Etail may be a growing trend, but getting customers to take the leap from shopping basket to check-out is the real trick. Here, e-commerce software expert Carl Hartmann unveils the formula.
In a highly competitive market, all fashion retailers are striving to make their sales stick. However, the ever-present scenario of a customer adding that beautiful pair of shoes, dress, top or accessory to their shopping cart, only to abandon it at the last minute, is plaguing the industry.
More than just a change of heart in relation to the fashion item, chances are the drivers behind the consumer’s decision not to finalise the transaction are a direct result of some sort of impediment the store has imposed – be it technological, economical or psychological.
An alarming two thirds of carts are abandoned before a purchase has been completed, representing millions of dollars in potential sales that fashion retailers are missing out on. There are many factors behind this.
Research shows that an ‘unexpected cost’ such as shipping or GST can be the number one reason a consumer will jump ship from a purchase. Issues like frustration at a lack of suitable delivery options, concern around payment security, a lengthy check-out process and competitive offerings elsewhere are all deterrents for shoppers to click that final order button.
To avoid shopping cart shock when a customer reaches the total cost of purchase, retailers need to display any ‘additional costs’ early and accurately in the purchase journey.
Online purchases are driven to an extent by trust and a good way to build this is through transparency in terms of costs and services. Customisation is also imperative to ensure that costs and options for things like shipping cater to every individual’s needs, lifestyle and budget as this is more likely to entice the consumer to fulfil their order.
In the fashion business, shoppers also value having a range of delivery services – from standard low cost delivery, overnight or three-hour express delivery, to parcel lockers, collect from store services and, of course, free shipping which 20 per cent of shoppers actually name as a top reason they purchase from a particular brand.
However, retailers must only offer options in the front end that can be serviced behind-the-scenes. For example, three-hour shipping may not be possible in a rural town.
Return shipping options are another purchase pressure point with research showing that before making a purchase, 56 per cent people will check out a retailer's return policy and make their final buying decision based on the offer.
This suggests that, not only is it important to display your returns policy but the returns process must be frictionless.
Enabling online returns will significantly decrease the perceived risk of purchasing goods online, so if the shoe doesn’t fit, it can be easily returned, and the shopper will know their time and money won’t be wasted.
Asos is an exemplary case study. Temando has worked with Asos to develop a separate returns portal making it simple for a customer to choose either same day courier collection or returns through Australia Post which can both be paid for online, making the whole process simpler and quicker.
With many consumers turning to online shopping to save time, the barrier of a lengthy payment process with too many pages and data entry points will also drive shopping cart abandonment.
Streamlining and customisation of the process, along with a good dose of common sense is the key here.
If a page is too cluttered it can confuse the customer so the best sites consolidate the number of pages to be completed during checkout to make it as easy as possible for the user to give their information and split the process into manageable chunks.
In terms of clever and effective design, the use of highly visual reminders of security certifications can also slash the chances of shopping abandonment and help convert sales.
If a site appears unstable, unreliable or pages take too long to load, shoppers become nervous about their security and may abandon the purchase. Therefore it’s fundamental that fashion retailers display security certifications during the checkout process to reinforce confidence in their offering and credibility.
Evidently, making sales stick is ultimately a result of an integrated, proactive approach to the customer experience online and something that small businesses must develop in order to compete.
More specifically, fashion retailers need to expand their delivery options, be transparent with costs and tailor their website functionality to deliver on what drives their customers.
Sources:
Baymard Institute 2013 (67.44%) (http://baymard.com/lists/cart-abandonment-rate)
WorldPay 2013 (http://www.statista.com/statistics/232285/reasons-for-online-shopping-cart-abandonment/)
Deloitte – (http://www.deloitte.com/view/en_US/us/Industries/Retail-Distribution/consumer-spending/b00a3d0372a83310VgnVCM2000001b56f00aRCRD.htm)http://conversh
Etail may be a growing trend, but getting customers to take the leap from shopping basket to check-out is the real trick. Here, e-commerce software expert Carl Hartmann unveils the formula.
Carl Hartmann is CEO of Temando, a market-leading technology company that provides innovative software solutions for the logistics and e-commerce industries. www.temando.com.au