Electronic sales online have soared in recent years, with some estimates pegging 2018 revenue at over $69B in the US alone. This contrasts highly with other categories, such as grocery, which are still in the early stages of online growth.
Accelerated penetration means winning online is vital for electronic manufactures. With so much data available to help measure performance from different sources, trying to make sense of which KPIs are important, how to prioritize actions, or even where to start, can be overwhelming. That is why we created the Clavis Insight 6Ps of eCommerce framework to help manufacturers capture share and growth in the online channel.
Let’s review three key drivers of performance that manufactures have control over:
Each product page is like its own little store for your product. In the absence of physical goods, online shoppers must look to the product page to make their buying decisions. Do your product pages have the right content in order to drive shopper consideration and purchase decisions? This includes a host of reviews, pictures, bullet points, and A+ content. One of the most important facets of a product page is video, as this has shown to significantly boost conversion rates.
Electronic Examples: Samsung uses many features available on Amazon for its leading products, such as the Samsung Galaxy Tab A. Here we see a full list of bullets, 400+ reviews, multiple pictures, and variations of the product. A+ content highlights what the product can do with beautiful photos, explaining the tablets benefits much better than any in-store product box.
Less popular but still high selling items have more glaring issues. The Samsung Wireless Charger has over 7,000 reviews and, with 1,000 one star reviews. Many users claim they received a broken device or a knock off. This is an opportunity for Samsung to directly interact with shoppers and reinsure others browsing the page. Likewise, Samsung could directly reply to the shopper’s Q&A section to further build trust and drive sales. Videos are also a major driver of sales, and a video of how to properly use the charger could help garner additional trust.
What products have your retail partners agreed to stock, and are these products in-fact available for sale?
These are basic, foundational questions. In some ways, they are even more crucial in the online world than the off, as online retailers have been known to target inventory levels that are half the standard for traditional physical stores.
Given the intense competition in most electronic spaces, such as smart phones or speakers, being out of stock at the time of purchase will almost always create lost sales. Not only that, but most retailers will permanently reduce your search rank after an item has come back in stock.
Constant, daily tracking for all SKUs is necessary to fully understand the cost of OOS and to rapidly address
Electronic Example: The UNOOE iPhone 7 Aux Lightning to 3.5mm cable has not been out of stock on Amazon UK at all in the past 90 days, helping it remain one of the top 10 selling adapters on the website. Most items we see are not this well stocked. For more expense items such a gaming computers, OOS can cause massive loses in revenue.
Shoppers entering a physical store can generally locate the products they seek - regardless of whether they're familiar with the store or not. They navigate by general knowledge as to how stores are laid out, and they follow signage.
Correctly labeling an item to help it surface in multiple areas of a websites taxonomy is key to increase awareness of a product. A laptop can win the coveted Amazon’s Choice tag for up to 6 key categories, and often times for dozens of granular search terms.
Electronic Example: The Amazon’s Choice tag will earn manufactures prime real estate on the Laptop category page. While the majority of shoppers use the search bar to find products, some still go through the classic menu system. Having popular products properly tagged can be an easy win for manufactures. Amazon has been rapidly expanding the number of Choice tags for various terms and categories, so now is the best time to act before those tags are locked in by popular SKUs.