In the early days of internet retail, the promise of reaching a global audience and offering a vast array of products at unbeatable prices was alluring. However, the reality of this concept is often lost in translation. Can you visualize a worldwide audience? Can you imagine thousands of products beyond the image of boxes stacked high in a warehouse? Even if you can, your customers likely can't. The truth is, offering a multitude of products to an anonymous audience often results in lackluster sales. This article will explore the common mistakes made in online retail and provide insights on how to create an effective online merchandising strategy.
Many intelligent individuals continue to make the same mistakes in online retail, often blaming the internet for their lack of sales. As the old adage goes, those who fail to learn from the past are doomed to repeat it. This is particularly true in the realm of internet retail. However, understanding these pitfalls can unlock opportunities for success. To do this, we must consider the experience of a physical retail store and how its design introduces customers to products.
If you've ever shopped for clothing in the United States, you're likely familiar with the layout of a successful retail system. Retailers have spent years perfecting the placement of products to optimize sales. For instance, upon entering a clothing store, you're typically greeted with an open space before encountering any products. This design is intentional and based on years of consumer behavior research.
Retailers found that customers entering a store needed a moment to adjust from the hustle and bustle of the outside world. This open space serves as a welcoming area, allowing customers to orient themselves without feeling overwhelmed. Additionally, customers who did stop to browse were often irritated by the commotion of other shoppers.
Retailers also discovered that featuring a single product line at the end of this entry path effectively introduced customers to the buying process. For example, upon entering a Men's Wearhouse, you might see a selection of ties. These ties serve as a lead product, guiding customers towards purchasing a suit that matches the tie. This strategy of starting the buying process with a small, low-priced product (i.e., a lead item) has proven effective in guiding customers towards larger purchases.
Imagine if you could apply these retail strategies to your online storefront. Instead of a physical store, you have a webpage serving as your entry point. Unfortunately, many online retailers make the mistake of overcrowding this page with products, forcing all visitors to navigate through this cluttered entry point to access the site.
Customers visit your online store for various reasons - seasonal shopping, special occasions, or simply to browse. Each of these customers desires a specific entry point, a webpage featuring a specific product that introduces them to your offerings.
You have the choice to follow the crowd and risk failure, or to create a welcoming entry point that encourages your customers to make a purchase. By applying the proven strategies of physical retail to your online storefront, you can guide your customers towards specific products, just as Men's Wearhouse guided me towards a tie, ultimately leading to the purchase of an entire suit.
In conclusion, the secret to successful online merchandising lies in understanding and applying the strategies of physical retail. By focusing on a specific product and creating a welcoming environment, you can guide your customers towards making immediate purchases.
