Identifying Opportunities in Shopping Cart Abandonment

Identifying Opportunities in Shopping Cart Abandonment

An abandoned shopping cart isn’t the be-all and end-all of a purchase journey and an online merchant’s profit. It offers opportunities for reversal towards increased sales and the further cultivation of brand awareness. An abandoned eCommerce shopping cart is but one stage in a series of steps that the consumer has already taken towards a purchase. As such, the abandoned cart itself indicates prior consumer interest. In this sense, remarketing efforts to bring the consumer back to the cart are essential, especially when there is lost revenue at hand – according to Business Insider, a hefty US$4.6 million worth of it.[1] Knowing what makes online shoppers leave your eCommerce site with nothing in hand will also help you to better tweak your strategies to convert site visitors into customers. The Preliminary Dilemmas of the Asian Online Shopper A bad beginning to a shopping experience online increases the likelihood of the customer abandoning the cart prematurely and the loss of revenue. One major cause can be poor site design, such as having to click through multiple pages to get to the payment destination, or an overcrowded page. Getting the technical and design aspects of your webstore right paves the way for the consumer to push their shopping cart through to purchase. This includes creating a better customer experience through convenience features, such as a persistent shopping cart, which can encourage further browsing. These aspects are not just applicable to eCommerce sites, but also for mobile and other digital channels, especially for omnichannel retailers – who can recoup lost sales through more than one channel. Creating a different consumer journey, though with...
Dynamic Pricing – A Profitable Alternative To Pricing Wars

Dynamic Pricing – A Profitable Alternative To Pricing Wars

In the battle for eCommerce clicks and sales, dynamic pricing can help online businesses stay profitable, relevant, and on top of the competition. Searching for the best prices is a part of a consumer’s due diligence, whether buying groceries at a wet market in Singapore or purchasing a television set in Shanghai. But when a consumer can visit multiple stores with just a few clicks of the mouse, price comparison has become an entrenched ritual in the online shopping experience. But eCommerce retailers need not start a pricing war to hook fast-fingered online shoppers to the checkout page. Knowing what your competitors are offering helps you chart your own, better path against theirs, and in this, dynamic pricing is a worthy strategy. Knowledge Is Power And Profits Dynamic pricing simply means adjusting prices in accordance to market demand and supply in real time. It may sound elementary; after all, who hasn’t compared prices with other shops on the same street? But what dynamic pricing promises over static prices and manual monitoring of competitors, is increased market sensitivity and knowledge — which can help eCommerce retailers make better pricing decisions towards their business goals. This sensitivity is premised on using competitive intelligence software to collate and crunch large masses of critical data, including prices of a product across the market, price fluctuations and the amount of stock your competitors hold. This produces recommended prices that are lower than your competitors’, yet also advantageous to both the consumer and your business. The end result is a mark of success for dynamic pricing. Take for example, Amazon — perhaps the largest and...
The Art of Reliability: Establishing Trust in Asia Pacific eCommerce

The Art of Reliability: Establishing Trust in Asia Pacific eCommerce

In the world of online retail, authenticity and trust are key to converting browsers into buyers. There is a perception that Asia’s shoppers are drawn to online retailers for the promise of a great deal. After all, eCommerce does away with expensive overhead costs associated with maintaining a brick-and-mortar storefront, meaning competitive prices online for the same goods. However, many Asian consumers feel that eCommerce lacks reliability. While domestic deliveries in urban centres can usually offer accurate shipment tracking and delivery on time, online retailers often struggle to provide a trustworthy logistics solution that will instil confidence in buyers overseas or in remote locations.[1] Furthermore, the proliferation of counterfeit branded products, which are advertised as genuine by online retailers, has become a problem for Asian consumers. These shoppers are growing increasingly likely to choose online purchasing channels based on authenticity and trust, even if it means paying a higher price.[2] The challenge in Asia Pacific eCommerce, then, is twofold: to earn consumers’ trust and deliver authentic goods at the right time to the specified destination. For online retailers who can get this right the potential upside is very attractive: A slice of the global B2C eCommerce pie, which is projected to top US$4 trillion by 2020.[3] Deliver Reliability Online retailers can build trust with a seamless and reliable order fulfilment practice, which will also serve to make shipping attractive to overseas customers, customers in remote locations domestically and customers who require flexible delivery options because of their busy metropolitan lifestyles. B2C eCommerce retailers should offer consumers the convenience of multiple shipping speeds and pricing options. They can also partner...
Paving the Way for the Online Shopper in Asia

Paving the Way for the Online Shopper in Asia

Charting a path toward successful checkouts in Asia takes more than designing where the buttons go, but an understanding of what makes online shoppers in the region click. It’s said that, on average, a person makes up to 35,000 decisions a day.[1] Included in this weighty number are consumers’ purchasing decisions as a buyer navigates their way to purchase. For example, analyzing how a product fits a need, to judging how many virtual or physical steps it takes to reach the product, to even seemingly minor considerations such as the typography used on a product label. The online shopper has even more questions and motivations on their consumer purchasing journey. Therefore, understanding the contemporary online shopper and their motivations is crucial to designing a virtual shopping experience that leads to the most critical stage of online shopping: payment. Identifying an online shopper’s emerging behaviors can ensure the longevity of success in the APAC eCommerce landscape, which Forrester projects will be worth US$1 trillion in 2020.[2] The Shoppers Behind the Mouse and Mobile UPS’s Pulse of the Online Shopper study termed today’s online shoppers ‘flex shoppers’ – and “ruthlessly efficient” at that.[3] The flex shopper is highly aware that time and tide waits for no consumer. They take advantage of the omnichannel approach that online retailers use, and evaluate products through different devices and multiple channels before purchase. Furthermore, their online purchase decisions are influenced by convenience, efficiency, communications, delivery speed, the amount of information provided and personalization, such as site recommendations for products based on known preferences.[4] As such, having a seamless transition between multiple channels is significant to the flex shopper,...
Building The Business Case For Free Shipping

Building The Business Case For Free Shipping

For online customers across the globe, shipping costs are one of the most important considerations when deciding where to shop. With retailers under pressure to offer complimentary delivery as a means of attracting and retaining customers, what are the effects of free shipping on an eCommerce company’s bottom line, and how can they best implement this into their operating model? Across the Asia Pacific region, eCommerce is full of opportunity and growth potential. However, as in other regions, many online retailers find it challenging to build a sustainable and profitable business model. At SingPost, we believe that in order to be successful, businesses must deliver best-in-class customer experiences, putting the needs and behaviors of consumers at the core of their systems and processes. Customers today have full visibility over product pricing and service levels. They also have the power to instantly research alternative offerings and switch to a competitor in a matter of seconds. Online retailers must therefore provide a superior shopping experience while sustaining a rational business model in order to survive today’s highly competitive eCommerce marketplace. While a positive shopping experience is driven by numerous factors, research shows that transparency with regards to shipping costs as well as the notion of free delivery are key customer experience influencers. Indeed, according to research conducted by Accent (now Startek) in 2014, 90% of consumers are drawn to online shopping by the notion of complimentary shipping[i]. What Customers Want According to a 2013 Forrester Research study, shipping costs were cited as the primary reason behind customers abandoning their eCommerce carts during the online shopping experience. Indeed, when determining whether to...
Are Marketplaces Right for Your Business?

Are Marketplaces Right for Your Business?

The emergence of prominent marketplaces in Asia Pacific (APAC) has made them a key feature in the regional eCommerce landscape. While the marketplace seems to promise easy revenue growth at low operational costs, retailers need to weigh the costs and benefits of selling on the platform. This article gives an overview of the marketplaces in APAC’s eCommerce landscape and highlights some key factors for consideration before launching on a marketplace. An Overview of Asia Pacific’s Marketplaces   As the world’s leading eCommerce market with an estimated USD $1.5 trillion in B2C sales in 2014[1], APAC is home to many rapidly growing online marketplaces. The prevalence of marketplaces can also be attributed to online customers’ increasing openness to shopping on multiple platforms. Marketplaces’ wide-ranging offerings across different brands and product categories also help attract and retain consumers who are looking for more variety. With a wide customer reach, these selling platforms have proved appealing to retailers looking to explore more revenue channels and gain greater exposure in foreign markets. Marketplaces are also innovating regularly to allow customers to connect with brands at various touch points. On some of the most popular marketplace sites in APAC, up to 50% of customer traffic comes from mobile devices[2], with a significant proportion of sales derived from mobile applications[3]. In fact, marketplaces such as Zalora are preparing for a ‘mobile-only’ market by opening shopping channels on chat apps like Line or Viber[4]. Others are leveraging social commerce initiatives to widen customer reach – Alibaba’s social media channel, Weitao, offers customers easy buying options directly from Tmall or Taobao stores[5]. While global marketplaces continue to...