E-tailers Focus on Web Features That Boost Profit: Study

Retailers are focusing on Web site elements that make their electronic channels more profitable, rather than features that do not provide a return on investment, said a new study.

Businesses are putting emphasis on search technologies, product-enhancement features and customer services that increase sales, according to “The Merchandising Scan,” which was sponsored by the Direct Marketing Association.

What follows are the top ten actions retailers are taking to improve their bottom lines.

1. Develop content that deals with the nuances of product categories, customer issues and distribution channels. This is especially important for product categories such as electronics for which consumers need detailed information to make a buying decision.

2. Use interactive technology, such as zoom, color change and multi-dimension technology to add value to the online shopping experience and increase sales.

3. To avoid cart abandonment, minimize the number of clicks to checkout and improve “quick-to-shop” times.

4. Communicate with customers via targeted e-mails that include merchandising tactics and provide quick and accurate responses to customer inquiries.

5. Invest in search technology that allows consumers to search by multiple factors (department, keyword, price, etc.) and delivers results that match the search request.

6. Encourage additional purchases by offering relevant cross-sells and up-sells throughout the site.

7. Offer timely gift services, including gift centers and comprehensive gift searches.

8. Provide real-time online information about product availability and order status.

9. Structure promotional offers without forfeiting profitability. Condition free shipping on order size, for example.

10. Consistently integrate multi-channel efficiencies for customer convenience and operational cost savings.

The study was conducted during the fourth quarter of 2001. Some 100 e-commerce sites in 16 product categories were reviewed. Each site was scanned to locate 102 features and functions.