It’s a challenging time in the world right now for new or small business owners – a market is a busy place and it can seem like there’s no room for a newbie. Add to this the fact that it can be extremely difficult to find the perfect place to actually “set up shop” and many people find that it’s far easier to just turn to the internet to help sell their products. Ecommerce is basically just commerce – or business – that’s done over the internet. Products and services are listed on websites for people to find and purchase. Doing it this way is actually one of the best ways to sell something because an owner doesn’t have to physically open up a door.
This article will guide you with Amazon ecommerce feat tips for online retailers. Overview of the topics are given below:
- Ecommerce advantage over Traditional
- Ecommerce System
- Understanding Audience Behaviour
- So, how does Amazon ecommerce motivate visitors to shop?
- Perception of the price
- Price anchoring
- Commitment and consistency
- Principle of reciprocity
- Social proof
- Personalized recommendations
Ecommerce advantage over Traditional:
But many people wonder why they should instead of the ecommerce system instead of using more traditional means. First, it’s far cheaper right off the bat than having to set up in a physical shopping space like a mall. You don’t have to pay rent and utilities on a website, just pay for an ecommerce hosting service. You don’t even have to pay employees, either – with ecommerce hosting, you can do everything from the comfort of your home. And to put it simply, it’s also much easier and involves far less stress than opening a typical store would be.
But setting up a website isn’t a walk in the in the park, especially for someone who has never done any work with websites before. The average person isn’t familiar with HTML and the other things necessary to set up their own website on their own and as a result, they often waste time and energy – and money in some cases – constructing a website that’s useless. So what can they do to try and help their small business succeed? These kinds of sites are so popular because they’re easy to use and they’re not too expensive. Millions of people around the globe use ecommerce hosting systems because they’re easy to figure out, they offer good results and they’re relatively inexpensive.
There are many ecommerce systems that have already been designed and are ready to be used – all you have to do is buy them. This is extremely valuable because trying to construct one from scratch often results in the same thing building a website does – a very confusing mess. Instead, you should buy a system and then find an ecommerce hosting site that you can pay to host it. These sites offer everything a business owner needs to run a kind of “virtual store” and it allows people to list their products on the site and sell them that way. Going with an ecommerce system and an ecommerce hosting site is one of the best ways to grow your business.
Understanding Audience Behaviour:
Understanding the intricacies of human behavior, knowing why and how people make decisions, gives an indisputable advantage in online sales. Using psychological tricks is worth learning from the best, so today we will tell you about the experience of the global online giant Amazon ecommerce in the field of increasing sales and ways to apply the features of human psychology in your online stores.
In 2016, sales of Amazon ecommerce amounted to almost 135.9 billion dollars. What is the secret of his success? Several key factors can be identified: first, a clear understanding of the requirements of the buyer, what kind of product he is interested in and at what price; secondly, the timely supply of this product.
Attention to the user can be seen from the first visit to the site – the main and other pages of the site in real time are adjusted to the interests and needs of the user, offering the most relevant products.
So, how does Amazon ecommerce motivate visitors to shop?
Perception of the Price
- This is one of the most interesting factors. One common belief is that Amazon ecommerce offers the lowest prices, which in the eyes of many makes it out of competition with other sites, especially offline. But is it really so?
- Compared to traditional stores such as Walmart and Target, the price for Amazon ecommerce is really lower, but if you take other Internet retailers, the ratio will not always be in favor of the company.
- Why do customers choose this site and not others? The secret is that Amazon ecommerce identifies the most popular products on the site and puts them at a lower price than competitors. As a rule, these are large purchases, for example, a TV set or a game console. But for the accessories to these products, the price can already be up to 30% higher than in other online stores, but buyers are unlikely to look for each adapter and cable, comparing prices.
- Thus, the stereotype works: if the price for one product is lower, then the price is lower for others. The policy of low prices at a psychological level allows Amazon ecommerce to associate with a place where it is necessary first of all to search for the necessary goods.
- The concept of anchoring refers to the human tendency to perceive the first part of the information that is offered at the time of the decision. In this case, it is a price category. The secret is that if you first show the customer a TV at a high price, and then – at a lower price, then the remaining offers will seem more profitable. It is not at all a fact that they will be cheap in fact. But a lower price than the first seen will psychologically seem acceptable and profitable.
- Large companies carefully study the subtleties of marketing and know how to motivate the buyer to make a decision in their favor. Three variants of the price are offered, among which the second, in most cases, will be accepted by the buyer. People choose the golden mean – not expensive, but not the cheapest.
- Another way used by the Internet giant is to specify the recommended retail price near the Amazon ecommerce price. And despite the fact that even a quick search on the Internet will show that the price level of other online stores is about the same, the anchor works and the customer is ready to make a purchase.
Commitment and Consistency
- Amazon ecommerce, like many other companies, actively uses one of the six principles of influence identified by Professor Robert Cialdini: people do not like to give up deals and obligations.
- In practice, marketers use this method when they ask users to make a commitment, no matter how small it is. This can be a subscription to the newsletter or, in the case of Amazon ecommerce, a free trial period for the Prime service.
- After the client decided to try Prime, he most likely will order the goods from Amazon ecommerce, because already there is a Prime ID, and free shipping seems a convenient option.
- The same principle works with the smart button Amazon ecommerce Dash, which allows you to replenish the stock of household funds with a single click. Once the user has opted for Dash, the purchases will become regular.
- To use the principle of consistency, you do not need to invent a smart button, you can start with analytics and offer re-demand goods. To do this, you can implement personal recommendations on the site pages or use personalized trigger messages. Such mechanics work in everything connected with goods for children, animals, the health and beauty segment, the sphere of food products, etc. any industry where purchases of the same goods are made regularly.
- Personal recommendations of the goods of repeated demand on the main page brought the store of children’s goods an increase in the conversion by 3.7%. In the case of using trigger dispatches for working with regular goods, a letter is sent to the user with a proposal to replenish stocks when he or she is about to run out of goods. The conversion of such letters is comparable to the “abandoned basket”. For example, for an online store of pet goods, the conversion from conversions to orders was 45%, Open Rate – 18%, and CTR – 16%.
Principle of Reciprocity
- Among the factors that influence the behavior of users, Robert Cialdini singles out another important principle: people feel obliged to the brand when they receive something for free.
- The essence of the principle of reciprocity is to offer your customers something useful absolutely free. When the store takes the first step towards it, the buyer is more likely to do something in response.
- For example, Amazon ecommerce offers a free test period for Prime research. Buyers are offered a 30-day trial version that covers video, music and free shipping. During this time, the user has all the possibilities to evaluate the service.
- An artificially created deficit of products, their lack – a skillful move. Under a cunning tactic, a powerful sales tool is hidden. The seller creates the illusion of a lack of goods to increase the interest of buyers: everyone wants to buy something that will not be soon.
- The buyer’s psychology is arranged so that if he knows that the quantity of the goods is limited, the value of this product in his eyes is substantially increased. The brain forces him to make a purchase as quickly as possible.
- Amazon ecommerce uses deficit tactics, indicating in the product card the information about the number of goods in the warehouse, thus motivating them to make a decision and purchase the goods.
- At the same time, users are also informed whether the goods are planned in the future and in what quantity, which increases the trust of potential buyers.
- You can use the deficit not only on the website of an online retailer but also in trigger mailings. For example, the online store Seeds post thanks to the introduction of the “Remained in the warehouse” item increased the conversion of the mailing by 33.8%.
- The urgency factor works by analogy with the deficit, it includes the same psychological trigger, provoking the user to accelerate the decision to purchase. In addition, providing clear information is also a way to help the buyer.
- For example, information about when to place an order to receive delivery on a specific date will help users not be late with a birthday gift or some event.
- In the case of Amazon ecommerce, this information is reflected immediately in the product card, and a countdown is used: if you want to receive the goods tomorrow, you need to place an order within such a time.
- In human psychology, the principle of trust in the opinion of other people and the need to approve your own choice are laid, so the principle of social proof means so much in sales.
- In the case of online stores, the use of social proof can be used in several ways, from information on how many people have already bought a certain product, to ratings and user reviews.
- Amazon ecommerce has always paid particular attention to reviews, introducing innovations in them for many years, and now for most online stores, it has become an indispensable element. Reviews convince potential buyers that the products they are considering are worth buying. As practice shows, often people read reviews even earlier than product characteristics.
- Amazon ecommerce collects thousands of user reviews, and a simple representation with a huge list would be extremely inconvenient, so the Internet retailer summarizes the scores from all reviews and makes a rating with a transcript where users can see how many and what ratings each product received.
- Amazon ecommerce also asks a simple question: “Was this review helpful to you?” Which allows customers to rate reviews and the most popular ones are displayed on top. This small addition brought Amazon ecommerce billions of dollars because the most useful reviews have a great effect on conversion.
- Works well mechanic “this product has already bought X people”, which can be used in product cards or in trigger mailings. For example, the Quilled online store the introduction of the “Bought Today” item brought + 10.3% to the CTR and + 20.9% to the CTOR metric.
- This cannot be called a psychological trick in the full sense of the word, but thanks to the fact that the product selection on the site in real time is adjusted to the interests of the user, it is formed that Amazon ecommerce understands its needs and preferences, which forms a high level of trust and loyalty.
- It is worth the user to show interest in any category of product, brand or price category, as the blocks of recommendations are adjusted to his preferences.
- This approach is successfully used by many other online stores. According to Retail Rocket statistics, personal recommendations on the main page on average provide an increase in the conversion from 2.5% to 9.5%, also increasing revenue and the average check. For example, the personalization of the homepage on Hoff.ru, the personalization of the main page, brought the conversion growth by 5.6%, the average check by 5.8% and revenue by 11.7%, and in the case of the online store Dostavka.ru, the placement of blocks with recommendations for the main page led to an increase in revenue by 8.5%, and in addition, the average viewing depth increased by 6.2% and the average session duration by 8.1%, which positively affects the ranking of the site in the search engines.
So this is all about Amazon success story. I hope this article will guide you with your online retail business. For any query or something please comment below as your comments are crucial for us. Thank You!!