“Much remains uncertain but what I can say for sure is that Shopify has entered a new box. The role we play in the world of commerce has become clearer: we help entrepreneurs become successful merchants. More merchants survived the pandemic than would have without us. Outside of our four walls (ha!) people now understand what Shopify does and what we care about. We are certainly less underestimated. But what’s also certain is that Shopify is more important than ever and in a better position than ever before. We are taking 2020 in stride and finding ways to thrive in the face of so much change. “
Some things profit from shocks, they excel and improved after being exposed to disorder. In spite of the ubiquity of this phenomenon, there is no word meaning the exact opposite of fragile. Nassim Nicholas Taleb coined this term as “Antifragile”.
Shopify has embraced all of the shocks that 2020 has thrown in their way thus far, applying Taleb’s concept and growing from the disruption.
” Mailchimp may have started out as an easy to use newsletter tool, but that was almost 20 years ago. Today’s company still does email, but at its core, it is now a marketing automation platform for small businesses that also offers a website builder, basic online stores, digital ad support, and analytics to make sense of it all. Like before, though, the company’s main goal is to make all these features easy to use for small business users. “
Mailchimp continues setting its transformation in motion, launching a number of AI-powered tools to help their customers. These tools are claimed to give small businesses access to the same capabilities their large competitors use.
These tools include forecasting tools to aid behavioral targeting, allowing business owners to see what products are most likely to be bought by different groups of prospects. As well as an AI-backed designer, to help business owners design personalized visual assets.
” As far as online shopping goes, every ecommerce store has a cart-abandonment problem. And some of those lost shoppers simply can’t be converted — they weren’t all that interested in the first place, and no matter what you say, they’re not going to finish their purchase. “
Shopping cart abandonment is the most pivotal problem for online stores to overcome. The bad news is that it’s impossible to solve entirely – some people will unavoidably abandon their carts before pulling the trigger and making a purchase.
But this doesn’t mean all hope is lost. The question is, how can you stop rational prospects from bailing on potential purchases? Here are the top five reasons shopping carts end up abandoned – and luckily, each one is quite easy to fix.
The devastating economic consequences of the pandemic cannot be overstated, with millions of businesses being crippled or even closing their doors. However, out of the ashes of fallen retailers, Ecommerce rose and shined like a phoenix. The popularity of online marketplaces has grown monumentally over the last year, but what does the future have in store?
Over the weekend, more than 2000 Magento stores were hacked. Security researchers describe this onslaught as the largest hacking campaign in the last five years.
These stores fell victim to a Magecart attack, with hacker groups exploiting Magento’s shopping cart system, allowing them to gain access to these stores and sowing malicious scripts inside these stores’ source codes. These scripts skim customers’ payment information that they entered while checking out.
“On Friday, 10 stores got infected, then 1,058 on Saturday, 603 on Sunday and 233 today,” said Willem de Groot, founder of Sanguine Security (SanSec), a Dutch cyber-security firm specialized in tracking Magecart attacks.
Willem de Groot, founder of Sanguine Security (SanSec) tracked these attacks starting on Friday. To the horror of shop owners, the original 10 attacks from Friday increased tenfold by Saturday, before slowly dying down through Sunday and Monday.
De Groot added that these recent attacks trumped all previous campaigns, with the previous record of 962 compromised stores, not holding a candle to these new numbers.
Most hacked stores were running an EOL version
The SanSec founder stated that a recurring flaw in all the compromised stores was that they were running an immensely outdated version of Magento’s software.
This version of Magneto had stopped receiving updates over four months ago, meaning it reached end-of-life (EOL).
Industry giants including Adobe, Mastercard and Visa, voiced warnings about incoming attacks on outdated stores over the spring.
In the months leading up to the attacks, several web security experts noted that new Magento 1.x (EOL versions) vulnerabilities were non-existent. This is very atypical, as the 1.x versions of Magento were crippled and plagued by security flaws.
Experts predicted that hackers were patiently waiting for 1.x’s EOL to rear its head, to ensure Adobe’ could not patch out their brutal attacks.
Recently, ads selling Magento 1.x vulnerabilities were unearthed from underground hacking forums, confirming experts’ suspicions that attackers purposefully staggered their assault.
On a lighted note, Adobe’s initial warnings did severely lessen the blow of this campaign, with the number of outdated stores being cut in half as of June 2020.
Nevertheless, a number of high-traffic sites are still running the EOL version of Magento, solely relying on firewalls to ward off attackers.
While this may be PCI compliant, this is extremely risky and store owners are urged to update their stores immediately.
Merchants will soon be able to create custom online storefronts within Instagram and Facebook. With Facebook Shops, you will be able to sell directly through Facebook and customize the look at feel of the storefront. The products, stock, and shipping will all still be handled within Shopify(or your e-commerce platform of choice) as Facebook Shops is only a simpler version of your store.
Enhanced integrations and styling options
You will have control of the branding to keep it in line with your brand id, whilst staying true to the unique styling of the native app. Merchants will be able to display store collections as tiles to best showcase the product catalog. The focus is very much with mobile in mind with this new feature. Facebook Shop will be available on Instagram for select users (those who have enabled product tagging) and will roll out to Facebook at a later date.
You can set up the app in your Shopify store backend in the meantime while you wait for it to become available.
Checkout is still handled by Shopify.
This powerful new tool will be good news for cash strapped merchants affected by the current economic crisis. Potential customers can browse through your Facebook Shop, search and buy products, all within the social media platform.
Live Chat has become a must-have for all online retailers and has a significant impact on sales and abandoned cart rates. Customers need an easy multi-channel option to help interact with stores. Facebook Shops includes the ability to chat with customers through WhatsApp, Facebook Messenger, and Instagram Direct.
Some of the biggest news was the following from Facebook’s press release:
“And in the future, you’ll be able to view a business’ shop and make purchases right within a chat in WhatsApp, Messenger or Instagram Direct.”
Integration into Live Shopping will provide more exposure options for retailers, and further cement Facebook’s footprint into the e-commerce landscape.
“Soon, sellers, brands, and creators will be able to tag products from their Facebook Shop or catalog before going live and those products will be shown at the bottom of the video so people can easily tap to learn more and purchase.” Facebook Blog Post
Instagram Shop is exciting news for the millions of social media influencers looking to monetize their brands. They will now be able to list their products in their profiles in a new Shop tab.
Shopify’s Facebook App Upgrade
Shopify also announced a new, more advanced Facebook channel that will streamline the process of syncing your products with Facebook.
From the Shopify Blog:
“Meet your customers where they are. It’s the golden rule for every business.”
“You can bring your products to Facebook and Instagram’s digital market with a shopping experience that feels native to each platform, on any device. Showcase your distinct brand and products by customizing the colors and layout of your Facebook Shop, and organize product collections into featured tiles to match the look and feel of your Shopify store”Shopify Blog Post
The rollout of Facebook Shops will continue over the coming months with more features being rolled out. This is welcome news for merchants and customers and will offer a more seamless experience when shopping online. It might also be good news for Facebook investors as this new initiative is sure to boost ad revenue for the social media giant.
The world is moving more and more online and features like this will be a great asset for online retailers or those looking to start selling online. Users of the social media giants are already comfortable spending hours on the platforms each day. Doing your shopping there is not that far a jump to make, and deep integrations like the above will further cement these shopping habits.
Good news for e-commerce but not so much for brick-and-mortar only retailers.
Facebook will be partnering more closely with the following e-commerce platforms:
The e-Commerce timeline has moved up significantly in just a few months by the Covid-19 epidemic. Online store development is the new gold rush with every company now having to look at ways to get online and fast. From your normal mom and pop store selling 1 or 5 products, to your favorite restaurant now having to pivot to online sales and food delivery. To retail giants scrambling to shift from physical locations to moving their merchandise online in record time. Many are struggling to understand this new world we live in but one thing is clear. No business has a choice anymore. You will either make the shift or struggle to keep up long after the effects of the epidemic have worn off.
“One of the only ways to get out of a tight box is to invent your way out.”
Those that have already made the shift online are far ahead of the competition but it is not too late for those only starting out. The tools available today make it possible to move online in record time. Platforms such as Shopify & BigCommerce make it feasible to start selling within a very short time. Gone are the days of building online stores from scratch with code that only the developer understood. Anyone can launch a basic store. For more advanced setups a developer is still required or if you need a more custom-designed look at feel. Traversing the more technical issues such as payment gateways and shipping can still be difficult for some.
Necessity Drives Innovation
Everyone knew it was coming, they just thought we had more time. Yet like all shifts of significance, this one came out of necessity.
Necessity has always driven innovation throughout history. The pandemic of 1918 brought on a new understanding of the benefits of hygiene. World War 1 and 2 changed production forever with the ramping up of streamlined factories, especially in wartime America and post-war Japan.
This new shift will be equal in its severity yet no less life-changing.
Current sales figures are reaching black Friday levels, yet over a much longer period, as the rush to buy online continues to gain momentum. The latest data suggests that a large number of new users are buying online, and most importantly, returning for repeat purchases. This shows that these new users are becoming more comfortable with the process and forming new spending habits. Online grocery sales have seen the biggest shift in numbers with no letting up. This is the time to capture the hearts and minds of these new online customers.
How customers continue to shop and how the e-commerce industry responds, will bring about a sea change in the world of online, and the offline retail landscape.
What does the future of commerce and e-commerce hold?
Automation and AI
Automation and AI will be at the forefront of this new world. This current epidemic has shown the fault lines in our global supply chain. It has placed a strain on the economies of the world by first threatening the manufacturing heartland of mainland China. Next, it threatened our freight and backed up our ports. This might point to commerce moving more localized in the near term. Long term the giants of the industry will have to look at ways to secure the things that keep our economies ticking.
Automation will play a large part in this with robots moving more and more into the factories, ships, fulfillment centers, and stores. Amazon’s Cashierless stores promise more convenience with less human interaction.
Online stores are using the term contactless shipping to attract customers wary of COVID-19. Contactless curbside pickup and home delivery are becoming the new normal and a popular option with safety-conscious consumers.
Drone deliveries are already a reality in some countries, and this will only increase in the next year. Some see a future where drone ships cross the oceans powered by solar and wind, and steered by satellites and AI. Automated Harbors that run by digital harbormasters that keep goods flowing at an unmatched efficiency, constantly learning and adapting. Solar, driverless trucks shipping the goods to fulfillment centers where no humans are needed or present. And onto the cashier-less stores or home delivery bots that bring the goods to the consumers. Where we will all find jobs during this next evolution is another matter. Universal income might become a right, together with access to the internet.
This new revolution will bring forth new jobs yet unimagined, the same way all big shifts have done throughout history. The agricultural revolution made it possible for craftsmen and artists to appear as people had more time away from subsistence farming.
Fulfillment is the next battleground for giants such as Amazon, Walmart, and Shopify. Shopify is working aggressively expanding its footprint in the US against the well-established market leaders. Customers want products fast and efficiently and they are willing to pay. Retailers are looking for one-stop solutions that include warehousing and shipping that seamlessly integrates with their online stores.
Courier companies across the globe will have to keep offering better services and pricing to help merchants take on the big boys.
“My belief is that eCommerce is the future, and [that] eCommerce is going to replace a lot of traditional ways of doing business,”
e-Commerce search engines will begin to think more like humans. This will ensure that search results become more relevant to customers, instead of based on outdated algorithms.
Some of these AI tools are already available to us today in image recognition features in Pinterest, Automatic searching of videos, and other media.
AI will change many areas of e-commerce including:
optimizing the sales process,
prospecting new products,
chatbots and virtual shopping assistants.
The Gamification of e-Commerce
This is one area garnering the most interest. Bringing together social media, interactive games, and e-commerce is the dream for many online retailers. Shopping is becoming more about the experience for the customers than a straight buy and pay model. It has become another form of entertainment where people shop for fun. eBay was one of the original drivers of making shopping fun with its bid and pay system, where you have to beat out other customers for the privilege of buying the item you desire.
Loyalty programs and other points systems further extend Gamification into the online shopping experience.
Facebook recently made a significant investment in India’s Reliance Jio. JioMart went live in Whatsapp days after the accusation in Mumbai, thereby dipping their toes in a potential userbase of 400 million Indians currently under lockdown. This will be a powerful tool for small businesses to get their products in front of potential customers.
Did you know: The first-ever online transaction occurred in 1994 when a 21-year-old entrepreneur, Dan Kohn, sold a Sting Album, Ten Summoner’s Tales, to a friend in Philadelphia. The transaction of $12.48 was the first-ever protected by encryption technology.
New kid on the Social Media block, TikTok, recently launched a new initiative called Small Gestures where users can send virtual gifts from well-known brands to each other. This gives brands exposure to the millions of users flooding the platform as well as giving users the ability to “reward” content creators. This is just the start of TitTok’s evolution into online sales and advertising.
Screen time on Social Media has seen big increases in recent months as people try to stay connected during COVID 19. 87% of people claim that they use social platforms to help them decide to buy a product. This has given rise to Social Shopping where users can purchase directly through the social media platform.
Yet it goes beyond a single channel. Consumers want to be able to interact through multiple channels be it email, social media, WhatsApp, or the online store. Research shows that they spent on average 80% more than single-channel shoppers. Retailers need to make sure that their brand is consistent and reachable across all platforms.
e-Commerce cannot be ignored any longer by any business serious about its future. Things will not return to normal once the infection rates begin to fall. Users are becoming more comfortable with shopping from the comfort of their own homes. Getting your weekly groceries delivered to your door is now the norm and plays towards our inherent laziness. It is also more efficient than looking for parking & standing in guess at checkout. This will not change. It is time to look for the gaps in this new reality and see where one can innovate and expand to fill those gaps.
The focus should be on the customer journey, the efficiency of production & fulfillment, and fine-tuning your marketing for the multi-channel reality.
“Challenges are gifts that force us to search for a new center of gravity. Don’t fight them. Just find a new way to stand.”
The Global eCommerce market is predicted to grow to $6.5 trillion in 2022
Currently the largest e-commerce market in the world is China
The US eCommerce market is set to grow from $365 Billion in 2020 to $600 Billion by 2024
The 3rd Biggest eCommerce market in the world is the UK with 586 Billion Pounds(31% through Amazon UK)
The biggest increase in e-commerce growth is expected in India
95% of all purchases will be made through e-commerce by 2040
Men tend to outspend women online
E-commerce is estimated to grow to 17.5% by 2021
The average abandoned cart rate is 2.5% across categories
The category with the best conversion rate is gifts at 5% with the lowest being electronics at 1.4%
The highest conversion rate goes to food and drink at 7%
70% of shoppers state free shipping is the reason they buy online
On average 30% of products are returned with clothing and shoes returned the most
Tips for anyone selling online or for those planning to
Decide on the platform best suited for your business.
Focus on quality Product Photos and include lifestyle images.
Create Videos and include it on product pages
Offer honest and open information to your clients to build trust
Respond to Customer Concerns and Recommendations
Focus on reducing abandoned cart rates
Design for mobile commerce and test, test and test
Improved Delivery Options in eCommerce
Have an SEO, Content & Social Media Strategy
Talk to your customers the way they want to. Provide live chat, WhatsApp, email, phone, Messenger, etc.
Understand your customer’s needs. Talk to your existing customers to find out what they need.
Turning your Shopify products into shoppable pins is going to be a lot easier going forward. Pinterest released info on the new app on 7 May 2020 where it listed exciting features that will be great news for merchants. Shopify store owners and marketers will now be able to upload their complete catalog into Pinterest, as shoppable Pins. No more messing about with code or extra development. This app is the only connection you need between your Shopify Store and your Pinterest profile. This will help expose the products to a gigantic potential new audience.
The old version of the app allowed shop owners to create ads but the new app simplifies the integration and also includes organic listings. This is great news for the over 1 million merchants on Shopify as it provides an easier way to reach over 360 million Pinterest users.
The App also adds a Shop tab in the merchant’s Pinterest profile, which increases the chances of customers discovering products when visiting their profile.
Pinterest Shopify App features
Seamless Tag Installation
Daily Product Data Updates
Ad Buying Dashboard
Shop Tab In Pinterest Profile
“By uploading their catalog feed, merchants make it possible for people to discover and save their products and buy directly from their website. People come to Pinterest with an intent to plan and purchase. The number of Pinners who have engaged with shoppable Product Pins has increased by 44% year-over-year, and total traffic to retailers has increased by 2.3x year-over-year. And, due in part to early beta testing with Shopify, catalog feed uploads increased 144% in the first quarter of the year.” Full article: Pinterest launches Shopify partnership
Pinterest as an Online Mall
This new partnership continues to show the company’s drive to become an online shopping destination of choice. This should also have a positive effect on their ad revenue long term as shop owners increase ad spend. Pinterest has seen a significant increase in traffic since the start of the pandemic and this partnership will help boost engagement with shoppable pins even further.
Pinterest launched its verified merchants in late March 2020 and added more features such as Shop from a Board, Shop From Search, and Shop from pins and Style guides which appears when a user searches generic terms.
The app itself is free and you will be able to get organic exposure but you’ll have to pay per click for ads that drive users directly to your store. Setup is easy and once installed you’ll be able to access the new dashboard where you can begin pushing your listings through to Pinterest.
Up to Date product data will be pushed through to Pinterest so any pricing or product updates you make in-store, will be live on your social media profile.
Shopify is continuing to innovate and this together with many new initiatives (such as the Shopify App) is welcome news for merchants as it provides an extra channel to reach new customers. The Pinterest App will help to drive more traffic to store owners, which needs all the help they can get in these trying times.
The app is currently available in the US & Canada. Other regions such as France, UK, Australia to follow shortly.
Merchants are adapting to new realities and looking ahead to the future of retail, which is why we’re focused on making both our ads and organic features available and impactful to businesses of all sizes.
Jeremy King, SVP of Technology, Pinterest
More on Pinterest:
“Pinterest is an American image sharing and social media service designed to enable saving and discovery of information (specifically “ideas”) on the World Wide Web using images and, on a smaller scale, GIFs and videos, in the form of pinboards. The site was created by Ben Silbermann, Paul Sciarra, and Evan Sharp and had 300 million monthly active users as of August 2019. Pinterest, Inc. is based in San Francisco and is listed on the New York Stock Exchange.
Development of Pinterest began in December 2009, and the site launched the prototype as a closed beta in March 2010. Nine months after the launch the website had 10,000 users. Silbermann said he personally wrote to the site’s first 5,000 users offering his personal phone number and even meeting with some of its users. The launch of an iPhone app in early March 2011, brought in more downloads than expected. This was followed by an iPad app and Pinterest Mobile, a version of the website for non-iPhone users. Silbermann and a few programmers operated the site out of a small apartment until the summer of 2011.” Source: Wikipedia
How to improve your conversion & abandoned cart rate, SEO ranking, sell more products and build the best online store possible
1. Experiment Constantly. You can also learn more tweak more and make your online shop better.
2. Put money back in your business.
3. Collect email addresses from day one and start the conversion with your audience through newsletter app such as Aweber.
4. Nurture relationships with influencers in your niche.
5. Clearly display shipping & return information so your customers are left with no surprises. Unknown costs kill conversion rates so be transparent.
6. Write quality product descriptions that describe the product in detail. The customer cannot pick up and touch your products so make sure that your description gives them a clear picture.
7. Design a website that is visually appealing but does not take away from your products.
8. Find online shops that inspire you, study them, improve on what they are already doing right or not so right.
9. Ask for feedback from your customers regarding your store & products. Use focus groups and heatmaps to constantly get feedback and test and tweak using this information.
“We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.” Jeff Bezos, Founder of Amazon
10. Make sure your product categories make sense to customers, not just you. Don’t make them think and make sure it is clear and easy to navigate.
11. Set up your social media platforms from Day 1 and actively post to each platform on the schedule that you can maintain. Find your voice with these posts and remember to stick to 80% informative and only 20% selling.
12. Create valuable content that inspires & educates your customers through multiple forms of media; video, articles, how-to guides, infographics, etc
13. Video is king in online content. It drives the most engagement and must be part of your marketing strategy. Online video editing tools have made it easy for anyone to create unique content for their brand.
14. Offer free shipping if possible. Calculated shipping at checkout hurts abandoned cart rates
15. Make sure you have a budget for advertising. When you first launch no one will come to your site if you don’t advertise. Adwords, Facebook Ads, Social Media Ads is a good start but don’t throw money at it blindly. Set specific targeting goals for your campaigns, do A/B testing, and keep refining.
16. Study your abandoned cart rates, find potential issues, and keep improving the fall-off rate.
17. As the owner, you should talk to your customers. Check-in by email, phone, or WhatsApp. Use Live Chat to find out what they need in real-time on your site.
18. Build quality links through guest blogging or by creating sharable content.
19. Use Upsell and Cross-sell apps such as Bold Upsell to boost shopping cart size.
20. Use free trials for Shopify apps to test which ones work for your store. Make sure to back up your theme before installation.
21. Test everything in your store before you go live. Test mobile responsiveness, do test orders with a real credit card, shipping rates, all links, anything that might hurt the customer experience.
22. Do SEO Optimization on your site. Check for broken links, do SEO optimization on images, product pages, H1 & H2 Headers.
23. Use Retargeting Ads to expand your reach.
24. Ask your customers for photos of them enjoying your products and share that on your website, blog, product pages, and social media
25. Ask for testimonials. This can be set up automatically with Shopify Apps such as Judgeme.
26. Use Flash Sales, countdown clocks and limited stock counts to drive urgency.
The complete Shopify Review: e-Commerce has become increasingly popular over the last few years and even more so at the start of 2020. Almost all businesses now need an online presence to helps them reach customers, handle sales and promote their brand. Building a website for e-Commerce isn’t as complicated as it used to be. Even a novice is now able to create their own store in a day without much experience.
Shopify is by far one of the most straightforward and capable e-Commerce platforms currently available. It is easy to get started and manage without prior knowledge of web design & development or coding. That is not to say that your store will be an immediate success right off the bat. As in everything you will need to do the research, teach yourself the basics and keep learning along the way. But setting up the store itself is now effortless.
Before Shopify, there were many unintuitive options for building an online store. Shopify arrived on the scene with easy-to-use tools and a capable suite of features that allowed anybody to start selling products and services online within a few hours.
Shopify 101: An introduction
Shopify is a cloud-based e-commerce platform that lets you use a preset template to set up a shopfront where you can sell physical or digital goods. What makes Shopify so attractive is that you can create your store on your own, without having to hire a website design company or developer. You have control over enough features to make your shop fully functional. From the dashboard, you are able to upload and update products, manage inventory, set up payment gateways and set shipping rates. A professional developer or agency might be needed for more advanced builds.
Those with more advanced coding skills are also able to further tweak the HTML, CSS codes & Shopify’s own open-source template code, Liquid.
This makes Shopify a one-stop e-commerce solution.
It is referred to as a “Software as a Service” tool because you don’t need to own the software to use it. All you need is a browser and an internet connection to access your store from anywhere in the world. This is an attractive solution for on the go entrepreneurs, stay at home moms or dads and almost any size business. Shopify scales from 1 product to unlimited.
Shopify Plans and Pricing
You might imagine that an all-inclusive e-commerce solution would come at a hefty price. That is surprisingly not the case. Shopify provides a range of subscription plans that allow you to pick a plan best suited for your business and pocket.
Shopify offers a free trial to all new merchants of 14 days (Increased to 90 days during the COVID crisis). The free trial allows users to upload products, complete the store design, enter shipping and payment details and do test orders. Up until April 2020, a merchant was still able to process up to 50 orders in Development stores but that has been discontinued since.
Each of the pricing tiers offers increasing levels of features and tools that help you optimize your storefront.
Here is an overview of the Shopify plans that you can choose from:
Lite – $9 per month
The Lite Package is not technically a plan as it does not support a fully functional store. What it does is turbocharge your existing Facebook or Instagram page to allow you to sell through those channels. You can use Shopify to manage the inventory of a physical location and offer goods and services for sale.
You get access to the Buy button from Shopify that integrates into an existing website, newsletter or social media channel. The Buy button includes order tracking, fulfillment or CMS integrations such as Squarespace, WordPress or Joomla.
This plan is somewhat underrated, yet it provides excellent value for money and is an efficient introduction to e-commerce.
Basic Shopify – $29 per month
The Basic plan offers a complete online store solution with most of the Shopify features. Including unlimited product uploads, fraud analysis, 24/7 customer support, social media channels, and order fulfillment.
Under the basic plan you also get the following:
Ability to create pages such as About, Contact
2 Staff Accounts
24/7 support via Live Chat, Email or Phone
Sales Channels such as Facebook, Instagram or Pinterest
Free SSL Certificate
Abandoned cart recovery
Gift Cards are included in this package for a limited time during 2020 to support merchants effected by COVID-19.
The plan does not include a domain name for your store. You have the option to buy one via Shopify for $14 a year or redirect your existing one to the storefront. Shopify did not include an Email service until April 2020 when it launched a full Email service included in all packages.
Top Tip: Be careful when you choose your store name as that also becomes your admin URL and cannot be changed later. Your customers won’t’ see this URL but your admin staff will and it is sometimes included in some apps that reference it.
Top Tip: Be careful when you choose your store name as that also becomes your admin URL and cannot be changed later. Your customers won’t’ see this URL but your admin staff will and it is sometimes included in some apps that reference it.
The basic plan is perfect if you are getting started and need to sell your products online but don’t have the budget for more advanced plans.
Shopify – $79 per month
The Shopify plan offers cheaper credit card rates, professional report generation and Gift Cards for an extra $50 per month. The Report section is especially useful in analyzing almost every aspect of your store, from order processing to inventory management. The ability to create gift cards is a powerful marketing tool that can help boost revenue during the holidays or other sales events. This plan is best suited for larger merchants that receive the full benefit of a lower per-transaction fee of 1%. Or those who are looking for more advanced analytics and reporting. Otherwise, there is not much difference between the first two packages.
Advanced Shopify – $299 per month
This plan is the most advanced and expensive plan you can get on Shopify. It combines all the benefits that on offer in other bands and adds a much lower transaction fee of 0.5% per transaction. 3rd Party Calculated Shipping is also included in this package. You are able to add this to the other to packages for an extra $20 per month. Also included are even more advanced reporting capabilities. Top Tip: You are able to add 3rd Party Calculated Shipping to the other packages at $20 per month.
If you are looking to play in the big leagues of e-commerce and are earning monthly revenues above $10,000, then this is the plan for you.
Shopify Plus – from $2,000 per month +
Shopify Plus is the enterprise solution for large or growing e-commerce companies. It is ideal for those looking for more powerful e-commerce management tools, 24/7 website uptime, traffic surge protection and seamless order, inventory, and shipping management.
This plan is best suited for companies that make over $1 million in annual revenue and start at $2,000 monthly. You need to apply directly to Shopify for a custom quotation according to your business needs.
Up to nine stores for international expansion including separate locations
Access to the Shopify Plus Partner Program
Shopify Plus Facebook Community
Ability to add up to 100 themes on one account
Added Permission settings for staff accounts
Wholesale Channel that allows the creation of separate Wholesale store
Bulk Account Inviter
Avalara AvaTax Services
API Resources for Shopify Plus Customers
Top Tip: Save big on yearly plans
When it comes to Shopify pricing, it pays to plan. Building your own e-commerce store requires commitment and dedication. Shopify rewards this by offering significant discounts when you subscribe for a one-year(10%) or two-year plan(20%). You can reduce your Shopify subscription fees by as much as $1,400 per year using one of these options.
The 90 Day free trial gives you ample time to test out Shopify for yourself before making a long term commitment.
What Makes Shopify So Special? Top Features of Shopify
Shopify has arguably the most comprehensive suite of features that any merchant can dream of having to run an online store. Not all of these features are available in the standard Shopify plan. You can however easily upgrade or downgrade at any time if you would like to test some of the advanced features.
The Shopify theme store offers more than 100 free and paid themes to choose from. Your shop theme is like a dress or suit that you put on to make your store look attractive to prospective customers. You do not need experience in graphic or web design to set up your look and feel and you can get started immediately with one of the free themes.
There is also excellent support online for any of the free ones and the forums are full of advice for anyone that needs help.
Top Tip: Resize your images using a tool like Tinypng before uploading as large images will slow down your site and hurt your SEO. Also, give your images SEO friendly file names so it can rank in Image Search
For the paid themes you would need to contact the theme creator for any advanced queries. One of the best of these, with excellent support, is Out of Sandbox.
Read through the comments section to see what the reviews are for each of the themes before you commit. This will give you a good idea what their support and responsiveness are like. Sometimes the theme or app is only as good as the support that follows afterward. Another great feature is the ability to install and preview any of the paid themes in the store.
You are not limited to only the themes in the Theme Store. There other excellent themes available at sites like Themeforest. You can buy and download the themes from one of these external markets and then easily install it using the theme upload feature in the backend.
Abandoned Cart Recovery
Between 65% & 70% of online customers do not complete their checkout online.
Many merchants are faced with the reality of customers placing products in the shopping cart only to abandon it without checking out. Shopify includes a handy section in the backend where it shows you all the abandoned transactions. It also sends out an automatic reminder to customers by email that reminds them that they have an incomplete transaction.
You can control when these reminders are sent; 1 hour, 6 hours, 10 hours(default and recommended) and 24 hours. You are also able to customize the Cart Recovery email which is a nice feature.
Abandoned checkout recovery emails are not sent for Shopify POS or other 3rd party sales channels.
The data available in your dashboard for 3 months so it is important to check regularly for patterns or reasons that might be causing the failed transactions. Take special notice of the payment event that is included with each abandoned transaction. You can use this info to see if something is wrong with your payment gateway or on the customer’s side.
You must spend time figuring out why customers are leaving your store without completing their purchase. This can have a positive effect on your revenue over time. Another cool feature is the ability to manually email customers a link to the abandoned cart. The link can even be copied into an email if you would like to send it through your mail program like Outlook or Mac Mail.
We all know how overloaded analytics can become over time. It is difficult to remember to look at the data regularly but this can have a significant impact on your business. You can set up automatic reports on Abandoned Checkouts to be sent to your inbox regularly. These reports can include information such as sales, average order value, number of products sold, first-time buyer stats and conversion rates.
Intuitive User Dashboard
Shopify makes use of an intuitive user interface that is simple to master and navigate. From the dashboard you are able to view and manage orders, upload products, view your customer details or access your store analytics data. You are also able to manage your social media integrated sales channels (e.g., Amazon, eBay, Facebook, Instagram).
Payment and Transaction Processing
Shopify has more than 100 payment providers which mean you are almost certain to find one that works best in your region. It caters to all the big names in the payment industry so you should be able to find what matches your needs.
Shopify also gives you the option to use its in-house system, Shopify Payments, and thereby cut out the middleman. It is available in over 14 countries, including the USA, UK, and Japan. Using Shopify Payments gives you discounts on your transaction fees.
Benefits of using Shopify Payments:
Integration is effortless
No extra transaction fees to 3rd parties
Ability to still use other payment providers like Paypal.
Potentially increased sales with multiple payment options
You can also use manual payment options for Shopify, including cash on delivery, direct deposits, and even money orders. This as the added advantage of zero commissions payable to Shopify and is an excellent option to add to your checkout process.
If there’s anything that ruins most e-commerce businesses, it will be shipping and logistics. Shopify’s system is excellent in this regard and is easy to set up. You can apply different shipping rules and customize it by weight or price. You also get accurate shipping rates live from carriers such as DHL, USPS, and UPS. While just a few countries have these live shipping rates, Shopify expects to expand this to even more in the future. Shopify provides an all-encompassing solution for drop shipping through Shipwire, Rakuten, and Amazon Fulfillment. You can also add drop-shipping through the Shopify App Store like Oberlo.
You are also able to install Shipping apps if your courier company has one in the app store. This will allow for more advanced shipping rules and integration directly with the shipping company. Allowing you to automate much of the shipping which is often a headache for merchants.
Shopify is also working on its own fulfillment service which is a very exciting development. It is currently only available in the US to select merchants, but we hope they add more regions in the future.
Shopify App Store
Get access to thousands of extensions and quality apps, both free and premium, that offer a plethora of features and options. You can simply install an app to provide any feature that you need to improve your e-commerce experience. The paid apps are usually more powerful than the free ones, but it is essential to read the reviews to find the best ones. You can get apps for multi-currency conversion, accounting, reports/analytics, data capture, SEO, email marketing, order tracking and many more.
Apps can add significant functionality to your online store. From Advanced Search apps, Upsell apps to Wholesale apps that allow you to sell B2C/B2B in the same store. There really is no limit to what can be done with the right apps.
Top tip: Make a backup of your shop theme before installing apps. I’ve learned the hard way that some apps may damage your theme code and having a backup means you can easily roll back the theme. Also be sure to double-check your site speed afterward, especially the product pages as some apps add significant load time which can hurt your SEO.
Pros and Cons of Shopify
As with any online platform, there are pros and cons to Shopify. Here is an overview of some of the benefits and limitations of the service.
Easy of Use – Shopify has virtually everything you need to build a professional store, all available within a few clicks. There’s also an extensive help and support section with adequate documentation to help you find what you need.
Design and Personalization – You can rest assured of both the quality and quantity of design options with Shopify. Whether you are trying to create a brand-new shopping experience or go with a preloaded theme, you can find or create the dream storefront you want.
Access to advanced code – Most features of Shopify are accessible to developers so you can create custom solutions for your storefront if you have the skills. It supports both HTML, CSS, and other languages as well as its own Liquid code. The checkout code is only accessible to Shopify Plus customers.
Economies of Scale- From mom and pop stores, growing entrepreneurs to global conglomerates, Shopify has all the tools needed to scale. With unlimited product uploads, you will never reach a limit in catalog size.
Support – Shopify’s Support team is available 24 hours of the day, seven days a week by phone, email or live chat. This is a stark difference from other similar platforms where support is more limited. The support staff is helpful and almost always willing to go the extra mile. There is a limit to what they are able to provide though. For 3rd party theme related issues it is often best to contact theme support directly. The same applies to Apps.
But they will often put you in contact with the tech support from those companies if they are not able to help.
You can access Support from your store backend or through the links below: There is also extensive documentation available in the Shopify Help Center.
Shopify is payable in US Dollars and that can make it a bit expensive in countries with a weak exchange rate to the US Dollar. You can get around this a bit by choosing an annual or bi-annual plan for the extra savings or when the exchange rate is more favorable.
In addition to the charges from the payment processor (like PayPal or Stripe), you still pay Shopify a transaction fee, which cuts into business revenue. The per transactions fees are also sometimes an issue for merchants but you are able to get around this by either using Shopify Payments or using manual transactions at checkout
Multi-language support – Support for other languages is not available to all Shopify users. Many apps and templates make it easy to get language support, but there is no standard option that is capable enough for use.
SEO issues – Shopify uses a URL structure that in some way inhibits SEO with Duplicate product pages. Shopify does ensure that there is a canonical tag to the associated pages but this can still pop up as an issue with color variants. You are able to fix this by editing the product.grid-item.liquid file.
Some other useful Shopify SEO Tips
Remove duplicate URLs from internal linking architecture
Remove duplicate paginated URLs
Create blog content for keywords with informational intent
Add “Product,” “Article,” & “BreadcrumbList” structured data
Top Tip: Shopify does include a handy URL redirect feature in the Navigation section which allows you to update any URL changes in your store. This is a great tool to use if you migrate from another platform such as Woocommerce or if you ever change the URL of a page/collection/menu. 404 errors have a negative effect on your SEO.
Limited Report Functionality – You only get access to professional reporting when you subscribe to the more expensive packages.
Limited Abandoned Cart function – You only get one email to send to customers that abandon their cart. Having more capable features require installing premium apps. You are however able to send manual emails to customers.
GDPR issues – You need a third-party cookie banner app for your Shopify store if you want to be compliant with the recent GDPR. You could get into trouble if you assume that it is available by default.
Shopify is one of the most recommended solutions for merchants who need an online store. Whether it is an online business, or an omnichannel business with a physical location, or dropshipping, it is arguably the best option.
There are now over 1 million merchants using Shopify’s e-commerce platform. The strong growth in the userbase instills a lot of confidence in the stability and longevity of this service. I for one highly recommend it to businesses of any size.
Shopify has announced the launch of its new email service, Shopify Email. It is free of charge for all their merchants until the 1st of October 2020.
This is good news for all shop owners, as up to this point one had to use other 3rd party email service providers. No respectable store owner can run a professional website using a Gmail or yahoo address. It lacks professionalism and does not build trust in the brand. Shopify is plugging a big gap in its product offering for merchants with this new feature. It is much easier launching your email within your store, than using another hosting company and having to struggle with DNS settings, etc.
There have often been issues with bad integrations with 3rd party apps that have frustrated many users. This also removes the fear of contacts being copied by unscrupulous App developers.
At this time it is still not known if it will be including important features such as DKIM and DMARC alignment into this new service.
No Setup Required, Fewer Hassles
It does not require any setup and works in your dashboard under the Marketing tab. This is a big plus for users who might not be tech-savvy or those frustrated by constantly struggling with email issues. Who among us has not had issues with constant requests for our passwords or having to call tech support every time your mailing program updates?
Shopify takes on Newsletters Giants
The new services also come with a host of extra benefits in direct competition with newsletter services providers.
One of the most exciting features is templates, which make it easy for users to setup up stunning email campaigns in seconds. The designs look clean and simple as well as easy to update. I’m not sure how much customization is allowed but that might be a good thing when it comes to responsiveness and compatibility.
Another compelling feature is that the templates will automatically pull in your company logo, colors, and fonts. This will ensure that your brand identity in your marketing emails is aligned with your store
Shopify already offers powerful analytics data and this is now brought through to the Email section. You will be able to track insightful info about your email campaigns. This is is a must if you want to understand what is working and what needs improvement.
Shopify is taking on the big guns in email marketing by including attributes that used to be the sole domain of the likes of Mailchimp and Active Campaign. Tools such as the ability to segment your users by spending habits in your store will be a fan favorite with merchants. Shopify Emails might be one of the reasons for the split in 2019 between Shopify and Mailchimp as the latter must have seen this as direct competition for their core business.
Extra features, such as the ability to schedule emails and more advanced templates, will be rolled out in the future.
What is the cost of Shopify Emails?
Pricing at first glance looks affordable. Your first 2500 emails are free (although it is not clear if this is per month or lifetime). After that, it will cost you $1 per 1000 emails. This is very generous considering that for now there seems to be no limit to the number of subscribers.
This is certainly an exciting addition to Shopify’s product offering. It also comes in a time when merchants need all the tools they can get to help retain customers and reach new ones. Shopify Emails will also make it a much more attractive offer for new customers who prefer a one-stop solution.
What this means for all the Newsletter Apps in the Shopify ecosystems is another question altogether.
Competitors like Bigcommerce will be keeping a close eye on developments such as this. Up to know they have only offered email forwarding but this might change if the new feature becomes more popular.
This is, however, a positive move from Shopify as they continue to expand on the list of services that come with their e-Commerce solution. It is exciting to see that the Ottawa based e-Commerce giant continues to update and improve its product offering.
An inspirational piece of writing by Miriam Ellis on how local companies can help each other and their communities through the hard times. It gives some great examples, like how restaurants transitioned to drive-thrus and meal deliveries, to how wellness centers moved online by providing virtual appointments. An excellent example of how businesses can stay relevant in these changing times. We all knew the digital transformation was happening yet this crisis as sped up the timeline significantly.
“When times are hard, finding helpers comes as such a relief. Even the smallest acts that a local business does to support physical and mental health can be events customers remember for years to come.”
Hamlet Batista and the team at PraticalEcommerce compiled an interesting piece on the Pagespeed scores of all 72 Shopify themes. It compares the speed for both desktop and mobile. Pagespeed is very important for your ranking in search and your customer satisfaction. A fast website will improve your bounce rate and conversion rate:
In this time of crisis getting the right information in time is key to the survival of any small business. Wordstream’s blog compiled an excellent list of actions that SMBs can take to keep their business and customers safe during this pandemic. From ensuring the safety of your staff to getting the word out to your customers, adjusting your marketing message. The article is an excellent resource to help you wade through the days ahead.
“While there is a breadth of online resources available to small businesses during the COVID-19 pandemic, it can be hard to sift through everything. We’ve come up with a simple guide, organized by seven common COVID-19 objectives, including:
Online apparel retailers are not exempt from the loss in sales over the past month. Clothing is not on the top of everyone’s minds when health and safety is the main concern. Most retailers are turning to specials and running discounts to help pull in sales. Retailers have shifted their message as well and are trying to appeal to the new reality of the staying at home.
“No one needs apparel if they’re not going anywhere,” Rosenblum says. “Retailers will do what they have to do to try to goose sales, but with 13%—and rising—unemployment, I just don’t see a lot of buying activity.” She adds: “Apart from comfortable, stay-at-home clothes, I think the category is dead as a doornail.”
Click One of the pillars of a successful e-commerce store is giving your customers what they are searching for. Many sites take this for granted. Store owners are so familiar with their own products, that they fail to see that a potential customer might be unfamiliar with what’s on offer.
Most of us accept that the standard search functionality, that comes with our e-commerce platform of choice, is good enough. We fail to realize the amount of lost sales that take place due to an ineffective search. We accept that it is working and that people searching our stores will find what they are looking for.
One way of keeping your customers happy, is an effective and powerful search function. This helps to satisfy their immediate need and in turn increases the chance of them come back for more. Thereby boosting your conversion rate and decreasing your cost per acquisition.
The 2nd sale is so much easier when a customer knows they can come to you for what they are looking for. It builds trust and goodwill towards your brand.
Look at your own experiences. What is more frustrating than searching for a specific product online but coming up empty? One has to look at it from the customer’s point of view and see the full experience.
“Would you tell me, please, which way I ought to go from here?”
“That depends a good deal on where you want to get to,” said the Cat.
“I don’t much care where—” said Alice.“Then it doesn’t matter which way you go,” said the Cat.“—so long as I get somewhere,” Alice added as an explanation.
“Oh, you’re sure to do that,” said the Cat, “if you only walk long enough.” —Alice in Wonderland
Site search makes up to 30% of total site sessions. If your stats are showing a lower number, then it might be time to relook your bog-standard search engine. Or you might want to make Search a more prominent feature on the site by not making your Search box hard to find.
Adding Site search has been shown to increase the conversion rate up to 4 times. On the flip side it has also been shown to frustrate users, if the results don’t match their search intent. Showing your customers the wrong products, or even worse zero results, can be even more detrimental to your bounce rate.
Searchanise places your store’s search on steroids. It allows you to choose which sections of your site to include. From Product names & descriptions, tags to collections, to your blog posts and static pages. Almost anything type of data can be included. Searchanise creates an index of your content offsite, on its own servers, which means your site isn’t bogged down by the extra load.
The basic search in Shopify only searches your product pages and ignores blog posts, which could be an important conversion opportunity. Research shows that your blog posts have a much higher chance of building trust and converting into a sale. According to optinmonster blogs are the 5th most trusted source that people use for information. It also helps to establish you, or your company, as a trusted source.
It might be a good idea then to include blog posts in search results, together with product data?
More Than Just Products
Searchanise assists by showing products together with blog, category/collection & page results. This helps to drive clickthroughs to informative articles and specials you want to highlight.
Imagine a customer is searching for the benefits of rooibos tea during pregnancy. With the basic search function they would only see the product page displayed. Searchanise will provide them with a complete picture of the information available.
It even allows search by substring which makes searching by parts of a field possible. For instance only search for parts of an SKU. A useful trick if you consider the complicity of Variant SKUs.
Instant search powers up your website by providing immediate results as the user types. You have total control over how much data is visible in search results. For instance a B2C/B2B store might want to hide product pricing, or decide to remove product reviews so as not to clutter the results page.
You are also able to provide suggestions for visitors if they have misspelled a word or came up with no results. This helps to improve the bounce rate. And over time your search suggestions become more efficient at plugging all the deadens. It will also provide you with useful insights into what your clients are actually searching for and give you product ideas for the future.
The bulk of visitors to your e-Commerce platform will visit it from a mobile device. Limited screen real-estate means showing them what they are looking for is more of challenge than on desktop.
Advanced search helps with this by laser focusing the user’s attention on exactly what they are looking for.
Filter options are where the real power of the app comes into play. It is possible to search and filter by an extensive list of options including
You have full control over which options are shown. This comes in handy when some of your data is not complete or if it is not applicable. I’ve often found errors in the data that I may have missed by being able to see the full picture in one handy screen
Upsell, Cross-Sell & Personalization
“Definition: Upselling is the practice of encouraging customers to purchase a comparable higher-end product than the one in question, while cross-selling invites customers to buy related or complementary items.”
One of the best features built into this app is the ability to do Upselling & Cross-selling. You are able to recommend popular products & new arrivals anywhere in your store. This allows you to show a widget to your customers throughout the site that displays the Top Products, Recently Bought items or You might also like items.
You can even choose for Searchanise to do this automatically. But you have the option to set up manual widgets and you have full control over the look and feel. This is a wonderful tool for any merchant and would usually cost extra through the use of dedicated upsell/cross-sell apps.
The Analytics section must my favorite part of the app. This is where you get down and dirty into the meat of the analytics and get a better insight into what your customers are searching for including. Top search queries, top search results that gave no results and my personal favorite, Most bought products.
Other tabs included are Instant SearchAll Searches, Zero results(NB), Suggestions, Products Clicked, Products Bought CSV Export
Customize the look at feel
Many apps make it difficult to customize the design of the results or widgets. Not so with Searchanise. You are in full control of the branding, from colors to fonts to what is visible or hidden. This is a great feature and helps to make integration with your site seamless and helps it blend in.
The dashboard is where you get to delve into all the nitty-gritty and explore all the options and features. Take your time and try and understand each section. There are some powerful features that will be a boon for your online store if you apply it correctly. The app works almost instantly without too much configuration but the dashboard is where you get to tweak and optimize it to your environment.
The following tabs are available:
This is where you are able to force reindexing if you’ve made changes to the product data that you need live asap. Otherwise the indexing updates every 10 minutes.
Analytics (Available on Pro plan)
Includes all the info you need to understand your customers search patterns and boost conversion
Instant search widget
Allows you to customize the search box. Available options are: Colors, Content, Sticky Widget, Translations, Product Labels, Custom HTML, Custom CSS
Search results widget
Here you are able to customize the actual search page including Colors, Content, Filters, Translations, Product Labels and Custom CSS
Available settings. Products, Product fields such as title, description and SKU, Categories, Pages & Usergroup Rules
Filters on Collections
Another excellent feature is the ability to place filters on Collection pages within Shopify. You have the option to have no navigation, Navigation through redirecting to Shopify links or navigation by embedded code in your template.
Upsell & Cross-sell
In this section you are able to add new widgets, edit exciting ones and check in on the performance to date.
Suggestions for search terms used by visitors to your site. You are able to approve suggestions or add manual ones
You are able to add synonyms for search terms which are then treated as the term itself. Useful for spelling in different regions or for example iPad vs tablet. You are also able to bulk import/export from here which will help save time and assist store migrations.
Stop words are ignored during search including words such as “a” “the” and prepositions. You are able to add your own from here.
Promote products in search through updating this section. Available options includes Products, Tags & Categories
Helps if you have special landing pages for products or if you are running a special and want a search term to redirect to that page. A handy feature that gives you even more control over what your customers see.
Compatibly e-Commerce Platforms
Further integration is also possible through API if your platform is not one of the above. Enterprise solutions are also available for stores that need something more advanced. For instance if your product range is between 50,000 and 500,000 and you need a more robust solution. This gives you access to the Searchanise API plus your own server and CDN.
Some of the brands that use Searchanise includes
For a few dollars a month you are able to provide the same level of advanced search functionality that many of the big brands above and the likes of Amazon give their customers.
Front End View
Please see below a short screen-recording of the front end. There is also a handy demo that you can play around on their website.
Searchanise Price Plans
This is the one part that I was pleasantly surprised. Many apps and plugins are expensive and out of reach for smaller merchants. Searchanise offers a nice pricing scale which makes this affordable for almost anyone. There is even a Free version for up to 25 products.
The paid plans start at $9/month up to 500 products and all the way up to $54/month for 50,000 products. Above 50,000 you will need to contact them for custom pricing.
Searchanise also offers a 14 day free trial for you to test it before buying and no credit card details are required. This is something I wish more service providers would offer.
I hope this guide is comprehensive enough to give you a better idea of the features and customisation possible with Searchanise. It is one of the apps that I most recommend to customers and almost the first one that I install in my own stores. It truly does beef up your shop and makes normal boring search into something you can be proud of.
It puts the customer first, which is something we as merchants should all strive for. And it helps in bringing your products front and center on any device. The all-inclusive search engine will give you more control, an increase in sales and hopefully many more satisfied customers. Just remember to keep checking your search stats and tweaking your settings. All the data in the world means nothing if the person at the helm remains oblivious.
Physical stores are closing their doors across the world due to the global crisis caused by COVID-19. Restaurants, bars, and clubs are suffering due to this global pandemic as people shy away from crowded public spaces. Malls are closing or forced to put in place social distancing procedures to help reduce the number of customers in the store at any one time. The effects on the economy, jobs, and oil prices have been devastating. A record 3.3 million Americans filed for unemployment benefits in the final week of March 2020; the highest previous record being 695,000 in 1982. This increased to over 6.6 million one week later.
47 million workers are being laid off in the world’s largest economy. A devasting number that will have a ripple effect on other regions as US consumers decrease spending.
Online Retailers to the Rescue
In all this carnage one would think that the e-Commerce industry’s hour has arrived. And in most cases that is true. There has been a large spike in sales for what is seen as essential items, as worried consumers prepare for the worst. People have been infamously stockpiling toilet paper since the early days of the outbreak. Staples such a bread, eggs, milk and toiletries have helped boost essentials retailers’ sales by as much as 120% compared to the same period in 2019. Amazon & Wallmart has seen impressive sales with the supply chain buckling at times.
Sellars of home fitness equipment such as weights, home exercise bikes, yoga mats saw record sales as gyms shut down due to safety concerns. The effects of forced social distancing have meant that people are looking at more ways to stay fit and fight boredom at home.
Products in demand for the home
Many parents are coming to terms with the new reality of having kids at home fulltime. The challenges of working from home and looking after one’s children have driven many parents up the wall. The sales of indoor and outdoor goods have seen an impressive spike in numbers with table tennis & pool tables being some of the popular items. Xboxes and Playstations have also been flying off the shelves.
Fears of a recession, or even the possibility of depression, are sparking an increase in sales for home and garden items. Especially the sale of seedlings and seeds such as tomatoes, spinach, and carrots has been popular with consumers. Two of the world’s largest producers of seeds has stopped taking new orders as demand spiked.
There has been a marked increase in sales of electric goods as shoppers rushed to buy laptops, printers, and desks to help improve their home office. Interest and sales of remote working tools are up 150% YoY. Meeting tools such as Zoom burst onto the scene, eclipsing well-known industry favorites such as Skype and Microsoft Teams
The Biggest e-Commerce Losers
The fashion industry has taken a big knock in sales with a 51% decline compared to the same period last year. Luxury goods have experienced a similar slump in sales and many brands are canceling events and launches.
Online search volume for flights, hotels and accommodation bookings has been hardest hit. With the lockdown affecting over half the planet, the sector saw a decrease of 37% YOY. Omnichannel retailers(with both physical and online stores), has also seen a drop in sales with many forced to close.
The current environment will impact the world of offline and online sales for years to come. Many industries have been devasted that looked invisible a few months ago. For others more suited for social distancing, lockdowns and working from, it has become a boom time.
An Opportunity in the Disruption
There will be more economic shocks to come in the months ahead yet there will also be opportunities in the chaos. From the Choas comes new birth
Just take a look at the industries born out of the last economic crisis of 2008:
It makes one wonder what new innovative services or products will become “essential” in the years to come.
The Robot industry will potentially be one of the biggest winners. There has been an increase in demand for Service Robots in particular as companies look for contactless solutions. Delivery drones, autonomous guide robots, and cars even food preparation robots that will allow the food industry to operate 24/7. Flippy the Fast Food Restaurant Robot is one good example.
The e-Commerce world will have to adapt and get stronger but it will almost certainly play a significant part for the foreseeable future
What do you think will be the next big service or product in the e-Commerce space? Who will be the companies that take the initiative in the next decade? Tell us in the comments section below.
The world is holding its collective breath to see what the lasting effects will be from the current Covid-19 pandemic. Millions of jobs are at stake or already lost and trillions of dollars have disappeared from the world markets. Online retailers should be well-positioned to weather the storm yet supply chain issues, panic buying, and strict lockdown laws across most of the world have placed massive strain e-Commerce companies. Even the world’s largest online retailer is feeling the strain with long delays in essential items, issues with price-gouging and concerns around the safety of its drivers and warehouse staff.
The Oracle of Seattle
Prescient Bezos though sold $3.4bn of Amazon Shares in early February. Maybe it was luck or maybe the man at the head of the world’s largest retailer was beginning to see the first warning signs from China with regards to resupply as the infection spread out from Wuhan.
What is more worrying is that if a company the size of Amazon, renowned for its massive fulfillment network, vast warehouses and efficient fleet of delivery trucks can take strain then what does it mean for the rest of the online merchants?
Supply Chain Under Pressure
The cases of invected warehouse staff are increasing daily and will only get worse in the coming weeks. There is evidence that the virus stays active for 24 hours on cardboard and even longer on plastics and steal. Making sure that the warehouse & merchandise stays disinfected will be a mammoth task but one that cannot be ignored for the safety of staff and customers.
And yet retail customers are flooding the site daily in an effort to order basic goods such as groceries and other essentials yet standard delivery is unavailable in many areas across the US.
Most popular Panic Buy Items So Far:
In all this Amazon plays an important part in keeping consumer’s cupboards filled. With lockdowns being implemented in more countries across the globe each day, online sales will be critical in helping millions put food on the table. One can only imagine what will happen if more issues begin to pop up in our vital delivery networks over the next couple of weeks.
I got a glimpse of this whilst talking over Skype with a family member in the island-bound country of Mauritius, where they have been placed on complete lockdown. Only one family member is only allowed to go to the shops once every seven days. There are only a few online stores trading on the Island and almost all of them have suffered from downtime due to the increased load. We often forget in the good times how easy we have it with prime memberships and one-day deliveries.
Crackdown on Price-Gouging
Price-Gouging is when a seller increases the prices of goods, services or commodities to a level much higher than is considered reasonable.
Amazon has been tough on sellers trying to take advantage of the current crisis by shutting down anyone overcharging for essential items(by 1,600% on some items). Over 4000 accounts have been suspended in the process. It released the following statement:
“Making clear to all of our sellers our longstanding policies that ensure fair pricing. Monitoring our stores 24/7 through both automated and manual means and aggressively removing bad actors and offers. Collaborating with federal, state, and local law enforcement agencies and policymakers to hold price gougers accountable. Staying focused on our customers and protecting their interests.”
The clean-up is sure to continue in the coming weeks.
Amazon Sellers in the Crossfire
Arbitragers have been the biggest losers during this period of turmoil as they have no control over replenishment and cost. The conditions are changing daily making it almost impossible for these types of sellers to respond in time.
Building a business with Amazon has been lucrative for many sellers over the years but the current heavy-handedness will give some pause for thought. If you are not in control of your own platform, sales and pricing then it is possible to ask if you even have a business.
There is however evidence that Amazon itself was increasing pricing in the early days of the epidemic:
Bringing It Home
Our connected world has in a way created the very problem we are currently facing. Supply Chains stretch across the planet, across multiple regions. The closing of borders has placed a significant strain on merchants across the globe. It may be time to bring that supply chain back home and source more products locally whilst the crisis unfolds. The shipping lanes are still running but the congestion at the ports is causing backlogs.
This will only become worse as the sickness spreads to the crews of the container ships. Already we have seen the cruise ships devasted by the virus and now the aircraft carrier Theodore Roosevelt crew has become another statistic with the navy’s first at-sea outbreak. If the world’s most powerful navy is not immune then who is.
We believe that in these trying times it is best to focus on what you can do, instead of becoming overwhelmed. Small actions now could mean big results down the line, but more importantly, help to improve your current situation. When it comes to e-Commerce, small improvements can mean the difference between a positive cashflow and going bust. Retaining customers is of the utmost importance and it is far more cost-effective to retain and sell to a current customer than it is to convert a new one.
Communicate clearly to your customers if you are still able to ship or if there will be delays. Inform them of any safety-related information such as hygiene protocols for packing and shipping and highlight how you go the extra mile to keep them safe. Inform them of any problems you might have and be transparent and clear about the challenges faces by your team and how you are solving them.
Shipping Discounts & Decreased Spending Threshold
Offer free shipping or shipping discount codes to your customers to help them reduce costs and increase conversion. Decrease your spending threshold or offer contactless shipping.
Contactless deliveries/shipping is where courier companies limit the amount of contact between courier and customer. Both parties are encouraged to maintain safe social distance at all times
Pivot your Product Offering
If you are a restaurant that’s been forced to close its doors to walk-in customers, look to pivot your food offering to meals that can be delivered, freshly made frozen meals that can be stored, or immune-boosting recipes that help those worried about getting sick.
Include the ability for customers to send meals to those in need or close family members or activate the ability to send gift cards from your store to loves ones. Make it easy for customers to give during a crisis.
Innovate & Upskill
Look at ways your company can innovate with either a new product tailored for the current environment or for what will follow after. Don’t allow you and your team to be bogged down by fear. There is opportunity in every crisis and keeping your business strong and innovating is the best possible thing you can do for your community. We will need every business, large or small, once we are through this difficult time and getting your team through it successfully must be one of the properties. Study, learn, upskill your team as much as possible.
“If you don’t educate yourself, you’ll never get out of the starting block because you’ll spend all your money making foolish decisions.”
Update Your Return Policy for the Times
Returned goods must be handled with care. Protect your staff by quarantined goods for at least 10 days after being returned to make sure the goods are safe. Disinfect each item and make sure your staff have the proper gear to handle all goods carefully.
Automate & Optimize
Look at ways your company can cut costs and save time by automating repetitive tasks. Use smart email tools like AWeber to automate your communication with clients by sending newsletters based on their purchase history or behavior. Schedule social media & blog posts ahead of time by bulk uploading when you have time. Use Upsell/Cross-sell apps that you can set up to help improve your cart size.
Improve and Speed Up
Do an audit of your e-Commerce site and check site speed religiously. Many apps that you install/uninstall leave behind code that slows down your site without you even knowing. Run speed tests on your site pages but not just the homepage. Be sure to run speed tests on your product pages to spot any redundant code.
Use tools such as Searchanise Advanced Search to improve how your customers find products. It includes tools such as Zero results history, Terms that brought in the most sales, AutoCorrect when a customer spells something incorrectly and other powerful tools that help your customers find what they are looking for.
Increase content marketing and SEO
It is tough to keep the marketing budget going in difficult times. One might feel tempted to pause the Adwords account and sadly it is the time that your business needs it most. Focus instead of creating valuable content for your customers that you help you rank and help your customers find what they are looking for or help them solve a problem. Do an SEO audit to see where you are currently compared to your competitors and fix what is broken.
Research key trends in your region using Google Trends, compare the popularity for different search terms and use this data to optimize your content marketing strategy.
Find out about Government/Business Assistance in Your Region
Governments around the world are providing support for small businesses that are hit hardest by this epidemic. Find out as much as you can about what is available in your area and how to go about applying. There is no shame in asking for help during times like these. Ask your service providers of any discounts available or delayed payment options. Google for instance announced Adwords credits to all account holders to assist their customers during this time.
It is hard not to feel depressed about the current state of the world, the markets and business in general. Yet one has to remain focused on the long term picture whilst keeping everything running in the here and now. Remain focused, keep innovating and optimizing and keep your business strong. If we all do this then the recovery will be so much quicker.