Category: Ecommerce strategy

What is the secret to a successful website?

This is a fantastic article – So true, I could have written it myself…

I particularly like the closing paragraph:

Management must realise just how complex a job it is [managing a website] and ensure you have time dedicated to its execution. Perhaps you should print off this article and give it to them.

What is the secret to a successful website?

Lessons to learn from invite-only online shopping

I became a member of Gilt.com, via an invitation from Gwyneth Paltrow no less!

Gilt.com is a members only shopping site set up to recreate the buzz of a New York sample sale but online – you have to be a member to join (by invitation only), each “sale” of a particular brand lasts 36 hours, starting at a fixed time of day with limited availability – first come, first served. Each sale is previewed a few days before and there are 5-10 different sales live at any one time. Typically a lot of products will show as sold out, but you can join a waiting list.

Prices are typically half the RRP, and I suspect the same bargains are probably available elsewhere online. In addition you may have to wait 2-6 weeks for delivery. But that’s not the point – the site is using exclusivity and limited availability to create a real buzz, and avoiding the need for traditional online marketing. Very clever!

ECommerce design – questions to ask sooner rather than later

These are two important aspects of managing an ecommerce site which may not be top of your list when developing a new online shop. But thinking about these as early on in the design process (or better still when selecting an ecommerce platform) will bring immediate benefits and save time and expense later on.

1. Promotions & merchandising

  • can you apply a discount across all products, or certain product categories?
  • how will you highlight the before/ after price and saving? On the product page and summary page?
  • how will you direct customers to the promotion – on the homepage or an offers page?
  • do you have products that can appear in more than one category, and how does the design/ ecommerce platform cope with this?
  • if you have a sale or clearance section, do the products appear in the main sections too?
  • how will you highlight new products?
  • what type of voucher codes can be used – can they be product-specific, or can you exclude certain products & categories? Can voucher codes be applied to delivery charges? Where does the voucher code redemption box appear? (You need customers who have a code to be able to find it, but you don’t want to distract customers from completing the transaction)
  • what type of multibuy or “gift with purchase” offers are possible and how can these be communicated?

2. Stock management

  • does the ecommerce platform give a stock monitoring solution?
  • do you continue to show products which are out of stock, or hide them?
  • if a product is available in more than one size / colour etc. how will you denote which sizes/ colours are available?
  • can you automatically show a “low stock” message (a good call to action)
  • do you show availability on the product summary page? You don’t want to appear to have poor availability, but equally you don’t want to annoy customers when they click onto a product page and find the product is unavailable.
  • what would happen if all the products within a category are out of stock – how flexible is the menu and or product categorisation?

When social shopping can really work

There are various ways that social media is slowly being adopted by online retailers. It’s becoming increasingly common to find facebook, twitter & blogs on ecommerce sites, and “share this’ bookmarking & product reviews seem fairly standard now on product pages.

Apart from product reviews where there’s a proven link to increasing conversion rate (79% of online UK retailers surveyed reported that the main benefit of consumer-generated rating and reviews was that they improved site conversion rates), it’s hard to demonstrate a direct sales benefit, although of course it all helps in terms of brand building, customer loyalty and rich content for SEO.

In my experience the most effective social shopping sites (and the most effective form of online marketing!) are www.hotukdeals.com and www.moneysavingexpert.com. A post such as this

http://www.hotukdeals.com/item/452300/viners-alaska-32-piece-stainless-st

would typically boost daily sales by 500% – 1000% i.e a spike in sales normally over a couple of days driven by sales of one particular product, with customers discussing and rushing to get the bargain. A product that would normally sell less than 5 a day would sell 500 in one day, with zero cost per conversion, and adding 100s of new potential repeat customers!

Of course success stories like this are unlikely to happen all day everyday, and despite my efforts at influencing the system will be quite random events (be careful – it’s easy to get blacklisted for self promotion)!

The key thing is to be aware of the potential, and keep an eye out for the start of a spike in traffic from one particular source, sales of one particular product, or use of a voucher code.

Then make sure stock levels are available, check the margin on the product, use a popular landing page to up-sell/ cross-sell, monitor what people are saying about your brand and website. And watch the sales roll in!

Multistore tabs – an interesting solution for businesses with multiple brands

This is an interesting trend from the US; businesses that operate different ecommerce sites under different brands using tabbed navigation at the top to switch between stores. For example:

Sears shops

Gap.com

I haven’t come across any major UK examples yet. Potential sites might be the Arcadia brands (Topshop, Topman, Dorothy Perkins, Miss Selfridge, Wallis, Evans & Burtons) – all very distinct online shops which don’t even link to one another. At the very least you’d think there would be a synergy for TopShop and TopMan, which are often linked up in the physical world.

Gap/ Banana Republic is another candidate but they don’t have a transactional website yet. Interestingly their US site allows you to shop online for Gap, Banana Republic, Old Navy and two other brands using a universal shopping cart.
There’s a huge difference between the brands (Old Navy is cheap and cheerful, Banana Republic very expensive and Gap in the middle) but Gap Inc. obviously see a benefit for them and for consumers in tying the brands together. Rather than a branding no-no they believe “the best brand strategy is to do things that customers love, not what the brand marketers think customers want”.

ECommerce: a threat not an opportunity?

I’ve encountered various companies where having an ecommerce website was seen as a threat to other channels in the business – either conflicting with other retail channels (“you’re stealing my customers!”) or conflicting with wholesale channels (“why should I buy from you when you’re selling direct?”).

Perhaps people who are used to meetings and sales rep visits are suspicious of a world where you don’t need to have ever met your developers and agencies, where you can supply a product data feed to a customer rather than send a sales rep with a suitcase full of samples, where customers can receive an instant quote using bulk prices and customer-specific pricing…

Here are some tips, learnt the hard way.

Make retail channels work together, not against each other:

  • Tempt in-store shoppers to visit the website with voucher codes and web-exclusive offers
  • Tempt online shoppers into stores to view the product, buy there and then, or order online with free delivery, and consider allowing online purchases to be returned to stores.

Maximise incremental online sales by having a ecommerce strategy that encompasses your own website(s) and online marketing, and other websites selling your products:

  • If retailers can offer incremental sales (e.g. if they have large email databases, a wide offering of brands, or invest in offline marketing) assist with product images, suggested online retail prices and product information
  • If an online retailer is merely competing with you in SEO and PPC, limit the range of products available to them and consider an affiliates scheme instead
  • Have a AdWords trademark use strategy (you can no longer stop other ads appearing in searches for a trademarked term, but you can stop other ads using your brand name in the ad copy).

Involve other departments in online development & merchandising:

  • Try and build shared ownership of online sales
  • Educate colleagues in the basics of online (where traffic & sales are coming from, key trends).