According to 99Firms’ Ecommerce Statistics for 2020, the eCommerce market is not only thriving, but it’s expected that more than 95% of all purchases to be conducted via eCommerce by 2040. It is expected that mobile commerce will take a market share of eCommerce of 72.9% by 2021. Most consumers prefer to pay with a credit card while 51% of online consumers purchase online via mobile phone.
DigitalCommerce 360 made a survey on customer behaviour in 2019. The research showed that 61% of the interviewed participants don’t compare shops on another website once they find a product they like.
Free shipping is the most important factor for consumers when deciding from which retailer to make a purchase. The second most important factor is the ease of shipping return followed by the cost of return.
Given the fact that the average margin for an online order is 10 %, the average cost of one return is, therefore, $15.00. To reduce your return cost, consider checking the addresses that consumers enter. Most likely, your consumers are entering the address incompletely. This creates chargebacks and all the associated costs of a typical return that eat up that already slim margin. In order to do so automatically, consider connecting API with actual USPS data to correct and validate address information. Ensure address correctness to avoid high return costs in the long run.
Understanding your customer’s journey
Understanding your customer’s journey starts with behavioural analysis. Start with tracking data through online tools such as Google Analytics or Order information from past purchases. Find out where the majority of your customers come from, whether it’s through social media, organic search or referral. Check how many of them look for reviews or rating before they visit your eCommerce website. Finally, determine how many visitors to your site actually end up completing an order and what those who don’t do instead.
Understanding the modern customer’s journey in an omnichannel world means understanding behavior.
Online shoppers may browse products on their laptop, maybe click on a promotional Instagram photo on their mobile device, open up your app, and place an order, all in a couple of hours.
This means making sure you can not only be discovered on multiple channels but also that you track conversion across them.
As an example, if you are a North American retailer that relies heavily on social commerce, you’ll most likely have to rethink how to establish your brand and reach your market in China or Japan. Having said that, to be successful, you need to understand the local market better.
Optimizing eCommerce online shopping experience
Diagnosing where potential customers drop off in your e-commerce checkout flow can be a powerful way to boost sales. You should determine how to convert website visits into the purchase. Using your behavioral analysis can pinpoint how many users moved from one step of the checkout process to the next and how many abandoned the process at each step.
Are users ending their session before getting to the checkout page? Maybe there are issues with flow’s copy or design. Do users from a certain region have an extremely high drop-off rate after the first step in the flow? Perhaps there’s a language barrier that needs to be overcome.
To sum up, every brave initiative—whether it’s a marketing campaign, a website redesign, or the launch of your business in a new region are more easily performed with behavioral analysis. Use the data you already have to your advantage, rather than to follow just your intuition.