What is e commerce?

Firstly, what is e commerce? 

The correct definition for e commerce is: commercial transactions conducted electronically on the Internet. This simply means the buying and selling of products/services over the Internet.

Who shops online?

A survey held by Advantec, shows the 21 to 35 age gap (often branded as ‘millennials’) are making the most purchases online, with 69% of them saying they have made two or more purchases online in the last 30 days.

Demographics that contribute to e commerce, by making two or more purchases each month.

 

Offer a great user experience

Above all else user experience should be of prime concern when running an e commerce store. A great e commerce user experience, guarantees the shopper gets through the buying process effectively.

Responsive web design allows customers to have a consistent experience across any device they choose to use while shopping, whether desktop, tablet or mobile.

Advantec conducted a survey with the results displaying ‘48% of shoppers browse on a mobile / tablet and place the order on a desktop.’ This supports the idea that it is important for businesses to have mobile friendly web design.

Google said that on April 21, 2015, Google’s mobile ranking factors will not only label your site as mobile-friendly, but will also use that to determine if your site should rank higher in the search results.

How do customers prefer to search and purchase products online?

 

Build loyalty 

It comes as no surprise that online customers will look for the best deal, which makes generating sales a lot more challenging for businesses. The best way to overcome this is to build loyalty to generate repeat custom. According to vantage ‘it can take up to 7 new customers to generate the same amount of revenue as a single repeat customer.’

Rewarding your customer for making a purchase sets your business apart from your competitors. Business 2 Community states ‘Nearly 2/3 of consumers surveyed admitted that a promotion or a coupon often closes the deal, if they are wavering or are undecided on making a purchase.’

Volocommerce survey below demonstrates further ways to get customers to spend more, with 43% admitting they would spend more money if they were offered a discount, and 41% would spend more if they were offered free shipping.

Tips to increase your e commerce sales.

 

Use social commerce

Social commerce involves using social media networks to encourage or make e commerce transactions.

As a business, the important thing to remember is most people visit social media several times a day, social commerce allows customers to buy products wherever is most convenient for them.

Gov UK has said that ‘Facebook is still the most popular app, and accounts for 50% of all social referrals and 64% of the total social revenue.’

Ecommerce nation further states social commerce is something to be considered for businesses, ‘4 in 10 users have purchased an item after having shared it on social media. This means that the more viral a product post is on social media, the higher the purchase rate for that item will be.’

Social commerce should be linked back to building relationships with customers, as social media allows you to constantly engage with your customers and offer an excellent level of customer service.

 

Price 

A huge factor to most customers is price, as google has made it so easy to compare products online, it is a good idea to benchmark your prices alongside your competitors, to ensure a good result in e commerce sales.

A survey from volocommerce supports that, demonstrating businesses offering competitive prices are most likely to succeed in getting customers to complete a sale, with 53% saying price is what influences them to shop online.

How to generate further e commerce sales.

 

Once you have hooked your customers with competitive pricing, refer to user experience. The below survey from Advantec shows 46% of customers prefer to pay for products via paypal, by offering a smooth buying experience you are more likely to close the sale.

How customers would like to pay online.

 

Things to take away:

  • 21 – 35 age gap make the most purchases online
  • 48% of shoppers browse on a phone/tablet & make the purchase on a desktop, so make sure your website is mobile friendly
  • Nearly 2/3 of consumers surveyed admitted that a promotion or a coupon often closes the deal
  • 4 in 10 users have purchased an item after having seen it on social media
  • 46% of customers prefer to pay for products via Paypal

 

Purple Sprout stays on top of social media trends so you don’t have to. Call us on 01782 658524 to see how we can help your business to develop a successful social media marketing and e commerce campaign.

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