It is a fact that many purchases are unplanned and even unexpected for buyers, as the decision making process may only be based on feelings and emotions. In ordinary offline shopping this can happen when a person sees something interesting in a shop window and then, at one moment, decides to buy this thing. Could the same happen in e-commerce? Yes, of course. Online shopping can be even more dangerous for shopaholics than a usual shop. Let's review some details.
Types of Products That Can Be Sold as an Impulse Purchase
Inexpensive and Simple Products
As a rule, if the product is not so expensive, the decision to buy it is made easily. Very often, people forget about petty details of life and when they see them, there is momentary flash in their mind: "Yes, I wanted to buy this for a long time!". In e-commerce, this works with cross-selling. You can recommend related products to the visitors of your online store according to their history of sales and searches. It is possible to show some products in the block "You might also like". If you have not enough information about your visitor, it is the right time to advertise simple and not so expensive products which are more likely to be purchased as impulse buying.
New and Unusual Products
The information about new arrivals can stimulate potential customers to make a purchase. The new collection of dresses and shoes, new models of popular devices - such message in communication can work as a call to action. You are lucky if you have loyal customers who like to visit your online store from time to time just to see what new offers you have. Otherwise, your CRM system and the clients' database can help you to deliver information. The personal e-mails or SMS for each client are very good ways to increase your sales a lot.
If you offer some rare and extraordinary products they can also work perfectly for impulse buying, due to the fact that people did not even know about the existence of such products or about them being available for online purchase.
Products with Discounts
If you do not have any new arrivals in your online store you can create other news to attract your customers. Information about discounts is also a reason to send an email. Just be creative and try to deliver your message as a unique opportunity. All methods of sales promotion can be used in this case: discount coupons, special conditions for re-purchase, lottery with valuable prizes, presents and so on. Sometimes it happens that the main purchase is made just to get a gift - interesting trinket. You can use not only the discounts, but also a price raising. For example, it is a fact that winter items such as skis, sleds, and skates can be bought at a lower price in summer, so the information about the prices being increased soon can also encourage the customer to buy.
"Last Items in Stock"
I can't say that there is absolutely no planned purchase. This method might work when a customer wanted to buy something for a long time, but could not afford it or had some other reason not to buy that product, and the information that there are last items in stock available may stimulate him. This variant can be used in a standard way, when each product page contains information about stock balance. But you can also use your browsing history and send e-mails to the customers who viewed this product. Even if the customer does not buy anything, properly formulated and friendly text of an e-mail will show them your customer care.
"Never again"
This method is often used by fashion and beauty supply online stores. The information that a particular product will never be available because it is removed from production is a great call to action. If it is a product that has been offered by the company for a long time, the loyal customers will definitely buy it. Thus, women buy perfume or cosmetic products which they like to use, and even can be upset that some product will not be produced anymore. It is very important to create a proper communication explaining that the existing product will give place to a new one which is better, more effective and so on. But at the same time, they should not miss the opportunity to buy their favorite item while it is still available.
Where to Inform
Just a few words about how you can inform the customer. Certainly, in the case of e-commerce we can't use the effect of shop windows as usual stores can. If a buyer does not visit the online store, you can deliver the information via:
Social networks
Online advertising, Remarketing
E-mailing
Sending catalogs by usual postal service with information about the products
SMS, MMS
Outdoor advertising, for online stores that work on a local market
Don't Lose Customers at the Last Step
Impulse purchase is made on emotions, so the customer can easily change the decision. All processes of online store should work without glitches. It is extremely important for checkout because most of the abandoned carts appear on this step. All payment and delivery methods should be simple and understandable. There should not be any hidden information or changes in the total price of the product.
Ethics of Sales
Each online store strives to increase its sales. But you should always keep in mind that all methods of sales promotion should be used fairly and humanely. If you try to sell no matter what, you can achieve your goal, but the customer's impression about your company may be unpleasant after purchase. Such customer will never come back. Correct and ethical sale with individual approach and customer care is the key to success.
Many retail business owners are being pressured into setting up shop online. But is this a realistic expectation or is it an exercise in futility. There are some very important key questions that have to be answered before considering the move to online sales.
1.Are your products conducive to mail, phone or online sales?
You might think that every product can be sold online and, to some degree, you would be correct. However, should every product be sold online? The answer is no. Many products just don't sell well online because they are not conducive to impulse purchases, the demand is low, or the product itself has a long sales cycle. Given that most people will be making purchases online using a credit card, the products or combination of products should be easily purchased with a credit card that has a limit of $1,000 to $5,000.
2.Are you prepared to sell your products online?
This may seem like a very basic, but it will validate your motivation to succeed online. If your motivation to sell online is driven by a belief that "everyone else is doing it and so should I" , then you should serious consider the implications of selling online. Once you have made the mental decision to sell online, you can begin to formulate your strategy for doing so.
3.Do you have the resources to sell online?
Are you prepared to handle five, ten, a hundred, five hundred orders a day? Do you have the staff to fulfill orders, manage online customer service, and make updates to the website. Do you plan on doing this work yourself? If so, have you considered the impact this decision will have on the rest of your business? Create a plan that sets definitive goals for your online storefront, as you would for any business opportunity. Remember, managing a successful e-commerce website is a full-time job.
4.Who will build your site?
One of the biggest myths about e-commerce is that anybody can build and run an online store. The truth of the matter is that anyone can build and run a store online, but only a select few can do it well. There are many online store builders, shopping cart programs, and hosted applications that let you build a site and start selling your products online, but realistically you get what you pay for with most of these services. Consider hiring a company who specializes in developing online commerce sites for you. The result will be superior to a home grown site and will ultimately result in increased credibility and sales.
5.What is your budget?
Get quotes from a variety of vendors. You will find that the quotes you get back will range from a few hundred to tens of thousands of dollars. A reasonable amount to budget for your new website is around $10,000 for a full build out including custom web design and software, and ongoing server and maintenance fees of about $300 to $500 per month. When you consider your budget, take into account that the more you spend upfront, the less likely you will be to change the site. On the Internet, keeping your website fresh and updated is crucial to your credibility.
Now that you have answered the fundamentals, you will want to ensure you take the following steps to get your online store set-up correctly and efficiently:
1. Set-up an Internet Merchant Account
This is a must. You may be tempted to use Paypal, 2Checkout, or some other low cost online payment solution, however, in the end, when your site becomes popular and you start generating significant revenue, you will find that the discount rate you pay with a true merchant account will be much less. Although there is a little more work involved in setting up an Internet capable merchant account, your credibility, not to mention your payment tracking, will be greatly simplified.
2.Purchase a Secure Certificate
This is also a must. Securing your site is mandatory in order to avoid possible issues with credit card theft. All merchant account providers will require you have a secure certificate installed on your server before they issue you the account. Secure certificates range in cost from around $80 CAD to $500 CAD depending on the level of security and authentication you require. For the most part, a basic certificate is all that is required for online sales.
3.Organize your product data
Having your product data organized in a spreadsheet will go a long way to speeding up the set-up of your store. It will also help you organize your store layout and determine what products will sell best online.
4.Take good product photos
Since your online customers won't be able to hold or touch your products, a good photo is your next best option. Your photographs should be bright, with good contrast, and show the product either alone or in combination with complimentary products. For example, when selling a pair of jeans, take a photo of a person (preferably someone who looks attractive in the jeans) actually wearing the jeans. Have the person wear other complimentary products from your store like a popular shirt, shoes, and a purse. Customers will be more inclined to buy the jeans if they can see the jeans in context with other products.
5.Set-up a newsletter
Permission based newsletters are an excellent way to keep your customers coming back to your store. Sending a monthly newsletter that highlights new products, sales, or promotions can be a great way to retain and attract new customers.
6.Visit stores that you like and make notes
Do your research. Look at the sites that are at the top of their game and find out what they do. How are their products displayed? How does their shopping cart work? How often do they update their site? The more information you can provide to your web designer and developer, the closer they will come to meeting your expectations.
In summary, don't rush in to anything. Like all good things, a high quality revenue generating website takes time, money and effort to build. There's nothing wrong with starting small, but remember to constantly re-invest in your online store. Make improvements whenever you can and keep it fresh. The days of "build it and they will come" have long been over. Talk to a marketing expert and plan your strategy accordingly.
Types of Products That Can Be Sold as an Impulse Purchase
Inexpensive and Simple Products
As a rule, if the product is not so expensive, the decision to buy it is made easily. Very often, people forget about petty details of life and when they see them, there is momentary flash in their mind: "Yes, I wanted to buy this for a long time!". In e-commerce, this works with cross-selling. You can recommend related products to the visitors of your online store according to their history of sales and searches. It is possible to show some products in the block "You might also like". If you have not enough information about your visitor, it is the right time to advertise simple and not so expensive products which are more likely to be purchased as impulse buying.
New and Unusual Products
The information about new arrivals can stimulate potential customers to make a purchase. The new collection of dresses and shoes, new models of popular devices - such message in communication can work as a call to action. You are lucky if you have loyal customers who like to visit your online store from time to time just to see what new offers you have. Otherwise, your CRM system and the clients' database can help you to deliver information. The personal e-mails or SMS for each client are very good ways to increase your sales a lot.
If you offer some rare and extraordinary products they can also work perfectly for impulse buying, due to the fact that people did not even know about the existence of such products or about them being available for online purchase.
Products with Discounts
If you do not have any new arrivals in your online store you can create other news to attract your customers. Information about discounts is also a reason to send an email. Just be creative and try to deliver your message as a unique opportunity. All methods of sales promotion can be used in this case: discount coupons, special conditions for re-purchase, lottery with valuable prizes, presents and so on. Sometimes it happens that the main purchase is made just to get a gift - interesting trinket. You can use not only the discounts, but also a price raising. For example, it is a fact that winter items such as skis, sleds, and skates can be bought at a lower price in summer, so the information about the prices being increased soon can also encourage the customer to buy.
"Last Items in Stock"
I can't say that there is absolutely no planned purchase. This method might work when a customer wanted to buy something for a long time, but could not afford it or had some other reason not to buy that product, and the information that there are last items in stock available may stimulate him. This variant can be used in a standard way, when each product page contains information about stock balance. But you can also use your browsing history and send e-mails to the customers who viewed this product. Even if the customer does not buy anything, properly formulated and friendly text of an e-mail will show them your customer care.
"Never again"
This method is often used by fashion and beauty supply online stores. The information that a particular product will never be available because it is removed from production is a great call to action. If it is a product that has been offered by the company for a long time, the loyal customers will definitely buy it. Thus, women buy perfume or cosmetic products which they like to use, and even can be upset that some product will not be produced anymore. It is very important to create a proper communication explaining that the existing product will give place to a new one which is better, more effective and so on. But at the same time, they should not miss the opportunity to buy their favorite item while it is still available.
Where to Inform
Just a few words about how you can inform the customer. Certainly, in the case of e-commerce we can't use the effect of shop windows as usual stores can. If a buyer does not visit the online store, you can deliver the information via:
Social networks
Online advertising, Remarketing
E-mailing
Sending catalogs by usual postal service with information about the products
SMS, MMS
Outdoor advertising, for online stores that work on a local market
Don't Lose Customers at the Last Step
Impulse purchase is made on emotions, so the customer can easily change the decision. All processes of online store should work without glitches. It is extremely important for checkout because most of the abandoned carts appear on this step. All payment and delivery methods should be simple and understandable. There should not be any hidden information or changes in the total price of the product.
Ethics of Sales
Each online store strives to increase its sales. But you should always keep in mind that all methods of sales promotion should be used fairly and humanely. If you try to sell no matter what, you can achieve your goal, but the customer's impression about your company may be unpleasant after purchase. Such customer will never come back. Correct and ethical sale with individual approach and customer care is the key to success.
Fundamentals of E-commerce Success
Many retail business owners are being pressured into setting up shop online. But is this a realistic expectation or is it an exercise in futility. There are some very important key questions that have to be answered before considering the move to online sales.
1.Are your products conducive to mail, phone or online sales?
You might think that every product can be sold online and, to some degree, you would be correct. However, should every product be sold online? The answer is no. Many products just don't sell well online because they are not conducive to impulse purchases, the demand is low, or the product itself has a long sales cycle. Given that most people will be making purchases online using a credit card, the products or combination of products should be easily purchased with a credit card that has a limit of $1,000 to $5,000.
2.Are you prepared to sell your products online?
This may seem like a very basic, but it will validate your motivation to succeed online. If your motivation to sell online is driven by a belief that "everyone else is doing it and so should I" , then you should serious consider the implications of selling online. Once you have made the mental decision to sell online, you can begin to formulate your strategy for doing so.
3.Do you have the resources to sell online?
Are you prepared to handle five, ten, a hundred, five hundred orders a day? Do you have the staff to fulfill orders, manage online customer service, and make updates to the website. Do you plan on doing this work yourself? If so, have you considered the impact this decision will have on the rest of your business? Create a plan that sets definitive goals for your online storefront, as you would for any business opportunity. Remember, managing a successful e-commerce website is a full-time job.
4.Who will build your site?
One of the biggest myths about e-commerce is that anybody can build and run an online store. The truth of the matter is that anyone can build and run a store online, but only a select few can do it well. There are many online store builders, shopping cart programs, and hosted applications that let you build a site and start selling your products online, but realistically you get what you pay for with most of these services. Consider hiring a company who specializes in developing online commerce sites for you. The result will be superior to a home grown site and will ultimately result in increased credibility and sales.
5.What is your budget?
Get quotes from a variety of vendors. You will find that the quotes you get back will range from a few hundred to tens of thousands of dollars. A reasonable amount to budget for your new website is around $10,000 for a full build out including custom web design and software, and ongoing server and maintenance fees of about $300 to $500 per month. When you consider your budget, take into account that the more you spend upfront, the less likely you will be to change the site. On the Internet, keeping your website fresh and updated is crucial to your credibility.
Now that you have answered the fundamentals, you will want to ensure you take the following steps to get your online store set-up correctly and efficiently:
1. Set-up an Internet Merchant Account
This is a must. You may be tempted to use Paypal, 2Checkout, or some other low cost online payment solution, however, in the end, when your site becomes popular and you start generating significant revenue, you will find that the discount rate you pay with a true merchant account will be much less. Although there is a little more work involved in setting up an Internet capable merchant account, your credibility, not to mention your payment tracking, will be greatly simplified.
2.Purchase a Secure Certificate
This is also a must. Securing your site is mandatory in order to avoid possible issues with credit card theft. All merchant account providers will require you have a secure certificate installed on your server before they issue you the account. Secure certificates range in cost from around $80 CAD to $500 CAD depending on the level of security and authentication you require. For the most part, a basic certificate is all that is required for online sales.
3.Organize your product data
Having your product data organized in a spreadsheet will go a long way to speeding up the set-up of your store. It will also help you organize your store layout and determine what products will sell best online.
4.Take good product photos
Since your online customers won't be able to hold or touch your products, a good photo is your next best option. Your photographs should be bright, with good contrast, and show the product either alone or in combination with complimentary products. For example, when selling a pair of jeans, take a photo of a person (preferably someone who looks attractive in the jeans) actually wearing the jeans. Have the person wear other complimentary products from your store like a popular shirt, shoes, and a purse. Customers will be more inclined to buy the jeans if they can see the jeans in context with other products.
5.Set-up a newsletter
Permission based newsletters are an excellent way to keep your customers coming back to your store. Sending a monthly newsletter that highlights new products, sales, or promotions can be a great way to retain and attract new customers.
6.Visit stores that you like and make notes
Do your research. Look at the sites that are at the top of their game and find out what they do. How are their products displayed? How does their shopping cart work? How often do they update their site? The more information you can provide to your web designer and developer, the closer they will come to meeting your expectations.
In summary, don't rush in to anything. Like all good things, a high quality revenue generating website takes time, money and effort to build. There's nothing wrong with starting small, but remember to constantly re-invest in your online store. Make improvements whenever you can and keep it fresh. The days of "build it and they will come" have long been over. Talk to a marketing expert and plan your strategy accordingly.
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