MANILA, Philippines — The growing demands for online shopping present great opportunities for eCommerce sellers, but navigating the ever-changing landscape requires a keen sense of direction and a compass to guide their decisions. In this digital world, that compass is built on one key element: data.
Mastering data helps online sellers make better business decisions and create personalized offers, a proven advantage. Oracle reports that 65% of shoppers surveyed said tailored offers and incentives are the most significant aspects of their shopping experience.
Most significantly, the report by Netcore shows 98% of online retailers saw increased average order value with personalization strategies.
For Lazada sellers, there are various ways that they can easily leverage the power of data by using the resources available on the platform.
Lazada’s surveys found that customer stickiness and retention was most likely with a wider product assortment, competitive pricing, convenience and personalized experiences. The LSS report showed that 94% of shoppers use Lazada’s search function to discover and purchase products, with 71% buying items through personalized ‘Recommendations’ features.
Decoding online store performance
Success in eCommerce is not simply about how many products are sold. Many online sellers have faced one common pitfall of breaking new sales records yet still experience business losses.
It is therefore crucial to conduct a business checkup to understand how online stores are performing to find the most effective optimization approach, just like having an annual health check to identify which health issue is the most pressing concern that requires immediate treatment.
The key to understand an online store’s performance is GMV (Gross Merchandise Value). The formula is simple: GMV = Traffic x Conversion x Average revenue per buyer.
Having visibility of each element that makes up GMV allows sellers to identify the areas which need to be improved. Today, sellers can leverage various data analytics tools that eCommerce platforms offer.
For sellers on Lazada, a leading eCommerce platform in Southeast Asia, they can use these tools and features on Lazada Seller Center to track performance metrics, analyze customer behavior and refine selling strategies.
Maximizing what matters
Recognizing that each online store has their own business goals they set to achieve or challenges they set to tackle, Lazada offers a full suite of tools to support sellers in different stages of their eCommerce journey, from online newbies, rising brands that aim to reach a more diverse audience to established stores that need to reconnect with their previous buyers.
- Traffic: Ensuring that products being seen by a large number of buyers and driving traffic to online stores can be done through product displays in prominent places on and off platforms. Lazada sellers can utilize Lazada Sponsored Solutions to boost product visibility when shoppers search for relevant keywords.
They can also leverage Lazada’s network of Sponsored Affiliates to reach a wider audience outside of the platform.
- Conversion: Highlighting the unique value of price offerings can help turn product visibility or store traffic into purchases. Lazada’s data analytics tools allow sellers to identify competitive pricing for both normal days and during campaign period.
Coupons, from discounts to free shipping offers, and limited time deals are also highly effective tools for driving shoppers to check out the orders in their cart.
- Average revenue per buyer: Once shoppers are there browsing the products or stores, it is a great sales opportunity to encourage them to buy other relevant items that may not be on their initial shopping list.
Providing promotions, such as Flexi Combo or Add on Deals, or setting the minimum spending condition for store coupons are effective mechanics for increasing the basket size. Additionally, LazCoins and store loyalty programs can help increase purchase frequency among existing buyers.
Turning data into business actions
Apart from adopting a wide range of tech-enabled tools, eCommerce sellers wishing to dig deeper into their online store performance can leverage available metrics provided by platforms. Lazada sellers can rely on data on Lazada Business Advisor to extract insights and analysis for smarter business decisions.
Here are the five tips on how to get the best of Lazada Business Advisor
- Get on top of the overall store performance quickly by checking real-time traffic and sales data on the dashboard.
- Deep dive into product analysis to identify the hero and underperforming products and create a better gauge on the products or categories that need prioritization.
- Understand major sources of traffic and identify the most efficient channel that drives the highest conversion.
- Analyze promotion performances and leverage the most suitable platform opportunities to grow your business.
- Evaluate customer service performance from chat response rate and time.
The ever-evolving world of eCommerce can be daunting, but with the right tools and strategies, sellers can navigate it with confidence. By harnessing the power of data, sellers can make informed decisions, optimize online store performance and achieve long-term success. Data is your compass—use it to chart a course towards a flourishing eCommerce business.
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Editor’s Note: This press release is sponsored by Lazada. It is published by the Advertising Content Team that is independent from our Editorial Newsroom.