I’m sorry. The Shopping Cart Died!
And if your online business depended on it, my condolences to you.
But in the end, this death could be a good thing for you.
And I’m here to help you understand why.
And how you can benefit from this…
Maybe right now, you won’t even accept that the shopping cart has died. But you need to understand this will make you lose eight out of ten sales!
You will understand here, in these lines, how this happens today with your business. So, I want you to keep the follow image in your mind…
Imagine your favorite supermarket on a quiet day. You are doing your usual shopping, pushing the shopping cart with ease.
However, you begin to realize there are dozens of carts, similar to yours, with some items inside, abandoned.
There are actually more carts, full of items, scattered in various places than people currently shopping.
8 carts left behind for every 2 consumers, to be exact.
Do you believe the establishment owner would consider this normal or accept this situation?
I do not think so.
So why would you accept?
And if you think I’m crazy, full of conspiracy theories, I’m not.
Instead, I want you to follow me through the facts and data I will present to you. So, I am sure you will be able to keep your online business healthy and your profits growing.
My name is André Cruz, and I only know all this because I live daily within the digital market world.
I have been working in the eCommerce area since 2005. Currently, I am CEO at Digital Manager Guru – a Portuguese startup launched two years ago, which today is connected to hundreds of small and medium businesses.
In just two years, Digital Manager Guru has processed more than 5 million sales, captured almost 7 million leads and generated a financial volume of over $200 milion dollars.
Experiencing thousands of transactions that go through our platform every day, I will now share with you some essential facts for your survival in this environment.
These facts are based on serious research and years of fieldwork.
What I am going to share with you has the power to bring substantial returns to your business.
For instance, we have clients making more than R$ 1 million per month who have increased their revenues by almost 30% simply by applying some of our software features and applying part of the following tips.
Without magical tricks. Only a map, to adapt yourself and escape all the traps.
You will soon understand why the shopping cart as we know it today is doomed.
In a few years, it will no longer have space in any online store, end of the story.
You will understand in detail the reasoning behind this statement. However the decision about what to do with this knowledge is up to you.
You will be aware of what caused this change, what are the necessary actions to prevent your business from suffering from this scenario and still profit from it …
Or you can go on a different path, ignore this advice and, in a few months, remember this text while watching your profit plummet.
And besides, you desparately need to rebuild your entire planning.
You don’t want that, do you?
So, I just ask for a very simple action, for the sake of your business…
Just look at what I’m showing you here, think about the online sales market and how it can influence the direction of your business.
Compare your sales strategy, consider if it’s really right for your business or just what you have been doing until today.
And consider implementing something from what you are learning here. I’m sure you and your business will benefit from it.
So, just to make it clear, please don’t think this is a text about the end of online sales.
It is quite the opposite!
The businesses continue to grow every year. According to some studies, based on the last 5 years, by 2020 the online sales market will grow by almost 200%.
By illustrating, we realize this is something we cannot ignore:
In all, online retail already corresponds to almost 10% of all sales. And the expectation is this growth will be even greater over the next years.
We see all the big brands moving to digital, while consumers are increasingly going to value the comfort and simplicity of online sales.
So, now you understand why I’m sharing this with you, correct?
Here, you will be sure that the shopping cart model as we know it today is dead – or dying and it will be dead in a few months.
But the real purpose of this conversation is to bring a detailed view of someone who has been breathing and living in this market for a few years and, like thousands of other entrepreneurs in the world, wants this business to continue to grow.
More than that, you need it to grow. I can say that the failure of the online sales market would have a direct impact on my clients’ businesses, my business and the lives of thousands of families currently dependent on the digital world.
So I am sure that what I have to share in this text is in the interest of anyone who works with internet sales and can bring excellent results – especially for those who are willing to break some paradigms.
I sincerely hope that by the end of our chat you will be one of those people.
And, maybe now you might even be thinking that this text is quite alarmist.
But stop and reflect for a few seconds: How many businesses have experienced similar situations over the past few decades?
How many companies swam in a “blue ocean” and, even at their peak, were eventually vanquished by their own evolution or the false assurance that they were already at the top.
Kodak and Blockbuster are some examples from the pre-digital age.
And from the digital one, does this not occur?
Do you remember MySpace? AOL? MSN? Lycos?
I can still think of several other companies that could prove this point, and I’m sure you can remember a few as well.
So that’s why I ask you: why would it be any different with the shopping cart?
Dipping into the online sales market
You need to have a strategic and general view of what is happening on our “battlefield”.
Then I will show you, in a simple and quick way, the current scenario and what we can expect from the market in the coming years.
Thus, you will be prepared to face it without surprises and take advantage of these changes.
Of all the worldwide retail revenues, the online sales market today is almost 10%.
In 2017, e-commerce accounted for $ 2.3 trillion in sales, and this is expected to reach $ 4.5 trillion by 2021, nearly doubling the number of sales in less than 5 years.
What if we compare this with a longer timeframe?
A Eurostat survey found that over an 18-year period, the US online sales market jumped from 5 million in 1998 to 389 million in 2016.
Revenues increased by almost 78 times in this period.
And this growth continues!
In Europe, the e-commerce market grew from 15% in 2014 to 19% in 2017.
So from what we’ve seen so far, can you see that this market is just making its first steps?
And, like everything that is still in its infancy, there are always changes and adaptations, so it is so important to be with those who really understand what is happening, absorbing information from those who breathe and live in this market.
The online shopping environment is growing a lot, compared to the traditional market.
To give you an idea, according to a Statista survey, since 2005, e-commerce has been growing at a steady 2% per year worldwide.
Online sales are in constant development, while other markets suffer significant variations.
This shows that we will have more chances to succeed if we are ready to face change correctly, don’t you agree?
The chart below portrays what we have talked about so far:
Nowadays, online sales have such a significant impact on traditional retailing that it is a necessity to diversify your internet sales.
Think of the consumer, who is now on a different journey and has the power to choose a product before even stepping into the store.
Or that a part of customers, which increases day by day, prefers to make the purchase directly from the comfort of their home…
Without the online presence of a store optimized for the needs of these customers, you will be marching toward failure.
To illustrate further, I will give you an example.
According to the “Neoconsumer – Decipher Me or I Devour You” study, produced by GS&MD in 11 countries, 53% of consumers are upset when their favorite stores don’t sell online.
Your customer expects you to be online.
More than that, he is sure that you are online.
With everything that we have seen so far, you can already see the size of this business, right?
And I’m sure we’re on the same page: The online sales market is healthy and growing. Without a doubt.
But the lever that drives the success of any business is consumers.
Consumer behavior has changed a lot over the years and if you think your customer is the same as 5 years ago, I have bad news…
He is not!
Maybe he’s not even the same as he was a month ago.
And if consumers are not the same, why do we insist on using the same strategies that we used almost a decade ago?
Mobile has taken e-commerce to another level.
Although the ability to search and shop online has been around for some time, access to and popularization of technology has changed the rules of the game.
Mobile has given consumers the choice of where, when and how to shop.
They no longer have to adjust to a store’s opening hours or be stuck in traffic and long distances to purchase an item, for example.
If someone wants a product, just take the device from their pocket and make this purchase in the same second.
Do you know what that means?
Power is increasingly in the hands of its buyers.
And this is good!
This ease of shopping has made room for one trend: impulse buying.
According to a User Interface Engineering survey, impulse purchases account for almost 40% of all money spent on e-commerce sites.
That is, four out of 10 users shop at your store without planning for it.
And if you haven’t stopped to think about it, try to remember how many times you ended up making a purchase, and hours later wondered if you had made the right decision – either by regret or simply an unplanned expense.
Do you know what this means for your business? Today, in addition to being prepared to convert the client, you need to convert him at the exact moment of his search. Otherwise, it may be too late.
You can be sure that that famous phrase “the right person in the right place” has never made as much sense for online stores as it does now.
Take a second and think: What are you doing to attract this audience?
Is your online business ready to meet this new customer profile?
It’s time for us to answer some questions and I will first ask you to be a little critical of all this information. It is obvious that the above data is very optimistic and shows steady growth in the online sales market and the need to be present in this universe.
But there is no point in a flood of customers, credit cards in hand, eager to buy if online stores are not ready for these new consumers, don’t you agree?
And it is precisely because of these new consumers that the shopping cart is a model that is doomed.
The shopping cart no longer serves the person who has seen an ad on Instagram and wants to buy a purse similar to an influencer’s.
Or Sarah, who has no computer and uses her cell phone for all her purchases.
Or to me.
Or to you.
And now I will show you why.
Villain with his hand in your pocket
If you have come this far, you have probably noticed that your consumer and the way he or she buys products has changed a lot over the years.
But do you know what hasn’t changed so far? The shopping cart.
Many years ago, as e-commerce began to take its first steps, the shopping cart model as we know it today emerged.
And here it is important to clarify that this process ranges from choosing a product, putting it in the cart and making the payment.
For many years, this was the only way to sell your products online. Even today, when we think of this market, the first thing that comes to our mind is the shopping cart.
And we can’t blame ourselves for that. It is quite normal that this model has been spread over the years, precisely because it is a relatively simple way to attract the attention of potential customers.
For several years it even worked.
But not anymore!
It’s time to bury the shopping cart.
And believe me, I rely only on facts to say that.
As made obvious so far (and in the rest of this text), this analysis is entirely technical and data-based.
When I say the shopping cart is dead, I am not telling you to abandon your e-commerce and every investment made in the platform.
The shopping cart has died as an exclusive sales process.
The shopping cart has died for those who really want to thrive and use consumer buying momentum to their advantage.
As I said earlier, only 4 out of 10 customers initiate the purchase process on your site.
You cannot ignore this number, and that is exactly what you are doing now.
To continue using this old-fashioned model exclusively is to invest your money in something that is doomed to fail.
In short, it is no use depositing all the chips in the same sales strategy. And now you will understand why.
More and more abandoned carts
When we talk about online sales, shopping cart abandonment is one of the most debated issues.
But the biggest problem, however, is that no one was looking for a definitive solution.
Almost everyone knows the numbers, don’t they? I imagine you do too.
But to stay on the same page, a Statista analysis compared the number of cart abandonment in e-commerce around the world. According to the report, in the year 2006, about 60% of shoppers abandoned the shopping cart.
As you can see below, in 2017, the number reached 69.23%. That’s almost a 10 percent increase in just eleven years.
If you still do not understand the seriousness of the situation, I suggest that you reflect with me for a moment: if the cart abandonment rate approaches 70%, this means that 7 out of 10 people who start the purchase process in your store will not finish it.
This is absolutely unbelievable, isn’t it? And these numbers represent only the abandonments made using the desktop. When we talk about smaller screens, where most of the traffic comes from today, the number is even scarier.
Cart abandonment on tablets is 81% and on smartphones almost 86%. The trend is obvious: The smaller the screen size, the greater the chance a consumer will not complete the purchase.
Remember the image of shopping at your favorite supermarket, which I asked you to memorize there at the beginning of our conversation?
With dozens of full carts, abandoned everywhere?
Yeah, this is what is happening in your business with mobile users …
Worse, this is not a coincidence.
And unfortunately, it is not to be alarmist, because the numbers are unquestionable.
This dropout bubble compared to the growth of the online shopping market will burst at some point. I particularly believe this will happen much sooner than the market expects.
These percentages are alarming, aren’t they?
And, oddly enough, these aren’t numbers that are appearing out of the blue. As we saw earlier, the market has been showing signs of possible depletion for years.
And you (like millions of other entrepreneurs) have probably never done anything to change this scenario, and are now totally unprepared for it.
Maybe right now, your irrational part wants you to think that all we have seen so far is “just numbers” and that none of it will hit your business.
So I’d like to share some statistics-based stories that have probably happened to you or someone close to you.
If it didn’t happen exactly like that, I’m sure it was very close to that.
Jessica, a 35-year-old lawyer, works from Monday to Friday. After work, she takes the subway home, and the 30-minute ride is the best time of day to access her social networks and chat with friends.
It was at one of these moments, browsing Instagram, that she found an ad for a face cream. It was just the cream that her favorite actress also used.
Wow!! Jessica wastes no time and puts the cream in the shopping cart. She is ready to enter the payment details, but she sees another product that she likes as well. As she begins to review the other product, she arrives at her subway station.
Jessica puts her smartphone in her purse and walks to her house. And the cart, poor thing … is abandoned.
You may also know Peter, a student who needed to buy a book for his thesis project. He did a quick search on the best sites and was able to find the desired book within seconds.
He sets the product in the cart.
Fills in the first form with his details.
A WhatsApp notification appears at the top of the screen.
He ignores it while writing his address on a second form.
Instagram direct notification at the top of the screen; it was exactly the answer he was expecting.
But still, he continues with his purchase.
After so many steps, the bell rings and he decides to quickly respond to that direct message before his class begins. After all, that message was really important.
And guess what happened to the cart?
Yeah … abandoned.
These two cases are examples of everyday situations. In the first example, the customer was not expecting to purchase anything and would do so on impulse.
In the second case, the consumer was ready for the purchase and, due to a lengthy payment process and the interruptions common to the mobile environment, could not complete it.
According to RetailDive, this high dropout rate may be justified by the fact that most online stores are not optimized for mobile purchases.
Slow loading times, too much information, and, most importantly, a non-conversion-oriented buying process, are just a few examples of problems consumers face daily.
This is a very problematic factor considering that the use of smartphones for purchases is growing year by year and becoming commonplace.
Mobile traffic now accounts for 62% of all online store traffic.
In the United States alone, mobile purchases totaled $ 156 billion in 2017.
By 2018, the figure soared to over $ 206 billion – a 32% increase in just one year.
The Shopping Cart Henchmen
And do not think that only the shopping cart is to blame for this whole situation.
He may be the main villain, but we can’t accuse him of working alone.
We can say that he has “goons” that help him bring your online business down further and further.
So that you can see exactly who they are and not fall into their grasp, I want you to imagine with me that you have decided to start a new business.
You decided to enter the food supplement market and opened a specialty store called “XYZ Supplements”.
You have a wide range of products to suit many different audiences.
It has options for men and women. Children and the elderly.
Each of these products is priced differently and meets different needs.
To serve these audiences, you build an e-commerce store (with a shopping cart, of course) and start working on your sales process for your products as usual.
So you decide to invest in paid media, a reliable email marketing tool, and the most modern checkout process.
And it really starts to sell!
But even with all these investments in this infrastructure, you don’t convert even a fraction of those impulse shoppers. Here you have already lost 40% of sales.
And you continue with the high dropout rate that, like your competitors, is close to 80%.
Sound like a familiar scenario? This is extremely common in the online world.
Now, what would it be like if it were in a physical store?
For every 10 people who come into your shop with purchase intent, 4 of them quickly pick a product, but something takes their attention away from it and they have to leave.
Only 6 stay there because they know what they need.
Of these six, 5 look at the long payment queue and leave.
And only 1 really goes up to the cashier and pays.
All of these people were already inside your store.
They were already interested in at least one product.
And yet, of the 10 sales you should have made simply and easily, you made only ONE.
It doesn’t look good for business, does it?
And you can’t just blame the cashier for that.
Just as you can’t just blame the shopping cart for bringing down your online sales.
That’s why I want you to consider the points below.
The shopping cart may be the main culprit, but there are three other characters that have proven to make your conversion rate lower and lower.
They are the ones who help the shopping cart bring down your results. It’s important that you know who they are so they don’t catch you by surprise.
The first one is Buying Unorganized Media.
This henchwoman is a master of seduction. She is responsible for making you spend a lot of money on wrong traffic and, worse yet, makes you believe your business is a ship and you are the captain.
But, bad news… This ship is the Titanic and he’s about to crash into the iceberg.
According to a Sleek Note survey, only 2.86% of all visits to e-commerce sites are converted to purchases.
This low conversion rate, coupled with the high number of cart abandonment, makes it necessary to think of different ways to attract users.
Paid media is one of the most widely used ways to try to reverse these numbers.
Anyone who owns an online store knows the importance of paid media for business growth. Whether through Facebook, Adwords or Google Shopping, for example, investing in paid media is critical to attracting new consumers.
However, investing in paid media is not enough. You need to know how to invest.
For you to understand, many online shoppers believe that the more visitors access the store, the better the result.
And that is totally wrong! It is no use investing thousands of dollars in ads when the public is not your ideal buyer.
To illustrate, let’s imagine that we needed to advertise our fictional Supplement store, XYZ Supplements.
Do you think we would have more conversions selling our products to everybody or if we announced our brand new protein shake only to the gym ensuthiasts?
No one sells to everyone.
Today, more than ever, it is essential that you communicate with your audience in a personalized and unique way.
A survey by Adlucent revealed that 71% of consumers are frustrated that their shopping experiences are very impersonal. The same survey also showed that seven out of ten consumers want personalized ads.
If these reasons weren’t enough to show the importance of custom ad optimization, I have one more interesting number to show you.
According to Growth Badger, custom ads perform 3 times better than non-custom ads.
This means that with the same marketing effort and budget, you could achieve 300% more results than you currently have.
Want an example?
Let’s consider again our fictional “XYZ Supplements” store.
It has supplements for completely different audiences and a single sales page.
So in a media buying strategy, how would the ads be made?
And who would the announcements target?
If my client is a twenty-five-year-old woman, why direct her to the same page as for a man over sixty?
What about communication for this audience? Certainly, buying motivations are totally different for these people, as well as the way of communication.
Even colors and images are extremely important to improve conversion.
So how could the same Disorganized Paid Media attract these two so different profiles?
She can not!
And this is just the first way in which this henchwoman harms you. Because besides making you spend money to attract inappropriate traffic, she also has another trick: remarketing.
It identifies users who have already entered your site or performed an action, such as placing an item in a shopping cart, for example, and use paid media to bring it back.
If remarketing is used correctly it is a powerful weapon that generates fantastic results. But here, it ends up being corrupted by this henchwoman and used to destroy your business.
And if you still can’t figure out how this can hurt your business, think about the person who put four items in the cart and after a few minutes gave up.
This is a very common and plausible situation for anyone working with online sales.
Probably the next step of your marketing strategy would be to try to win back this customer, do you agree?
An option would be to send a retargeting email, create a remarketing ad on Google or social networks, for example.
Now answer me one thing: What item will be offered in this remarketing?
The most expensive or what was put first in the cart?
What if this customer added other products on different days?
What if the product that brought the customer to your site wasn’t placed in the cart?
How do you know which of these items was the most important?
In the way you have been doing so far, it is a matter of pure luck.
Applying the case of our supplement store again, how can you remarket a product if you don’t even know who your customer is?
The 25-year-old woman or the 60-year-old man?
Worse, you risk remarketing a product that doesn’t even match your target audience.
I bet you were already impacted by an ad or email marketing of some product or service that had absolutely nothing to do with your profile. How did you feel?
Not good, right?
And the consequence of this is more money being spent and marketing efforts being wasted on a poorly targeted, low return audience.
It’s as if you take your media money and spend it on flyers that will be thrown out the window. It is useless.
Remember that 80% of cart abandonment? Is one of the reasons for this high abandonment rate not related to offering the wrong product to the wrong person at the wrong time?
Here, we are just guessing. But do you agree that it makes a lot of sense to compare these numbers to the actual results?
So how to deal with it? Let’s assume that in the vast majority of cases you remarket to the four items in that shopping cart.
This means that in addition to the conventional pay media investment to acquire this customer, you still have a remarketing cost for different products – not knowing which one is of interest to your client.
What if you knew exactly which of these items piqued your customer’s interest?
What if you could focus your marketing efforts and budget on a single product and get it right, boosting your earnings and boosting your results?
Much better, isn’t it?
It’s possible. And many companies are making a lot of money using this strategy. In a moment you will also understand how.
But before that, we need to talk about another henchman. The terrible accumulator called Disqualified Lead Capture.
This henchman wants you to think of him as one of the most efficient public relations professional. He smiles at everyone, gathers piles and piles of business cards, phones, name, and e-mails… just to throw them into a large safe in the back of your company.
This place, because it is so large, generates costs and you do not know how this goon acts. It’s just a big accumulator and will put any little piece of paper that looks like someone’s contact on top of the endless pile of information.
And you may have often heard the phrase “Money is in the mailing list” or even “the mailing list is the biggest treasure of any business,” correct?
This henchman defends it tooth and nail.
It may even be true for some companies that use “Good Lead Capture”. But for the vast majority … it’s just bullshit!
Worse than that: it is a big waste of money and effort for your marketing team.
Do you know why?
You are encouraged daily to have a contact list. All marketing articles argue how important it is to capture email from your prospective clients and have an up-to-date list.
I agree with that, in parts. What nobody says is that having a database of millions of contacts is not helpful at all if you don’t know how to qualify it or how to work with it.
At the end of the day, it’s just a bunch of emails that are taking up virtual space and generating costs, wasting money on your marketing tools.
They say everyone is doing it, so you convince yourself that this is a fundamental step in developing your business plan. Put a popup on your site and then collect all the emails from the interested parties.
They start with 50 a day, a hundred, two hundred… a million emails! And everything looks perfect!
But then what? What do you do with all these contacts?
The obvious answer is to send emails and always stay active with this customer. Surely at some point he will see a promotion, a coupon or some news, for example, that will take him back to your store.
Then the purchase will finally be made and you will both be happy forever.
This is where the make-believe ends. The stark reality is that you have an e-mail, but you don’t know what product he purchased or the last time he bought something from your store – if he ever bought it.
This strategy is perfect for the Disqualified Lead Capture henchman. I’m sure you know someone, maybe yourself, who is being deceived by him in this way.
As I have been working in this market for a long time, I met several of these people. There are the companies that collect all customer data and simply apply the techniques that are in vogue without even considering if this is really going to bring results to your business.
Those who follow the wishes of this henchman will get the contact of the person who abandoned the cart and then send a recovery email to the same page and the same buying process that generated the abandonment.
If the person abandoned the purchase the first time, why send him through the same process? What have you changed on your site to convert this user?
It is an infinite loop. And you’re still amazed by the 80% cart abandonment.
Most online stores invest a lot of money on advertising and marketing platforms. But at the end of the day, they don’t know where these customers came from, how they came to your store or even through which ad.
You may even have some tools that can partially help you along this path or maybe a marketing team dedicated to doing just that …
But are the tools integrated? Can you notice all the details? Do you have data access and can you compare different media?
Is it worth maintaining a dedicated marketing team just for that? Remember, these alternatives are probably only viable for those large businesses. Small and medium-sized enterprises, most of them needing such assistance, do not have access to the same tools.
But be careful, I am not saying that these platforms are not important to your business, quite the contrary. What is noteworthy is that your investment in marketing and communication tools is certainly growing steadily year after year, and you can’t improve your conversion rates.
This is where the third “henchman” of the shopping cart comes in: Inefficient Checkout .
At first glance he looks like a serious and well-dressed gentleman, waiting for you behind a counter. But you only have to start interacting with him and you will see that he is a big bureaucrat who asks for all your documents, information and wants to know everything in your life.
Regardless of whether it has to do with your purchase or not!
He is more interested in gathering lots of data – which he sometimes shares with his friend Disqualified Lead Capture – than prioritizing the customer and making the sale.
What’s more, it appears as extremely needy, preferring people to stay as long as possible at your desk, even when they don’t need to.
To substantiate this behavior, a study by the Baymard Institute found that one of the biggest reasons for cart abandonment (23%) is a very long or complicated buying process. In other words, because of Inefficient Checkout.
These users who gave up during the checkout process were extremely interested consumers.
That is, you are losing 23% of your buyers simply because of your extremely bureaucratic checkout process.
And if we look at combined e-commerce sales of $ 738 billion in the United States and Europe, this checkout dropout percentage represents a loss of nearly $ 170 billion in revenue.
There are millions of customers lost annually due to a completely adjustable failure.
Now, do you remember the percentage of cart abandonment on mobile devices? I believe these 86% of lost sales were as marked in your memory as in mine.
So, if an inefficient buying process already generates a huge loss of almost $ 170 billion, imagine how much this amount will increase with the 10% growth in mobile usage…
I don’t know if the shopping cart is right … Now what?
The points above summarize the amount of problems that the Villain and his Henchmen have caused to thousands of e-commerces around the world.
And the main question is: what happens now?
If the models we already know today offer clear structural flaws, what are the inspirations for change and new trends?
Are there solutions to defeat these villains?
You may be relieved that the answer to these questions is YES!
Best of all, by knowing how to act, with small adjustments you will already have substantial improvements in your business.
To better illustrate this for you, I will share some stories from three companies that have grown and stood out in different markets.
So it is easy to illustrate these changes for you and we can see that regardless of the market you are in or your target audience, there are several options to get your business off the ground.
For example, have you ever heard of the company that reinvented the mattress industry in the United States? Casper is an American startup valued at over $ 1.1 billion and cited by FastCompany as one of the “25 brands that really matter.”
The company started in 2014 after a conversation between friends who, after many negative experiences, realized a common difficulty: it was not possible to buy mattresses simply, quickly and completely online.
Despite constantly hearing phrases like “no one buys a mattress over the internet,” this group of Americans went ahead and launched the brand’s website.
For the first 18 months, the sales forecast was pretty optimistic: $ 1.8 million.
However, Casper sold the entire inventory in one day and closed the first month with revenues of about $ 1 million.
In 2015, sales reached $ 100 million.
And, most impressive of all, Casper achieved this result by selling only a single mattress model (in double and single versions). Only over the internet.
Another fantastic case is that of the American Sara Blakely, who had an idea based on her bad experiences with underwear. She thought about creating a special pantyhose which wouldn’t show her underwear and was more comfortable.
On her own and to save money, Sara researched existing patents for this type of product in order to develop her own.
After much insistence, she was able to produce her first prototypes and invested $ 5,000 from her few savings to create Spanx.
From then on, the product started to grow and became a reference in the lingerie market. The company is currently valued at more than $ 1 billion and Sara, the founder of the brand, is one of the youngest women to become billionaires, among those who built their own fortunes.
One more incredible case we can draw on comes from the success of a non-digital product…
How many times have you heard the phrase “I need a Moleskine” to define that little hardcover notebook?
Moleskine has achieved what only the big ones can: it has crossed the brand barrier and is now more than a reference in this market.
Over the past seven years, the Italian group has nearly tripled its revenues and expanded to over forty countries. The goal is for the company to earn more than $ 200 million by 2019, much of that from its flagship product.
Now, comparing these three cases, we can see that, even going against many businesses, they have points in common.
Just like in a sentence I really like: It takes more than a good idea to succeed.
They all offer unique solutions for really interested customers with extremely targeted communication.
These points seem familiar with everything we were talking about, you agree, don’t you?
These companies also have another very important point in common: they specialize in a single product. In addition, they are betting on a completely different strategy from most of their competitors.
While most retailers sell more than one product and to extremely different audiences, these examples prove that a huge catalog is not a prerequisite for success. Especially when we talk about online commerce.
People are uncomfortable when they have to make a choice.
We can see exactly this in a Statista survey. Between 2011 and 2015 it showed a drop from 6 to 4 items per order in sales during Black Friday.
And the numbers keep steadily decreasing, as you can see here:
A study by Scientific American reveals that when we are “forced” to choose an alternative, it is necessary to give up so many potentially good ones as well. This brings us to a standstill, which makes any kind of choice difficult and often makes it easier to give up buying.
And there we go back to that ghost of the villain Shopping Cart abandonment.
In addition to cart abandonment, choosing products can also impact your number of conversions. Currently, average conversion rates for a traditional e-commerce range from 2 to 2.5%.
With this in mind, I would like to draw your attention to another interesting fact: the conversion rate for visitors coming directly to a page optimized for a single product – like the companies I mentioned – is 7% or more.
Yes, you read that right. An average of 3 times more sales!
This means that a page devoted to a single product converts on average 300% more than the conventional journey.
Because without the distractions of designing, managing, and marketing multiple products, you can focus on innovation, interacting with your customers, and improving your product against competitors.
And now you may be wondering which way to go? Maybe I would even like to have more information, as many as I have access, about the market.
But even if I want to show you more, I think our conversation is a bit long and coming to an end.
So I would say that right now you have two choices.
The first one is to take all this information, tips and examples that I showed you here and try to find a way to adapt them to your business, using trial and error.
And the second one is to walk along with me and discover the different ways we can help you.
Nice to meet you, I’m Guru
I am sure you have understood the whole truth about the death of the shopping cart.
You have also noticed the single product model, which has been revolutionizing the online shopping market.
So I’ll share a little of my company’s experience on this topic and how we got so much data and confirmation.
Currently, we work with self-entrepreneurs, clients with hundreds of employees and others who earn more than 2 million monthly.
And so, working with companies that are innovating and testing on a daily basis, we come to understand statistically which actions are best for growth in this industry.
For example, correctly-built single-product pages typically convert between 2% to 7%. With our help, they can convert up to 21%.
A great improvement, isn’t it?
We know the importance of having your business data in your hand. And that is exactly what we deliver to our customers.
Your own business revealed transparently in front of your eyes. This way you will be sure about the returns for each investment and which ones are giving the better results.
And while we put all the metrics of each client in front of our customers, as we care about their success, we don’t charge revenue share on top of every sale.
Measuring results, with precise metrics, gathered in a single tool, generates a form of control in your business that ends up reflecting in only one thing: results!
It’s time for you to also know the powers that Guru can unleash in your company. And so say goodbye to any villains or henchmen that are hurting your company.
Find out how we can help you improve your results.
Let us help you Make your online business profitable again!