A great website design can get your online store far, but you must proactively guide customers to the products they’re searching for to increasingly generate online sales. eCommerce merchandising is one aspect that must not be overlooked in your marketing strategy.
There are several well-known eCommerce merchandising tactics like cross-selling, up-selling, advanced site search, faceted navigation and customer segmentation. Each tactic could be an entire blog post of its own; however, cross-selling tops the list for ways to impact the bottom line.
What Is Cross-Selling?
When evaluating eCommerce merchandising opportunities, cross-selling is a logical tactic to begin with. In eCommerce, a cross-sell is the action of presenting users with additional products – in addition to their primary product – that they can easily add to their order during the checkout. Displaying this option to customers helps to drive up your eCommerce site’s average order value, meaning more profit for your online store.
You’re probably wondering how cross-selling differs from up-selling. To be clear, up-selling is the act of encouraging customers to purchase anything that would make their primary product more expensive (like an upgrade or a premium.) It’s essentially presenting the shopper with alternate (more expensive) options to replace the product they are viewing.
Cross-selling differs from up-selling in that your eCommerce store offers other products in addition to the primary product a customer intends to purchase.
How To Successfully Cross-Sell
The first and most important step to successfully cross-selling products on your eCommerce website is to evaluate product relationships and decide which items make sense to cross-sell with the products that you’re offering. Depending on the size of your product catalog, this could get incredibly complicated and time consuming.
On one side of the spectrum, you could manually create product relationships by using built-in features. BigCommerce provides up-sell and cross-sell functionality out of the box, so you can relate products through an easy-to-use interface.
Typically, you should choose cross-sells that relate to the product, are at a smaller price tag than the product, and require no configuration. The idea is to make it a no-brainer for customers to add the item to their cart with the intention of purchasing it, without distracting them from the original purchase they are making. For example, a great eCommerce merchandising cross-sell for a digital camera would be a memory card or camera case, not a laptop computer.
Why Cross-Sell?
Although increasing online revenue is the goal of any eCommerce business, many hesitate to employ cross- or up-selling on their site because they don’t want to be viewed as that stereotypical salesman. I would argue that you are not forcing a customer to buy something they do not want; you are simply offering them complementary products.
For example, is it wrong for a store to put the contact cases next to the contact solution? Is it wrong when a sales person in the apparel industry tells you they have a great belt that matches the shirt you are buying? When cross-selling and eCommerce merchandising are done correctly, users will appreciate the suggestions and not be turned off by them, which creates a positive user experience.
Check out this image below to see how Best Buy cross-sells on their website:
When I added this Canon digital camera to my cart, a slideshow appeared at the bottom with a ton of options I could add on to my order. In theory this is great, I have a selection of products I might need that will fit the camera.
However, this could also cause distractions. What if I decide I want to go back and look at the rest of the options? What if I am price shopping and want to see if another comparable camera has cheaper lenses, camera bags or tripods?
Best Buy might be losing people by showing them too much information. Avoid providing too many options for a potential conversion to navigate away from the checkout button.
How Final Draft Uses Cross-Selling In The Shopping Cart
Final Draft is an example of an eCommerce website that has grasped cross-selling to guide their customers to higher-priced shopping carts. In the screenshot below, you can see they offer the option to add the Final Draft USB Drive to an order.
This is an inexpensive, easy-to-add item that complements the product the customer is purchasing. This is a win-win for Final Draft as well as the customer because both parties are meeting their needs. The customer receives a USB drive to store their data safely, and Final Draft adds a quick and easy $19.95 to the order.
Conclusion
The goal with any eCommerce merchandising effort is to increase the likelihood of conversion and/or to increase the value of that conversion. By offering the right products at the right time, online merchants can achieve both.
Does your eCommerce merchandising strategy include an effective cross-selling technique? Contact us through the form below and leave a comment in the box with any questions or concerns, and we’ll be happy to help.
A great website design can get your online store far, but you must proactively guide customers to the products they’re searching for to increasingly generate online sales. eCommerce merchandising is one aspect that must not be overlooked in your marketing strategy.
Amazon’s Impact on Global Supply Chains and Logistics
Amazon, the global e-commerce behemoth, has transformed not only the way consumers shop but also the intricacies of global supply chains and logistics. Since its inception in 1994, Amazon has grown from a small online bookstore to a trillion-dollar enterprise that has disrupted industries across the globe. Its influence extends far beyond retail, profoundly impacting supply chains, logistics, and even the environment. This article explores Amazon’s multifaceted impact on global supply chains and logistics, examining how the company has reshaped these industries and what this means for the future.
The Evolution of Amazon’s Supply Chain
Amazon’s supply chain is one of the most sophisticated in the world, characterized by its efficiency, speed, and scale. The company has invested heavily in technology and infrastructure to build a supply chain that can deliver millions of products to customers in a matter of hours or days. This rapid delivery is made possible by a vast network of fulfillment centers, sophisticated inventory management systems, and a logistics arm that rivals traditional carriers like FedEx and UPS.
One of the key innovations Amazon has introduced is its Fulfillment by Amazon (FBA) service. FBA allows third-party sellers to store their products in Amazon’s fulfillment centers, with Amazon handling the picking, packing, and shipping of these products. This service has not only made it easier for small businesses to reach a global audience but has also significantly increased the volume of goods flowing through Amazon’s supply chain. As a result, Amazon has become a central hub in the global supply chain, connecting manufacturers, suppliers, and customers across the world.
Disruption of Traditional Logistics
Amazon’s influence on logistics is equally profound. The company’s relentless focus on speed and efficiency has forced traditional logistics providers to rethink their strategies. In many cases, Amazon has bypassed traditional logistics networks entirely by building its own. Amazon Logistics, the company’s delivery arm, has grown rapidly in recent years, with a fleet of planes, trucks, and delivery vans that allow the company to control every aspect of the delivery process.
This vertical integration has enabled Amazon to offer services like same-day and two-hour delivery in many urban areas, setting a new standard for speed in the industry. Traditional logistics providers have struggled to keep up, leading to increased competition and innovation in the sector. For example, companies like FedEx and UPS have had to invest in new technology and infrastructure to remain competitive, while others have formed partnerships with Amazon to leverage its vast logistics network.
Amazon’s logistics network has also expanded globally, with the company establishing regional hubs and fulfillment centers in key markets around the world. This global expansion has allowed Amazon to offer faster and more reliable delivery services in regions where traditional logistics infrastructure is underdeveloped. In many cases, Amazon has played a role in building out this infrastructure, partnering with local logistics providers or investing in its own facilities.
Impact on Global Supply Chains
Amazon’s impact on global supply chains extends beyond logistics. The company’s demand for speed and efficiency has rippled through the entire supply chain, from manufacturers to suppliers to retailers. This has led to significant changes in how companies operate, with many adopting new technologies and strategies to keep up with Amazon’s pace.
One of the most significant changes is the increased reliance on automation and technology in supply chain management. Amazon has been at the forefront of this trend, investing heavily in robotics, artificial intelligence, and data analytics to optimize its supply chain operations. For example, the company’s use of robotics in its fulfillment centers has reduced the time it takes to pick and pack orders, while its AI-driven demand forecasting tools help ensure that the right products are always in stock.
This emphasis on technology has influenced other companies to follow suit, leading to a wave of digital transformation across the industry. Manufacturers and suppliers are increasingly using data analytics and AI to optimize their operations, while retailers are adopting new technologies like blockchain to improve transparency and traceability in their supply chains.
Another significant impact of Amazon on global supply chains is the shift towards a more customer-centric model. Amazon’s focus on the customer has forced companies to rethink their supply chain strategies, with many now prioritizing speed, convenience, and flexibility over cost. This has led to the adoption of new fulfillment models, such as just-in-time inventory and dropshipping, which allow companies to respond more quickly to changes in customer demand.
The globalization of Amazon’s supply chain has also had broader implications for international trade. By connecting sellers and buyers from different parts of the world, Amazon has made it easier for companies to access global markets. However, this has also led to increased competition, with companies now competing on a global scale. This has put pressure on manufacturers and suppliers to lower costs and improve efficiency, leading to changes in how goods are produced and distributed around the world.
Environmental and Social Implications
While Amazon’s impact on supply chains and logistics has been largely positive in terms of efficiency and convenience, it has also raised concerns about the environmental and social implications of its operations. The company’s emphasis on fast delivery and the constant movement of goods around the world has contributed to increased carbon emissions and environmental degradation. In response to these concerns, Amazon has committed to achieving net-zero carbon emissions by 2040 and has invested in initiatives like electric delivery vehicles and renewable energy projects.
However, critics argue that these efforts are not enough, and that Amazon’s business model is fundamentally unsustainable. The constant pressure to deliver goods faster and cheaper has led to concerns about the working conditions in Amazon’s fulfillment centers and the treatment of delivery drivers. Reports of long hours, high injury rates, and low wages have sparked protests and calls for better labor practices across the company’s global operations.
The Future of Supply Chains and Logistics
As Amazon continues to grow and evolve, its impact on global supply chains and logistics is likely to deepen. The company’s investments in technology and infrastructure will continue to set new standards for speed and efficiency, forcing other companies to innovate and adapt. At the same time, the environmental and social challenges associated with Amazon’s operations will require the company to rethink its approach to sustainability and labor practices.
In the future, we can expect to see more companies adopting Amazon-like supply chain strategies, with an emphasis on speed, technology, and customer-centricity. However, these changes will also require a greater focus on sustainability and ethical practices, as consumers and regulators increasingly demand more responsible business operations.
Conclusion
Amazon’s impact on global supply chains and logistics is undeniable. The company has reshaped the industry in its image, setting new standards for speed, efficiency, and customer service. While these changes have brought many benefits, they have also raised important questions about sustainability and labor practices. As the world’s largest online retailer, Amazon will continue to play a central role in the future of global supply chains and logistics, driving innovation and change across the industry.
