Two Amazing E-Commerce Tips
What would you say if I could provide you with two amazing e-commerce tips that could increase your revenues by 7%? Would you be interested?
Of course you would!
Interestingly enough, many people are aware of these tips but simply do not implement them on their sites very often. So what are these beautiful, revenue increasing gems? They are pretty similar and are both based on psychology and the use of urgency.
The use of urgency in marketing
Urgency is a classic aspect of marketing. It is often used two ways by marketers with scarcity and fear of missing out.
- Scarcity – An item that is thought to be in short supply becomes more desirable than the same item that is readily available. This has been shown to be true in countless tests and is a highly used principle you see all the time with things like, “Limited supply!”
- Fear of missing out – Almost everyone suffers from the fear of missing out. That is one of the primary reasons Facebook is tremendously popular as people are constantly looking at other people’s lives to see what they could have been doing. People don’t want to miss out on opportunities, or better yet, the chance to choose whether to take advantage of an opportunity.
These two principles can be used in conjunction with timers on a website to create a psychological trigger for urgency with customers.
Two Amazing Tips
Timers are one of the most valuable, yet underused aspects of a great e-commerce site. Businesses like Amazon, Groupon and LivingSocial actively and effectively use timers to convert a higher number of customers than competitors.
- The Delivery Timer – One single line of text placed underneath an item that is a countdown timer showing how much time is left for next day or two-day delivery can swing revenue by up to 7% according to one study. Amazon uses a similar idea with their one-click order box that shows how long you have left to order an item to get it in a short timeframe.
- The Offer Expires Timer – Similar to the Delivery Timer, this countdown timer shows how much time is left on a deal before it is gone. Groupon and LivingSocial both use these timers for prices going up or discounts expiring.
In both cases these are very simple, yet effective tools that hardly take up any space on a web page.
Why isn’t this more common?
You would naturally think that something that works so well would be implemented by everyone and yet, it’s not. Obviously proven businesses such as Amazon utilize them because they improve their conversion rates. If they didn’t, you can be that they would have been taken out as Amazon is known for extensive testing and optimization of their site.
So what about everyone else?
In some cases there are probably decision makers that feel like timers are annoying or gimmicks that will alienate customers. While this could be true, that is where good testing comes into play prior to implementation.
There is also the actually timing aspect itself. Some businesses do not have prices or deals that expire or can’t guarantee shipping. Of course if that is the case then maybe it would be wise to re-assess how you ship or consider alternative pricing models on at least some items to take advantage of these tactics.
The bottom line is that using urgency in marketing works and these two amazing e-commerce tips have the ability to increase revenues across the board, which is never a bad thing; but you better act fast because supplies are limited and time is running out!