E-Commerce and the Social Consumer – Making Online Shopping Hassle-Free: Part One

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Keeping up with the Social-Savvy Consumer

The ever-changing taste of the social consumer, along with the dynamism of the social media space, sometimes makes it difficult for online retailers to keep up. The online buying process has undergone some radical changes over the last few years. The modern shopper a) is greatly influenced by recommendations, reviews and price-comparisons posted on social media sites b) uses location-based services to find brick-and-mortar stores c) is short on time and prefers the convenience of shopping online instead of spending hours in billing queues and d) favors the choice online stores have to offer as opposed to the limited variety of products in traditional stores. Going by eMarketer’s 2011 study, by 2015, 170.3 million people, or 76.3% of the online population, will make a purchase on the web. While the figures sound optimistic, online shoppers presently face what is known as the ‘abandoned shopping cart’ syndrome. Research by the Brand Monitor team unveiled some of the typical reasons why people are hesitant to loosen their purse strings as far as purchasing online is concerned:

• Inability to browse through stores and physically try-on and purchase products. For many shoppers, the prospect of clicking on products and adding them to their carts is considered to be a dull experience.
• People are worried about sharing credit card information and personal details on social media channels and websites.
• Are not sure about the exchange and refund policies.
• Some shoppers are of the opinion that the shipping charges are too high and there are risks of the product being misplaced or damaged.

For online retailers, these may be minor hiccups that can be easily taken care of. However, for some consumers, especially those who are buying something online for the first time, these minor glitches, along with some major ones, are reasons enough to discourage them from filling up their e-shopping carts. In our two part series, we share some tips and suggestions on how brands can make online shopping an enjoyable and a hassle-free experience.

Resolving Common Consumer Woes: Part One

Insufficient Information:

Although the price is great, lack of information can be a major deterrent for prospective customers. According to a survey by Cone, in 2011, 69% shoppers looked for product/service information online before deciding if they should make the purchase. Websites and social media sites that go all out on advertising, without including the necessary information required to complete the purchase, often risk losing their customers mid-way. Here are some symptoms that indicate that your brand’s e-commerce site is in need for a revamp:

• Not Enough Customer Reviews: The fear of negative reviews could be a major reason why some brands are unsure about posting customer reviews on their websites or social media pages. Considering the fact that 90% of people said reviews have an impact on their decision and 60% say they’re the most important factor (PowerReviews and the e-tailing group), we say including customer reviews is a good idea. After all, it is true that people tend to trust the opinions of other shoppers or their friends more than they would trust brands’ opinions and recommendations. What about negative reviews? Simple… let your social customer service team a) engage with the unhappy customer b) try and resolve the issue c) post the responses online and d) make them feel you care.
• What are the Payment Options? It’s not uncommon to see a brands Facebook page or website that is rich in most of the information, yet, does not see the sales charts moving in the expected direction. Although the pricing information and special offers are featured, there are instances where the payment options are relegated to an obscure corner of the website. For time-strapped customers, who have little patience to actually browse through and locate this information, the simpler option would be to move on to your competitor’s website. Does your brand’s ‘Shop Now’ section fall under this category? Perhaps it’s time for a revamp.
• Where are the Product/Service Details? The advantages that brick-and-mortar stores have over online channels are a) the presence of sales personnel to describe the product in detail and b) the convenience of reading the details on the package or manual provided. For online retailers, overcoming this challenge lies in providing extensive details concerning the merchandise, including instructions on how a product may be used. Looking for examples and ideas on how to design that perfect webpage? Check out the ASOS Facebook page, which is complete with all the required information in an easy-to-assimilate and creative format.

The Abandoned Shopping Cart Phenomenon:

Convenience being one of the biggest reasons to shop online, it is important that retailers make the delivery process hassle-free. Shoppers, who have no problem with the prices, fill up their e-carts, only to decide on the last minute to abandon their shopping efforts. Research indicates ‘high shipping costs’ to be the biggest cause of the ‘abandoned shopping cart’ phenomenon:

• High Shipping Costs: A study conducted on Shopping Cart Abandonment by Forrester Research shows that ‘high shipping and handling charges’ was the #1 reason why customers abandoned their shopping carts at the check-out step. While it is not always feasible for brands to lure shoppers with the promise of ‘free-shipping’, there couldn’t be a better way of increasing shoppers’ likelihood of purchasing products online. With e-commerce being all about price and convenience, trimming down shipping costs, or even better, removing them entirely could result in massive increase in sales for retailers. The additional orders gained by brands that offer free-shipping can offset the burden of shouldering the initial costs.
• Damage During the Delivery Process: Remember the recent FedEx video of the delivery man tossing a fragile package over the gate and walking off? The company’s senior vice president of U.S. operations, Matthew Thornton, apologized with a video of his own, preventing the incident from snowballing further. This incident highlights one of the biggest reasons why shoppers would rather go to traditional stores and buy the items themselves, than entrust the responsibility of delivering the goods, ordered online, to someone else. The key to persuading people not to abandon their shopping carts lies in the marketer’s ability to convince buyers that they are capable of delivering the products to the expected standards. We suggest a) engaging with prospective customers during the initial stages of purchase and assuring them of safe delivery and b) highlighting the return policy and/or money-back guarantee (in case of damaged goods) on the website or the brand’s social media page. This feeling of reassurance can go a long way in converting those hesitant prospective customers to loyal shoppers.

Where are the Special Offers? What about After-Sales Support?

The brand’s social media site/webpage includes all the required information and consumers are no longer burdened with high shipping costs; is there more to a comfortable online shopping experience? We say yes. While insufficient information and high shipping costs can be major deterrents, there are other challenges that consumers face while buying online. In the second part of the series, the Brand Monitor research team will discuss how marketers can improve the online shopping experience by providing after-sales support and entice them to buy more by offering discounts and deals on their websites and social media pages.

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Tags: Ecommerce, Online Sales, Online Shopping