Selling Fashion Online

Online merchandising - 12 steps to drive conversion rate

Driving conversion rates is the key challenge of online retailing. But conversion rates remain in the low single digits for the majority of retailers.

It is the conversion rate that ultimately translates into sales, the only real measure of success for any retailer. 

In the brick-and-mortar store, conversion is all about turning shoppers into buyers, in online retailing, it's exactly the same - help shoppers find whatever they're looking for, engage them with your product and brand, and finally, turn them into buyers.

The online merchant can accomplish these goals by taking many of brick-and-mortar's merchandising best practices and adapting them to the online environment. These strategies and tactics include: great assortment and pricing, exciting promotions, comfortable store ambiance, helpful sales associates and more. While they are certainly limits to the online environment, online merchants can successfully implement a wide rage of successful, time-tested brick-and-mortar strategies. 

Almost all retailers today - regardless of their size and market share - have access to some very advanced e-commerce solutions to power their sites. What will distinguish the winning online fashion retailer is their skill at using smart online merchandising practices to drive conversion rates. 

This is what we do at KSL eConsulting, Inc, sharing our core competency and hard-won industry know-how in online merchandising with our retail partners.

For example, the data collected from customer's click-path combined with demographic data and purchasing history can be used to enabled personalized offers. Complete and detailed product information is one distinct advantage to online retailers - copy descriptions can be far more thorough and knowledgeable than the help offered by the average sales associates in the brick-and-mortar world.

Here are 12 steps to optimize conversion rate:

• Start from the numbers. The saying "if you can't measure, you can't manage it" is very true. Review enterprise and web analytics reports to understand what is selling, what is not selling, what is in-stock, what customers are looking for, what is working and what is not working. This will guide the online merchandising agenda and priorities.
• Ensure of the assortment and availability. This is the foundation of retailing. Merchants must have the products that their customers want. This has not changed since the barter system existed. One key reason for customers to shop online is because online is fast and convenient. When you are out of stock, another website is just a click away. Partner with product development, buying and planning to have the right products at the right timing.
• Offer competitive pricing and compelling promotions. Online, customers can easily compare prices by going from one site to another or through shopping comparison sites. This is particularly important when selling third-party brands that are not exclusive to you. And sometimes, shoppers just need that extra nudge of a promotion to make the purchase. Gift with purchase and free shipping are among the proven winners.
• Be the authority to tell your merchandising offers. Take the authoritative and proactive steps to tell customers about your most exciting merchandising offers - whether it is a sale, the hottest trend or a must-have item - and support your offers with a strong call-to-action. Do not wait for the customer to search and dig through the site to find the item. They may not find it.
• Distort to key items and top sellers. Distort and emphasize the key items that you have invested in both the inventory and marketing efforts. Key items typically have a mass appeal that ensures higher conversion rates. As for top-sellers, they are the winners "voted for" by the customers and you will not go wrong by distorting to them. Make the top seller even bigger.
• Optimize on-site search. Half of your shoppers already have in mind what they're shopping for when they come to your site. For this group of customers, it is important to make sure your on-site search function is optimized to your merchandise and guide customers to find what they're looking for. 
• Optimize shopping navigation. The other half of your shoppers - the browsers - are open to being seduced by something that catches their eye and desire. It is important to take the customers through the merchandising funnel and call out the merchandising excitements.
• Optimize search result page. Search result page for a category can consist of many pages. The product that are shown on the top pages are more visible than those on the bottom pages. It is key to distort to the top sellers, key items and new arrivals on the top pages. Either your product sequencing is manually set-up or an automation within the content management system, sales performance, inventory position, price points, newness are among the key factors to be taken into account in sequencing the products. 
• Present your product at its best. When shopping online, shoppers rely on the product photography and copy description to make a purchase decision. In presenting product online, it is crucial to ensure that all critical views of a product are shown and all critical product information is provided.    
• Make it easy to buy. One top reason for shopping online is because of the convenience. Make sure your site is easy to use. Customers have no patience for a site that doesn't work well, has technical problems or just plain bad design.
• Up-sells, cross-sells and impulse-sells. Never leave money on the table. Take the opportunity to up-sell on the product page to drive margins; cross-sell in the shopping cart to drive higher average order value; and impulse-sell at the check-out to drive higher average order value and average item ordered. 
• Fast and secure checkout. Ensure that checkout is fast and secure. Allow customers to checkout as a registered customer or as a guest. Never subject a customer to a required registration - doing so will be a perfect scenario for shopping cart abandonment.

Are you satisfied with your site conversion rates? What are your best practices to drive site conversion rates? Let’s hear your thoughts in the comment section below.

Thanks!

 

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Editorial as a driver of conversion — the new emerging e-commerce paradigm

Attraction is where it all begins. Attraction ultimately leads to conversion and retention. Unfortunately, most retailers are still trying to figure out how to attract the customers online. Traditional offer and promotion tactics have been exhausted. Now, new technologies such as tablet computers, mobile technology and social media are changing how we live and how we shop. These technologies have made it even easier and cheaper for online fashion retailers to create editorial content as never before — and use that content to create attraction. 

Despite which, the majority of today’s fashion website remain dry, transactional, cash-register-like retail websites. This is because fashion websites were first created by cataloguers such as Lands’ End. JCrew and Victoria’s Secret. What do these retailers have in common? The need to create an electronic version of the mail order transaction to lower the cost of doing business.

But things are changing. A new breed of innovative fashion retailers are hiring fashion editors to create editorial, visual, audio, video contents to create attraction, making shopping for fashion online the way it should be — more fun and more social.

The results? Net-a-porter is making a splash with its Magazine, LVMH Moët Hennessy Louis Vuitton with Nowness, and Ralph Lauren with its Style Guide. And that’s to name just a few.

At the opposite end of the spectrum, media publishing companies are becoming retailers. Publishing companies are best at creating the attraction. They are now venturing into e-commerce to drive conversion and retention. Just recently, citing Fishbowlny, Editor-in-Chief of Esquire, told a crowd at the Publishing Business Conference and Expo that the magazine is readying an online retail site called Clad. 

What we are now witnessing is the hybridization of digital publishing media and e-tailing. Publishing company are becoming retailers and retailers are becoming media companies. For consumers, this will make shopping more fun and more social while acquainting them with a much more compelling and more authoritative fashion point-of-view. For the industry, this is how selling fashion online will be going forward.

For brands that are still positioned as online cash registers, it is time to blend editorial content in with your pure merchandising selling — whether merchandise content, fashion-related content or lifestyle content.

Now is the time to test and sort things out is now — because this is evolving at a rapid pace and you can’t afford to miss. Editorial content will soon be the king in selling fashion online.

To succeed, retailers will also need to look beyond the usual metrics of sales and profitability and include media-based metrics.

Now, let’s hear from you. Do you produce editorial content today? How is it working for you? Let’s have your thoughts in the comment section below. Thanks!

 

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Taking the customer through the purchase funnel to drive conversions

In the brick-and-mortar store, conversion is all about turning shoppers into buyers. In online retailing, it’s exactly the same — help shoppers find whatever they’re looking for and turn them into buyers. It is the conversion rate that ultimately translates into sales, the only real measure of success for any retailer.

But conversion remains a top challenge in online retailing. For the majority of retailers, conversion rates remain mediocre, in the low single digits.

In order to improve conversions, merchants must first understand the multiple kinds of online customers and their various shopping behaviors. Then, take them through the purchase funnel from the moment they land on a merchant’s website all the way through to checkout until an order is submitted or, alternately, completed through a visit to a brick-and-mortar store.

I have recently published an article on the key areas where merchants can effectively drive conversions on zippycart.com. To read the full article, please click here. 

 

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Use your gift guide to boost holiday conversions - here's how

According to National Retail Federation, holiday sales are expected to improve slightly this year. U.S. consumers plan to spend an average of $688 on holiday-related shopping, compared to about $681 last year. And in Canada, according to a survey conducted by Deloitte, 52% of Canadians said they will spend the same amount as in 2009, 44% planning to spend less and only 4% planning to spend more. With these tough market prospects in front of us, every retailer will have to work as hard as they possibly can to have a successful holiday season.

Even though Black Friday is the official kick-off to the holiday shopping season, for many retailers the holiday shopping season is already in full swing. Once again citing to the National Retail Federation, about 34% of consumers will start shopping in November. And my personal visits to some 50 top retail apparel, footwear and accessories sites in both the U.S. and Canada confirm that all the holiday bells and whistles are up and running on almost every retail site.

We can also expect this year's holiday online shoppers to be more demanding than ever. Not only do they want it fast, easy and secure — they also want on-time delivery and the biggest bang for their bucks. Holiday gift guides are created to meet these expectations. All the most exciting offers, most wanted gifts and the must-know holiday services and information should be easy to find and all in one place. A great guide is built to quickly serve and convert a holiday shopper. 

The multi-channel retailers with a strong catalogue background seem consistently to do it better. So what makes for a winning holiday gift guide? Here are the key features that make a gift guide compelling:

• Free shipping offer. On-trend with customer expectation for free shipping this holiday season.
• Holiday services. Clearly call out the holiday delivery schedule, gift-wrap and wish list services to ensure hassle-free and risk-free shopping.
• Gifts for everyone. Creatively developed gifts for everyone on the shopper's gift list, including home and pets.
• Gift for every budget.  No matter what your budget — under $10 or $25 for the thrifty or $1 million for a fantasy gift.
• Win with the key items. These are the holiday gift choices you'll never get wrong: sweaters, pajamas, slippers, scarves and stocking stuffers.
• Free, free, free! Give customers the biggest bang for their bucks with compelling free gift-with-purchase (GWP), purchase-with-purchase (PWP) or even gift cards to drive repeat visit for post-holiday sales.
• Make me feel special. Creative pricing with 2-for or 3-for to drive volume sales.
• Get social. Get the community to do the selling. Merchandise top-rated gifts voted by the community.
• Personalized gifts. There's nothing more special than a personalized gift — you know it was created just for you. Leverage existing products such as tote bags and stocking stuffers to create memorable personalized products. 
• Gift cards. Remember, this is the one perfect gift for everyone. Promote gift cards everywhere.

Feel like your holiday gift guide is not up to these retailers? You may still have time to fine-tune it and up your game. If you're already locked into your holiday strategy for this year, at least do some looking ahead and prepare to come back even stronger next holiday season. Which other gift guide features do you find compelling? Let’s us hear from you in our comments.

 

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10 conversion-killers every online retailer should avoid

Over the last 15 years, e-commerce has won the heart and soul of consumers. In the U.S. alone, according to a recent statement by Compete, 8 out of 10 consumers shop online at least once a week. And in Canada, according to Statistics Canada, about one-half of Canadians aged 16 to 34 purchased a product online in 2009. These numbers are only expected to grow higher.

Consumers are attracted to online shopping mostly because it is fast, convenient, safe, and often has better prices. Smart online merchants have capitalized on these key motivators to succeed. Still, many online merchants — including some big names—fail to deliver on these promises of online shopping. Here are the 10 most common conversion-killers that every online retailer should avoid: 

•  Hard to find– consumers today are still overloaded with less specific and general search results. Thus making a purchase is a needlessly difficult decision. A scenario: I was looking for a pair of knee-high boot on a large retailer's Web site. First, I clicked through to the Shoes department, then the boots category and then knee-high boots. At that point I was presented with hundred of options — and that was it. I would have hoped to be allowed to drill down further — by price range, materials, size, heels, etc. — but this was as narrow as my selection could be made. Then, I decided to use the search function, only to find the search results not merchandised any deeper. So I gave up and did my shopping on another site. Online merchants need to merchandise the shopping navigation and search results for each department, category and collection. Unfortunately, this is often a job left undone.   
• Missing product information– In brick-and-mortar stores, a product can be physically inspected and questions answered on the spot. That is often not the case online. Often, complete critical product information and views are not provided. This is often due to what is in the system and the lack of processes to obtain and provide the critical information required to close a sale. An example is if an item needs to be sized-up or sized-down, a standard size chart will not address to this.  Remember, if a customer has any doubts that a product isn't exactly what he or she's looking for— which potentially means the hassle of a return or the risk of not having an outfit in time for an occasion  — that uncertainty will almost never be resolved in the merchant's favor. Count on your customer to err on the side of caution.
• Product not available – The most disappointing experience is investing the time and effort to find what you want and adding the item to the shopping cart, only to find out that the item is out-of-stock. A better and more accurate inventory back-end system as well as system transparency will help set the expectation for the customer. If back order is not taken, the product catalogue should reflect just that and if back order is taken, perhaps, the inventory status needs to be disclosed and transparent at the category or product page level.
• Unclear shopping cart information – This is the moment where consumer will have to take out their credit card. Therefore, information accuracy is key for her/him to ensure that it is the right item to purchase. Still, not every Web site clearly displays the product name, photo, description, price, the selected size and color and also allowing the customer to make any changes.
• Surprise fees and charges – Let’s recall a time when we completed a purchase only to find out the shipping fee too expensive — we most likely abandoned the shopping cart on the spot and shopped somewhere else. This is the very reason why shipping fees, taxes, and other charges need to be disclosed up-front. 
• Check-out security– When you are ready to checkout, suddenly you are taken away from the retailer’s Web site to a completely different environment. In this case, you are likely to not complete the transaction because you doubt the authenticity of the site. Not only this, consumers also want to be assured that the check-out is secured and safe. Online shoppers often look to be assured by security seals such as VeriSign and the specific privacy and security policies on a merchant's site. Online merchants provide key security measures such as limited access data-centers, firewall technology and security-socket-layer (SSL) certificate authorization.
• Payment options.  It is a pity if you lose a customer at this point just because you don’t accept their choice of payment method. Whether it is a credit card, PayPal or debit card payment system. Merchants need to offer the commonly accepted payment methods that are key for each market. 
• Lack of follow-up.  As shoppers, there are a few key milestones that we need to be kept informed of. These include when we will be charged, when the item will be shipped, when we will receive the order and, if there is any cancellation, back order, etc. We certainly do not expect online merchants to be as detailed as UPS or FedEx in their step-by-step supply chain management and order-tracking system. But we would like to be kept informed throughout the key order-processing milestones. Online merchants should also consider providing updates based on the communication medium selected by the customers, whether through emails, text messages or other medium. Never leave the customers with no option other than to constantly call your 1-800 number for updates. 
• Fail to meet delivery promise.  The biggest disappointment in shopping online is when you keep looking out at the porch for the order to arrive on the day it was promised — and all you see is an empty porch. And it was a birthday gift for your loved one. The advice here for the online merchants is: don't over-promise and under-deliver.
• Hard to return or exchange.  As consumers, we don’t care if the direct division of a brand is a separate company. Consumers don't care if your enterprise database and your e-comm database don't talk to each other, erecting obstacles to easy returns and exchanges across channels. In this multi-channel age, consumers have no forgiveness for this. Consumers expect to be able to interact wherever, whenever and however they want with a brand. Whether that is through email, phone, in-person with a site or a physical store, 24/7, period.  

Today, similar or even identical products are widely available online. Another Web site is always just a click away. Online merchants must address these challenges in order to provide a shopping experience that is fast, easy and safe. A fast, easy and safe site is the secret recipe to drive repeat business and higher conversions. According to the University of Michigan's American Customer Satisfaction Index (ACSI), a highly satisfied online shopper is more likely to purchase online, more likely to purchase offline and more likely to recommend than a dissatisfied online shopper.

So, what other mistakes do you see online merchants making... or have you made you yourself? Which site do you consider the best in terms of the meeting the fast, easy and secure promises? Let’s hear from you. 

 

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How to drive conversion using merchandising callouts?

As shoppers, our purchase decisions are often influenced by a good salesperson - especially one who tells us "This is the last pair" or "This is our best seller." In simple terms, the function this salesperson is performing is merchandising callout, a power we can also put to work in an online environment - and one that can make the difference in closing a sale.

In merchandisng online, however, at the category page, merchants too often rely on the product thumbnail image, product name and price to do the selling. Traditional merchandising callouts - especially the kind so effectively employed by our live salesperson in the example above - need to be better utilized online. Equipped with merchandising intelligence from the enterprise's merchandising, planning and inventory systems, merchants today are in better position to deliver merchandising callouts that are more effective and more customer-oriented.  

Often, partnering with your brick-and-mortar counterpart is the best way to come up with the most relevant and effective merchandising callouts. Some especially effective merchandising callouts include the following (in random order):

• New
• Online exclusive
• Our pick
• Saved X%
• % off
• Customer's favourite
• Only X left
• Sale
• New to sale
• Clearance
• Last one

 

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Should a fashion item be merchandised at the style or style-color level?

Imagine two brick-and-mortar stores. In presenting an item (let's say a cardigan), the merchant in our first store displays all the colors on the selling floor. In our second store, lacking space to display every color, sale associates must inform customers of the additional color options. In the store where all colors are displayed, the merchant is less likely to miss a sale and customers can help themselves to the entire color selection. This merchant can also play with the colors, distorting or de-emphasizing the hottest selling color, a new color, a liquidation color, a seasonal color, a promoted color and so on. However, when only a sample of colors is displayed, sales can be lost when customers are not attended to and the information about the additional colors is not communicated.

Our first store is using active merchandising to drive conversion, a strategy that's equally effective for the online merchant as well.

Online, within a category or a collection page, many merchants are still selling at the style and not at the style-color level.

As fashion shoppers, we tend to shop at the style-color level and not at the style level.

If we were shopping for a cardigan, we would like to quickly browse the whole color selection. To enable this existing shopping preference is an online merchandising opportunity for many retailers, one that enhances the shopping experience while helping drive conversion rates.

There are about 5 different methods used in merchandising at the category and collection page level. Let's look into each of the method and consider their pros and cons. 

Method 1

Product is merchandised at the style level with a callout of more colors available. Retailers merchandising with this method include J Crew, BEBE, and Forever 21. The advantage of this merchandising method is a shorter and cleaner category or collection page that is easier to shop. However, there is one major downside to this method - it misses the opportunity to actively inform customers of additional colors available at the category and collection level, thereby, foregoing the chance to sell a product unless if the customer takes the additional step (and expends the additional effort) of drilling all the way down to the product page to see a full display of color choices.  

Method 2

The second method also merchandise at the style level. However, the difference is that the number of color options is called out. For example, available in 3 colors. With this method, a customer still doesn't know what the color options actually are. American Eagle Outfitters is an example of online merchant using this method.  

Method 3

By far the most common method today is to show color at the category or collection level. By clicking on a color swatch, the selling images will be updated with the selected color. The only downside to this approach is that it flattens out the relative importance of any given color, leaving merchants unable to distort or de-emphasize certain colors to drive online merchandising objectives, Retailers using this approach include Tommy Hilfiger, Chicos, Lands' End, Antropologie and Ann Taylor. 

Method 4

This method shows every single style-color available. Every color is photographed or color-swapped to be presented separately. This allows the merchant complete control in merchandising for each color. However, it is expensive shooting for every style-color and this expanded display could create a very long category or collection page, one that is potentially harder to shop. Top Shop and Banana Republic are among the retailers using this method.  

Method 5

Method 5 is a hybrid of the Method 3 and 4. With this approach, a product is merchandised at the style or style-color level as necessary. This gives the merchant complete control over the assortment within a category as well as allowing the ability to distort or emphasize key items and best-sellers by selling them at the style-color level. For example, the Cotton Cashmere Wrap Sweater comes in 10 colors. However, only the key colors are photographed and shown separately. Notice, too, this method also allows the merchant to sequence each color independently.

So - for your brand- which method has the greatest potential to drive conversion rates? The cataloguers just seem to be better at managing products at the style-color level. Other retailers, too often let the merchandising and e-commerce system dictate the execution. The real answer will depend on the set-up of your enterprise merchandising system and the e-commerce merchandising system, your creative requirements and your customer's preference. 

 

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