Learn how to improve eCommerce sales without giving any discounts on it.
When the Organization needs to improve ecommerce sales rapidly, the first thing that comes to their mind is commonly offering flash sales or main discounts. At the start, discounting becomes a great path to boost sales. Though the short-term advantages of discounting are tempting, discounts can actually hurt your business in the long run.
Recent research has revealed that there’s a direct correlation between price, discounting, and consumer perception of an item’s value; that is, the recognized value will be lower in the eyes of the customer if the discount is bigger. In this situation, the customer sees “50% Offer and thinks, that product must not be as high-quality as I thought it was.”
Still, discounting your E-commerce products can actually drive harm to your business in the long term.
Ideas to improve ecommerce sales with “No” discounts or any
The Dangers of Discounting
A study shows that there is a direct correlation between price, discounting, and consumer perception of an item’s value. If the discount is higher, the perceived value will be lowered.
⇾Short-term benefits
A new study by a supermarket says that sales of cookies from brand X maximized by 500% during the day of discounting, but fell back to a normal level as soon as the promotion was over.
The same study shows that when one brand discounts their coconut oil, sales are maximized by 450%. However, the competitor’s sales didn’t get minimized during the same period; and in fact, one competitor saw sales increased by 200%.
⇾Long-Term Cost
One trial of subscription-based software companies identified that discounting in the 1st month of service drive customers valuing the product at least 12% lower than the listed price.
Another study found that 81% of proprietors were discounting more now than they were now discounting more than they were five years ago, with 75% saying this had done damage to their brand.
Why don’t people buy your stuff?
Only 2% of shoppers change on their first visit to an online store. Discounts are impressive because they create an incentive to buy now. But you can maximize your sales without resorting to discounts by understanding what stops shoppers from buying and what keeps them coming back for more.
1) 61% of consumers say that they would discard an order if free shipping wasn’t offered
69% of shoppers consider themselves more likely to support a retailer who is ready to offer free shipping. And while offering free shipping can be a bit costly, doing this has been shown to raise order values.
2) 57% of shoppers abandon their carts because they are not ready to buy yet
Sending abandon cart emails within three hours has been shown to reduce abandonment by up to 40%. Using retargeting can also bring shoppers back when they’re ready to shop. Visitors who are back down with the display ads are 70% more likely to convert.
3) 21% of abandoned carts are caused by a slow payment process
From choosing the right hosting to leveraging browser caching and compressing images, minor development to your site speed can lead to big dividends.
4) 17% of abandoned carts are caused by concerns about payment security
Adding security logos to your checkout page has been shown to increase sales by 4-6%
5) 61% of customers read reviews before purchasing
Mainly, Customer reviews are trusted nearly 12% time more than product descriptions from manufacturers and reviews produce an average sales uplift of 18%
Reference Blogs: Reasons for Shopping Cart Abandonment
How to improve ecommerce sales without discounting?
The best thing about E-commerce customers is they love a good deal, and they hate the feeling they might miss out on a sale. A study shows that customers decline the purchasing drive because of shipping costs, not being ready to purchase, slow site speed, and thinking that a website is low-security. You can address these issues by:
- Offering free shipping
- Sending abandoned cart emails within three hours
- Using re-targeting strategy to bring shoppers back when they’re ready to shop
- Developing your site speed
- Adding security logos to your checkout page
Visitors from social media spend on average 8.2% more than other shoppers. Adding the “Shop Now” button to your social media sites will make it much easier for your customers to buy. With “buy it” and “shop now” buttons rolling out on Social Media like Facebook and Instagram respectively, take advantage of the ability to sell natively through social media.
Reference Blogs: How can I run my E-commerce business with fewer products and make million dollars in less than 12 months
Loyalty Program
Customers spend 13% more than average customers
Loyalty programs are specifically well suited to boost ecommerce sales for businesses with products customers need to buy repeatedly or businesses with comparable offerings to their competitors.
⇾Consider your goals:
Acquire new customer loyalty programs can help, improve retention or maximize lifetime value. Decide your main focus at the outset.
⇾Target:
Usage of market research helps to identify the customer segment which is best suited to your loyalty program and to boost ecommerce sales.
⇾Choose your ecommerce business model:
Based on your research, identify the kind of program that will best appeal to your target segment, whether it’s flat discounts, excellent rewards, or personalized offers.
Following these steps can surely boost your sales and conversion rate without giving any offers.
For more details about E-commerce Website Development, contact Webnexs.
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