February 23, 2012

Why Business Cards Still Makes Sense for E-commerce Stores

Most E-commerce stores have learned, that offline marketing doesn’t provide value for online businesses. Putting an ad in a magazine, newspaper, radio etc. is first of all not measurable, and it’s too much blind shooting given the fact that you’re not targeting people down to a narrow audience – like you’ve also learned you should do.

But there are other offline marketing tactics that are almost free of charge, and secondly involves a referral between people, putting your brand in the middle of a recommendation.

Business cards is an easy way to exchange contact information, but unlike the classic person-specific business card, E-commerce stores should get creative and use the space that wins a new customer in the context of a recommendation from an existing customer.

What I’m suggesting is, that you throw a couple of business cards into every package you ship. The business cards should include logo, your internet address, and a short description of what you sell – just as you have online.

Also, do mention on the delivery notice that you’ve included a few business cards that you can give to friends and family.

Use short URLs

If you want to get some sort of statistics on how many go to your e-commerce store from those business cards, put a short URL from e.g. Bit.ly on there, instead of the real address. Bit.ly gives you the ability to get information on each URL from their website by appending the + sign to the address. You’ll get a nice page with the number of clicks etc.

If you use Google Analytics, also make sure to “campaign tag” the URL you put into Bit.ly. This will give you a campaign in Google Analytics, that you can use to filter statistics and see how many click and buy from the business cards.

QR Codes

QR Codes is being used more and more for offline marketing campaings. Posters at bus stops etc. often include a QR code you can scan from you smartphone.

A tactic you can use on your business cards is to put the QR code on the backside. Bit.ly already provide QR code images with their short URLs, so you can just grab that – and you’ll keep the ability to track clicks etc.

Discount codes

To give enticement to purchase, you can get creative by including discount codes, free shipping, buy one get one etc. with your business cards.

This would also make the customer who should give the business cards away, treat the cards like a more valuable item since they actually are worth something then.

Get creative, try out new tactics with your business cards. It is definitely not a scalable marketing tactic for online stores, but they do take advantage of existing customers and spreads the word a little.

How to Raise your PayPal Receiving and Withdrawal Limits

PayPal claims they’re the easier and safer way to send and receive money. But there’s a lot of stories out there on the internet, saying they’re not. If you search for paypal scary story many of the top result is dedicated anti-PayPal sites that tell their own story of failure. But is PayPal really that dangerous?

PayPal account limits

Of course they’re not dangerous. They’re the fastest and easiest way to setup a payment solution that accepts Visa and Mastercard. You pay a fee per transaction, and you can transfer money to your bank account with ease.

The stories you read about people hitting a brick wall with PayPal, is probably people not reading or paying attention to the limits of PayPal. When you open an account, there a page where you can see your sending, receiving and withdrawal limits. These are very important if you want to do business with PayPal.

To see your limits, click the ‘View limits’ link at the My Account –> Overview page.

image thumb0 How to Raise your PayPal Receiving and Withdrawal Limits

The page you’ll see then, shows you your sending, receiving and withdrawal limits.

image thumb1 How to Raise your PayPal Receiving and Withdrawal Limits

Notice the ‘Lift Limits’ button? Tick the limit you want to lift, and click the button. A new page is displayed, telling you exactly how to lift your limits.

image thumb2 How to Raise your PayPal Receiving and Withdrawal Limits

If you have the ‘Identify yourself or your business type’ link, click it and fill out the form on the page. When you return, you’ll have more options.

image thumb3 How to Raise your PayPal Receiving and Withdrawal Limits

The above screens shows you that I’m subject to certain EU (European Union) regulations, but they’re easy to comply with.

You basically have to do the following steps:

  • Link and verify a creditcard to your account
  • Confirm yourself as a business
  • Supply additional information
  • Authorize account holder
  • Identify account holder.

The reason PayPal wants all this information, is to minimize fraud. As long as you keep your account in good standing, and keep an eye on your limits you’ll be fine.

Only have a single account

Because PayPal does so much to prevent fraud, they keep an eye on not only your account, but also how many different accounts you log into from the same computer. If you have created several business accounts, they might suspend all of them. This is because, they don’t want you to be able to use another account if the first one gets suspended. So use only one account, and one account only.

You can still have a personal account without any of them being suspended.

Use PayPal to get feedback and move on

If you want to start an online business, you want to get going as fast as possible to verify your idea. PayPal is great for this, because they can set you up almost immediately. Use PayPal for this purpose, and if/when you start selling stuff on a regular basis, you can extend your payment setup.

Who Else Wants an International Online Shop?

E-commerce and online shops is all about minimizing geographical boundaries, and taking advantage of the internet to make to entire world your target audience. There’s no point in limiting yourself, and stay inside the borders of your country. But transforming your local online store into a world wide user friendly website is easier said than done. What does it take? What is absolute vital to have in place, and what can I do without?

I’ll try to answer those questions in this blog post.

international ecommerce online store thumb Who Else Wants an International Online Shop?

Start local, become global

If you’re just getting started on your own online store, don’t plan to be global from the beginning. It is just a step too big for you at this time. You should be focusing on getting started on your local market, learn about your customers and improve along the way.

When you start getting momentum on your local market, consider the headlines below as a few steps for expanding your business to a global online store.

Translate content into other Languages

As soon as you expand your reach to a new country, it is very likely that the new country does not speak your language. Therefore, you need to translate your entire website into a language that is understood. If the new country is the only country speaking its language, consider their english abilities and decide if that is enough.

A common pitfall in translation, is to forget images that contains text. It is important that you now change your content strategy in such detail, that you do not produce any images with text. Use an image as a background and real text on top, instead. If you absolutely need to use text in images, make sure that your e-commerce software or content mangement system supports dynamic images, based on language.

Show prices in local currency

Do go a long way to offer your visitors converted prices, so that they can see in their own currency, how much they’re going to pay. If you can’t process credit cards in other currencies, make sure that you inform that charges will be made in another currency and the converted amount may be a little off.

Be sure to update exchange rates on a daily basis.

Calculate exact shipping prices

When your customers are from outside your own country, it probably increases your shipping costs. Do you want to pay the extra cost, or should the customer pay extra? Make sure that the customer is given the exact price including shipping costs. It is very important for online shoppers to be able to compare prices of a single item, but also see where they “lose” most money on shipping. Shipping is a kind of “tax” on top of the price they pay for the goods.

Local credit cards and bank payments

A lot of countries have their own credit cards. In Denmark, we have Dankort. In Holland they have Ideal. In Norway, it is very popular to pay online by logging in to your bank account and select an account for a transaction. In other words, if your new market has their own and very popular payment solution, you should support it.

Be clear about returns

Handling returns can become more complex when selling internationally. This is the case when your goods cross the border and the local tax authorities take over. They may add tax that the customer pays, but what happens when the goods goes back? Done wrong, you can end up paying tax for your own goods twice. Make sure to account for this scenario, and make sure that the customers gets back any paid tax.

Check online for tax rules in your target country, or contact the target country’s tax authority to ask how to do things right.

New requirements for your e-commerce platform

Taking your online business to the next level, and selling internationally is a challenge both for you but also your e-commerce platform. You need to make sure that your current e-commerce platform can handle mulitple languages, multiple currencies, dynamic shipping costs and supports local payment solutions.

Running an international E-commerce store – Initial thoughts

If you’re running an online store, targeting your local market will be the most obvious in the beginning. As soon as you get going and gain some market share, you might start to think about expanding your online store into new markets.

But what does it take to enter a new market? How do you get there? What about support? Are they savvy internet users?

There’s a lot of challenges when expanding your online store into new markets…

Research before you jump

Before deciding to enter a new market, some research is a must. How many people lives in that country, how many is online, how likely are they to order online. A lot of questions pop up.

Facebook can answer some of those questions for you. A few weeks ago, I blogged about how you can use Facebook to determine the size of your target audience. As the picture below shows, you can see how many from a certain country is on Facebook:

image1 Running an international E commerce store   Initial thoughts

Now, use that number and compare it to the total number of people living in that country. This will give you a percentage. Use that and compare it to your home market, and maybe other markets where you’re already present. It will at least give you an indication of how internet savvy a country is – at least in comparison to countries you already know.

Organizing content

Content is what matters. Users needs information in order to make a purchase. Search engines needs content, to display on their search results pages so you get some traffic.

When you start having multiple languages for every product and page etc., it becomes even more important for you to stay organized.

The classic way, of treating every language as a separate store of its own simply doesn’t work. That is because, most often you have duplicate products – only they belong to their own individual store. This results in loads of administrative work, it’s harder for you to get an overview, integration with other systems based on products become cluttered - it just doesn’t work.

That said, you still want to be able to hide individual products for certain markets, or specify a different price.

Increase Revenue with Friendly Credit Card Errors

If you want someone to give you their money, you better treat them well… So why is so many online businesses speaking to their customers like they were doing something stupid?

It’s the same thing you see over and over again – and even though I love and use a variety of open source software, I have to say that larger open source E-commerce initiatives does a terrible job at handling user input gracefully.

I’ve been there myself, as a developer, I tend to write unfriendly error messages from time to time. I realized years ago that it was time to sharpen up my skills and focus more on the user. After all, that’s what matters the most.

Some time ago, I read an excellent blog post over at Get Elastic called “Losing Customers At The Register: 12 Checkout Blunders” about how e-tailers lose revenue on their site. First point on the list you’ll see unfriendly credit card errors!

I was working with one of our pilot customers, The Wall Company, and did some research looking into their data to see that credit card errors occurred a few times a week.

We changed their error messages from the nasty “Something went wrong, please try again”, to this:

credit card error ecommerce Increase Revenue with Friendly Credit Card Errors

That alone, helped 49 of 126 credit card error turn into success. Data from the past 3 months shows us that 10% of all completed orders have at least one credit card error!

The E-commerce Framework

Wouldn’t it be great if you could just add a new product to your store front and get measurable feedback in a matter of days? You always need to get feedback on how your product details are helping you sell the product. How can you know that you’ve set the price right? What about the images? Headline? Page title? How does the product page perform in the search engines?

All these questions are very hard to answer by digging up data from your visitor and sales statistics. Using Google Website Optimizer can give you a good idea – but it’s not the easiest thing to install if you haven’t got the technical skills it requires.

I’ve been thinking about a metric that gives you an idea about overall performance of your E-commerce store. This metric (Site Experience Index) is part of what I call The E-commerce Framework, that will be part of an upcoming Milkshake Commerce release. Let me explain what The E-commerce Framework can do.

Ordinary web analytics data does a terrible job at giving you an overview of how visitors use your site. You get loads of details, but at the end of the day it’s about trends and overall performance. If you could get a site level metric that tells you how much value your visitors brought to you today, divided into areas such as category pages, product pages, shopping cart, about pages, FAQs, contact forms, checkout process – you’d easily get an overview of site performance.

So for each area of your site, you get a score. That score will change from time to time. If you just deployed a complete redesign of your site, you could see if your score decreased, or increased. The score is a relative score, meaning that it is abstracted from site traffic which will make you able to compare your own site to other sites – every day of the week with each one another, and you can compare the score after deploying a new design, adding new functionality and such.

This is more than a conversion rate metric. It’s a metric that tells you the overall experience of your site, with the ability to drill down into certain areas of your site.

Is Your Internal Site Search Engine good enough?

Do you have the idea, that your users have trouble finding what they’re looking for on your site?

Do you find it hard using your own site’s search engine? Or, are the delivered results just not good enough?

In this blog post, I want to take a look at the state of internal site search, as it is today on average E-commerce sites. Do we leave our users and customers more frustrated than they were before?

At last, I’ll give you a checklist of what you need to get right, in order to achieve the internal site search experience you’ve always wanted your users to have.

The state of Internal Site Search

Let me first point out, that I’m not taking the likes of Amazon into consideration. If you look at Amazon’s site search, you’ll know one thing: The more money you have, the more money you can spend on a better site search. Amazon is not the average E-commerce site, which is why I won’t take a further look at their site.

So let me start out by looking at a shop that runs on Magento E-commerce Software – a somewhat popular E-commerce platform. Through their website, I found one of their customers, Homedics. They sell Massage, relaxation and wellness products. A classic mistake with site search is that you get a “no results” page when searching for category names.

Let’s say that I’m looking for Foot Spas, which is exactly what they sell. Like many users, I don’t spent time on figuring out their navigational structure and goes straight to the site search which is located at the top right hand corner.

It’s a nice and visibly clear search box which looks very promising, so I type foot spas and hits the ‘enter’ key.

Much to my disappointment, I get a useless “no results” page simply telling me the frustrating message: “Your search returns no results”.

What’s wrong here?

1. Their product categories are not searchable.

2. Their no results page is totally useless. They could at least give me suggestions to help me get on with my life when I’m stuck like now.

3. Much to my surprise, they have a nice auto complete feature that suggests a search for “foot spa” (not spas). Now this phrase gives me two products as a result. They should’ve included this phrase in my original phrase without even telling me.

Sadly, this is not all.

When I finally got some results, I noticed that I couldn’t filter, sort or search within the current results.

Filtering gives me the ability to trim my results down to as few products as possible, that I can make a decision about later on. Again, much to my surprise they offer filtering on their product category pages. Although it is a very shy filtering feature, it’s useful if you want to narrow down your search results by price.

Sorting is absolutely vital. Sorting is a very useful personalization metric for you as a show owner to use. This gives you a great opportunity to get to know your users. Sorting by price tells you that a user is looking for something cheap. So don’t recommend the most expensive items! Sorting by popularity tells you that the user needs some sort of 3rd party recommendation of the product, and price is maybe not that important.

Searching within results is needed when you’re trying to find a specific product that you don’t know the exact name of. Searching within lets you forget about price, brand, and popularity and so on.

Sadly enough, we can find even more things that are wrong about this one.

Users come from different countries and regions with different perceptions of the world, different ways of looking at the same things, and different ways of spelling, or should I say that a lot of users don’t spell correctly.

You can’t just ignore misspelled search queries. You have to deal with them, and make the best of them. This work has to be done by your site search engine. Trivial typos, such as “foot saps” instead of “foot spas” should just be silently dealt with.

Spelling this phrase as “food spas”, “fot spas”, “foot sbas” or “foot spaas” must also be dealt with silently. At most, ask the user gently if they meant “foot spas” – like Google does.

Even when I get some results from this site search, I’m frustrated due to the lack of filtering, sorting and searching within results. Especially sorting, which I find very important on a daily basis.

Let’s take a look at another example. This time, I found a site running on another quite popular E-commerce platform, osCommerce. The site I found is Beauty by Nature, an Australian Aromatherapy, Skin Care and Perfume shop.

I’ll do exactly the same thing as I did with Homedics. So I found the product category “ANTI AGEING SKIN CARE”. To increase the odds of getting some results, I’ll type “anti ageing” in the search box. Which was very difficult to find, located at the bottom left of the page layout.

This search returned the, almost expected, no results page. As I mentioned, this is a classic mistake with site search engines, and it will turn out to be very costly for the shop. I think most of the users are searching for anti ageing products on this site leave immediately.

As the last test, I’ve found a Shopify based shop, Rebekka Guðleifsdóttir Photography. I can’t do exactly the same as I did with the other two examples, because they don’t have product categories. So I just did a search for a product, and of course I got a result. But selling photos and not displaying images on their search result page is a huge mistake. And I still haven’t got any filtering, sorting or search within capabilities.

Misspelled words are not dealt with here either, as I actually expected.

The state of site search on average E-commerce sites is just not good enough. They don’t include enough results, and they haven’t got enough features for the user to narrow down and sort search results. This makes the user experience very bad, and it will cost sales.

The Important Features of Site Search Checklist

Sorting is very important for the user, because it is the fastest and easiest way to manipulate the result set without exclusion. Being able to sort, in both directions, by price, name, customer rating, most sold, discount etc. is very useful. You will quickly see that a lot of users will sort by customer rating, simply because most users want another person’s opinion on something before buying, or by price because they’re looking for something cheap.

Filtering is another very useful feature of site search, and product lists in general. Whenever you perform a site search for a very broad keyword, like monitor you will get a huge result set. In order to find a monitor you want, filtering lets you narrow down by a set of properties like brand, type, size, VGA, DVI, HDMI, display resolution, energy efficiency, contrast level and what else describes a monitor.

Filtering is often a set of links on the right side of the page with a title like ‘Narrow down your search’.

Search within to further narrow down your result set. So instead of narrowing down your result set through filtering, you want to narrow down by search. When searching within, all sorting and filtering settings should be kept.

Respect personalization settings: This is one of the most underestimated things on websites. What personalization settings, like sorting reveals about a customer  is a lot more than you think. As a user, you expect your settings to be respected throughout your entire visit to a given site and even beyond visits. So if you’re on the hunt for something cheap, all lists and search result pages will always sort by cheapest first.

This is good user experience, but way too many sites don’t care about you in regard to this.

Misspelled search terms, autocorrect and synonyms. You probably have both non-educated, educated, and over-educated users and I can assure you that they’ll spell even the simplest of things differently. Well, how many different ways do you think users will spell “Britney Spears”, or is her name “Britanny Spears”? Take a look at Google’s report on Britney Spears spelling correction, and think for yourself how many different ways users might spell your product names.

What are those users going to do when they see a stupid no results page that doesn’t help them get on with their life? Yes – they hit the home, exit or search button of their browser and leaves your site!

Logging all search terms is a must have feature for you as an e-tailer. You have to be able to use search terms as Business Intelligence tool that helps you understand your customers better and better. Logging should also include result set size so you can see how many results are returned for each search term, and also a date and time.

Suggest alternate products when a no results page is found for specific search terms. If you do a site search on a website for “Sony TV” but the site doesn’t have any Sony product, but loads of Philips – wouldn’t you be happy to take a look at the Philips TVs?

This is where your search term database comes in handy. As an e-tailer you need a feature that lets you see all search term that gives your users a no results page. Then you need to take the Sony search term, and link it to a Philips search term so the suggestion is made to your users for future searches.

Conclusion

Internal site search on your E-commerce website is extremely important. Yet, a lot of popular E-commerce software platforms don’t give you the quality you need.

Users are left even more frustrated than before, and it’s a very costly not to have a good site search engine for your business.

So go out there and find a 3rd party site search engine if you are not able to change your E-commerce software. Make sure that you get the features outlined above, and that your results page is shown on your own site, with your site’s look and feel, which is not always the case with 3rd party search engines. A 3rd party search engine is not free, but I’m sure it will pay its own price very fast.

E-commerce Crowdsourcing

I recently read an article at businessweek.com, about crowdsourcing. The article explains how current E-commerce sites is crowdsourcing design of their products. A great example is Threadless, a T-shirt store where users can submit their designs for voting, and when a certain amount of votes are reached, the designer receives 2000$, and the design is up for sale on the website. This gives Threadless not only a new design, but also a good idea that the new design will sell, since a lot of users voted for it.

I was thinking about examples of crowdsourcing in the software business, and UserVoice.com is a good example of crowdsourcing feature idea generation, and at the same time finding out how needed a feature is. Just like Threadless does with their visitors voting up designs, visitors are voting up feature requests on UserVoice.com.

Another similar, and maybe a bit more sophisticated example is GetSatisfaction. Not only is this crowdsourcing feature generation, but also crowdsourcing bug-hunting and support.

Brands like Adidas and Nike is also crowdsourcing design, by letting their customers customize shoes and football boots, and later making their designs publicly available, letting other users get inspired.

Has E-commerce already been crowdsourced?

I think that one of the most common things that are crowdsourced in E-commerce is implicitly the generation of credibility through public customer reviews and feedback. Amazon does an amazing job of this on their product pages where you can find several customer reviews.

What about lead generation? You’ve probably seen loads of ‘Send to a friend’ buttons on E-commerce sites. Also add to del.icio.us, Digg, Reddit and all those online bookmarking services. This will eventually result in link building.

If you’re about to start a new company, website, E-commerce site or something else where you’ll need to design logo, website and etc., those tasks can easily be crowdsourced. Using services like 99Designsyou can make your design tasks a public contest where hundreds of thousands designers can submit their suggestions. You put a prize up for grabs, and designers will start competing for your money. A great way to milk as many ideas as possible.

I really think, that when it comes to creative tasks, crowdsourcing is more preferable than outsourcing – simply because you want to see lots of different ideas, and not just a couple of ideas your regular supplier of creativity will give you.

Top 10 E-commerce Startup Mistakes you want to avoid

Taking up a new challenge is always going to involve some initial mistakes. In the world of business, this will cost you money. So you have to make sure that 1) Reduce the amounts of mistakes, and 2) Make sure not to make the same mistakes again.

I’ve already touched the importance of Web Analyticsfor E-commerce sites. My main point there was, you should be able to get insight and take action immediately! It is the most important thing about running a business online!

I was surfing the Internet this evening, and came across a great blog about E-commerce. I found a specific post that I really like: Top 10 E-commerce Startup Mistakes.

I think these tips are really great. There’s obviously a lot more out there, but these are some of the most frequently mistakes made, and some of the worse.