The A-Z of ecommerce success

As it’s the end of the year I would like to look back on the last 15 years in the ecommerce industry. Yes, scarily, I go back that long. And one of my first memories was being told by a major venture capitalist that “the internet is like CB radio, here today, gone tomorrow”. The rest, as they say, is history.

Ecommerce then...

The underlying technology of ecommerce has changed over the years, but the underlying principles have, surprisingly, barely moved.

I was looking at a publication that I wrote around 12 years ago – “85 Top Tips for Selling Online”, and then comparing it with some research that Yell has performed in the last few weeks.

In the top tips booklet we said “Keep it simple, make it easy to recognise what you sell”. The Yell research said that among the consumers they surveyed, 81% cited easy-to-find information as very important in the purchasing decision.

In the tips book we advised “provide contact details throughout your site”. The Yell research found that a prominently displayed address and phone number are major influencers in the decision to buy, each cited by around three quarters of respondents.

So if the basics have stayed the same (and I would advise anyone selling online to make these basic principles their first priority), what has really changed?

...and now. What’s changed?

The first thing is competition. Even ten years ago there was still a great opportunity to start up a new company and dominate an important category. It’s much harder today. Anyone starting out now needs to define a narrow niche in order to even get going.

Some new technology has also arrived on the scene, and I guess that the rise of iPhone and Android devices are the most important.

The other aspect that has changed in a big way is the interactive web, characterised by the two way flow of information between companies and consumers. This embraces forums, Facebook, Twitter, review sites and more.

I’ve just finished taking a look at the use of Facebook for ecommerce, and frankly at the moment, it’s having limited impact. In contrast, when you look at customer reviews, the impact on sales almost cannot be over-estimated.

My company Actinic, has a strategic partnership with Feefo, who is growing to be the major force in customer reviews in the UK. Ecommerce sites that have done statistically valid comparisons on using and not using Feefo have typically seen improvements in click through rates from Google Ads of 10% (since Google include the Feefo star ratings in their Ads) and conversions at the website up by a minimum of 10%, and in many cases much more. These are truly stupendous results for the adoption of a fairly straight forward capability. Of course, your customer service must be good to achieve these results.

Keep it simple

Ecommerce seems exciting because it is fast moving. Having said that, a lot of stuff is hype and the basics remain critical.

You need to be selling products customers want at a price they can afford. You need great marketing to get prospects to turn up at your site. You need to make things easy for customers, help them to trust you, and then provide good service. Do all that and you shouldn’t go far wrong.

My conclusion after 15 years in ecommerce? Focus on the simple and obvious before you try the complex.