PAIN RELIEF: Increasing Conversion Without Compromising Margins

By Martin Newman | 25 Nov 2010

We sell cameras and accessories online, but we can’t convert accessories like tripods etc., because our relatively high shipping charges for lower cost items make it unattractive. We also offer in-store pick-up but are not getting any traction. Do you have any thoughts on ways to increase conversion without compromising margin? Obviously it’s difficult to […]

We sell cameras and accessories online, but we can’t convert accessories like tripods etc., because our relatively high shipping charges for lower cost items make it unattractive. We also offer in-store pick-up but are not getting any traction. Do you have any thoughts on ways to increase conversion without compromising margin?

Obviously it’s difficult to comment on what the issue is here, as I haven’t seen the site. However my gut tells me that there maybe some usability issues on the pages where you’re selling tripods.  It also sounds as though you could be communicating the ‘free instore pick up’ message more effectively. I suspect this isn’t being promoted on the product page. If it were, I’m sure you’d see a reasonable percentage of customers opting to pick up in store – but the success of this will depend upon how many stores you have.

It also sounds as though you’re not optimising the cross selling opportunity. Some recommendations include:

  • Cross selling tripods with different cameras, which you can set up manually;
  • You can leverage dynamic merchandising solutions such as Baynote to drive cross selling in a ‘people who bought this also bought’ format.  You may want to do this manually begin with as it sounds as though few customers are buying tripods at all online;
  • You could try ‘bundling’ and offering a bundle of products to purchase including a camera and a tripod, that should push up conversion;
  • I’d also cross sell tripods and other accessories on the shopping bag as this will drive conversion and push up ATVs; and
  • You could add value to a purchase by throwing in a gift with purchase on tripods.

2 Comments

2 thoughts on “PAIN RELIEF: Increasing Conversion Without Compromising Margins”

  1. Hi Martin,
    What would you suggest for detecting fraudulent transactions? We verify suspicious transactions with our payment gateway provider (ANZ eGate) but there are still some that slip through the cracks and we end up wearing the cost. Because it’s the merchants and never the banks that end up losing out, the banks just don’t seem to care about fraud prevention.

  2. Hi Lachie,

    Thanks for your question.

    In the UK we have 3d secure (Verified by Visa and Mastercard securecode). This is the online version of chip and pin. And when a retailer has this additional process in place for consumers, in the event of a chargeback, the liability passes from the retailer to the bank.

    There are also 3rd party fraud applications you could look at such as the 3rd man (And equivalents in Australia).
    And then their are other payment service providers with very strong fraud management capability such as Cybersource.

    You need to make sure your payment gateway provides you with sufficient tools and the ability to set up relevant fraud flags and rules, otherwise you may be better moving to someone else or bolting on an additional 3rd party fraud app.

    Good luck!

    Have a good 2011.

    Cheers,

    Martin

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