E-commerce is becoming an essential part of business growth every year. We are living in a mobile age of immediacy. Businesses now have to figure out how to get products and services out digitally, quickly, and efficiently.
However, customers have certain expectations when it comes to e-commerce systems that define a retailer’s revenue and more. Today, we will break down the problems impeding e-commerce growth and solutions to retain customers.
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Naturally, social media seems to be the heart of the internet. However, e-commerce is just as vital to our online lives.
Statista reported e-commerce was responsible for $2.3 trillion in sales. In the U.S., it represents 10% of retail sales.
E-commerce is a growing, competitive market with a growing pool of customers. And for good reason.
In a less costly way, it brings variety to traditional commerce. You can visit multiple stores and sift through multiple products in a few minutes.
E-commerce also expedites consumption. For example, in educational e-commerce, courses are available according to a student’s time and speed. As such, products and services are rendered at the behest of the consumer.
E-commerce is a much more transparent system. As in, e-commerce sites make it easy to revisit purchase histories and track people’s spending.
There are also more growth and employment opportunities in this business system. With the internet, operational costs are lower, and more people can work from remote locations.
However, like all things, e-commerce is more than a random slew of online sales and products.
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The process might be faster, but there are things that drive customers in the check out process.
First, there is
Second, there is
Third, customers are likely evaluating alternatives or competing providers. Thus, it is important to establish a trusting, transparent relationship with your customers. That way, you get
Then, it comes down to
True, it is important to solidify why they came to you in the first place. However, too much pressure could overwhelm customers.
The success of an online purchase rests on several other variables that we will explore below.
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The first issue is
Secondly, consumers also dislike
Another issue customer
Customers also are less likely to use an e-commerce site with typos. Simply put, typos severely undercut your professionalism. Meanwhile, it also shows a lack of care for your site if you do not proofread your content.
However, one of the costliest mistakes an e-commerce retailer can make is a registration button or login requirement.
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The login form is one just about everyone is familiar with. You had two fields for your email and password. Additionally, you had two buttons to login or register, and one link if you forgot your password.
Altogether, this form seemed far from problematic. However, it turns out that this form actually impedes customer purchases. For one major e-commerce site, this button design was costing them a hefty $300 million a year.
The site designers were under the impression that there was nothing offensive or problematic about their design at all. After filling your cart with products, you would click the “checkout” button. However, instead of immediately completing your purchase, you would be prompted to log in.
To the designers, the login or registration button was supposed to expedite the purchasing experience. The site designers believed returning users would recall their login information. New visitors would not mind registering because they were likely to come back.
Everyone would appreciate how quick they can make purchases by logging in. It was a seemingly innocent assumption. Everyone would be happy, right?
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The UIE decided to conduct a registration button usability test. They gave people money to purchase what they wanted from the site. What they found was that the prospect of registering actually turned customers away.
First-time users did, in fact, mind registering. Many first-time users expressed a strong dislike for having to register just to make a purchase. One shopper said it perfectly, “I’m not here to enter a relationship. I just want to buy something.”
Moreover, the designer’s belief that users would recall their login information was incorrect. Some shoppers could not remember if it was their first
Users were consistently bothered by the presence of a registration button. Even if they did not know what the registration entailed, they clicked the button with little
Regardless, people were wary. New customers or users were concerned that retailers wanted their
Like we mentioned, registered accounts are supposed to speed up the purchasing process. Ideally, returning customers would be happy with how quickly they can complete their
Despite the web designers’ assumptions,
Many of them expressed that they had changed email addresses over the years or had multiple email accounts. Actually, after analyzing
This inevitably leads to a guessing game that only
The UIE study actually discovered that about 160,000 people were requesting passwords per day. And even when they received their passwords, 75% of people never completed their purchase. Clearly, the trouble of retrieving login information exasperates customers before a purchase can be made.
In reality, the login or registration form only helps a handful of customers who remembered their logins. Even then, they would have to spend time updating payment or mailing information. Altogether, the form hindered sales more than anything.
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As the registration button deterred people from completing purchases, you are left with a massive revenue loss. More specifically, we found a $300 million loss in revenue.
Fortunately, there is a simple, easy fix. The designers simply replaced the registration button with a “Continue” button. Along with the button, they provided this message: “You do not need to create an account to make purchases on our site. Simply click Continue to proceed to checkout. To make your future purchases even faster, you can create an account during checkout.”
The designers eliminated the pressure of registering for an account. As a result, there was an immediate jump in customer purchases and revenue.
Customer purchasing increased by 45%. The new purchases turned out an extra $15 million within the first month.
There was even an 80% decrease in the number of people requesting passwords. Altogether, the e-commerce site saw a $300 million increase in revenue.
Jared Spool of UIE even received a positive response from the CEO of the retailer. After the redesigning of the registration button, the CEO called him to personally thank him.
It was a
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The “Continue” button or guest checkout option has more benefits than
Second, guest checkout is the mobile-friendly option. According to Outerbox, in 2018, 79% of smartphone users made a purchase on their phones. Mobile transactions are the way to go and guest checkouts only make them faster.
Third, guest checkout gets consumers straight to the payment forms. Presenting consumers with a registration form is enough to make them hesitate in their purchase. The guest checkout efficiently completes the purchase.
In general, guest checkout is a more efficient and effective process. However, without a registered account, it is difficult to frequently reorder products or deal with returns and exchanges. That is where account checkouts are ideal.
While forcing registration is a largely bad idea, there are instances where a required registration is beneficial.
A retailer that sells products that cannot be customized does not necessarily need a registration button. However, a retailer who has products that can be customized or personalized might find registered accounts useful.
In the latter case, a registered account expedites the purchasing process. A registered account keeps everything on track when you need to reorder personalized products or easily deal with returns or exchanges.
Registered accounts are useful if you are a retailer who extends benefits or rewards to your customers. Having a registered account is the best way to hand out rewards or perks to special customers.
In some ways, this might seem restrictive. However, there is no
In these instances, a registration button is quite helpful. Remember, if you have a registration button, frame it as a benefit.
When it comes to
One way to do this is to present
On top of that, there are several other ways to make your registration pages more user-friendly.
So how do you make registration feel like a benefit? Like we said earlier, people are more likely to trust a well-designed page. As such, making registrations more valuable starts with well-designed registration page.
First, your sign-up headline should be benefit oriented. For example, Shopify tells users that their membership is free for 14-days. In this way, customers do not feel like they are handing over information for nothing.
Second, make sure you pick the right fields. As in, make sure you are asking customers for the information you actually need. The less you ask for, then the less work they have to do.
Try to use multiple pages for your sign up rather than one long page. The whole process seems less daunting when broken up into smaller steps. You can even try modal windows, which overlays the sign-up window on top of your current page.
Lastly, enable autofill and do not use placeholder text. Autofill generates higher conversion rates because it gets people through registration fast. These small changes led to a 55% increase in conversions for Forisimo.
Like we have mentioned, changing up your check out button design is advantageous. You can choose to create a guest checkout option, a registration option, or both.
After that, you want to make your check out match your site’s overall style. Neil Patel shared that a visual disconnect between the checkout experience and your site can immediately cause abandonment.
The transitions between your cart and the check out page
Did you know it matters if you place the billing page before the shipping page? By placing billing information first, the customer feels like you are immediately demanding money.
The customer cares more about shipping. By placing the shipping page first, you are showing your customers that you prioritize their needs. In this way, you solidify the likelihood they will complete their purchase.
Now, you know how
In short, while e-commerce makes things easier for the retailer, it should also ease the customer’s experience. So long as you are mindful of what your customers want to see and experience, your e-commerce business can soar.
I hope this article has been helpful to you. Please ask us questions or let us know your opinions on registration and check-out systems below!
Lisa Loeb is part of the content team at Vivipins where she develops resources to help customers start and grow their own businesses.