There are several reasons why shoppers choose to abandon carts. But in most cases, the reason boils down to checkout pages with poorly designed user experiences. In a behavioral survey of 1,300 online shoppers conducted by ecommerce technology company, Namogoo, 75% cited the importance of an "easy checkout process" for a desirable shopping experience. According to the survey, the following UX issues had the greatest influence on cart abandonment rates. Are you addressing these on your ecommerce site?
More than half of those surveyed (63% of mobile and 53% of desktop users) said that excessive or repetitive form fields at the checkout stage were the most frustrating part of shopping online. With this in mind, think about ways you can streamline the process of submitting information during checkout. For example: incorporating autofill features into your delivery/billing address forms. Or if your ecommerce site requires account creation to complete a purchase, consider alternatives like Guest Checkout or social media login functionality.
If your checkout process loads too slowly or crashes, that’s definitely going to cost you sales. Make sure to test your site's checkout thoroughly by accounting for as many user actions as possible, like using the browser’s back button (in the above mentioned survey, 36% of mobile shoppers abandoned their carts when the back button didn't work as intended, requiring them to re-enter all of their purchase confirmation information). Additionally, look for ways to proactively help users avoid checkout errors. For example, you can automate error messages so they appear dynamically as each form field is filled out, rather than after the user attempts to submit the info.
Distractions and Clutter
Shoppers are more likely to abandon their carts if any of the steps for finalizing the purchase are unclear. The Namogoo survey found that 46% of users consider website navigation to be a deciding factor for whether to purchase from that site. Similarly, 29% of users said that pop-ups and interstitials on the checkout page distracted them from completing their purchases and negatively affected their perception of the website. Keep the checkout flow as clean as possible by saving non-checkout CTAs (e.g. "Sign up for our Newsletter" or "Other products you may like") for the "Thank You" page, and adding features that help users progress with checkout rather than pause it – for example, adding options to change the quantity, color, size, and other attributes of the items in their order without having to leave checkout.
More and more ecommerce businesses are adopting omnichannel strategies to get their products in front of more customers around the web. Most e-tailers are already familiar with adding their products to channels like Amazon and eBay, but what about Google Shopping?
In a nutshell, Google Shopping is a pay-per-click advertising channel, but instead of text ads, users are shown robust product listings from your website within Google. These shopping-enhanced adverts mostly appear under Google's "Shopping" tab. But, if you've optimized your adverts properly, they can also appear in Google's main results for certain user queries. When a user clicks on your ad, they are directed to a product page on your website. Since many consumers begin their "buyers' journey" with a Google search, this can be an effective way of reaching new customers.
The factors Google considers when deciding what search queries should trigger your ads includes not only your bidding activity, but also the content of your product listings. Therefore, in order to get the best ROI from Google Shopping, you need to strategically optimize the content of your listings.
For example: per Google, listings that contain poor-quality images may be prevented from appearing in search results. Read Google’s guidelines for high-quality images and make sure your listings are meeting this criteria.
Additionally, Google wants to present users with complete information related to their queries. To help your listings perform better, take the time to fill out all of the requested fields (Title, Description, Product Category, Availability, etc. etc.) with complete and accurate information. Then, put a process in place to make sure your listings stay up-to-date with relevant info.
If you take care to cultivate your listings, analyze performance data, and bid strategically, Google Shopping can be an effective addition to your business’s omnichannel presence.
As your ecommerce business grows, the pressure increases to obtain more SKUs, staff, and facility upgrades. There are two paths you can take to invest in your growth: in-house managed expansion, or outsourced expansion through a third-party logistics provider (3PL).
Generally, your available resources, immediate needs, and planned rate of growth all factor in to deciding which path offers the better ROI. Since each strategy has its pros and cons, choosing between the two can be harder than it sounds. To help you decide which expansion path is best for your business and long-term strategy, you should consider the following areas.
Packaging & kitting considerations
Do your orders require simple packaging that can be prepared inexpensively in bulk quantities, or do they demand a more complex packaging procedure? If an intricate package is part of your product’s appeal or branding strategy, it may be worth keeping production in-house to maintain close control over the process and/or avoid transitional hiccups. But, if you have no such customization concerns, a 3PL may be a more cost-effective option. Although, depending on your customization needs and the 3PL’s capabilities, outsourcing may still be a good choice. For example, at Fulfillment Works, we have lots of resources to design and produce custom packaging for our clients at minimal cost.
Human capital considerations
3PL providers usually have all the resources needed to help clients start expanding right away. If you have a small staff or your executive team lacks the experience or availability to execute on growth initiatives in a timely manner, outsourcing is typically the better path for expansion.
Technology & equipment considerations
Upgrading to a new WMS or adding new equipment to distribution facility requires a sufficient budget and an integration strategy that minimizes operational disruption. The more complicated your expansion needs are, the more difficult they will be to accomplish entirely in-house. Since 3PL providers already have the technology and equipment in place, they may be the better choice for businesses that need rapid expansion of facilities or operational capabilities.
Ecommerce companies with high volumes of small orders need to be extremely efficient so that profits are not eroded by operational costs. If you can get through the initial pains of the implementation process, warehouse automation is a great operational advantage in this regard. But, you may find the ROI of automation to be underwhelming if it’s not completely integrated with your WMS. After all, since your WMS tracks and manages everything going on in the warehouse, it should also be facilitating the overall direction of your automated processes. When your WMS is synergized with strong automation strategies, you can significantly improve operational efficiency in the following areas:
Efficient automation will cut back on manual steps in the fulfillment process, allowing you to process more orders with less staff. However, a WMS with built-in labor management features will be required to orchestrate, schedule, measure productivity, and track labor costs across all operations.
As mentioned above, automation will speed up order fulfillment in general. A WMS will give you visibility into the production line and processes behind incoming product, put-away, picking, shipping, and returns. Together, you get the data needed to plan for the best use of your automated systems – pushing efficiency even further.
Warehouses that rely more on manual processes than software or automation may have an order accuracy rate of 98% or lower. The day-to-day revenue loss may seems small, but it builds over time. With a WMS providing direction and automation taking action, you can expect to maintain 99.99% order accuracy.
Automation uses and provides inventory data while WMS provides data tracking, reporting, and planning features. Combined, they give you the necessary tools to enable real-time processing, eliminate errors with inventory locations, and make that information available to personnel in and outside of the warehouse.
At some point, every ecommerce business asks itself, "is it time to partner with a 3PL provider?" The answer depends on several variables such as your long-term business goals, availability of internal resources, and your level of operational efficiency. Every business has different needs and priorities, so 3PL partnerships aren't the best answer for everyone. However, if you find yourself dealing with any of the following challenges on a regular basis, it may be time to bring in a 3PL provider.
Third-party logistics and fulfillment providers are among the best strategic options for helping ecommerce retailers (especially new ones) efficiently set the stage for rapid growth and/or improvement of services. Since 3PL providers already have robust distribution networks established, they can often help clients ship products to more customers, faster and at reduced cost.
In some cases, partnering with a 3PL provider is a better alternative than investing in new facilities or technology. For example, upgrading to a new order processing system or adding new equipment to an already-full warehouse may require enormous amounts of time and capital to implement properly. However, 3PLs have already gone through those processes – and fine-tuned the results to accommodate the needs and demands of their clients.
Order fulfillment is a complex and demanding aspect of ecommerce. If you find yourself already stretched thin with marketing, merchandizing, customer service, and other initiatives that are critical to the success of your business, outsourcing to a 3PL provider can help you keep your focus on those areas rather than managing fulfillment.