eCommerce - Shopping Cart Abandonment
By Jack Burnett
Why do shoppers decide not to buy from you during your check-out
process on your eCommerce website? According to a May 2010
Forrester Research study, respondents cited these top 5
reasons:
1. Shipping and handling costs (44%)
2. Not ready to purchase the product (41%)
3. Wanted to compare prices on other sites (27%)
4. Item was priced too high (25%)
5. Wanted to save products in my cart for later consideration
(24%)
Notice that website design or performance did not make the
list. People shopping online are just like people
shopping at the store. They are there to compare products and
prices.
The one big difference between the web and brick 'n
mortar stores is shipping costs. People know how much
money they spend in gas and car repairs to shop at stores. On
the web, shoppers are suspicious that a manufacturer or
distributor tries to increase profits with their shipping
costs. At TwinEngines, we suggest offering free shipping when
possible and using conditional promotions that lowers shipping
based on quantity or total cost of products.
All eCommerce software has coupons and promotions built in, but
there are times when we need to customize the software to meet a
company's unique offerings. That is one of the reasons it
makes more sense to use open source eCommerce software or purchase
eCommerce platforms that allow you to customize the source
code.
TwinEngines works with both types depending upon the size
of the small or mid-market manufacturing company and the
sophisttication required on the eCommerce website.
TwinEngines also focuses on lean operations starting with lean
web for eCommerce.
It is important that the web eCommerce data seamlessly
integrates with your financial or ERP system and your fulfillment
process. This is another reason when being able to customize
the eCommerce software makes sense - giving you the flexibility and
agility to synchronize information across your organization for
efficient, lean operations.
Get your Manufacturing Website and SEO Ready for Bing
By Jack Burnett
Yahoo! is scheduled to start serving organic search results from
the Microsoft Bing search engine in August, with
their paid search ads migrating to Microsoft's adCenter soon
after. For manufacturing eCommerce websites, this is going to
bring about significant change in the search engine market.
The Bing/Yahoo partnership could easily take about 30%
of Google's search market, so here's a few search engine
optimization tips for companies with eCommerce websites
to take a look at:
- Microsoft adCenter - it has better e-commerce demographics
and a significantly better conversion rate than Google
AdWords. Expect adCenter to be really cooking for the
2010 holiday shopping season, or in the beginning of 2011 at the
latest.
- Web Sitemap - Some suggest that Bing searches rely more on
sitemaps than Google. Your sitemap should kept up to date
with the latest information about your business anyway, but
especially now considering the talk about the Bing algorithm
and sitemaps.
- Bing Webmaster tools - You can see the crawling data and other
site status, as well as the domain score, page scores and the
estimated number of indexed pages. The tool creates a list of
inbound links and outbound link URLs.
As always, I recommend a lean web continual improvement program
that focuses on the manufacturing website content and page meta
information. An effective web Kaizen loop with web analytics
from both Google Analytics and Bing can easily be implented to keep
your website up to date and providing the best value to your
customers.
Passing a PCI Compliance Security Audit
By Michael Losapio
As part of the process to be PCI compliant, one of our eBusiness
customers recently underwent a security scan by their processor's
PCI audit vendor. The results of the initial scan of their
eCommerce website were less than I'd expected - a failure.
Failure?!? How? Why?
1. "The remote service accepts connections encrypted using SSL
2.0."
2. "Possible cross site scripting"
#1 was simple enough to resolve... make a quick registry change,
reboot the server, and you're done (see here for Micrsoft's instructions). Why did we
need to do this - SSL 2.0 is open to "man in the middle"
attacks where someone could potentially intercept the data
transmission and essentially control the transmission, unbeknownst
to those at either end of the data transmission.
For any eBusiness using a SSL Certificate on their eCommerce
website, and thinking they are providing safe commerce to their
customers - beware, you may be vulnerable.
#2, in my opinion, was crap. Here's the situation - we have a
textbox on the webpage that takes user input and appends it to the
querystring while redirecting to the search results page. This
search results page takes the search criteria from the querystring
and passes it to a stored procedure that scrubs it for SQL
injection and returns the results. One additional thing the page
does is display the search criteria in a label. Sounds pretty
straight forward, right? Apparently since we weren't scrubbing the
search criteria before displaying it on the page, we were
"vulnerable" to cross-site scripting.
I do not agree - the definition (thanks Wikipedia!) of
cross-site scripting is "a type of computer security vulnerability
typically found in web applications which enable malicious
attackers to inject client-side script into web pages viewed by
other users." The key here is "other users." Sure, the page ran
whatever script was entered into the Search textbox, but it
would've only been for that user session... these results would not
appear for others. Congratulations, Mr. Hacker! You just fell
victim to your own script! So I sucked up my pride and added code
to scrub the search criteria before passing it to the next page -
you win this round, PCI Compliance...
So after implementing both "fixes," the eCommerce website passed
and is now PCI Compliant. I'm sad, though, that I can no longer
search for <script>You're an awesome guy!</script> and
have the browser give me a little pat on the back for doing a good
job.
eCommerce - Measure Your Conversion Rate
By Jack Burnett
The conversion rate may be the most important web metric in an
eCommerce website. A good conversion rate is important because
conversions lead to sales, and sales leads to profits.
The definition of conversion rate is:
Conversion rate (measured in %) = Number of Sales / Number of
unique visitors
Customers ask me what is a good conversion rate. The
answer is simple - your conversion rate should be high enough for
you to be profitable. It may only be 1% or 3%,
or you may need a 15% conversion rate to be profitable.
For an ecommerce site, you can mesaure your monthly conversion
rate manually.
- Find the total number of unique visitors to your website in a
month no matter how they find your site (direct and referrals)
- Calculate the total number of sales in a month.
At TwinEngines, we use MediaChase as our eCommerce technology
platform, and we implement Google Analytics to track website
performance. Our customers log into their eCommerce management
website and find the total number of sales. They get their
total number of visitors from the Google Analytics dashboard.
I recommend measuring your conversion rate over a calendar year
to get a complete understanding. You'll be able to break the
year down into seasonal periods and around other outside events
that influence your sales.
Here is a link to an article on an automatic way to
measure conversion rates - using Google Analyics.
Manufacturing eCommerce Resources
By Jack Burnett
At TwinEngines, I use several manufacturing eCommerce
resources for information on implementing manufacturing eCommerce
websites and dealer and wholesaler web portals. My goal
is helping manufacturers and companies participating in the
manufacturing value chain be more competitive with an effective web
presence built on lean principles.
In my experiences helping small and mid-market companies
increase sales with manufacturing eCommerce websites, I have
compiled a list of resouces and websites that provide valuable
insights and information. I hope you find this information
helpful and if you have another resource, please add it to the
list.
Manufacturing eCommerce Website Top Ten Tips
By Jack Burnett
I help manufacturers extend their sales to the web,
and I help companies participating in the manufacturing value
chain to establish eCommerce with consumers (B2C) and with other
businesses (B2B). One of the most important keys to
success for a manufacturing eCommerce website is the
technology platform that has the the functionality,
flexibility and scalability to grow with your business. B2B and B2C
eCommerce websites require the latest technology features for
companies to provide a positive shopping experience that leads
visitors from a web search to a purchase. One that also gives
you the tools to fulfill orders and collect payments easily.
TwinEngines uses tools such as MediaChase eCommerce framework,
NopCommerce and ZNode to provide the functionality required in
an eBusiness. Our developers can configure and
customize the source code quickly and cost-effectively for
each product catalog and eCommerce store. This includes
the back-office administration website to manage the web
pages and SEO content, the product catalog, orders,
shipping, credit card payments and customers. In fact, the
entire eCommerce business can be managed with the MediaChase
platform.
Here are my top ten tips for manufacturers considering
an Internet sales channel for products, parts and accessories:
- Don't over-commit to maintaining all the content and
SEO on your eCommerce site. Realize that if you can spend your
time more effectively running and promoting the business, then it
makes sense to turn to your web development partner to help you
manage content and SEO.
- Use a professional to create the product photos
or obtain them from the OEM, if applicable. The
photographer should create photo versions for both
traditional marketing materials and the web.
- Associate the parts and accessories with the finished goods to
make it easy to find replacement parts and encourage additional
items to purchase. Displaying a CAD drawing with an
exploded parts view makes it easier for visitors to make a
purchase.
- Describe your products so shoppers can't resist
buying them. Talk about the benefits, and consider
a copywriter to make your products irresistible.
- Your website home page
should communicate clearly so your customers understand
instantly what are your products and the benefits of buying from
your company. Include links directly to the product catalog
and featured products that can be added to the shopping cart.
- Devote resources to search engine marketing from the
beginning. When you are building the website, that's the time
to begin planning keywords, content and link building. If
people cannot find you when they search, then you will not sell
your products to them.
- The look and feel of the website and the ease people can
navigate to find the information they need to make a purchase is
very important. If people feel that they cannot trust you due
to a cheap looking website with broken links, then they will find
your competitor to make a purchase.
- Allow customers, dealers and wholesalers to create an
account where they can update personal information, track
orders and warranties. Also allow customers to place
orders without requiring them to set up an account; setting up an
account to place an order will drive some customers away.
- Communicate shipping costs and methods for an order early in
the check out process.
- Include manuals and brochure documentation easily accessible
for each product or product family.
TwinEngines is an Atlanta manufacturing technology
company that has extensive experience in building
and designing eCommerce websites for companies participating
in the manufacturing value chain. We are experts in
integrating your eCommerce website to your financial and
fulfillment sysytems. We can improve your Search Engine
Optimization, and help you implement Google Search technology
and search at your site.
eBusiness Value Chains: eCommerce Website Products
By Jack Burnett
At TwinEngines, we optimize manufacturing value chains.
Sometimes that is your supply chain or value added activities to
fulfill orders from sales, through product configuration,
manufacturing and logistics. Sometimes, the value chain
includes accepting orders in your eCommerce website, picking and
fulfilling the order, and managing shipments and payments.
So, let's talk about presenting products that are available
for purchase online 24/7 in the eCommerce website - the value-added
activities including inventory tracking, product marketing and
sales order processing. Presumably, inventory is maintained
somewhere. For smaller businesses, inventory tracking may be
in a Microsoft Excel spreadsheet; For mid-market companies
inventory is found in a back-office system, ERP, financial or
inventory systems. Each individual item is represented in
these systems, with a quantity-in stock data attribute. There
are also other attribues, like Reserved Minimum Quantity and
Reorder Quantity.
The items (or Skus) in the back-office system are usually
grouped together at the product level for display on the
website. This allows an online shopper to search for a
product quickly, and then select the particular item based on size,
color, brand, etc. For example, you are shopping at the Mercier
Orchards online apple store for blackberry jam. You find the
jams product, and then you then select the flavor and the size of
the jar. For the online shopper there is the one jams product
presented in the Jams, Jellies, and Preserves category in the
product catalog. In the ERP system however, there is a jam
item for every combination of flavor and jar size. So it is
important to manage at the item level back-office systems, and
ideal to manage at the product level on the website.
Let's just say the manufacturing business has an ERP system like
Microsoft Dynamics, where items, inventory and sales orders are all
managed. When there are many products online and even more
items in the ERP system, it makes a lot of sense to integrate the
eCommerce website with the ERP system's sales order
processing and item detail modules. With integration,
each web order is automatically sent to the ERP system. When
the web orders are fulfilled, inventory is automtatically depleted,
and inventory counts are transmitted to the website at some
frequency (perhaps daily or hourly). We use eConnect for
Microsoft Dynamics, and similar products for other financial and
ERP systems.
So now the question is, what do you do when you run out of an
item in inventory? Without getting into backorders, here are
the options:
1. Show the product and allow the shopper to select the item.
2. Show the product, but don't allow the shopper to see any items
that are out of stock.
3. Show the product and item, but don't allow the shopper to select
the item.
I don't recommend option 1, unless you are 100% sure you can
fulfill the order meeting your guarantees to your shoppers. When to
capture the charge is a topic for another day. Let's just
assume you send an order confirmtation email to the shopper and
authorize a hold on the shopper's credit card for the total
purchase amount. When you realize you cannot fulfill the
order, you have to tell that shopper and void the
authorization. Chances are you lose that customer
forever.
The second option is the other extreme I don't recommend.
If a shopper doesn't see that Mercier Orchards carries his favorite
blackberry jam at all, chances are he is lost forever. The
only time this option may be satisfactory, is when you are closing
a product line and when it's gone, it's gone for good.
I think the best option is displaying the item, but not
allowing a shopper to add it to the eCommerce shopping cart.
Even better, the shopper sees a message indicating the item is
currently out of stock with a phone number/email address to get
more information. The eBusiness gets a call from the shopper,
and has the opportunity to cross-sell or get the customer's contact
information to alert them when the item is back in stock.
Integrating the eCommerce website to the back-office systems is
a key piece to optimizing the value chain for a manufacturing
eBusiness. Deciding how to display products and availablity
for online purchase 24/7 is also a key business issue. When
presenting products online, there is a lot of prepatory work
involved to group individual items (Skus) into product
groups. A product image, description and name has to be
created for the eCommerce website, and managed with the website
content management system.