How to Sustain Your Ecommerce Business in a Recession

Official thinking is that the economy will likely experience a recession in mid-2023. So, how can you protect your eCommerce business with a recession looming?

The National Bureau of Economic Research defines a recession as “a significant decline in economic activity that is spread across the economy and lasts more than a few months.” Another common definition is “two consecutive quarters of negative gross domestic product (GDP).”

This article will show you how to review eCommerce performance and implement recession-proof strategies to help you survive and thrive during challenging times.

The impact of recession on eCommerce businesses

The past year saw a steep rise in inflation, with higher prices on everything from fuel to food. This has already led to a drop in consumer spending, as shoppers find they have less disposable income.

It also means higher costs for warehouse operations and shipping, while your suppliers and manufacturers will have increased their prices. B2B customers may be slower to make payments, and you’ve now got less cash in the coffers to see you through the looming recession.

Declines in consumer demand, employment, and economic output characterize a recession. During this time, spending will slow even further as consumers try to save money and focus on buying essential products rather than luxuries, potentially leaving you with a glut of unsold inventory.

When your business is tightening its belt, the marketing budget is often an early casualty. But without spending on ads, you won’t reach as many people. That translates into less traffic to your website and a smaller group of potential customers to convert—and a further drop in sales.

Factors affecting eCommerce performance during a recession

Consumer behavior changes

In a recession, shoppers typically look for cheaper options and bargains, and their perceptions of value-for-money will change. They may still browse your website but fail to make a purchase—or abandon their cart if the shipping fees or taxes are higher than expected.

Consumers will focus on brands they know and trust rather than buying from an unknown business. 82% of shoppers who said they’re spending less still buy from their favorite brands. They want to support companies that have always provided a good experience.

It’s up to you to adjust to customers’ changing needs. When people align their spending with their values and priorities, it’s more important than ever to know your audience well and keep track of behavioral changes.

Economic uncertainty

eCommerce enjoyed a huge boom during the pandemic, but the market is no longer growing exponentially. It’s true that people have gotten used to doing most of their spending online, and that’s not likely to change. But growth has slowed­­—and in a recession, they’ll spend even less.

In a time of economic uncertainty, making informed decisions is harder. Should you keep spending on inventory to avoid stockouts or carry less stock to avoid being left with unsold goods? Should you cut the marketing budget or continue advertising to attract more customers?

Pricing is also a minefield during a recession. Customers want lower prices, but you’d prefer to raise them to maintain revenue. You don’t want to damage your reputation by going too far in either direction.

Competitor landscape changes

eCommerce is already highly competitive and a recession can make it even more so. Countless companies operate in the same market, trying hard to maintain sales. Plus, during the pandemic growth we mentioned earlier, eCommerce witnessed several new players and investments, making the market more crowded.

It’s always important to conduct an analysis to gain a competitive advantage, but should you copy their strategies? For instance, they might drop their prices to attract customers. But if you do likewise, you risk a price war—and when the recession ends, you could upset customers with a sudden return to pre-recession prices. 

Government policies and regulations

The Federal Reserve has a dual mandate from Congress to maintain price stability in the US economy. It started hiking interest rates in March 2022 in an attempt to combat rising inflation. But some suggest that continued increases will actually tip the economy into recession.

In an official recession, the Fed is likely to cut interest rates to encourage borrowing and allow consumers to make more purchases on credit. This has a knock-on effect throughout the economy. The Fed may also try quantitative easing (QE), which is the direct purchase of assets to inject more money into the economy.

The government may introduce fiscal policies to help fight a recession, such as lowering taxes and increasing federal spending. Deregulation is sometimes used to stimulate economic activity by reducing restrictions on new businesses entering the market and increasing competition.

How to thrive in the midst of a recession

Review business successes and failures

When times are tight, you need to make sure that you’re maximizing every cent spent on your business. That means reviewing your performance and identifying ways to improve. Your business systems will give you the data you need, from Customer Relationship Management (CRM) tools to Enterprise Resource Planning (ERP) software. 

What is ERP? Think of it as an all-encompassing platform that offers you real-time insights into your business. It connects various data points across the company, from accounting to inventory management. When reviewing your business, it’s a reliable way to identify areas for improvement, helping you make cost-effective decisions to implement during a recession and in the future.

Points to consider when analyzing your business’ successes include:

  • What are your current successes? 
  • Which products always sell well? 
  • Which sales and marketing channels work best? 
  • Consider your repeat customers—what are you doing right?

Once you have the answers, you can invest in areas that you know will generate revenue.

You also need to look at your failures and figure out how to fix them. Did you experience stockouts? Did customers complain about late delivery? A customer-first approach is vital for eCommerce during a recession, so ask for feedback and use it wisely. You can also benchmark your performance against competitors.

Diversify revenue streams

It’s best not to keep all your eggs in one basket when the economic outlook is uncertain. Diversifying your revenue streams is an excellent way of protecting your eCommerce business—but that doesn’t have to mean expanding your product offering (as we’ll explore in the next section).

Instead, you could add extra sales channels, attracting a wider audience for the same products. Social media is a valuable (and largely free) method of promotion. You can even branch into social commerce and enable customers to buy directly from Facebook or Instagram.

You might start selling subscription boxes (which ensure regular payments and predictable cash flow), work with influencers or affiliates, or form partnerships with other businesses to encourage cross-promotion. A customer loyalty program can also generate more revenue.

Focus on core products/services

Instead of launching new product lines, concentrate on what you already do well. Identify the products or services that bring consistent revenue and good customer reviews, and double down on them. These are your recession-proof products.

Maintaining the quality of your core offering is essential, so don’t cut corners on production or packaging for these products. You could also make improvements by adding an extra feature or two while saving money by dropping products or services that don’t perform as well.

Focus on the value of the core offering. Does the product beat the competition on quality or durability? Does it have more functionality? You need to communicate this to your customers. Instead of cutting prices, try offering perks like extended return windows, guarantees, or loyalty points.

Cut costs without compromising quality or service

When customers have less to spend, they want to make their dollars go further, which means choosing quality products and services that represent value for money. But how do you square that with your need to keep costs down?

One method is to boost productivity so that you can achieve more with fewer resources. Optimize your warehouse layout and ensure inventory is stored correctly to avoid breakages or spoilage. 

Use technology to streamline processes, reduce expenses, and make smart decisions based on real-time data—this is one of the key benefits of cloud ERP system and other cloud-based tools.

If you order inventory more often and in smaller batches, you’re protected if demand changes or one shipment is delayed. This may also mean you can reduce overheads with a smaller warehouse, especially if you implement the JIT inventory method or use dropshipping for some items.

Finally, review your spending with suppliers and shipping carriers to see if you can renegotiate deals. You could also reduce shipping costs by using more economical packaging.

Strengthen online presence

If you haven’t already, establish a presence on all the major social media sites. You don’t have to use paid ads unless you want to, but you can build brand awareness. That way, you’ll be top-of-mind when the recession’s over and customers start spending again.

Even if most people are just browsing right now, it’s vital to provide a good experience on your eCommerce website. Carry out an audit to ensure your site is performing well in terms of page load speed and easy navigation, and it’s optimized for SEO. After all, a sleek website is no use if people can’t find it.

A strong website also means eliminating friction from the checkout process, with flexible payment and shipping options and pre-filled forms. Provide detailed product descriptions, transparent returns policies, and social proof that shows customers they can trust you.

Key takeaways

Recessions are generally bad news for businesses, but there are plenty of ways to lessen the effects. 

Make sure you’re prepared by maximizing efficiency and reducing costs wherever possible—without compromising quality. Stay agile by keeping track of changing customer needs and preferences. Double down on your core offering, focus on demonstrating value and trust, and maintain brand awareness so that customers know where to come when normality resumes.

It won’t be easy, but use this guide to manage your eCommerce business in a recession. With the right mindset and approach, you can weather the storm and emerge stronger than ever!

Reasons Behind Abandoned Ecommerce Shopping Carts and How to Reduce Their Frequency

One of the major challenges eCommerce companies face today is cart abandonment. It is a persistent problem that significantly impacts the overall performance and success of an online store. Ecommerce shopping cart abandonment occurs when a shopper adds items to their virtual cart, browses the website, and then exits the site without finalizing their purchase. This situation is all too common in the world of eCommerce, and the statistics are alarming. So, why is shopping cart abandonment a problem for retailers? With the average abandonment rate hovering around 70%, businesses are losing a substantial portion of potential revenue and customers.

So, what can you do to minimize this phenomenon in your business?

In this article, we will examine key aspects of the online shopping experience and share steps you can take to optimize your eCommerce store so that customers follow through with their purchases. We will also suggest various marketing strategies for you to implement to re-engage lost customers and encourage them to complete their transactions.

Read on to discover how to optimize your online shopping experience, retain valuable customers, boost your revenue, and secure your eCommerce business’s long-term success.

1. Complicated checkout process

One of the main reasons for shopping cart abandonment is the long and confusing checkout process. Many eCommerce companies want to add numerous fields in the checkout process to try to get to know their customers better. However, client expectations differ – they prefer quick and easy shopping. Therefore, the first thing you can do is minimize form elements and only ask for necessary information. Moreover, to save even more time, try to minimize typing tasks with features such as drop-down menus or auto-filling forms. It’s worth considering offering a guest checkout, which would save the amount of time it takes to create an account on your website.

Another way to make the checkout process more user-friendly is by streamlining site navigation. Try to reduce the number of screens from initiation to completion to help your clients save time and guarantee a better shopping experience. Inform them about how many steps are left to finalize the transaction and allow them to effortlessly return to each step if they want to make any changes. You can also consider providing clear instructions to guide customers through the process.

A good practice that your customers will surely appreciate is the auto-save capability for abandoned carts. This solution ensures that customers do not lose their selected items when they return to your website, even after leaving it for a while. It demonstrates that you care about their time and preferences. Moreover, you can use this feature to re-engage customers and bring them back to the purchasing process.

To summarize, a surefire way to keep users away from checkout is a clunky user experience. Unless you simplify the process as much as possible and remove all friction, you will have users leave before they make the purchase. However, appropriate decisions require knowledge in this area. If you don’t have the expertise in this or a UX specialist on your team, it’s worth considering working with an outside consultant or UX agency.

2. Website performance issues

Slow loading, frequent errors, crashes, inadequate mobile optimization, and website security issues can negatively impact your eCommerce platform and deter customers from completing purchases. You need to address these problems to create a seamless and secure shopping experience. One solution is to regularly perform website audits, especially after making any significant structural or design changes or adding new pages. Tools like site audit by SE Ranking can help assess essential security, speed, and usability metrics while providing guidance on how to resolve identified issues.

Source: SE Ranking

Additionally, it’s essential to implement strategies that prevent downtime, such as using reliable web hosting services and keeping your software up-to-date. You also need to prioritize security by conducting regular checks to avoid data breaches and hacking attempts. 

Why is UX important? Addressing even minor performance issues can significantly improve the overall customer experience, preventing potential eCommerce shopping cart abandonment and ensuring a more successful eCommerce operation. Thus, it is essential to test and analyze your shopping cart and checkout process, identifying weak points and optimizing performance accordingly.

3. Unexpected Costs (taxes, shipping fees, and others)

Unexpected costs, such as taxes and shipping fees, can negatively affect the customer experience, especially when they are not clearly communicated upfront. This lack of transparency can lead to cart abandonment, as customers may be put off by the final price at checkout. To address this issue, you should display the estimated delivery cost alongside each item even before it is added to the cart.

Source: Amazon

An effective option is to create a simple calculator that allows customers to input their zip code for a more accurate quote. Transparency is highly valued by online shoppers, and being transparent will help you gain more loyal clients.

If possible, consider offering free shipping or discounts to encourage purchases. If you offer relatively inexpensive products, you might consider offering free shipping with a minimum purchase threshold. This approach not only improves customer satisfaction, but can also lead to an increase in average order value.

4. Account Creation 

Forcing users to create an account or register to finalize a purchase can be counterproductive. It disrupts the purchase cycle and may deter potential customers. According to Baymard Institute research, 24% of people abandon their online shopping carts because the site requires them to create an account.

To increase customer satisfaction, offer guest checkout options and never force users to create an account.

Source: eBay

If you want to collect emails and other contact information for remarketing purposes, consider doing so after the purchase. A good option is to prompt users to create an account on the purchase confirmation page, allowing them to use the saved data from the completed order.

To encourage account creation, provide clear benefits such as: “Join our loyalty program for exclusive discounts and early access to new products” or “Register now to receive personalized recommendations based on your purchase history.” You can also highlight practical benefits such as shipment tracking or having access to all invoices in one place.

Once you’ve successfully enticed users to sign up for an account, reduce the risk of them abandoning the registration process. Avoid lengthy, complicated fields and complex password requirements. Instead, offer guidance on how to create a secure password if needed. A convenient option for setting up an account quickly is the ability to register through well-known platforms like Gmail and Facebook. This way, users save time as most fields are filled automatically.

5. No incentive for researchers to return

Online shoppers often meticulously research various products, brands, and deals before making their final purchasing decision. Consequently, they add items to their eCommerce shopping cart for easy reference or comparison, intending to return later to complete the purchase.

To increase the likelihood of them returning to your website, implement service-oriented solutions such as “email my cart” or “visit summary” offers. Additionally, consider setting up retargeting ads to remind customers of their incomplete orders and entice them back to your store.

Another crucial step is to provide comprehensive product information on your site. This approach can prevent potential customers from seeking additional details elsewhere. Incorporating customer reviews of purchased products can also be beneficial, allowing potential buyers to access genuine feedback directly on your site instead of from other sources.

6. Lack of Personalization

Retailers often possess valuable customer data but struggle to understand how to utilize it effectively to prevent shopping cart abandonment. Addressing this issue is crucial for improvement.

By employing personalization techniques such as:

  • Displaying tailored product recommendations
  • Greeting customers by name
  • Saving customer preferences (such as shipping addresses and payment methods)
  • Showcasing content relevant to their interests and behavior

You can create a more engaging shopping experience.

Moreover, personalized retargeting ads can have a significant impact on getting qualified leads to return to an eCommerce site. Statistics show that brands that segment different retargeting audience lists based on specific customer behaviors have seen more than 1300% ROIs.

For example, featuring the exact product a person added to their eCommerce shopping cart before abandoning it, rather than a generic ad, can encourage customers to return and complete their purchase.

When crafting personalized, triggered cart abandonment emails, consider the customer’s profile and the context of their journey, including their reasons for cart abandonment and stage in the buying process. Identifying these factors will help automation to enhance customization to offer product recommendations that complement the saved cart items.

7. Payment issues

In today’s fast-paced world, people appreciate convenient payment methods. Around 9% of customers abandon their shopping carts online because the retailer doesn’t offer enough payment options.

Offering a wide range of payment options can significantly reduce cart abandonment. Some popular payment methods include shopping apps (such as PayPal), digital wallets (such as Apple Pay and Google Pay), and buy now, pay later options (such as Shop Pay Installments and AfterPay).

You can start by prioritizing primary payment methods like MasterCard, Visa, and PayPal and then expand to more specialized options when viable. Additionally, consider optimizing forms for updating payment information and creating a payment recovery plan.

However, it’s not only limited payment options that can discourage customers from completing a purchase. Other factors may include an outdated site design, not having an SSL certificate, unfamiliar brand names, or payment gateways. These issues can raise concerns about your site’s reliability and security. To address these concerns, consider incorporating user-generated content, such as reviews and testimonials, to build customer trust.

8. Lack of Customer Support

When making a purchase, users often need assistance, and a prompt response can help them make the right decision. To address this issue, consider investing in technology and adopting an omnichannel approach to provide seamless support throughout the shopping experience. Experiment with offering live chat or other support tools, even if only for a trial period.

One viable option is to implement a chatbot for handling simple and repetitive tasks, freeing human agents for more complex inquiries. An automated assistant can respond instantly and 24/7, significantly affecting customer satisfaction. According to Tidio, 62% of respondents would rather interact with a customer service chatbot than wait for an agent to respond. However, ensure that customers can easily connect with a live representative if the chatbot’s assistance proves insufficient.

Providing timely and effective customer support can significantly reduce eCommerce shopping cart abandonment rates and lead to more completed transactions. After implementing such solutions, monitor the impact they have on sales and customer satisfaction. This will help you determine if the investment is worth it.

9. Insufficient return policy

In online shopping, an important issue for customers is the return policy. After adding items to their cart, they often seek information on return policies and warranties. To address this issue, link to the return policy early in the process. This will help customers feel more comfortable purchasing. 

Source: Amazon

However, visibility is not the only factor; offering a simple customer service system to facilitate returns is also essential. Statistics show that up to 66% of shoppers would spend more with a generous return policy. Unfortunately, many stores impose strict limits on returns, such as restrictive timeframes or charging for return shipping.

To find the right solution for your store, start by tracking the number of returns and associated costs. Then, consider offering a free, 30-day return policy. Test this approach for a month or two to evaluate any increase in sales and compare it to the added costs to determine if it’s a profitable strategy for your business.

Summary

As you can see, addressing eCommerce shopping cart abandonment is essential for businesses to maximize revenue and enhance customer satisfaction. By streamlining the shopping experience, offering tailored support, and fostering transparency, you can encourage customers to complete their purchases. Remember to regularly monitor the results when implementing these strategies and improvements to ensure your business remains responsive to customer needs.

By prioritizing customer-centric solutions, you can foster long-term loyalty and pave the way for continued success. Good luck!

Supply Chain Technology: Innovations to Benefit Your Amazon Store

Revolutionize Your Amazon eCommerce Store with IoT, 5G Networks, and Green Tech Supply Chain Innovations

Running an Amazon eCommerce store can offer significant advantages, such as access to a global marketplace of consumers drawn to the well-known brand. However, simply having a connection to Amazon doesn’t guarantee success. Many business owners have found that an Amazon storefront is not enough to protect against external threats. This is evidenced by the struggles that many eCommerce businesses still face years after the pandemic first impacted the economy. To safeguard your business, it’s important to adopt tools and strategies that enable you to run operations in a way that appeals to consumers and encourages repeat engagement.

While many eCommerce businesses focus on marketing campaigns to generate a good reputation, it’s the logistical elements that truly impact customers’ experiences with online shopping. Implementing technologies that streamline the journey from production to the consumer’s hands can be crucial to your success.

The Internet of Things

Whether your Amazon eCommerce store is small or large, it is crucial to maintain efficient operations. Reducing areas of wastage and lapsed productivity in the supply chain can make a significant difference to your bottom line. The internet of things (IoT) offers increasing opportunities for stores to improve operations and mitigate losses.

The IoT is a connected system of devices that collect data and influence supply chain functions directly or through recommendations to human collaborators. Currently, the IoT is invaluable for Amazon eCommerce stores in supporting inventory management throughout the supply chain.

Sensors on each product mean that devices in the production line, warehouse, and shipping system provide real-time data on the location and condition of inventory. This enables sellers and consumers to see where items are at any given time. Moreover, the IoT data can connect to artificial intelligence (AI)-driven inventory management software to make more agile decisions about restocking or warehouse layouts.

In warehouses, sensors connected to smart devices can automatically control the temperature and other ambient conditions of the space. This is particularly important when supplying perishable or sensitive goods. The use of devices onboard vehicles to monitor item conditions during delivery can prevent potential issues by allowing drivers to make necessary adjustments to the storage compartment.

Therefore, Amazon eCommerce stores can benefit significantly from IoT technologies in improving supply chain operations and achieving more significant financial gains.

5G Networks

Some of the most important innovations in supply chain technology are not just limited to devices or software. The infrastructure of technological systems is just as important. Currently, the 5th generation of network connectivity is being introduced in a growing number of areas. It’s becoming apparent how essential it could be to the supply chain as it’s incorporated into eCommerce fields.

The main impact of 5G on the supply chain is its potential for reducing disruptions. Its low latency and greater bandwidth capacity ensure that devices and software platforms remain connected to each other while maintaining high-speed connections. This is critical for supply chains that depend on data transfer technology, such as the aforementioned IoT devices, to operate at their maximum capacity.

In addition, 5G is invaluable for maintaining communication systems between supply chain partners. It enables lag-free video, audio, or text contact between businesses, which can be especially helpful in high network traffic areas where previous network generations would experience disrupted connections. Logistics managers can track route conditions and provide immediate journey adjustments to drivers to mitigate delivery issues. Moreover, 5G can also be vital for customer service, as more eCommerce businesses are relying on chatbots as initial contact points that require fast data transfers to be most effective.

Green Tech

The importance of eCommerce stores committing to eco-friendly operations is becoming increasingly evident. Not only are there ethical obligations to minimize the impact of climate change and protect local ecosystems, but there is also a commercial imperative to consider. More and more consumers are basing their purchasing decisions on a company’s environmental practices. Using green supply chain technology and promoting it through marketing efforts can significantly benefit your Amazon store.

To start, energy-efficient practices using smart technology can help reduce resource consumption during operations. Connecting production and inventory equipment to smart utility management applications can ensure that minimal resources are utilized. Additionally, utilizing smart lighting and HVAC systems is essential for ensuring that these elements only operate when necessary. These tools can be programmed to automatically shut off lighting and temperature controls when unoccupied spaces are detected.

The adoption of renewable energy in the supply chain is also increasing. Specifically, solar power is transforming the industry. With more affordable and reliable solar technology available, more companies can install solar panels on their premises. This not only reduces utility expenses but also reduces the environmental impact of traditional energy sources. In the future, solar panels may even be used to power vehicles. This could benefit your Amazon eCommerce store by enabling greener and more cost-effective last-mile deliveries.

Conclusion

Regardless of the size of your Amazon eCommerce store, utilizing effective supply chain technology can have a positive impact. Incorporating devices in the Internet of Things (IoT) can enhance inventory management and ensure the quality of perishable products. Implementing 5G networks can provide a stable infrastructure to build your operations on. Investing in eco-friendly technology such as solar panels and energy-efficient tools can reduce costs and enhance your brand reputation. With an effective supply chain being crucial to the growth of your business, utilizing the right technology can give you a competitive advantage.

Pinterest ECommerce: Everything You Need to Know

How do you perceive Pinterest? Some online merchants are skeptical about this platform as they associate it with something far from transactions. People do come to Pinterest to plan house interiors and vacations and show off their looks and DIY ideas. But Pinterest eCommerce has a lot more potential than you imagine.

The thing is, people search for ideas to further buy similar goods seen on Pinterest. Why not provide them with an opportunity to get products from the social media platform without searching on Google?

Pinterest has different functionality to promote a brand and embed a link to the product or store. Shoppable tags, clickable links in the description, and buttons make it happen. It explains why you should consider Pinterest, being an online merchant.

This article will demonstrate tips for using this social media for business. We’ll review how to help your business sell on Pinterest, reach a wider audience, and increase sales. You’ll find out that Pinterest provides various advantages essential to eCommerce success, such as:

  • Attracting new customers;
  • Improving brand awareness;
  • Building stronger relationships;
  • Generating additional revenue.

How Pinterest Helps Promote an ECommerce Business

What is Pinterest’s role in the eCommerce world? It’s a service that converts entertainment into purchases. Keep in mind the following Pinterest facts:

  • Pinterest has about 400 million monthly active users.
  • Who is Pinterest’s intended audience? According to official research, over 60% of Pinterest users are female. In addition, 45% of the Pinterest audience has a household income of more than $100K and doesn’t mind purchasing through the social network. So, if you aim at such buyers, don’t overlook this channel.
  • Pinterest has shown to be an excellent promotional tool in various fields. Beauty, creativity, fashion, design, a healthy lifestyle and sports, photo ideas, tourism, cooking, and restaurants are just a few examples. It includes original tips, such as recipes, DIY hacks, decor inspiration, and fashion trends. Pinterest can be a valuable platform for eCommerce businesses looking to improve their mobile conversion rate.
  • You can share content via pins, which are bookmarks with an image or video and a link to the site or store. People save the pins to remember what to buy later. According to statistics, 85% of consumers use pins as a basis for shopping ideas. As a result, these bookmarks help your products stay in the mind of buyers in the long run.

This data explains why many retailers fine-tune their Pinterest business accounts. Every day, the Pinterest audience grows, while shopping takes up more than a quarter of people’s time on that platform. This number may appear insignificant, but it exceeds any other social media.

According to Marketing Charts, Pinterest has the highest customer satisfaction rating. While some social media indexes change, Pinterest’s score of 80 remains almost constant.

Image credit: Marketing Charts

3 Benefits of Pinterest for Online Stores

Pinterest is great for interacting with clients who want to purchase from you. It has numerous benefits for eCommerce businesses, including:

  1. Exhibiting products

Pinterest may serve as a catalog of products or services accompanied by links to the website. As a result, users can browse the social media and then go to the store to purchase.

  1. Expanding the audience

Potential clients may not see your ads or find the website via search engines. As the competition intensifies, it’s hard to differentiate yourself from others, making it challenging for consumers to find your brand. That’s where Pinterest may help. While people don’t look for a particular company but rather a product, you can offer exactly what they need.

The best part is that you don’t need to invest much time and resources to advertise on Pinterest. Repurpose existing content from the website or other social media to promote the company without paying any money. For example, you can share images from the Instagram account, add descriptions from product pages, etc.

  1. Getting information about your content

You can utilize this social network to learn about clients’ demands and needs. Pinterest’s built-in analytics lets you measure the effectiveness of the efforts without using any third-party tools, such as:

  1. the popularity of your pins;
  2. interaction with the content;
  3. the number of clicks, etc. 

But there’s more than free analytics. A Pinterest business account provides various tools, including advertising, online deals, and publishing special offers.

How to Promote an ECommerce Business on Pinterest

Tip 1: Choose an Account Type

Pinterest accounts are divided into two categories: personal and business. A business account enables you to receive reports with analytics to study the most popular pins. It’s also possible to connect it to the website, online store, or blog. If you already have a personal account, you can update its status to a business one.

Tip 2: Verify the Website

Site confirmation provides you with analytics and pin conversion data. This information helps in determining which publications perform best. You can use it to tailor the content to attract more viewers and convert them into purchasers.

To do so, connect the site to the Pinterest profile and slightly edit your website’s source code in one of the following ways:

  • embed an HTML tag to the store;
  • upload an HTML file to the website;
  • add a DNS TXT record to your website.

You can also verify Instagram, Etsy, and YouTube accounts.

Tip 3: Add Profile Widgets to the Site

You can show up to 30 of the most recent pins anywhere on the website using Pinterest’s “Profile” widget. The widget can serve as an opportunity to increase your Pinterest following. Demonstrate to website visitors why they should follow you on the platform before they decide to do so or not. Look at the screenshot for the example of a widget.

Screenshot taken on Pinterest

How do you incorporate this functionality into the website? Copy and paste a specific code from the Pinterest account. Pinterest will examine the site and confirm the widgets within 24 hours after inserting the code.

Tip 4: Organize the Profile

You’ve set up a business account or switched to one. What’s the next step toward earning money? Add a header, title, and brief description of the business with the link to the store.

If you need an illustration, look at how Michael Kors arranged its Pinterest profile (in the screenshot below). You can observe the verified blue mark, a link to the store, and the number of followers and views.

Screenshot taken on the official Michael Kors Pinterest account

Tip 5: Start Making Your Pins

Establishing a good first impression continues with filling the account with content or pins. Here are some pointers for organizing them:

  1. Give links due attention. A profile description and pins should include links to relevant pages on the website.
  2. Produce high-quality content. Pins should reflect the brand’s image and mission.
  3. Ensure mobile optimization. This tip includes selecting the proper resolution and aspect ratio. It’s advisable to stick to vertical images with a 2:3 aspect ratio, as most Pinterest users access the platform from their mobile phones. Thus, such a resolution will satisfy mobile visitors.
  4. Include shoppable tags and offer products in the Shop tab. You may have come across tagged Pinterest images with white dots. These are shoppable tags that you can click to open the product information and see similar goods. Below is such a case from the Stuller Pinterest account.
Screenshot taken on Pinterest

The Shop tab allows users to explore available items on the market. This page displays in-stock goods connected to keywords such as “sweatshirt embroidery”, “winter fashion outfits”, and whatever “pinners” search for.

It also has a filtering option that lets users arrange items by vendor and price. Some pins provide ratings or contain the “Popular” mark.

Screenshot taken on Pinterest
  1. Focus on Pinterest SEO. Include keywords in the title and description of the pins, write concise content, and include links with calls to action.
  2. Make a pinboard. Pinterest enables you to group pins into boards. They can be anything from tutorials to holiday makeup suggestions that work best for cosmetics brands. You can also organize products by category, such as skincare, haircare, and so on, to help visitors navigate.
  3. Consider using targeted ads, which will be listed under the “Promoted by” heading.
Screenshot taken on Pinterest

Amongst the advantages of advertising on Pinterest is the long lifespan of the content. It doesn’t disappear from the feed with time and can return to the top no matter how old it is. Advertising on Pinterest is similar to advertising on Facebook and other social media. You select what you’ll promote, such as:

  1. new pins;
  2. image and video carousels;
  3. current posts;
  4. apps.

The promoted pins then appear in search results, suggestions, and feeds.

  1. Make frequency and planning a rule. The more you post, the more Pinterest promotes the pins. Note that frequent posting doesn’t mean sharing seven pins once a week. Allocate posts evenly throughout the week, such as one pin per day.

To streamline this process, employ delayed publishing tools such as:

  • Tailwind. The solution offers a free version with essential features for one Pinterest account. You can upgrade to Pro, Advanced, and Max tiers to access more functionality and more Pinterest accounts. The prices range from $19.99 to $79.99 monthly.
  • Hootsuite. You may choose the plan from $49 to $739 per month with the ability to test the tool for 60 days for free.
  • Later. This solution costs $18 to $80 monthly with a 14-day free trial.
  • Others for scheduled pinning. 

You can configure them to launch content at a specific time or a day or get recommendations on when to do it better.

Assess Pinterest search trends by season. Seasonal requests climb a little early before the event begins, just like in search engines like Google. It’s because pinners hunt for related content to prepare for holidays, seasons, and trends in advance.

Let’s look at the “Christmas gift ideas” query in the Pinterest trends tool.

Screenshot taken on the Pinterest trends section

The interest in gifts begins to grow somewhere at the beginning of September. And the most intensive traffic falls at the end of November – the beginning of December. Even if the celebration is still three weeks away, people begin looking for inspiration and gift ideas.

Final Thoughts: Pinterest ECommerce

Pinterest suits eCommerce companies regardless of their type and size. However, B2C fashion, cosmetics, and food businesses are certainly the most suitable spheres. This social media can drive traffic to the website, help promote goods, and encourage people to buy your products. Big online stores and startups leverage it to grow an audience, ensure brand awareness and make their products recognizable.

Pinterest is also a kind of search engine with algorithmic patterns. People insert their requests in the search bar and use specific keywords, allowing you to attract both organic and paid visitors to the profile.

Change the Pinterest profile to a business account, start posting pins, and organize them into boards. If you want to promote the store more actively, set up paid campaigns. Remember to keep track of your data. And you’ll see Pinterest meeting your expectations, if not exceeding them.

The Influence of Social Media on eCommerce Sales

As of October 2022, there were roughly 4.74 billion social media users around the world. That equates to 59.3% of the total global population. That is an increase in 190 million people from the same time last year (and that number will continue to grow). THAT is why utilizing the influence of social media to advertise your eCommerce business is a good idea. Of course, there is more to it than my mere blanket statement of opinion, but never fear! I will be uncovering the blanket with a list of interesting facts to help prove my point below. Let’s get started!

A Covid eCommerce Miracle?

Let me first be clear that nothing was good about the world being under quarantine for over a year. However, it would be tough to argue that eCommerce did not receive a significant boost during that time. And thank goodness for it because people were still able to purchase food, medicine or any other types of supplies needed without risking their health.

During the span of Covid, eCommerce sales increased by an astounding $244.2 billion. This ended up altering the consumer landscape, shifting the dominance of in-store shopping towards the online experience. In turn, eCommerce businesses started stepping up their game by updating their search functionalities, payment methods, and the personalization of a customer’s experience through artificial intelligence. These positive changes in convenience left a lasting effect that has lingered on after the pandemic ended.

It’s Easy to Connect!

Over the last decade, people’s attention spans have been steadily decreasing. Advancements in technology have left little wiggle room for retailers to make their products known. As of 2022, the average U.S. household has approximately 20 smart devices that includes smartphones, computers, tablets, and TVs. That is a large number of potential connections that can be made through social media. The ease of having access to the World (wide web) at your fingertips is too high a commodity to dismiss. A customer is much more likely to purchase a product or service if the accessibility is easy!

The Advantages of Social Media

Depending on who your target customer is, a strong social media advertising strategy can be a helpful proponent for great success! Here are some of the great social media advantages that can benefit your eCommerce business:

  1. Low Cost – Fortunately, most social media ad models operate on a pay-per-click (PPC) system, which means your business only has to pay when someone has actually clicked on your ad or video. Essentially, you only have to pay when your advertisement is working, which means your chances of earning money increase and could even offset any ad costs! Plus, the average cost for doing a PPC ad on a social media platform such as Facebook is only $1.68.
  2. High Brand Awareness – Social media ads give your brand instant awareness, even before any potential clicks, by showcasing it to millions of people online. Having your business ad up on social media feeds helps keep your products and services fresh in people’s minds, even subconsciously. Increased exposure like this can bring about fresh leads and high conversion rates.
  3. Healthy Brand Loyalty – In addition to promoting your business, social media provides a great opportunity to engage with your audience and develop a strong connection. You can also share testimonials from satisfied customers to help build a positive reputation for your brand.  
  4. Detailed Analytics – One very helpful advantage of social media advertising is its ability to quickly provide analytics and statistics regarding how well your campaign is performing. This will help you design future campaigns to optimize what works best. You even have the option of utilizing live campaigns and A/B tests to further refine your strategy.  
  5. User-Friendly Software – Yes, again, it’s easy! The majority of social media advertisers provide a simple, user-friendly platform to work with that will walk you through each step for getting set up. You just have to choose an objective, input your audience’s requirements, and specify your budget. Some platforms even allow you to create your own rules and customized reports that should make managing your campaigns even easier! 

TikTok Customer Trends

It is being forecasted that in 2023, for the first time, more than half of U.S. social media users will make purchases via social platforms like Instagram, Facebook, and especially TikTok. These platforms seem to have mastered the logistics for putting out strong, easy-to-maneuver eCommerce sales content. However, TikTok has by far the largest audience. But how has an app that was known mostly for creating silly dance trends catapulted itself into the eCommerce spotlight? Well, it all started with TikTok providing a different type of eCommerce environment that included native shopping, payments, logistics, and fulfillment. The process benefited from the following:

  • The app’s commerce monetization follows a unique structure developed by their sister-app, Douyin, based in China.
  • Douyin already has eCommerce customer fulfillment centers, which enable them to operate like a true retail company. TikTok is looking to open their own fulfillment centers in the U.S. which would make their eCommerce platform even more streamlined.
  • The majority of TikTok users are younger people whose thoughts and behaviors are more impressionable and more receptive to purchasing products directly through the app.  

Brands have also taken note of the advantages of advertising on TikTok and some have seen tremendous, if not overnight growth due to it. The influence of social media has never been more obvious than on TikTok; users frequently saying “TikTok made me buy it”.

Social Media’s Influence: In Closing

The influence of social media is clear and only growing. I hope that you now feel a bit more comfortable engaging your eCommerce business with a social media presence. It truly is a wonderful way of optimizing your brand’s reach without breaking your budget. Next time you’re on any type of social media platform, take a look at how many ads for things you may be into actually show up. You may be surprised how many there are, but know that YOU can have your own wonderful company/product/service up there as well, ready to help the right person who truly needs it! 

15 eCommerce Trends Every Online Seller Should Know

When Amazon made its first sale (for a book) online in 1995, we didn’t see the direction eCommerce was heading. 

eCommerce sales in the US are ever-growing. According to eMarketer, it’s expected to hit $6.5 trillion by 2025. 

Whether you’re selling digital or physical products online, you need to always keep an eye on the eCommerce trends. 

This will enable you to get more traction, drive more traffic to your website, increase sales, and better position your brand to win.

So what are the latest eCommerce trends?

The truth be told, eCommerce reached an all-time demand in 2020, given the effects of COVID-19. This acceleration is expected to continue as we move into 2021 and beyond.

That said, here are 15 eCommerce trends every seller should know in 2021:

1. Mobile Shopping is Expanding

Your customers want to shop conveniently via their mobile phones. Hence, it’s important to improve their shopping experiences. More so, since it’s estimated that over 73% of eCommerce sales will occur on mobile devices by the end of this year.

These figures should inspire you to embrace new mobile technologies and customer service tools to help maximize your sales.

Today, consumers trust brands to deliver quality products and services. Ecommerce brands such as Home Depot3Wishes, and Zappos deliver the best products and offer fair refund policies.

Consumers feel more comfortable today when they shop online via their mobile devices than ever. Millennials and Gen Z, in particular, use computers, mobile devices, and the internet a lot. 

So you can understand why mobile shopping is growing.

2. Young Consumers Are Transforming The Online Business Space 

According to this study, 2 out of 3 young consumers between the ages of 18 and 34 are spending more money to purchase items online now than they did before the pandemic hit. 

They increased their online spending by 57%.

In contrast with the older generation: consumers between the ages of 55 and above, whose online spending increased by 41%. 

That said, it’s important to pay attention to this younger generation of shoppers. These shoppers are not as naive or indecisive as you might think. They make most of their shopping decisions without asking their parents, friends, or spouses for permission.

They can get all the information they need from online resources or learn from online learning and tutoring platforms such as Udemy, Skillshare, etc. 

Therefore, you need to start optimizing your eCommerce store and products for them if you want to increase your sales potential.

So where can you find the younger consumers? You need to consider social media networks. 

Gear your efforts towards social media marketing — since more than 50% of young consumers who purchase items from independent brands get recommendations via social media.

3. Conduct Robust Customer Experiment 

This eCommerce trend is a wake-up call. If you’ve not been following your customers closely, it’s time to start paying attention to their needs and wants.

Conducting rapid customer research helps you to identify key opportunities for serving your audience better. 

Big Light’s Rapid Customer Research Infographic

Steve Borges, the co-founder of Big Light, believes the most effective way for retailers to keep pace with the ever-changing customer needs, preferences, and behaviors involves engaging in rapid customer research to drive innovation.

In Borges’ words, “Retailers are operating in an environment where change is the only constant.”

Essentially, driving innovation that will impact customer experience is going to be more relevant this year and beyond than ever. 

Brands need to laser-focus on the customer needs, which means listening to customers and taking feedback to help design their concepts better.

Whether you’re operating your eCommerce business through a remote working team or you meet in-person, it’s important to start listening to your customers. They’re the reason why you’re a brand in the first place, so give them attention.

4. Connect Using Social Commerce

Your customers are on social media, so you need to be there as well. 

Effective social selling can reward your team building efforts if you encourage every team member to spread the word via their social profiles.

Successful eCommerce stores are active across different platforms and channels, and reach customers where they’re relaxed and spending more time. 

Customers are taking bold steps due to the pandemic, in ways they shop on the internet. “Merchants need to get creative with how they engage with customers today,” says Alli Burg, Shopify strategic partnerships manager.

Burg predicts that social commerce will grow in 2021 and beyond. Her predictions are based on several factors, especially the big announcement that Shopify made in 2020 to develop deeper integrations with Facebook, Google, and more recently TikTok.

Facebook Shops, for example, allows brands and individuals to design a customized online storefront — to aid customers who are looking to buy products via Facebook and Instagram apps. 

Interestingly, the checkout is powered by Shopify. This is a new development in the eCommerce space, and hopefully, you’ll take advantage of it. Here’s a good example:

5. AI and AR Will Improve Online Shopping Experience

How much do you spend online? Are you leveraging Artificial Intelligence (AI) and Augmented Reality (AR) to improve your sales online?

According to Juniper Research, online sellers are expected to spend $7.3 billion on AI by 2022. At the end of the day, AR technologies will be used by 120,000 stores to enrich customers’ buying experiences.

AI will be beneficial to consumers, in particular. Because it can offer personalized guidance and recommendations while they’re online. Thus, giving the customers the same experience they usually get in-store.

Artificial Intelligence can use the shoppers’ past purchase history to recommend products they’re most interested in and more likely to purchase. For example, web hosting providers such as Bluehost, DreamHost, and even WPX Hosting track visitors on their websites and use their browsing data to retarget them.

On the other hand, Augmented Reality (AR) will enable customers to inspect products before they checkout successfully. The customer can see and feel the product they intend to buy — purchase completing their purchase. 

As you implement AI and AR in your online sales strategy, you’ll increase your conversions dramatically and decrease the return rate. 

More so, with advancement in customer service tools such as predictive dialer, phone calls can also be used to convince customers to complete their purchase while they’re still on the website.

6. The Emergence of New Payment Options 

As an online seller, you need to embrace new payment gateways. Currently, most eCommerce brands accept wallets — such as Apple Pay, PayPal, Google Pay, and Samsung), in addition to the typical debits and credit cards.

In 2020, we’ve seen a surge in Bitcoin payments. This eCommerce trend is going to get stronger this year and beyond. 

It offers tremendous benefits for online sellers, such as low or zero transaction fees and no reverse transactions.

Smart online stores are already capitalizing on this new payment gateway. For example, Overstock partnered with Coinbase to accept Bitcoin as a payment method from its customers.

This year, be prepared to see many online stores integrating cryptocurrency payment options at scale. 

This trend will also provide extra layers and guide online shoppers on how to stay safe online, while using this new payment option.

7. Dynamic Pricing Will Gain More Attention 

Did you know that dynamic pricing offers a viable way to attract new customers and stay competitive? “It’s a tailored pricing strategy based on individuals’ willingness to pay,” says Matter Economics.

The right pricing model can significantly increase the demand for a particular product. If you don’t price your product correctly, you’ll discourage sales and push your customers away.

The right price is mainly the ideal price your customers are willing to pay based on what your product is worth. You also need to consider what price will offer you the maximum possible profit.

Source data

As consumer needs continue to change, it’s valuable to use dynamic pricing software — such as Prisync or Omnia Retail to determine the best price for your products. 

Most of these tools provide a ton of resources and real-time insights into your market, competitors’ prices, demand, and the perceived value of your product to help define a benchmark pricing that will make everyone happy.

8. Consumers Are Embracing Environmental Topics 

Truly, green consumerism is gaining traction. Brands need to recognize this movement and key in. 50% of digital consumers say that environmental concepts drive what items they spend their money on, and where to buy them.

Creating sustainable practices is an “eCommerce trend” that can help a brand stay afloat and relevant in the consumers’ minds.

When developing an online sales strategy, make sure it’s environmentally-friendly. 

For instance, if you sell products on Amazon FBA (Fulfilment By Amazon), then imbibe the practice of sourcing products from fair-trade vendors, manufacturers, and organizations. 

This is a great way to create a greener eCommerce space.

9. Consumers Will Buy More From Independent Businesses 

The truth is that consumers’ shopping habits have changed.

In a study conducted by Shopify, 57% of consumers are willing to purchase from new brands. They want to take that first step to establish a connection. Isn’t that amazing?

From all indications, another eCommerce trend is online shoppers switching to independent and small businesses that were affected by the pandemic. Even medical companies that deal with empty capsules and other related products are recording consistent sales already.

They want to support them. 37% of consumers prefer to shop with independent businesses to support them, than they did during the pre-COVID-19 era.

Most independent brands offer quality customer support. That’s why consumers are making this shift. There’s also a growing interest in unique products and hand-crafted items. 

For example, over 2.2 million Etsy sellers saw an increase in daily sales during the pandemic, especially as some of them pivoted towards homemade face masks.

10. Personalization is the Future

Personalized online experiences drive sales. That’s exactly what 50% of shoppers want to see when they visit any online store.

If you want to create the best customer experience, you can’t afford to treat your audience like everyone else. They deserve to be recognized and appreciated.

Online shoppers will likely switch to another store if they get poor product recommendations. Remember that recommendations are driven by the consumer’s purchase history or browsing behavior.

You need to take personalization more seriously. 

From the eCommerce emails you send out to your customers to the online campaigns and information you share with a consumer group to your interactive infographic and video content (use a video maker like Promo.com to speed up the process), make them relevant and personalized to your customers.

11. Visual Commerce is Dominating  

The human brain processes visual information 60,000X faster than text. That’s why the future of eCommerce is visual marketing.

Selling products online comes with a ton of challenges. With online sales, there’s no physical interaction with the consumer. That’s why it’s tough — unless you use visual commerce to engage your buyers.

Visual commerce is the next generation of typical static visuals. Companies that sell mattresses, now utilizes interactive elements in their creatives to engage with buyers a lot better. 

Good sleep is critical, hence, online sellers in this industry should get creative with visual commerce, especially when running ads. 

Savvy online sellers no longer use static product photos, they usually incorporate other types of visual elements — such as interactive content, consumer-generated media, engaging videos, and augmented reality.

If you’re looking to boost your online sales, it’s high time you tap into this visual eCommerce trend. Here’s why: 

75% of online users in the US search for visual content before purchasing a product online. So you have the chance to make more sales from your marketing efforts if you tap into visual commerce.

12. Creative Advertising Strategies Will Grow

There’s a growing trend in the use of 3D and CGI in advertising. It all started in 2020, particularly in the beauty industry. 

Fran Boyd, art director at Shopify Plus agency Underwaterpistol, believes this trend will continue in the new year.

Needless to say, these creative means of advertising products and services online prove to be more cost-effective than traditional advertising strategies.

When you capitalize on CGI animations, you create an avenue to be able to edit and improve the final result in multiple ways.

Now that COVID-19 restrictions are causing teams and crews to work remotely, CGI projects have become the go-to option for modern-day advertising. They’re also smoother to organize.

Another great example of creative advertising in eCommerce is how Ciaté London used an outside-the-box strategy to promote their new makeup range. 

As you can, the promotion was simple. The team projected a large smiley face onto the Houses of Parliament in London and the Brooklyn Bridge in New York.” This happened on World Emoji Day!

It gave people the chance to smile at such a tricky time. Excitedly, consumers loved the approach and the organization saw significant results from this campaign.

13. Online Purchases Will Include B2B Products 

2020 was a record year for disruption. Several companies emerged to help curtail the pandemic with hyper-focused products and services. 

Many businesses evolved in their digital transformation efforts amid global changes. Zoom became one of the best webinar software to host online meetings — since employees couldn’t meet at the office.

Consumers had fewer or no alternative options for buying the products they needed. They turned to online stores to find all of the products they needed.

While food, fashion, gadgets, and other essential items were prominently purchased online, they weren’t the only items people needed. 

Consumers started placing orders for furniture, vehicle parts, and even luxury items used by business executives. . 

These changes in consumer preferences and buying habits may gradually slow down now that people have resumed their normal routine, but the trend will continue to grow.

B2B eCommerce brands are expected to shift their marketing strategies — because customers are not only buying items they need for themselves but what their teams and families need in their home office (for example). 

They can leverage B2B portals and tools such as Hotjar to better understand which sections of their website are being clicked.

As an online seller, make sure your products can be purchased online. There’s no excuse. 

14. Self-Service Platforms Will Gain Greater Popularity 

Self-service platforms have become part of our daily lives. It all started in 2020 when small businesses and solopreneurs tapped into digital opportunities to reach their target audiences. Self-service portals are truly the way to go!

This year, platforms that deploy and allow merchants to sell products online conveniently, without having to write codes or hire expensive developers will thrive.

So, how can you take advantage of this eCommerce trend?

You can integrate your online store with platforms that can help you sell your products with all of the essential tools you need. 

Platforms such as Kajabi, Kartra, and Shopify can help you set up product pages, create funnels, and accept payments from international customers. 

You can also use sales enablement tools to power your sales processes when selling to a global audience.

15. Influencers Will Become Brand Partners

Smart eCommerce businesses are leveraging influencers on Instagram, Twitter, Facebook, and even LinkedIn to promote their products. 

And the influencer marketing industry is huge, it’s valued at $9.7 billion in 2020.

If your brand doesn’t like to create content (which is key to generating brand awareness and driving sales), you can tap into the huge fan base of your favorite influencers and celebrities.

In 2021, many established brands and small businesses will resort to influencers as content creators. They’ll also promote the products on their social accounts.

This form of digital advertising can be easily tracked since the influencer can create high-converting landing pages where interested fans can visit to learn more about the offer. This process will be quick, since they can create responsive landing pages with free landing page builders as quickly as possible.

Ecommerce brands can also take advantage of the new features that most social media platforms provide. The algorithm tends to reward businesses that utilize these new features. 

For example, Instagram Reels often generate more organic reach than regular posts or stories. So whenever a new feature is announced, get on board and experiment.  

Conclusion 

With the evolving technology and changes in consumer shopping habits, you need to stay abreast of these eCommerce trends in 2021. 

Keep in mind that no trend is superior to the other. Regardless of the eCommerce trends you decide to adopt, make sure your focus is on improving the customers’ shopping experiences when they visit your online store. 

You should only implement new trends when you’re looking to establish stronger relationships with your customers. While it’s important to make profits, it should be your key driver.

Exit mobile version