credit Card Fees
Accepting credit card payments are a requirement for online shops, but they can become costly
The impact:
The average credit card fee for online stores is between 2.3% & 2.5%
How to reduce the costs?
When looking for a vendor, make sure you have a full understanding of all the types of fees you will incur
• These can include interchange fees and processing fees
• The fees will vary depending on if your customers use debit or credit cards
• Online stores are considered Card-Not-Present business and pay higher interchange fees
Pro Tips:
Consider using services like PayPal instead of card processing services that have higher fees
5. Cart Abandonment
Even the most successful online stores experience cart abandonment, but there are always ways to avoid it
The impact:
• Cart abandonment accounts for a loss of $18 billion in sales each year
• According to a survey by Webnexs Ecommerce Solution, 68.63% of customers abandon their online shopping carts
Why they abandon their carts?
• High Shipping cost
• Long delivery times
• Lack of delivery details
• Complicated checkout process
• No guest checkout
Improve your User Experience
By doing some of the following you can improve the overall user experience and increase sales:
• Shorten forms
• Simplify checkout process
• Promote your site’s security features
• Use Website Analytics to figure out at what point customers are leaving
With a user friendly website and rearranging your online store can begin to regain some of the money it may have lost along the way. Make sure to be honest with your customers and do not give them any unexpected costs along the way
For more details regarding Ecommerce online business, you can get assistance from Webnexs Ecommerce Solutions provider.