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September 18, 2020

5 Vital Components That Affect Shopify Conversions

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Flexport Editorial Team

September 18, 2020

This blog post was originally published by Deliverr, which is now Flexport. The content has been adjusted to fit the Flexport brand voice and tone, but all other information remains unchanged. With the merging of Deliverr’s services (DTC fulfillment, B2B distribution, and Last Mile delivery) into Flexport’s existing international freight and technology services, we’re now able to provide merchants with true end-to-end logistics solutions spanning from the factory floor to the customer’s door.

Winning sales on Shopify isn’t easy. First, you need to rank your Shopify website quickly to get customers to your store. But, even after you’ve achieved that, you’re still competing with sellers on Amazon, Walmart, and eBay. In fact, 66% of shoppers start their search on Amazon, and that number rises to 74% if they already know what they’re looking for.

Online marketplaces have the advantages of being a household name, having an established reputation, and selling a large selection of products to entice shoppers. Let’s look at the conversion factors that can make or break your Shopify store in the face of looming marketplace competition.

The Struggle of Converting Online

Ecommerce has made it incredibly easy for consumers to research, purchase, and receive products. But it’s also made it incredibly hard to sell. While you can easily source products, market through your own channels, and advertise on social media, there are many factors that make selling on Shopify more difficult.

Aside from the notable marketplace competition and the inability to replicate the in-store shopping experience, cart abandonment is a significant problem. Seven out of ten customers are leaving your website before finalizing their purchase. You can’t afford to lose these customers; but you can certainly do something about it.

The Components Affecting Shopify Conversions

To help you tackle cart abandonment and increase your Shopify conversions, we’re going to take a look at the main components affecting Shopify conversions. These are:

1. Store Design

Your Shopify store is your shop window. If it’s crowded, overwhelming, or boring, customers won’t stay. If it’s fast, exciting, and intriguing, customers will head in for a deeper look. For example, 40% of shoppers will leave a website if it takes longer than three seconds to load, and nearly one-quarter will leave if the checkout page is too complex.

2. Trust

The human brain trusts what it knows - it’s a phenomenon known as the mere exposure effect. Therefore, a customer visiting your Shopify store for the first time places less trust in you than they would in Amazon, which may cause them to buy elsewhere. For example, 17% of shoppers leave a webstore because they don’t trust the site with their credit card details.

3. Delivery Options

Shipping costs and speed are two of the top reasons for cart abandonment. With the likes of Amazon Prime and Walmart 2-day delivery, customers no longer need to pay or wait for deliveries longer than two days, and will quickly vanish from a website that doesn’t offer the same.

4. Communication

One of the biggest differences between buying online and in-store is the ability to speak to a store assistant to help you with your purchase. While this might not matter for small and inexpensive items, when buying something of value or importance, it can deter customers from buying online.

5. Price

And finally, price is a significant component affecting Shopify conversions, and we’re not just talking about the product price. The overall perceived value of an item, including price, shipping costs, return fees, and any unexpected costs can quickly send customers straight back to Google.

How To Use These Components To Increase Shopify Conversions

These are all useful insights into the mind of an online shopper, but how can you use these components to increase your Shopify conversions?

Improve Your Shopify Store Experience

With today’s technology, there is no excuse to have a Shopify store that takes longer than three seconds to load or is unenjoyable to browse. Improve your on-site customer experience by adding little touches, such as:

  • Fast-loading Accelerated Mobile Pages (AMP) to improve mobile browsing
  • Menus and product categories that are easy to navigate and search
  • Shipping deadline countdowns so that shoppers know how long they have left to order

Show Trustworthiness

While you haven’t got the automatic in-built trust of online marketplaces, there are several tactics you can use to lower a customers’ perceived risk of buying from you and increase their feelings of trust towards you. These include:

  • Demonstrating social proof by sharing first-hand customer reviews through social media posts and website feeds
  • Guarantee your products and services by offering warranties and store credit should you fail to deliver on time
  • Using multi-channel selling strategies to increase your online presence and take advantage of the mere exposure effect

Deliver in 2 Days or Less

With shipping speeds and costs being two of the top reasons for cart abandonment, it’s a no-brainer to offer free and fast deliveries. While matching the speeds of Amazon Prime and Walmart TwoDay yourself can be challenging, you can use a fulfillment partner who has multiple warehouses, offers an SLA of two-day delivery or less, and uses a flat-rate pricing method.

Communicate Outside of the Box

We’re not yet at the stage of having VR shop assistants who can visit our customers’ homes while they buy online. But, we’re not far off. By using livechat on your website and Facebook Messenger for your Shopify store, you can engage with customers on a personal level throughout their purchasing journey, helping with any queries or problems they have as they arise.

Add Value

You don’t have to enter into a price war to deliver value to your customers. By reducing costs in other areas of your business, you can offer customers perks that increase perceived value and win conversions. Perks such as free shipping, reward programs, and bundled items.

Final Thoughts

By considering the vital components that affect Shopify conversions, and addressing these through your on-site selling tactics, you can win conversions, reduce cart abandonment and even increase CLV.

The contents of this blog are made available for informational purposes only and should not be relied upon for any legal, business, or financial decisions. We do not guarantee, represent, or warrant the accuracy or reliability of any of the contents of this blog because they are based on Flexport’s current beliefs, expectations, and assumptions, about which there can be no assurance due to various anticipated and unanticipated events that may occur. This blog has been prepared to the best of Flexport’s knowledge and research; however, the information presented in this blog herein may not reflect the most current regulatory or industry developments. Neither Flexport nor its advisors or affiliates shall be liable for any losses that arise in any way due to the reliance on the contents contained in this blog.

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Flexport Editorial Team

September 18, 2020

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