Follow the data and increase your profit!

E-commerce sites are (or should be) continually under development. This is often misunderstood by customers when setting up a webshop for the first time. It's a little like having a product in R&D during its entire product life cycle. Planning and budgeting for this process should be considered and understood from the start of any e-commerce project.

This way of working is commonly known as continuous development and is part of the continuous integration workflow that we at Capo use.

Klarna is one of Sweden's largest payment providers with over 800 000 transactions per day, giving them a 10% share of the e-commerce payment market in Europe. Having such a substantial inflow of data enables Klarna to predict some of the coming trends and provide useful information that we can take into consideration during the planning and development stages of our work.

 

What's important during 2019?

If we take a look at Klarnas website we can see they are picking up on a few points.

Here is a couple of them.

  1. Checkout - The easier and faster the better. https://www.klarna.com/knowledge/articles/5-trends-that-will-shape-e-commerce-in-2019/ 
  2. Returned goods need not mean lost profits! https://www.klarna.com/knowledge/articles/4-reasons-why-customer-returns-are-great-for-your-business/
 


Checkout

The checkout side is one of the most important pages of any e-commerce site. To get a more in-depth understanding of the importance of this we can use sites like Baymard Institute where we can see what actually happens when customers are browsing our sites. Take a look at the statistics for abandon carts cart-abandonment-rate . We can see that it’s common for people to not complete the checkout process (abandon CART). This can be somewhat misleading as some customers will simply go back to the site again and buy the product. But how many don't? Can we do anything about this? Probably yes.

 

This is where the understanding of the need for continuous development comes in. Let’s say we have developed a site for you and you are happy with the design and functionality. It may be only 6 months old, but in the internet world six months is a long time. The constant development of new technics means that both new trends and opportunities for us to improve the user experience occurs frequently.  Klarna predict that customers will expect a faster and smoother checkout experience. So even though you have a perfectly good working solution you should probably assign some of your budget to improving the checkout experience even further during 2019!

 


Returned goods - good or bad?

There were some interesting points made here that we could look at and take advantage of. Basically getting a product returned does not indicate a dissatisfied customer, in fact the way they describe it, it means just the opposite! You should expect it or even encourage it, turning it into a part of your company's profit.

 

How is that done? Well that's beyond this post but it will probably include the streamlining of that process in your e-commerce store. So we are back to the continuous integration and development. By looking at your specific needs and discussing them with you we could make the process better for the end customer, more efficient and less time consuming.