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Bloggers Digest 1/2/09

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If you’re new here, welcome! And thanks for subscribing to Get Elastic. Friday is Blogger Digest day where we highlight posts from other blogs that are of value and interest to online retailers and Internet marketers.

III: The Cost of Zero Cost

In the real world, this effect was demonstrated by Amazon’s free shipping. After Super Saver shipping was introduced, Amazon saw sales increases everywhere except for France. It turned out that the French division offered 1 franc ($0.20) pricing instead of free pricing. When this was changed to free, France saw the same sales increases as elsewhere. Another real-world example: People will wait in line for absurdly long times to get something for free. Free is one of the most powerful ways to trigger behavior.

Lessons to Apply to Web Marketing:

*Offer free stuff, but make sure you get ROI from it (traffic/ad views/email addresses/etc)
*Be prepared for the fact that people will ENJOY free stuff more than normal, simply because it is free. Use this to your advantage and give away to those whose love & affection you need (reporters, bloggers, pundits, haters, etc.)
*Making people work to get something for free is a great way to trigger behaviors that might otherwise cost a fortune (think web surveys, information classification, data entry, etc.)

  • A recent ForeSee report shows many retailers’ e-stores declined in customer satisfaction this year, one of the hardest to fall being Gap. ForeSee suggests the 4-in-1 checkout diluting the Gap brands may be to blame, but it could be a mix of factors.
  • ShopNBC and MyWeddingFavors report huge conversion gains from using video online. Are we far away from video being the new product image? Anna Yeaman from Style Campaign interviews Kendall Rhodes on online video production and success strategies.
  • In Should all Departments Have “Customer Experience” as their Number One Priority? Arianna from PlumberSurplus explains a situation involving a return that the retailer had to disapprove because it fell outside of its RMA (Returned Merchandise Authorization policy). She asks retailers to join the discussion on where the line should be drawn between company and customer responsibility, when should you meet in the middle and when does it become completely unprofitable to do so?

Hope you all had a wonderful New Year.

Linda Bustos
Linda Bustoshttp://www.getelastic.com
Linda is an ecommerce industry analyst and consultant specializing in conversion optimization and digital transformation.
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