Using design choices to limit the checkout friction on your ecommerce site is a great strategy to increase customer spending. You can enhance a solid design with features that further add to the convenience of customers - encouraging them to order more. In this post, we'll highlight what some of these features are and why they work.
Adding “low stock” alerts to product pages creates a sense of urgency that prompts customers to purchase while the item is still available. If you link this feature with your inventory management system, you can even display the alert as a countdown.
Product suggestions are a way to show customers items they may not have found on their own. However, showing other products based on category alone (the default functionality of many product suggestion widgets) is not very effective. Instead, use algorithms to make suggestions based on customer preferences (demonstrated by their overall order history), or on purchasing trends you notice (e.g. items based on seasonality or products that are commonly purchased together).
The checkout process is the area where most ecommerce customers abandon a purchase. If customers can skip the traditional checkout process, they’re that much more likely to place an order. There is a caveat in that one-click functionality is patented by Amazon and requires a licensing fee to use. Although it’s a useful feature to have on your site, it may not be worthwhile if you can’t recoup the cost of the license from the extra sales.
Accurate tracking, measuring, and forecasting of inventory is crucial for seamless order fulfillment, financial decision-making, customer satisfaction, brand perception, and other aspects that drive the success of an ecommerce company. That is why even if your sales are through the roof, your success will be short-lived without capable inventory management. These guiding principles can help ensure that your inventory management stays successful and contributes to the growth of your business.
Inventory data is an important consideration when making logistical, purchasing, and fulfillment decisions. Inaccurate or unclear data negatively impacts these areas - so it's critical to have inventory data that is clear, accessible, and up-to-date (ideally, in real-time).
Inventory velocity is the time it takes to sell each individual item in stock. When you need to predict when inventory will need to be replenished, or decide if a product line should be liquidated, inventory velocity is a useful metric to have. It may not be tracked by your inventory management system, but it's something you should keep an eye on.
Compare your inventory management metrics with industry benchmarks on a regular basis. If your inventory performance falls behind industry averages, it’s time to reevaluate your approach to inventory management and create a plan for improvement. Outside perspective can prove invaluable in such a situation; by collaborating with the right 3PL provider, you can get the expertise required to fix issues, and even improve growth and stability.