The next big challenge of E-commerce and How to overcome it
What comes to my mind when I think about E-commerce – An unlimited selection of products.
Nowadays, we are able to find anything online, buy it wherever and whenever. You’re just one click away from owning whatever you desire. Shopping is very easy when we know exactly what we want, but what if we’re just “looking” ?. Making the final decision is difficult, I wonder if it fits me? Is this the best product for my needs? What if I don’t like it?
We have the option of returning the product but let’s face the truth, we often don’t, and we feel guilty and disappointed over our purchase decisions.
Too many choices make us miserable, with so many alternatives it’s easy to imagine that we could have chosen better.
This is called “The Paradox of Choice”. It basically means that The bigger the selection is, the harder it is to make a decision and the more we experience stress.This affects consumer behavior radically in e-commerce.
Because of this, the conversion in e-commerce is typically around 1-5%.
So, how to overcome this issue?
PRODUCT RECOMMENDATIONS.
With the significantly growing amount of information, products, and users online, it’s becoming increasingly important for E-commerce retailers to provide consumers with relevant information regarding their needs and concerns.
What is a Product Recommendation engine?
A product recommendation engine is a data filtering tool that makes use of algorithms and data to predict and recommend the most relevant products to a particular user. An automated digital version of the “in-store associate”.
You search for a product, the engine shows you the product you searched for and another one that you might like based on your first search, in other words, a product with a high chance of ending up in your purchased items list.
If you set up and configure it properly, it might significantly boost revenue, CTRs, conversions, ATS, and others metrics. Also, it will lead to a better consumer experience, enhanced customer engagement, more traffic, and other metrics, you will save money and resources on your marketing spend!
A product recommendation engine is a MUST in modern e-commerce. Amazon, Best Buy, eBay, and other renowned companies are basing their entire business on product recommendations retention and engagement.
Finalthought: The success/growth of any commerce is significantly determined on a recommendation engine. It doesn’t matter whether or not you have insights about your visitors.You need a recommendation engine to make their shopping journey more enjoyable,to leverage buyer intent.
Recommendations engines are becoming more accurate than ever before. They will bring long-term value to your webshop.
