Monthly ecommerce #8
Dive into our fresh monthly digest to learn about the hottest news from the industry. Discover what is behind the decrease in sales in Europe and why people tend to choose physical shopping. Explore the new shipping trend that is about to take over the market. Learn about the best methods to value your business, especially when it comes to numbers. Detect the ways to deal with cart and checkout abandonment on your ecommerce website.
Online Sales Dropped 13% in Europe
-13% is the number that most big companies have recently noticed. Analytics are convinced that there are many different reasons why the picture does not look as bright as it did at the same time of the year back in 2021.
Salesforce states that one of the reasons could be inflation. The economy has a significant impact on our lives, and ecommerce business is not an exception. One of the other events that significantly impact the industry is the fuel prices that have gone up due to the war in Ukraine against Russia. The international community cannot be silent regarding the devastating events, so many businesses are adjusting to the situation.
Therefore, the Covid pandemic regulations are not that vivid compared to last year's rules. People now have a chance to go out, visit the stores and find the desired clothing item themselves. In fact, that is one of the reasons why the tendency to choose online shopping has decreased.
Same-day Delivery Trend is on the Rise
There have been a lot of rumors going on about the next big trend in the industry. It turns out that something we have been discussing for a while now is finally about to change the market. Gophr and Metapack decided to collaborate and improve the technology behind same-day delivery.
Both companies have a clear goal - quick, accurate, trackable services in the UK. According to the Senior Vice President of Carriers, customers expect some kind of improvements on the delivery side every year. The same-day delivery has been one of the key elements that clients strive for. This also means that delivery is becoming greener and more eco-friendly since most packages will travel by bicycle or other similar means of transportation.
How to Value Ecommerce Business
Having an online store that operates efficiently and brings value is marvelous! But, how do you know whether you are on the right track? Ecommerce Times gives a couple of simple tips to look up when managing your virtual store.
- Value the business by detecting the market value. Include many different factors such as annual revenue and profits, scalability, financial history, etc.
- Determine the value of your business by using the Multiple of Historical Earnings method.
- Try to look at your business's precedented sales. Try to look for a company in your niche that has been recently sold - whatever they were doing worked really well, so you might want to aim towards the same KPIs.
- Take into consideration Discounted Cash Flow. This method means that you have to look at the company's history to determine the future goals and aims.
Tips to Improve the Cart and Checkout Abandonment
The main thing to remember is that people do not open online store pages accidentally, and there is at least some kind of purchasing intent whenever a person goes to the main page. The main thing here is to make sure that the client goes through the whole process of buying an item. Here are some things you may consider applying to increase sales:
- Arrange a pop-up once a customer decides to leave the page. Ask them for their email to contact once those items are on a discount. This will give you their email and an opportunity to re-engage later.
- Make sure that it is easy to buy something from your website. If it becomes confusing somewhere during the journey, the customer will most likely close the page. For instance, if a person is using their phone, having an opportunity to pay via Apple Pay or Google Pay means the transaction is one click away, and there is no need to enter a lot of information.
- Make sure to tell your customers about the price right away. If at the end of the checkout it turns out that there is an extra fee that needs to be paid, there is a big chance the page will be closed instantly.
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Ecommerce Sites Could Lose Millions Due to Third-parties
Jscrambler has recently analyzed the data from two billion user sessions retrieved from ecommerce websites. The research has revealed that the third-party services operating on the websites attempt to leak around 144 000 customer data records. This could result in some crucial damages that cost approximately $1.6 million.
It turns out that most of the hijacking attempts happen through browser extensions, which could lead to companies losing $2.9 million from their revenue.
The CEO of Jscrambler emphasizes the importance of data privacy and protection among ecommerce platforms. He states that it is crucial to turn to those who will provide high-quality development of every single component.