In the world of e-commerce, customer acquisition cost (CAC) is a crucial metric that determines the effectiveness of marketing and sales strategies. However, reducing CAC is not the only way to improv... View MoreIn the world of e-commerce, customer acquisition cost (CAC) is a crucial metric that determines the effectiveness of marketing and sales strategies. However, reducing CAC is not the only way to improve profitability and achieve sustainable growth. Retaining customers and building brand loyalty is equally important, and the delivery experience plays a significant role in achieving these goals.
Why Delivery Experience Matters
Customers expect fast, reliable, and hassle-free delivery services, and any mistakes or delays can negatively impact their experience. According to a survey conducted by MetaPack, 96% of customers said that delivery experience affects their brand loyalty.
Therefore, e-commerce platforms need to focus on enhancing the delivery experience to retain customers and build brand loyalty. Here are some solutions that can help e-commerce brands improve their delivery experience and reduce CAC by focusing on customer retention and rewarding your best customers.
Real-time order tracking
Real-time order tracking is a must-have feature for any e-commerce platform. It enables customers to track their orders in real-time and stay updated about their delivery status. It also helps reduce customer anxiety and frustration by providing accurate delivery estimates and proactive notifications about any delays or issues, including revised delivery estimates when necessary.
FenixCommerce offers a real-time order tracking solution that provides customers with a user-friendly interface to track their orders across multiple carriers and shipping methods. The solution also integrates with the e-commerce platform's backend systems to provide accurate and up-to-date delivery notifications (email or SMS)to customers.
Personalized delivery options
Personalized delivery options are another way to enhance the delivery experience and build customer loyalty. Customers have diverse needs and preferences when it comes to delivery, and e-commerce platforms need to cater to these needs to provide a seamless delivery experience.
FenixCommerce offers a range of personalized delivery options, such as same-day delivery, in-store pickup, ship-from-store and flexible delivery windows. These options enable customers to choose a delivery method that suits their schedule and preferences, leading to higher customer satisfaction and loyalty.
Delivery performance analytics
Delivery performance analytics is a powerful tool that helps e-commerce platforms measure and optimize their delivery performance. It provides valuable insights into delivery accuracy, shipping costs, carrier performance, and customer satisfaction, enabling e-commerce brands to identify areas of improvement and optimize their delivery strategies.
FenixCommerce offers a delivery performance analytics dashboard that integrates with the e-commerce platform's backend systems to provide real-time data and insights. It enables e-commerce brands to track and analyze delivery performance across multiple carriers and shipping methods, leading to better decision-making and improved delivery performance.
Proactive customer support
Proactive customer support is essential for building customer loyalty and enhancing the delivery experience. It involves proactive communication with customers throughout the delivery process, providing updates, and addressing any issues or concerns promptly.
FenixCommerce offers a proactive customer support capability that enables e-commerce brands to provide personalized and proactive communication with customers. It includes automated delivery status notifications, individual response and real-time support, leading to higher customer satisfaction and loyalty. Through Fenix’s order tracking APIs and platform integrations, data on delivery dates and status can also be exposed to popular Customer Support SaaS tools, for faster, more accurate order-status responses.
Shipping promotions (Product and/or Customer-specific)
Instead of heavily discounting an item and potentially degrading brand image, Retailers can apply targeted or temporary shipping promotions to a specific product or product line. Shipping an $80 shirt for free is typically less expensive than offering a 30% discount. Same consideration for specific customers (see Loyalty Programs below) where repeat customers can be further rewarded with discounted shipping, that also leverages the initial CAC investment.
How Fenix Helps
Fenix offers a host of features that help retailers and DTC Brands retain customers or engage existing users (think cart abandonment opportunities).
Dynamic EDD
One such feature is the dynamic EDD that can be inserted into outbound marketing pieces such as emails or SMS. By leveraging the EDD that is already shown on the Product Detail Page (PDP) and including it in automated Cart Abandonment (CA) notifications, e-commerce brands can retarget abandoned cart customers and improve their chances of converting those customers into paying customers.
Loyalty Programs
Adding shipping promotions to an existing customer loyalty program is another way to improve the delivery experience and build customer loyalty. Many e-commerce brands already have some type of Loyalty Program for favored/repeat customers, and offering special promotions such as free 2-day delivery just for the Loyalty or Member customers can make that existing program even more attractive and effective.
Focus on Retention Today
In conclusion, enhancing the delivery experience is crucial for retaining customers and building brand loyalty in the e-commerce industry. E-commerce platforms need to focus on providing fast, reliable, and hassle-free delivery services that cater to customers' diverse needs and preferences. FenixCommerce's delivery solutions are designed to enhance the delivery experience and reduce CAC by focusing on customer retention and increasing loyalty. When additional results like increased conversion lift are also included, Fenix solutions start paying for themselves almost immediately. By implementing these solutions, e-commerce brands can improve customer satisfaction, reduce churn, and achieve sustainable growth.
As an e-commerce brand, your ability to deliver orders on time and with clear communication can make or break customer experience. Shipping metrics such as ship date, delivery date, and estimated deli... View MoreAs an e-commerce brand, your ability to deliver orders on time and with clear communication can make or break customer experience. Shipping metrics such as ship date, delivery date, and estimated delivery date are crucial components of this experience. But what do they mean, and how do they affect your customers?
In this article, we'll explore the concept of delivery transparency and how it relates to e-commerce shipping. We'll also discuss the common terms related to shipping transparency and how they factor into the customer experience. Finally, we’ll detail how FenixCommerce can help your e-commerce brand achieve greater shipping efficiency and transparency by more accurately predicting the shipping timeline than carriers and simplifying the decision making process so you can focus on attracting and retaining customers through other channels.
Understanding Delivery Transparency
Delivery transparency refers to the level of visibility and communication that a brand provides to its customers about the shipping process. This can include information about shipping times, delivery dates, tracking numbers, and any potential delays or issues that may arise during the shipping process.
Why it Matters
By providing clear and concise information to customers about their order status, brands can build trust and confidence in their ability to deliver on their promises. This can result in increased customer loyalty, reduced cart abandonment rates, and ultimately, increased sales and revenue for your e-commerce brand. After all, according to Forbes, at 48%, the most common reason customers abandon carts is due to additional fees like shipping charges. And 22% of shoppers abandon carts due to slow shipping rates. That’s a lot of potential revenue lost!
We’re More Accurate than Carriers
FenixCommerce’s automated decision making saves your brand time and brainpower. While a ton of e-commerce brands utilize inexpensive shipping services like UPS Sure Post or FedEx Ground Economy, these carrier options don’t include accuracy or transparency with their shipping timelines. These are the hardest to predict, meaning that customer experience is liable to suffer without precise timelines. Instead, FenixCommerce’s AI triggers earlier in the shoppers process, and using the customer’s IP address we more quickly and more accurately pinpoint the shipping timeline.
Common Terms Related to Shipping Transparency
To better understand the concept of delivery transparency, let's take a look at some common terms related to shipping and what they mean:
Invoice Date
One common misconception about shipping is that the moment a customer purchases, the invoice is created and the order ships. While automation and AI systems can reduce the time between invoice date and ship date, there is still time between the creation of an invoice and the actual shipment of orders.
Ship date
In an ideal world, this is the date that orders are shipped from the warehouse or fulfillment center. It's important to communicate this date to customers so that they know when to expect their order to be in transit. However, often a shipping date is triggered by label printout, which means an order typically does not leave fulfillment at the moment that customers receive a shipped notification.
Estimated delivery date
This is an estimate of when the order is expected to be delivered, based on the ship date and other factors. It's important to note that this is not a guaranteed delivery date, but rather an estimate based on current information. This is where FenixCommerce can set your e-commerce brand apart: By ensuring the most accurate information by pulling data from more channels, our AI-decision making model enhances estimated delivery.
Actual delivery date
Naturally, the next step in the shipping process is delivery date or actual delivery date. This is the notification e-commerce brands love to send. Estimated delivery accuracy is one of the biggest drivers of customer satisfaction with regard to online ordering, and when the delivery date matches the estimate, your brand can deliver wins to customers.
Carrier delays
These are delays that can occur during the shipping process, such as weather delays or capacity constraints. It's important to communicate these delays to customers as soon as possible to manage their expectations and prevent frustration.
FenixCommerce Helps E-commerce Brands Achieve Transparency
At FenixCommerce, we understand the importance of delivery transparency for e-commerce brands. That's why we offer AI-powered solutions that optimize Carrier service & rate decisions on each order, based on speed, destination, packaging, cost, etc., that determine EDD accuracy.
With Fenix calculating the Carrier Rate decision at checkout, EDDs displayed to customers automatically incorporate the best Carrier service for that specific order. Then, recalculating Label-printing factors in the most up-to-date conditions along with optimized cost, particularly when a less-expensive Carrier service will meet the same expected delivery date, enabling brands to provide accurate and real-time shipping information to their customers.
Reducing Cart Abandonment and Increasing Conversion
One of the key benefits of delivery transparency is its ability to reduce cart abandonment rates and increase conversion. By providing accurate and real-time shipping information like competitive rates and accurate estimations, brands can help customers make informed decisions about their purchases and reduce the risk of surprises or delays during the shipping process. This removal of friction during the order process successfully addresses two leading causes of cart abandonment earlier referenced in the Forbes article and ultimately increases conversions.
Managing Delivery Date Promises and Shipping Delays
But delivery transparency isn't just about pre-purchase decision points. It's also about post-purchase communication. Once the customer has placed their order, it's important to keep them informed about the status of their package. This means providing regular updates about the estimated delivery date, any delays or issues, and ultimately the delivery date itself. By communicating clearly and proactively, brands can build trust with their customers and improve the overall customer experience.
Delivery Transparency is Critical for E-Commerce
Delivery transparency is crucial for e-commerce brands looking to improve their customer experience and reduce cart abandonment. By providing shipping metrics like ship date, estimated delivery date, and date delivered, brands can keep customers informed about the status of their order. FenixCommerce helps e-commerce brands with delivery transparency by providing AI automation of certain carrier rate decision-making. These decisions are better informed and more efficient than ever before, which reduces shipping costs and provides fast, reliable delivery metrics. By focusing on both pre-purchase decision points and post-purchase communication, brands can build trust with their customers and improve the overall customer experience.
E-commerce has become the dominant force in the retail world over the last decade. With the onset of the COVID-19 pandemic, online shopping has surged even more quickly, with customers flocking to e-c... View MoreE-commerce has become the dominant force in the retail world over the last decade. With the onset of the COVID-19 pandemic, online shopping has surged even more quickly, with customers flocking to e-commerce sites for everything from groceries to luxury items and for online Retailers, driving down customer acquisition costs (CAC). However, in the last year, as more brands move online, the competition for customer attention and sales has become increasingly intense. Struggles include rising digital advertising costs and other factors like the impact of Apple's iOS 14 update on Facebook targeting. These challenges have only been compounded by the hangover effect from the Covid e-commerce sales bump. This has now led to rising customer acquisition costs (CAC), making it increasingly difficult for e-commerce brands to maintain growth while also protecting margins. As a result, brands need to find innovative ways to optimize their marketing investments and reduce customer acquisition costs. In this article, we will discuss strategies that businesses can use to navigate rising CAC and the importance of optimizing shipping processes to give an edge.
Improving Customer Experience
One of the most important things e-commerce businesses can do to reduce CAC is to streamline the customer journey; the path a customer takes from initial awareness of a brand or product to purchase and post-purchase experience. By automating decision-making processes, businesses can make the customer journey more efficient and increase the chances of a sale. For example, chatbots and virtual assistants can help answer customer questions (ie., WISMO ‘where is my order?’) and provide personalized recommendations. Additionally, predictive analytics can be used to personalize product recommendations and promotions, including shipping promotions, to specific customers, making the shopping experience more tailored and increasing the chances of a sale.
Reducing friction in the sales process is another key way to reduce CAC. Friction refers to any obstacles that customers encounter during the purchase process, which can cause them to abandon their cart and seek out a competitor instead. One significant source of friction in the e-commerce experience is shipping costs and delivery times. According to a survey by Statista, 63% of customers have abandoned their cart because the shipping cost was too high. This makes it clear that shipping is a key differentiator for e-commerce brands.
How Fenix Helps
One way that e-commerce brands can reduce friction in the sales process is by providing estimated delivery dates (EDD) early in the customer journey. Customers often abandon their carts because they are unsure of when their order will arrive. By providing EDDs upfront, on Category and Product Detail pages, businesses can remove this uncertainty and increase the likelihood of a sale. FenixCommerce provides real-time shipping information and dynamic EDD, allowing businesses to send automated cart abandonment notifications that include a personalized delivery date for that specific cart. By providing real-time shipping information and predictions, brands can reduce customer uncertainty and reduce abandoned carts.
FenixCommerce uses machine learning algorithms to predict delivery times accurately, taking into account factors such as pick to pack times, warehouse operations, inventory location, weather, traffic, and carrier capacity. This not only increases customer satisfaction but also reduces shipping cost, by optimizing the use of carriers and reducing the likelihood of expedited or emergency shipping.
Using More Data, More Often
Using data-driven marketing to acquire customers more efficiently is another strategy that businesses can use to reduce CAC. Data-driven marketing involves using customer data to create targeted marketing campaigns that are more likely to resonate with specific segments of customers. By analyzing customer behavior and preferences, businesses can create personalized marketing campaigns that increase the chances of a sale. For example, a customer who has purchased a specific product in the past might be more likely to respond to an email campaign promoting related products or accessories.
Shipping Automation is Key
Shipping optimization is a key part of data-driven marketing, as it allows businesses to use real-time data to make decisions about shipping rates and delivery times. In addition to reducing friction, optimizing shipping processes with FenixCommerce can help businesses stretch their digital advertising dollars even further. By reducing the likelihood of abandoned carts, businesses can increase their conversion rates without having to spend more on advertising. FenixCommerce's machine learning algorithms automate carrier selection decisions that also predict shipping times accurately, taking into account factors such as weather and carrier capacity, reducing the need for expedited or emergency shipping and the associated costs. This type of data-driven optimization can reduce CAC by ensuring that businesses are only spending money on marketing campaigns that are likely to convert into sales.
In conclusion, rising customer acquisition costs are a significant challenge for e-commerce brands. However, by optimizing the customer journey, reducing friction in the sales process, and using data-driven marketing, businesses can reduce their marketing investments and still maintain growth. Shipping optimization, specifically with FenixCommerce's estimated delivery dates and automated cart abandonment notifications, can be a key differentiator for e-commerce brands in today's market. By reducing customer uncertainty and optimizing shipping processes, businesses can increase conversion rates and stretch their digital advertising dollars even further.
The world of e-commerce is evolving faster than ever, and brands need to adapt to remain competitive. One of the biggest challenges facing e-commerce brands is the complexity of shipping. With so many... View MoreThe world of e-commerce is evolving faster than ever, and brands need to adapt to remain competitive. One of the biggest challenges facing e-commerce brands is the complexity of shipping. With so many carriers, rates, delivery times, and regulations to consider, managing the shipping process can be time-consuming, frustrating, and costly. Fortunately, the rise of AI-powered shipping automation is transforming the industry, making it easier than ever for brands to optimize their multi-carrier and parcel rate shopping strategies.
While at some level, much of the modern shipping process is automated, at FenixCommerce we help streamline decision making for your e-commerce brand. Using our AI, we can simplify your carrier rate shopping by providing the most accurate cost and delivery predictions. In this blog post, we'll explore the benefits of shipping automation and how Fenix’s software can help e-commerce brands optimize their shipping process through our AI decision making model.
Benefits of Automation
One of the primary benefits of shipping automation is that it can help e-commerce brands select the most cost-effective carrier rate option meeting customer delivery expectations. With so many different carriers to choose from, selecting the right one can be a challenge, especially for brands that are new to the industry. Shipping automation uses AI algorithms to analyze a range of data points, including package dimensions, weight, destination, carrier surcharges, and delivery time, to recommend the best carrier rate option for each shipment. By automating this process, brands can save time and reduce shipping costs, which can help increase their profitability and competitiveness.
Simplify Your Brand’s Shipping
Another advantage of shipping automation is that it helps brands consider delivery times and tracking. Customers expect accurate and reliable information about their orders, as Chain Store Age indicates 85% of shoppers will not revisit a webstore after a poor delivery experience. With shipping automation, brands can optimize their shipping processes to ensure fast and reliable delivery, which can help improve customer satisfaction and loyalty. Additionally, automated tracking and notifications can help brands keep customers informed about their order status, further increasing transparency and improving the customer experience.
Managing the complexities of shipping regulations and requirements can be a significant challenge for e-commerce brands. Shipping automation can help by automating compliance checks and ensuring that packages meet all relevant regulations and requirements. This can help brands avoid costly fines and delays and improve their reputation with customers and regulators alike.
Automate Your Brand’s Decision Making
One of the significant benefits of FenixCommerce's software is that it automates decision-making to optimize carrier and parcel rate selection, pre-purchase AND post-purchase. "There is no reason to just use Fedex or just use UPS, you got to really be open to all the carriers,†said Shawn Singh, Founder/CEO of FabricWholesaleDirect.com, in a recent interview. “Businesses should be carrier-agnostic and really prioritize the carrier [service] that is best-fit for each shipment."
Selecting the optimal carrier service for each shipping option pre-purchase, offers the shopper the most accurate estimated delivery date (EDD) at Checkout, increasing conversion and incentivizing upgrades to a faster delivery option, increasing shipping revenue. Then, post-purchase, Fenix can optimize each order and select a less costly Carrier service that meets the same delivery date promised to the shopper at Checkout.
On-Time Delivery is the Goal
Several WMS/TMS packages offer Rate shopping post-purchase. However, with Fenix, the two-step method of pre- & post-purchase automated carrier service selection provides the highest delivery accuracy at the lowest possible shipping cost to the Retailer, while increasing order fulfillment efficiency.
This capability can easily extend to a Brand’s 3PL or WMS/TMS partners to lower the 3PLs overall shipping costs while increasing the Brand’s satisfaction by delivering ON TIME; not early or late. Additionally, shipping automation can help brands make data-driven decisions, which can help them optimize their shipping strategies over time and adapt to changing market conditions.
Be More Accurate than Carriers
Shipping automation can also help increase transparency with customers and improve EDD accuracy. This is especially true as more e-commerce brands utilize inexpensive shipping services like UPS Sure Post or FedEx Ground Economy, for their Free or Standard shipping. These are the hardest to predict as after order confirmation even the Carriers’ own EDD’s are accurate less than 70% of the time.
Don’t rely on Carriers to build trust with your customers. By automating the shipping process, brands can offer highly accurate EDDs (94%+) pre-purchase, for all services and provide real-time tracking information to customers, allowing them to monitor their package's progress and receive updates about any delays or issues.
Work With Fenix Today
In conclusion, shipping automation is a powerful tool for e-commerce brands looking to optimize their shipping process. By using AI to automate shipping decisions, brands can save time, reduce costs, improve efficiency, and increase transparency with customers. FenixCommerce's software is an excellent example of how shipping automation can help e-commerce brands stay competitive and adapt to changing market conditions.
FREE Assessment
And Fenix backs up this claim with a FREE Assessment of Multi-Carrier Parcel shipping spend, offered to any Retailer/DTC Brand with at least 10K shipments/month. Recently, Fenix’s proprietary Rate-simulator decision-engine revealed 18% savings in Carrier costs ($2.56/shipment for affected orders) for a large Shopify DTC footwear apparel brand, from just one month’s worth of shipping data history. Take advantage of this free assessment to see how automating carrier-service shipping decisions can reduce costs.
As e-commerce continues to grow, brands that embrace shipping automation will be better positioned to succeed in the years ahead.
Dermalogica’s logistics director discusses how to think about a 3PL transition
“Any business has its risks. But getting your products into customers’ hands faster has never made less money.â€... View MoreDermalogica’s logistics director discusses how to think about a 3PL transition
“Any business has its risks. But getting your products into customers’ hands faster has never made less money.â€
It’s clear, in 2023, that rising costs and supply-chain issues are part of a new reality. Shipping has not avoided the fallout, and the uncertainties of the last few years have had an outsized effect on carriers. Inflation, rate increases, fuel surcharges, delays, and other bumps have changed what we fundamentally understand about shipping.
Because shipping is the backbone of ecommerce, every retail executive must look at shipping and fulfillment to determine whether the established solution is still the right one.
Third-party logistics solutions can mitigate these issues. But a business leader examining the costs and unknowns around a third-party logistics (3PL) solution may be hesitant to take the leap.
A 3PL may not be the right solution—or at least not the right solution today. But to best make the decision, leaders need to understand the pros and cons, do the math, and have a little faith.
So, when is it worthwhile? Dermalogica director of US logistics Jason Brown shares insights in a conversation with FenixCommerce.
Arriving at the 3PL crossroads
Third-party logistics covers outsourcing any procurement or distribution services to an external vendor. For ecommerce, this covers inventory, warehousing, shipping, and other functions related to fulfillment. By outsourcing these activities, an ecommerce company can gain efficiencies, broaden their geographic reach, and reduce certain types of overhead in exchange for some up-front transition processes and vendor fees.
These are factors to consider before making a switch.
Factor 1: Customers’ delivery expectations
Customers’ intolerance of longer shipping times (5+ days) is growing. (In 2023, according to Forbes, 22% of customers drop out of an online shopping session because shipping is too slow.) Popularized by Amazon, short delivery windows—even within a few hours—mean that customers sometimes find it faster to arrange delivery than shop in person. These speeds are enabled by the multilocation structure of a 3PL.
Source: Forbes
Brown says, “If you think you need to get faster shipping in order to get closer to your customer, that might be one reason to consider multiple locations.†Using a 3PL’s multilocation network, geography becomes an asset, not an obstacle, to fulfillment.
Factor 2: Multilocation math
However, retail executives may be wary of taking on the costs of multiple locations: staff, property, and maintenance expenses, to say the least. Additionally, the more complex your distribution-center structure becomes, “the better you have to be about balancing your inventory, forecasting what you’re going to ship, so you have the right stuff in the right place at the right time,†Brown says.
Here’s where 3PL efficiency can help: brands benefit from an existing multilocation structure and expertise while only paying a fraction of the vendor’s overhead. Service-level agreements (SLAs) with the 3PL will govern how to best leverage this efficiency. A key part of any 3PL SLA is forecasting—providing the vendor with solid estimates (typically ±20%) on expected sales volumes (promotions, product launches, etc.) to manage staffing costs.
Factor 3: Inventory management
Integration costs can create hesitation in initiating a 3PL relationship, but thoughtful integration is critical to a successful ongoing solution—if for no other reason than the outsized benefit it has on inventory management. Accurate inventory numbers are one part of delivering as promised. And for ecommerce brands tied to the same warehouse as larger wholesale, corporate, or distribution entities, the risk of inventory being repurposed without their knowledge is real. (Brown refers to this as the “robbing Peter to pay Paul†scenario.)
So, inventory needs to be tightly synced, integrated, and reported—a challenge without strong operating systems. The tools to manage inventory (warehouse and order management systems; forecasting) can be costly to implement independently but come within reach with a 3PL relationship.
Source: Forbes
As Brown notes, “A 3PL will have a solid WMS that (must be) tightly synced to your ERP.†Additionally, an effective OMS is necessary, but it can be expensive for a growing company. Many 3PLs have their own custom-built solutions they can license to clients—reducing the cost of implementing a high-quality tool. Also available on the market are inexpensive, AI-based order-routing optimization tools that operate as an OMS and integrate easily with 3PLs.
Having access to reliable data—SKU levels, past sales history, fulfillment performance—not only saves time remediating but can be used for forecasting. Access to an integrated, reliable, and robust WMS, OMS, or both, which a 3PL can provide, makes a difference.
Factor 4: Carrier performance monitoring
At the end of the day, the promise of delivery to a customer falls on the brand, whether using a 3PL or staying in-house. A missed delivery promise not only costs time in resolution but can lose the relationship. So, in addition to inventory management, brands must monitor carrier performance.
Brown says, “It’s up to you to then manage the relationship after (the order is shipped). You need to know the order shipped, it shipped complete, and where it shipped from and have confidence it will arrive in good condition, so you can go back to your customer and make the delivery promise.â€
If your inventory synchronization ensures that the right item ships from the right 3PL location, carrier performance monitoring makes sure the item is delivered to the customer on time. And 3PLs can assist with both insights.
Factor 5: Building the business case
Stakeholders may be concerned by possible lower margins, but the increased reliability and potential volume of 3PL fulfillment can lead to greater revenue.
Engaging with a 3PL is “rarely cheaper†than doing it yourself, Brown notes, “but the capability is better. They may be willing to work six, seven days a week, two shifts, 24 hours a day. From there, it becomes a math equation. Our margins may compress, but our revenue will grow by X factor.â€
So, is it the right time to engage a 3PL? Like many business decisions, it depends on the math and a little imagination. “‘We know this is risky,’†Brown imagines the conversation. “Any business has its risks. But getting your products into customers’ hands faster has never made less money. There’s a lot of blue sky, and you have to have a little bit of faith.â€
FenixCommerce is a leading provider of customer delivery experience management, helping retailers deliver better, every step of the way. Founded in San Jose in 2017, FenixCommerce is trusted by the fastest-growing ecommerce brands and retailers including Men’s Wearhouse, Dermalogica, Jos A. Bank, Grunt Style, Lord & Taylor, and Cannondale.
For more information, visit fenixcommerce.com
Ecommerce conversion rate optimization (CRO) is the process of improving your website's performance and making it more appealing to potential customers. The goal is to increase your profits by making ... View MoreEcommerce conversion rate optimization (CRO) is the process of improving your website's performance and making it more appealing to potential customers. The goal is to increase your profits by making sure as many people who visit your site will buy something from it. This doesn't mean that eCommerce businesses have to spend money on advertising or marketing—instead, they can optimize their sites for conversions with free resources and simple tweaks that don't require any technical skills. Here are some strategies for getting started with eCommerce CRO:
What is eCommerce conversion rate optimization?
In short, eCommerce conversion rate optimization is the process of optimizing the user experience of your online store to increase sales.
It’s important to optimize it because if you don’t, you won’t make as much money as you could be making! It also depends on how much traffic your store gets and how many people convert to it. If more people are converting than not converting, then it means that your website is working well and doing its job by selling products!
How do you find your conversion rate?
To get your conversion rate, you need to divide the number of sales by the number of visitors. From there, it's easy to figure out how many people are actually converting to your site.
Intro to eCommerce conversion rate strategies
Ecommerce conversion rate optimization is the process of getting as many people as possible to buy your products, without wasting any time or money. The eCommerce world is one of the most competitive in today's marketplace, so it’s important for you to do everything you can to improve your conversion rates.
This doesn't mean that eCommerce businesses have to spend money on advertising or marketing—instead, they can optimize their sites for conversions with free resources and simple tweaks that don't require any technical skills. Here are some strategies for getting started with eCommerce CRO:
Display estimated delivery dates
By displaying estimated delivery dates on your product pages, you can help customers make better-informed purchase decisions. Customers who know when they’ll receive their purchases are more likely to complete the purchase than those who have to wait until the last minute. This is especially true for retailers that ship products across international borders—showing estimated delivery dates can help customers avoid lengthy wait times and unpredictable shipping times.
Furthermore, showing estimated delivery dates helps you avoid customer complaints and increases overall customer satisfaction. If you display an inaccurate or misleading date for a specific product, this could lead some of your customers to believe that:
You don’t care about them (and thus don’t respect their time)
They can no longer trust anything else about your brand or business
Getting reliable estimated delivery dates can be near impossible without the power of big data warehouses. With FenixCommerce, you can easily embed these delivery dates into your eCommerce checkout flows to immediately increase customer conversion rates.
Offer a guest checkout option
A guest checkout option, or a “checkout as guest†button, is also a great way to increase your conversion rate. Why? Because it gives customers who are uncomfortable giving personal information another option and can be used for customers who have purchased from you in the past.
Improve your site speed
There are a few different ways to test your site speed. Google Analytics has a built-in tool that will let you know how long it takes for your page to load, but there are also third-party tools like Pingdom and GTmetrix which provide more detailed information about what is slowing down your site. A good rule of thumb is that if you want an A+ in conversion rate optimization, your website needs to load in under two seconds on average across all devices and networks.
Optimize your checkout process
The checkout process is one of the most important aspects of eCommerce conversion rate optimization. If customers can't find what they want or are confused about how to checkout, they'll leave your site and go somewhere else. To ensure that this doesn't happen, you need to make sure your checkout process is easy for customers to understand and complete.
Here are some tips for optimizing your checkout process:
Use a single-page checkout if possible. This will reduce the number of steps in the checkout process, making it easier for customers to complete their purchases without getting lost along the way.
Make sure each step in your payment gateway is PCI compliant so that there aren't any security vulnerabilities that allow hackers access to sensitive financial data like credit card numbers and expiration dates (which could lead them straight back over here). Some companies have even gone so far as to hire third-party auditors who specialize in these types of issues. However, if those options aren't available, then another option would be using something called "two-factor authentication," which means logging into an account requires both something only known by yourself (like entering a password) but also something unique only applicable at this moment (like having access too specific information such as unique code displayed on screen). This ensures that even if someone manages somehow get one part down perfectly enough so it looks legitimate enough when entered correctly inputted correctly then still won't work because two things must match up properly before successfully logging onto an account.
Set up product recommendations
Product recommendations are a great way to re-engage customers, increase sales and make sure you don’t lose customers who have abandoned their shopping cart.
According to research, product recommendations can increase conversion rates by up to 20%. The reason for that is simple: people tend to buy what they know and like. If you can show them products they are interested in, chances are high that they will buy them! FenixCommerce has a built-in tool that provides unique order-tracking landing pages, per customer, that recommend related products.
It is crucial that you take the time to implement them correctly though because otherwise, they might just ruin your conversion rate instead of improving it.
There are many ways to improve the customer's experience on your eCommerce site.
There are many ways to improve the customer's experience on your eCommerce site.
Use product recommendations to increase sales.
Use a guest checkout option to increase sales.
Set up a conversion rate optimization strategy, or use one of the many tools out there that make it easier for you to do so (for example, Google Analytics).
Use an estimated delivery date or price at checkout (or both) as another way of increasing sales from a slow-moving product page on an eCommerce website by encouraging shoppers who may have forgotten about their purchase to come back and complete it before they forget again!
Optimize with FenixCommerce
If you’re looking to improve your eCommerce conversion rate, it's important that you start with a thorough analysis of your current website. While there are many different strategies for optimizing an eCommerce site, these tips will get you on the right track for increased revenue and brand loyalty.
This can all sound a bit overwhelming but, with the help of tools such as conversion optimization platforms like FenixCommerce, it’s all done for you. If you’re interested in learning how Fenix can optimize your eCommerce conversion rates, don’t hesitate to contact our team.
Let’s face it! Your website product page design is arguably one of the biggest factors on which customers will hinge their decision-making. The evidence is there to prove it. Its entire layout and c... View MoreLet’s face it! Your website product page design is arguably one of the biggest factors on which customers will hinge their decision-making. The evidence is there to prove it. Its entire layout and content are what will either compel visitors to add the product to their cart or lead them to exit your online store and head over to your competitor’s site. Your visitors want no-B.S product pages that provide them with all the necessary information that they need to know about any product before buying it. You, therefore, owe it to your customers to design, create, and deliver eCommerce product pages that increase the stickiness factor.
But why all this fuss about the website product page? What do customers really expect to see on your product detail page? And how can you design high-converting product pages that will delight your customers and print you more money in sales? We’ve got all the answers covered in this guide.
What is a Website Product Page?
A product page or product detail page (PDP) is a page on your eCommerce website which contains descriptions and information about a product. It is where you provide information like specs, pricing, benefits, photos, and social proof that can give customers an idea of what to expect from the product before buying.
Here is what an Amazon PDP looks like:
Source: Amazon
On the PDP, there will also be other elements like a buy button, folds, videos, shipping information, tax policy, etc. eCommerce product pages are a crucial part of your online store. Since visitors have no way to feel or experience your products in person, your product pages have one job: To use their design and content to compel visitors to make purchases. That is why you must get them done right.
12 Practical Steps to Design High-Converting Product Pages
In this section, we have put together a series of practical tips and ideas that you can use to design the perfect eCommerce product page and boost your chances of getting more customers to click that buy button. Here they are:
Optimize your product page to increase the loading speed
Write a compelling title and product description
Use high-quality photos and videos of the product
Write unique category descriptions
Optimize the size selector for better UX
Make page-to-page navigation easier
Use numbers to entice customers
Create a sense of scarcity/urgency
Provide social proof with customer reviews and trust badges
Make the CTA button noticeable
Include accurate estimated delivery dates (EDDs) on the website product page
Leverage cross-selling and upselling
Create and display clear shipping and return policies
1. Optimize your eCommerce product page to increase the loading speed
When it comes to online shopping, patience is not a virtue because customers desire instant gratification. They want everything to happen fast, from browsing to checkout to shipping. Customers hate pages that load slowly, with nearly 70% admitting that page speed can determine whether or not they will buy from a retailer online. Your conversion rate also drops by 4.42% for every additional second it takes your page to load.
Make sure your product pages load instantly. Maintain a simple design and optimize all product photos. Then optimize the design flow such that the most important pieces of info load first before other parts of the page.
2. Write compelling titles and product descriptions
You want your visitors to find information quickly, so the product title should be big, bold, and easy to find. Keep the title simple but informative; You do not have to complicate things. Use any of the simple formulas below to craft your product titles:
✅ Brand + Pattern + Product Type, Amount
✅ Brand name + Model number + Size/Color + General name
✅ Brand + Model Number + Product Type + Color/Size
✅ Brand + Line + Size+ Product Type
Here is an example from Walmart.
Source: Walmart
In addition to compelling titles, you do not have to write lengthy product descriptions as well. Instead, your description should be unique and highlight the features, focus on benefits, and provide other relevant info about the product. Keeping the description original helps to avoid duplicating content (especially if you are selling too many similar items) which can affect your SEO performance or get you penalized by Google. Good copywriting skills are needed here because your description should be written in a voice that resonates with your target customers and compels them to buy more items from you.
Your description should address customer concerns and highlight important information that users will find helpful. For example, if you are writing about a laptop, you can address concerns about fan noise and device overheating. Of course, you want to do all of these with SEO in mind by naturally integrating relevant keywords into the copy.
In-depth Guide: How to write irresistible product descriptions
3. Use high-quality photos and videos of the product
Images play a vital role during the pre-purchase phase. Since online shoppers cannot see, feel, or experience the product in person, they want to have a clear idea of what to expect should they purchase the item eventually. Research by eMarketer shows that customers between 18 and 54 years expect to see at least 5 photos on the website product page on average.
Your eCommerce product page design should provide a gallery of high-quality images that represent the product well and show off its best attributes. A good way to enhance the shopping experience is to capture a 360° view of the product to allow customers to see the item from all sides. That is something every customer would love! Make sure the image functionality allows customers to zoom in and out so they can have an up-close view of the item. Remember your pages need to load quickly, so don’t forget to compress your product images.
Source: Kohls
Consider adding product videos to elevate the online shopping experience because videos give customers the feeling of in-person demos. 55% of shoppers say they rely on videos to reach buying decisions and 73% of customers are more likely to buy after watching an explainer video. Using videos in your product web page design will also give you an edge in search results and drive more traffic to your online store.
Source: Amazon
4. Write unique category descriptions
Do you have separate pages for different product categories? If yes, you should know that category page descriptions can also help to drive sales and push traffic to your online store. Category text adds vibrancy to your store and gives you an excellent opportunity to explain certain concepts related to that category using specific keywords. Utilize the ideas for product page optimization in step #2 above to create your category pages. Make sure to write unique, in-depth, SEO category page descriptions because it helps to create a feeling of authority and trustworthiness and also gives you an edge in Google SERPs.
5. Optimize the size selector for better UX
Among the foremost things, users will be looking out for when trying to find something that best fits their needs is the size. Keep in mind that size is measured differently in various parts of the world, so shoppers will most likely have diverging backgrounds. To improve the experience, provide a size selector along with a guide that allows them to view product sizes in inches and centimeters. You also want to position the size selector just below the item and its description.
Source: Walmart
6. Make page-to-page navigation easier
Ever heard the term "Breadcrumb Navigation?" Breadcrumbs are navigational aids that enable visitors to maintain track of where they are on your website. It is more like a website feature that builds a trail for the visitor while exploring different parts of your website. You can learn how to add breadcrumb navigation to your site so customers can understand page hierarchy and trace their steps back to earlier pages, or jump to areas of interest with ease.
Source: Walmart
7. Use numbers to entice customers
Customers are always looking for opportunities to gain something. They want to have the feeling that doing business with you will be to their advantage. What's in it for them? The price comparison feature is a secret sauce to add to your website product page because it can compel customers to buy more from your store. That is what eCommerce mammoths like Amazon are using to induce shoppers to add more items to their carts. Here's how to use the price comparison feature to create high-converting product pages:
If you offer lower prices than your competitors for the same product, show customers how much your competitors are offering directly on the product page so they can see you as the most cost-effective choice
When offering discounts, show customers how much they will save if they order the product. You can show the difference in the form of percentages or use the actual price versus discounted price format.
Source: Amazon
8. Create a sense of scarcity/urgency
Using tactics to create a feeling of scarcity or fear of missing out is another feature to consider including in your eCommerce product page design. You do not want them to chew over the price until they find a reason not to buy anymore. Shoppers usually convert faster when products are selling out fast. Displaying words like: "only 2 items in stock" or "last 3 hours of free shipping" can create the urgency or scarcity you need to get them to convert.
Source: Amazon
9. Provide social proof using customer reviews and trust badges
Even if you have the best products and excellent customer service, people want to know what others are saying about you or the products you offer. Nearly 70% of online shoppers usually check for product reviews before buying. So your eCommerce product pages should have a highly visible section that allows customers to submit reviews. Use social media and emails to encourage customers to give feedback or rate the product based on their personal experience. Additionally, you can increase the quality of customer reviews on your website product page by allowing customers to post photos or videos of how they are using the products. Reviews from customers boost visitors’ trust in your brand and help to increase website conversions, and you can even go one step further to cement their trust by attaching trust badges or safety icons to customer reviews.
Source: Nordstrom
10. Make the CTA button noticeable
When designing high-converting product pages, one of the most crucial elements is the call to action. Depending on the kind of online store you’re running, the eCommerce CTA button can appear in different forms which could be a ‘buy now’ button, ‘add to cart button, or whatever you consider the best fitting. In all, it is most important to make the CTA prominent, recognizable, and compelling. Check out some product page optimization tips when designing the CTA button:
Use words that resonate with your target audience and are native to them. You can see how Amazon does this across its websites. The CTA for UK customers is different from what you’ll see on its US site.
Source: Amazon US
Source: Amazon UK
Use the right color that can trigger buyer emotions and induce them to take action.
Whatever your choice of color, make sure it contrasts perfectly with your product page’s color scheme. The idea is to make the CTA button capable of grabbing the customer’s attention. That is why it has to stand out.
11. Include accurate estimated delivery dates (EDDs) on the website product page
Estimated Delivery Dates (EDDs) displayed on eCommerce product pages show customers the estimated date by which their order will arrive based on their location and other related factors. Many online stores only display vague delivery timelines on the checkout page, typically 3-5 days, which is quite an outdated practice that leads many customers to abandon their carts. 92% of customers online say that knowing their order will arrive by the promised delivery date is an influential factor in their buying decisions. EDDs displayed on the product page give the customer a precise date by which their order will arrive based on their location, thereby building their trust in your brand and inducing them to get through checkout.
With a shipping platform like Fenixcommerce, you can easily enable and display optimized delivery dates for every item with top-level accuracy on your eCommerce product pages and even your checkout page.
12. Leverage cross-selling and upselling
This is another important feature to add if you are looking to create high-converting product pages. Visitors who hop on your website product page have an intent; they are seriously trying to decide whether to buy your product or not. Use that intent to your advantage with smart upselling and cross-selling. Here’s what you can do:
Use a “you may also like…†section to suggest similar items or brands to shoppers and allow them to compare products
Add a “related products†section which suggests other items that complement the products they are interested in and possibly get them to add more items to their cart
Source: HP
13. Create and display clear shipping and returns policy
An excellent shipping and returns policy is crucial to customer satisfaction and supports your customer retention efforts. When it comes to things like shipping charges, tax, or additional costs, do not wait for customers to get to the checkout page before they find out. Such unexpected costs are the reason why about 48% of customers abandon their carts. As part of eCommerce product page best practices, don’t keep shoppers in the dark about additional charges and conditions of return. Instead, be upfront and state it clearly on the product page so they don’t get confused or frustrated when they get to the checkout page.
Source: Amazon
FenixCommerce helps retailers deliver a superior end-to-end customer experience
From online shopping to fulfillment, customer expectations are changing and eCommerce businesses must match those expectations. At FenixCommerce, we know that succeeding as a retailer goes beyond website product page optimization alone. So we show retailers how to plan and deliver a superior pre-purchase customer experience in eCommerce, and also provide the platform to help them create that experience in their online stores. Our platform has helped both startups and major retail brands (the largest ships over a million orders every year from 800+ fulfillment locations) realize up to a 40% increase in conversions, 51% incremental shipping revenue, and a 38% reduction in cart abandonment. If you need help setting up your online store with EDDs to deliver a better pre-purchase customer experience, contact us ASAP!
Amazon Prime Day is the biggest shopping holiday of the year in the United States. Over 30% of Americans are expected to shop on Prime Day this year with an estimated $12+ billion in sales during this... View MoreAmazon Prime Day is the biggest shopping holiday of the year in the United States. Over 30% of Americans are expected to shop on Prime Day this year with an estimated $12+ billion in sales during this 48-hour period alone. With such a high potential for sales, it's no wonder that eCommerce brands are seeking ways to capitalize on this opportunity by using Amazon Prime Day as a way to drive purchases and increase brand awareness among shoppers. Here are five tips eCommerce brands can use to leverage Amazon Prime Day and drive more purchases from their audiences:
Know the Deals
Brands often use the same deals multiple years in a row. You can learn from their approach by researching what has historically worked or hasn’t worked for them and then apply it to your own business. Rather than coming up with all of the data points from scratch, you can leverage public competitor data to your advantage by knowing which products are most likely to sell well at certain prices, when they should be sold, etc.
You can also look at what other people are selling and use that to inform your own decision-making. If you notice that a competitor is selling something in a certain price range, consider doing the same thing—or even beat them if you can! It’s up to you if you want to follow the crowd or blaze your own trail but understanding the competitive environment will make sure there are no surprises.
Limited Time Offers
Scarcity marketing is a strategy where sellers limit the supply of their products, whether it be through limited inventory or a specific time frame, to motivate urgency to purchase. Amazon Prime Day is inherently a scarcity marketing tactic because it’s only available on Amazon Prime Day(s). In order to compete with Prime Day buyers, it’s important to create competitive discounting to draw some of those customers away from Amazon’s discounted deals.
If you can create time-based artificial scarcity around a product on Prime Day (e.g., the discount is only available for 2 days), then do it! It will drive sales and make customers feel like they need to act fast or else lose out on the opportunity altogether. You can also use this technique during regular eCommerce days by setting up notifications that tell people when certain products will be gone forever (or until a certain date).
Competitive Shipping Times and Visibility
Amazon ships about 1.6 million packages a day, carving out its spot as the standard in regard to the eCommerce buyer’s journey. It’s important to not only have competitive shipping times but also to provide transparency on when customers can expect their deliveries to help meet those customer expectations. In fact, FenixCommerce found that online sellers that implement their AI-powered platform to generate anticipated arrival dates based on real data collected by Amazon shipping partners like UPS/FedEx/USPS have increased conversions by up to 40%.
If you want loyal customers who will keep coming back for more business year after year, satisfying their expectations is key. One study found that almost 70% of consumers “are much less or less likely to shop with a retailer in the future if an item they purchased is not delivered within two days of the date promised.†It’s essential to invest in delivery management software like FenixCommerce to provide timely, cost-effective, and transparent deliveries to build brand loyalty and drive consistent purchases.
Cost-Effective Shipping
Shipping costs are one of the biggest reasons that consumers abandon their carts. While it can be exceptionally difficult to determine the exact cost of shipping from point A to point B, take advantage of digital platforms, like FenixCommerce, that have built massive proprietary databases of relevant shipping data to make it easier on eCommerce sellers! Not only can their platform understand how much to expect in shipping costs but it can optimize your distribution channels to bring those costs down.
Remember, buyers will be comparing all brand/product experiences to that of Amazon’s. If sellers outside of the Amazon ecosystem are exorbitantly more expensive to buy from due to shipping costs, they’ll default to the already intriguing Prime Day deals.
Consistent Customer Acquisition Messaging
People are primed (for lack of a better word) to buy on Amazon Prime Day. Similar to Hotelling’s Law in Game Theory, buyers are already looking for great deals and are prepared to spend money. This means you need to make sure that you’re leaning on all marketing channels you’ve found success with in the past- this includes anything from organic to SEM to social media marketing and email campaigns.
The most important aspect of messaging is consistency. While it may be tempting to change up the way you promote your Amazon Prime Day deals, A/B testing messaging in such a short time frame will be all but statistically significant (unless you’re pumping money in).
If a buyer sees your 20% limited-time discount on Meta (or whatever you call Facebook nowadays) and then sees that you’re offering a 20% discount until the end of the year in your email newsletter, the buyer is not only left confused about which is true but also will feel like there is a better deal they don’t know about. This type of confusion can lead to buyers to decision fatigue and, in turn, stagnation. To inspire purchases during this time period, simply promote your sale through all channels at once!
Conclusion
By implementing these tips, eCommerce sellers will be able to leverage the next Prime Day to get products in front of more customers and drive more purchases. It's easy to fall into the frenzy but, if you can keep your eyes on the big picture, there are plenty of ways to make sure your promotions don't fall through the cracks!
If you’re interested in learning more about how FenixCommerce can increase Prime Day shopper traffic conversions by 40% and shipping profits by more than 50%, please reach out! Our industry experts are happy to consult any growing brands with a free consultation to understand your individual needs so that you can maximize profits.
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