For Internet retailers to convert visitors into customers and really pushing that sale, itâ€™s all about promotions. Why do people go online and shop? Well you may have different reasons but most people will tell you to get a good deal, etc.
From an Internet Retailer Magazine study, there is a report that has the percentage of online consumers citing the following as effective online promotions:
UNCONDITIONAL FREE SHIPPING : 73%
FREE RETURNS : 70%
SECTION ON SALES AND SPECIALS : 62%
COUPONS/REBATES FOR CASH OR PERCENTAGE OFF : 56%
PERCENTAGE OFF PRICE OR PRODUCTS : 54%
REWARDS / LOYALY POINTS : 46%
LIMITED-TIME DEALS : 43%
FREE SHIPPING BASED ON MINIMUM PURCHASE AMOUNT : 42%
BUY MORE / SAVE MORE : 34%
FREE GIFT WITH PURCHASE : 31%
As you see, most consumers love the idea of free shipping, regardless of how much they spend. While itâ€™s a great perk for the consumer, as internet retailers, we know that free shipping on all orders can really take a hit on our bottom line. Â This is something you really have to think about and examine carefully, whether you can afford to offer free shipping on all orders. If anything, you can always use this as a way to push new product or sales and then end the promotion.
There are many, if not most, internet retailers that do not offer free returns. In fact, many internet retailers take a re-stocking fee. This is a good way to stock back inventory and make a little extra from the product returned if your ecommerce business / model is not really based around carrying inventory, itâ€™s almost a must. However, if you look at a company like ZAPPOS, their FREE RETURNS policy makes shoppers a lot more comfortable in shopping online.
You should always try to have a special sales section where consumers can see what you have that is on, wellâ€¦special. If you go to a store like Urban Outfitters, most people always crowd around the sales racks. Actually, when people first walk into the store, for the most part, many go directly there to see if they can catch something good on sale before someone else picks it up.
There are many promotions you can use but the first three are the most effective according to consumers. Try different promotions and see which work best for you!