Marketing Pilgrim reports on a survey by ChannelAdvisor.
MP concluded the following based on the study results:
- Retailer value is more important than brand recognition
- Price is the leading factor that determines whether consumers will purchase from you or your competition online
- Free shipping is also highly influential in determining buying decisions
- Third on the list is trusted seller status, but this only makes sense on sites like Amazon and eBay
- Fourth – discount coupons; I consider this one related to price
In other words, if it comes down to a premium brand versus small Mom and Pop and you can offer the same or similar product for less while providing greater value, guess who wins? Yep, you do. Small business rules!
Of course, Marketing Pilgrim also points out that 83% of online consumers are influenced by product reviews.
So how do we put this all together? What’s the take away? If you can drop your price lower to beat the competition and still profit, offer free shipping and get positively reviewed on well trafficked websites while building your trust as an online retailer, you’ll sell a lot of product.