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Wednesday, June 16, 2010

Web 2.0 and Online Business

Posted by easy.kalam@gmail.com on 1:11 PM 0 comments


Web 2.0 as a concept has become big in the Internet world, but this phenomenon has yet to make large impact on conservative business segment like e Commerce. Over the coming months this is going to change as more and more online shopping sites are embracing Ajax based technology and other Web 2.0 ideas. The originator of the Web 2.0 describes this term to define new generation websites that use collective contribution, social networking, tagging, open APIs, remix, etc.

Ajax, a short name for a combination of website developing technologies and a key instrument of Web 2.0 concept, is used to create web applications with enhanced usability, interactivity and speediness. Present e Commerce sites are also in a position to reap similar benefits.

Below are listed the primary reasons for visitors to abandon a shopping cart and possible ways of dealing with it.

1. Cost of shipping too high and not shown until checkout

This seems to be the number one reason for most of the people to abandon a shopping cart. The first step you need to take here has nothing to do with technology. You have to understand that people are not willing to pay extra on top of the real shipping and handling charge. People are not stupid! They have more or less rough idea, how much shipping might cost. That's why keep shipping and handling costs really low or at least reasonable! The second step which can radically improve your conversion rate is the use of new technology to keep the shopping cart with all its content visible at the right upper side of the page presently visited. Once a new item is added to the cart, all calculations will take place right away without reloading the page or the cart. If you feel that shipping and handling costs could be crucial in buying decision, once the first item is added the system will ask for visitor's zip code and automatically calculate the final price.

2. Changed mind and discarded cart content

In this case, unfortunately, you can't do much! However, if your site automatically saves the content of the cart, there is a chance that the same buyer might come back and continue shopping. Analysis of the exit page of the visitor might also help you determine the reason why he or she has left.

3. Comparison shopping or browsing

Apart from monitoring your competitors' sites and keeping your offers aggressive, you should also create a site with better functionalities and contents than your competitors.

4. Total cost of items is too high

Again, if the cart is constantly visible with the final price always calculated automatically, the buyer will be able to take a more informative decision.

5. Saving items for later purchase

The moment an item is added to the cart, it should be saved automatically without reloading the page. If the buyer is not logged in, upon exit request the buyer to register with just login and password, explaining that this way she can come back and continue shopping on your site.

6. Checkout process is too long

If you have a shopping cart as described earlier all the buyer will need to do is click to check out. A simple form with minimum information needed to execute the check out process will appear upon checking out. The filling out of this form should be the final step of the buying process.

7. Out of stock products at checkout time

The functionalities of the cart, as described earlier, will let the buyer immediately know whether the product is available.

8. Checkout requires too much personal information

The Web 1.0 e Commerce sites collect a lot of information about the customer, which presumably help get marketing data. These days, online customers are not willing to reveal more than necessary information for nothing. Avoid the temptation to ask questions unrelated to check out. All you need is name, shipping and billing address and credit card information. That's it!

9. Poor site navigation and long download times

With the help of above mentioned technologies you will be able to increase interactivity, speed and better navigation experience many folds.

10. Lack of sufficient product or contact information

Your contact telephone numbers should be always visible! Use A form or wizard based product adding system. This will help you not to forget crucial information related to an item when you add it to your database.

Of course there are other minor reasons why visitors abandon a shopping cart, but if you make over your e Commerce site with the help Web 2.0 technologies many of these issues will also disappear.


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