Consumers become more price-conscious and hesitant to spend on non-essential or discretionary items when prices rise steadily. They may prioritize essential goods and services while cutting back on luxury or non-urgent purchases. This shift in consumer behavior can pose challenges for businesses, particularly those that rely on discretionary spending for a significant portion of their revenue.
With that in mind, inflationary periods can be challenging for both consumers and businesses.
In such times, having an eCommerce website that offers a quick and easy checkout process becomes paramount.
During times of inflation, eCommerce platforms offer a range of advantages that make them particularly attractive to consumers. First and foremost, there’s the unparalleled convenience of shopping from the comfort of one’s home, eliminating the need for time-consuming travel and physical store visits.
Online shopping facilitates easy price comparisons across various retailers, empowering consumers to hunt for the best deals and make their budgets go further. Moreover, eCommerce platforms often boast a more extensive product selection than brick-and-mortar stores, providing consumers with a broader array of options and the opportunity to explore cost-effective alternatives.
And finally, a quick and efficient checkout process is crucial in enhancing the eCommerce experience during inflation, reducing friction and making it easier for consumers to swiftly complete their purchases.
Earlier this year, Revolve teamed up with one-click checkout solution provider Bolt and performed an A/B test on the retailer’s website. The findings from the test revealed that the shoppers using Bolt experienced a 4% increase in sales compared to the control group.
Additionally, Bolt reported an eCommerce conversion rate of 3.2% and a 30% increase in conversion for mobile Bolt account holders compared to guest shoppers.
“Once a shopper was automatically recognized and entered a secure, one-time password, all of their account information, from shipping to billing details, was populated within the checkout. This eliminated redirects and additional steps, providing a seamless and efficient checkout process for the customer,” the case study noted.
Revolve also put the one-click checkout to use in the first pop-up shop in Los Angeles for its FWRD brand.
In August PYMNTS said: “There’s been so much talk about the state of returns, but maybe not nearly enough around shipping. But both services are becoming equally important.”
According to PYMNTS, the notion of shipping and returns has transformed into an immersive encounter. Shipping now plays a significant role in influencing the choices of numerous shoppers when deciding whether to engage with a retailer. Likewise, returns have emerged as a crucial factor in this decision-making process.
PYMNTS interviewed Loop’s CEO, Jonathan Poma, to discuss the current state of returns and the considerations retailers need to make to recover their costs.
Read more: Loop CEO Says Returns Experience Now Drives Brand Loyalty
However, a similar trend has emerged in the realm of shipping, where retailers have gradually phased out the longstanding “free shipping” perk that originated during the early days of eCommerce.
To remain competitive, retailers have embraced the strategy of providing complimentary shipping. According to a study conducted by PYMNTS and sticky.io titled “Subscription Commerce Readiness Report: The Loyalty Factor,” 42% of survey participants indicated that discontinuing free shipping would be a motivating factor for them to cancel their retail product subscriptions. This percentage outweighed the portion of respondents who cited any other reasons for canceling their subscriptions.
However, many retailers opt to implement charges for exchanges, refunds, and store credit. As per Poma, 57% of merchants have implemented various forms of return fees. This shift is in response to the fact that U.S. customers return approximately 3.5 billion products annually, yet only 20% of these items are genuinely defective.
Poma noted that this has not had a significant impact on consumer behavior. Customers understand the merchants’ requirement to offset costs and are willing to pay return fees as long as they continue to receive exceptional returns and shopping experience.
Considering consumer sentiments and the current landscape of shipping and returns, the online retailer Revolve has implemented various incentives to promote the selection of deferred shipping over their standard two-day air shipping, which continues to be offered for free.
Customers who choose the three-to-five-day shipping option will receive a bonus of 100 loyalty points. This initiative aims to encourage customers to join the Revolve loyalty program and establishes a program that applies to Revolve’s eCommerce platforms, including Revolve Man and FWRD.
Read more: Revolve Turns Delayed Shipping Into Customer Rewards
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