Friday, November 4, 2011

Site Testing Works, According to 38% Of E-Commerce Merchants

According to Get Elastic's Linda Bustos, only 38% of e-commerce merchants reported A/B testing of their website design as "effective," in a survey done by Forrester Research. This despite the constant proclamations of e-commerce experts and bloggers about the importance and effectiveness of site testing.

In her article, Bustos shares some reasons why some e-retailers feel that site testing is not as effective as it should be.

1. High expectations. According to Bustos, a conversion lift of 3% is good enough to start with. This can also mean a "pretty good existing process." Do not fixate your sights on that double-digit.

2. Testing the wrong things. For radical results, you need to target radical changes. Bustos suggests supplementing analytics data with user testing (it does not have to be a lot of testers) to create your hypothesis will help you keep track and test the conversion elements that prove to have the most impact. If you focus on one field at a time or make too minor changes, you will end up with insignificant test differentials.

3. Non-usability and cart abandonment. Cart abandonment is not just about the e-commerce site checkout page design. Other factors include "value propositions, creating urgency and supporting multi-visit conversions with persistent carts."

Remember that one inconclusive test does not mean that site testing is a failure. Even if you feel that the testing produced insignificant change, think of it as valuable information that answers your hypothesis. Bustos reminds e-commerce merchants that the key is to adjust strategy based on the results of your test and to "never stop testing."


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Thursday, November 3, 2011

E-Commerce News: Black Friday Is Coming Early


Major e-commerce merchants are wasting no time. With still a full month before Black Friday, Amazon.com Inc. and Overstock are already jumping in on the post-Thanksgiving shopping bandwagon.

In a report for the Internet Retailer by Allison Enright, Amazon announced its Black Friday Deals store (amazon.com/blackfriday) where customers can find deals such as a 15% discount on an LG TV, two-for-one video game deals and other discounts. Amazon also announced a Black Friday Deals Week which will begin on Thanksgiving week. The leading e-retailer (according to Internet Retailer's Top 500 guide) will offer more discounts on that week. This early start has attracted the interest of early bird buyers and those who are starting to plan their Thanksgiving shopping lists. Experian Hitwise, a firm that monitors web traffic, reported that traffic to top e-commerce sites was up 10% year over year for the week ending last October 23. The firm added that 47% of all searches for "Black Friday" included the retailer's name ("Black Friday, Amazon"). Not surprisingly, Amazon was the number 1 most trafficked e-commerce site during Black Friday last year.

Not to be outdone, Overstock is also making an early play for Black Friday shoppers. The online retail giant announced that customers can get a free 60-day trial membership to Club O which is the company's rewards program. Membership gives customers free shipping and 5% of the cost of purchases as a credit for future purchases. This means that those who sign up now will get the credits and the free shipping benefit through the Holidays. Those who don't cancel after 60 days will be charged $19.95 for one year's worth of membership. Additionally, Overstock is also running a Pre-Black Friday Sale on its site and a Black Friday contest on its Facebook account.


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