Product Recommendations -A Crucial Component
With global Ecommerce competition getting intensified, the trait of customer acquisition is becoming even more challenging. It is not every day that a new customer turns up on a seller’s store on the top global Ecommerce platforms and makes a purchase; as such, retaining these customers for repeat orders or further purchases in near future becomes quintessential. If carefully studied, it can be seen that some global Ecommerce retailers manage to retain customers successfully because they take all the attributes of a customer’s buying process under consideration and work on it accordingly. Price isn’t the only dominating attribute in this regard, emotions also play a vital role in this. This is exactly where product recommendations come into the picture. Product recommendations are becoming a must these days as far as global Ecommerce is concerned. Recommendations offer prospective customers a personalized shopping experience that in turn increases the average order value for higher sales volume.
How do sellers benefit from Product Recommendations?
Most online businesses these days follow the number game on international online marketplaces for convincing prospective customers to buy their products. At the root of recommendations on any international online marketplace, lies a mathematical algorithm called ‘item-to-item collaborative filtering’ intending at better customer engagement. This algorithm takes into account elements like items bought by users in the past, items they liked or rated and items viewed and bought by other customers. As such, it is prudent for sellers to use the most common keywords from the title of their competitors’ best-selling products while selling similar products on global Ecommerce platforms. Also, quoting a competitive price for the products is essential. This enables marketplaces (like Amazon) to exhibit a particular seller’s product or range of products in recommendations more vividly.
In what ways are Product Recommendations Impactful?
The impact of product recommendations for international online sellers for augmenting sales can be listed as follows:
- Better product visibility: Product recommendations assist prospective customers in finding products more easily on the top international Ecommerce platforms. For a first-time visitor, showing recommendations for the top-selling or trending products can be quite convincing for making a purchase. The power of social proof cannot be easily ignored.
- Improved cross-selling and up-selling: Every interaction with a prospective customer is an opportunity for cross-selling and up-selling. Cross-selling is a strategy of recommending products from different categories that are complementary to the current product being viewed or purchased. Up-selling, on the other hand, is a strategy to suggest a more expensive variety of the current product in consideration. Cross-selling and up-selling can be improved by showcasing additional products relevant to the product being searched for.
- Raised Average Order Value (AOV): Average Order Value is the total revenue generated divided by the total number of orders coming. To be more specific, the Average Order Value is the average amount a customer pays for each order on an Ecommerce site. Product recommendation can raise the AOV of an international online seller any day. Displaying more number of compatible products generally triggers the tendency of buying more in customers which in turn raises the AOV.
- Increased brand loyalty: Product recommendations help to increase brand loyalty by creating a value-added relation between the customers and the seller or the brand. The reason why it increases brand loyalty is due to the fact that it reflects suitable personalized products every time a prospective customer visits an international online marketplace.
- Higher customer engagement: When prospective customers get to see product recommendations on visiting a particular online store on international online marketplaces, they feel more welcomed on the page. As such, they tend to respond more positively to the most accurate suggestions being displayed. This enhances customer engagement as prospective customers spend more time interacting with recommendation widgets.
- Saving money on operational costs: Product recommendation widgets have made life easier for international Ecommerce retailers. With easy-to-integrate widgets on international online marketplaces, the operational costs that go into integration have got considerably minimized thereby saving a lot of monetary resources.