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Why Your Ecommerce Store Still Lose Money?

ecommerce-store

Nothing is perfect!

In business, it’s definitely right. Whether your business is big or small, successful or not, you’re still losing money everyday. However, the importance is you have to spot the problems of your business and fix it, it will help you to minimize losses. This article will bring to you some common problems that often occur with ecommerce website.

Poor conversion rates

The facts:

  • 84% of online shoppers review at least one social media site before making a purchase.
  • Using product videos can increase product purchases by 144%.
  • Inaccessible websites account for a loss of 2.5 million ticket sales annually in the UK music industry.

How to improve:

There are many ways to improve your converions, but the following are a good place to start:

  • Design the site for ease of use, make sure “Add to Cart” and “Checkout” buttons are easy to find.
  • Make sure it’s accessible to those with certain disabilities.
  • Create product videos
  • Be honest, for example, if something is out of stock, let your customers know.

Earn your customer’s trust, you can do this by:

  • 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.

Offer multiple payment methods such as credit, debit, Paypal and etc…

Keep customers updated: notifying them when package is shipped and sending tracking number.

Using tools that will help you figure out exactly why customers are leaving your site such as Google Analytics, Crazyegg, Clicktale, Orlark…

Handling returns

The facts:

  • 30% of online purchases are returned.
  • Returns account for 8.1% 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:

Allow more time for returns, by increasing the amount of time customers have to return the product, you are building trust and making them feel more comfortable about their purchase. Many companies have done this and seen an increase in sale, e.g Zappos.com, Coastal.com

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.

Shipping & delivering

The facts:

  • 28% of online shoppers will abandon their cart if the shipping costs are too high

How to improve:

Make sure that shipping costs are displayed clearly in the early of checkout process.

  • Work with your vendors, the less you pay them for shipping, the less your can charge your customers: they may offer discounts for larger purchases, some of offer a discount of 2-5% for advance payment of shipping.
  • Negotiate with shipping companies: if you ship large amounts, you can negotiate with different carriers. Consider using a fulfillment company that offers lower shipping costs especially for companies with low-medium shipping volume.
  • Use your carriers’s packaging instead of your own: this can save you from extra charges for awkward sizez boxes.
  • Pay for your shipping online: you can save 16% on priority mail orders from USPS and 60% on express mail.

Credit cart fees

The facts:

  • The average credit card fee for online stores is between 2.3% & 2.5%

How to reduce:

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 businesses and pay higher interchange fees.
  • Consider using services like PayPal instead of card processing services that have higher fees.

Shopping card abandonment

The facts:

  • Cart abandonment accounts for a loss of $18 billion in sales each year.
  • According to a 2016 study by Baymard Institute, 68.63% of customers abandon their online shopping carts.

How to improve:

By doing some of the following you can improve the overall user experience and increase sales:

  • Shorten forms, just ask for necessary informations
  • Simplify checkout process
  • Promote your site’s security features
  • Look into less expensive or faster shipping options
  • Use website analytics to figure out at what point customers are leaving

With a user-friendly website, some negotiation, and rearranging, your online store can begin some of the money it may have lost along the way. Make sure to be honest with your customers and don’t give them any unexpected costs along the way.

Source:  Redstagfulfillment

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