Building a winning e-commerce merchandising strategy for maximum conversion is critical to the success of your online business.
But we’re not talking about just any merchandising strategy. 56.6% of consumers nowadays prefer buying on e-commerce sites; thus, they have increasingly high expectations for their online shopping experience.
As an e-commerce business, you are pushed to think outside the box to stand a chance in a highly competitive e-retail environment.
Your e-commerce merchandising strategy must carefully consider various elements, from product display in your online store to personalized product recommendations and shipping solutions.
After all, earning customer loyalty is an uphill battle, but a carefully crafted e-commerce strategy can boost your shoppers’ customer journey and steadily grow your revenue.
In this article, we will delve into the importance of e-commerce merchandising strategy and how to choose the right one for your online business.
Factors Influencing the Choice of an E-Commerce Merchandising Strategy
There is no right or wrong answer when choosing your e-commerce merchandising strategy.
Yet, a bulletproof merchandising strategy for your e-commerce store must be created by considering the following factors:
Your Overall Business Goals
A successful sales strategy is predicated on having well-defined and crystal-clear business goals. You will shoot in the dark without clearly understanding your objectives.
Setting business goals, whether going all in and penetrating new markets or consumer segments or shifting from a brick-and-mortar business model to fully online sales, will allow you to sharpen your focus and measure your performance over time.
Another critical factor to consider before choosing the right e-commerce merchandising strategy is your sales goals; in other words, what you are optimizing for.
If you are a new e-commerce business, your top sales priority will be to drive traffic to your online store and acquire your first customers.
In contrast, if your e-commerce store is established, you might be looking to create a base of returning customers or boost the average order value. This means you will be optimizing your sales funnel, providing fast checkout and delivery options, or offering loyalty rewards.
A robust e-commerce merchandising strategy optimizes every step of the customer journey, but you need the appropriate budget to support your initiatives.
The growing B2C e-commerce market means that both big and small-to-medium-sized businesses will be investing in innovative approaches to enhance shopping experiences for their online customers.
Therefore, when considering your next e-commerce merchandising strategy, decide what proportion of your budget you can allocate.
Clear Understanding of Customer Journey Map
Your buyers go through a three-stage customer journey before making a purchase in your e-commerce store. These three stages are awareness, consideration, and decision.
So, when you design your e-commerce merchandising strategy, you need to keep in mind whether your website offers straightforward navigation and is optimized for conversion.
Ideal Customer Profile
Last, but not least is your ideal customer profile—a potential buyer who needs and wants your product.
You need to know who these people are, their age range, location, and other factors influencing their purchasing habits and preferences.
For instance, if most potential buyers are millennials, perhaps implementing a mobile-friendly e-commerce merchandising strategy would be your priority.
Knowing the characteristics and demographics of your target customers can help you hone and streamline your e-commerce sales tactics.
So, with these considerations in mind, let’s look at four e-commerce merchandising strategies that can help you drive conversions and boost sales.
Four Proven E-Commerce Merchandising Strategies
Ensure Smooth Website Navigation Geared Towards Conversion
One of the best merchandising approaches to increasing conversions is designing your e-commerce site for a smooth shopping experience.
One study found that 84.6% of internet users believe that cluttered website design is a significant turn-off point when it comes to online experiences. But this comes as no surprise. Poor online store design, confusing pathways, and clumsy interface will only deter your customers.
What you should be looking for instead is a clean, on-brand design, robust product search capabilities, and an optimized customer journey leading to the checkout page.
Personalize the Experience
An umbrella approach is ineffective in online sales. However small or big your e-commerce business is, you must personalize your product offerings.
Tap into the potential of product recommendations based on customers’ activity on your e-commerce site or past purchases. Furthermore, do not shy away from utilizing algorithms to your advantage and increasing your upselling and cross-selling opportunities.
Optimize Shipping Solutions
Shipping and order fulfillment are integral parts of the online shopping experience. So when it comes to finding the right merchandising strategy for your e-commerce business, think about how you can delight your customers with the shipping options.
Shipping can be a solid point of differentiation for your business. But it is not simply about offering next-day delivery or free shipping solutions.
Optimized order fulfillment is about inventory management, picking, packing, shipping, and delivery safely and securely.
When streamlining your shipping solutions, consider engaging order fulfillment partners, such as Phase V, that can take care of your order processing from A to Z.
After all, you want to focus on growing your e-commerce business, not worrying about shipping and order delivery. Therefore, thanks to the 3rd party solutions, order processing can be handled by fulfillment experts as soon as your customer presses the order button.
Leverage Data and Pivot Your Approach to Better Meet Buyers’ Needs
Think about what ticks with your target audience. Finding the right e-commerce merchandising strategy means iteration and clever leverage of detailed customer data. This allows you to adjust your approach for maximum impact in your merchandising efforts.
Honing in on the right e-commerce merchandising strategy will allow you to optimize every aspect of your buyer’s online shopping experience. Your ultimate goal is to deliver a streamlined and customer-focused e-commerce experience.
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