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BizReport : Ecommerce archives : December 13, 2010

Why people are browsing but not buying online

When it comes to holiday shopping, many retailers expect a large amount of sales in the online arena. It's why they've developed ecommerce sites and link ads to websites. Still, a number of consumers will visit but not buy and once that impulse to buy has passed they may not visit your brick-and-mortar storefront even though an online product search pointed them to you.

by Kristina Knight

What can re- and e-tailers do to firm up interest and increase online conversions?

A recent study from Amadesa and TRUSTe sheds light on why consumers are interested enough to browse but not interested enough to buy. Their research finds that consumers aren't converting because the process requires too much personal information (73%) and because they aren't certain how their personal information will be used in the future (55%).

The study suggests that privacy concerns needs to be addressed straightaway by etailers - that means partnering with hubs such as TRUSTe which specialize in privacy. Along the same lines, investing in authenticated email address may be a good idea, too.

According to TRUSTe's records, consumer respond almost immediately to privacy emblems and logos. A wedding provider saw conversions increase 84% after having their site certified by TRUSTe, saw revenue increase 13% per website visit and shoppers were found to be 29% more likely to convert after a privacy seal was installed.

"Essentially [privacy seals are] one of numerous types of trust marks - visual emblems that inform shoppers an independent third party has verified a website meets established government and industry standards," was written in the report. "A 'privacy' trust mark...provides merchants, marketers, and publishers alike with the ability to quickly demonstrate a consumer-friendly online privacy policy."

The study further found:

• 79% increase in registrations per visit once a privacy seal was installed
• 74% increase in customer satisfaction
• 68% conversion rate increase

Tags: Amadesa, buying habits, ecommerce, ecommerce security, online security, online shopping, TRUSTe

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    This is the opposite of what I was concerned about. I assumed people would go to the store and look and touch the product then go online when they get home.

    So this also is good news for cash strapped states. Some retailers were taking tax deductions for their business expenses online, yet not paying taxes on interstate sales on the internet, such as ebay sales.

    If people are browsing online and buying locally, that is a small positive step in the right direction.

  • Gerry

    Nope, fail. Myself and I believe most anyone would totally give up their information but the deals are not there. Sure, you have Groupon, where something like 75% of their stores are spas and salons. Me, like most guys, will never buy something from one of those categories. Then you see a good restaurant deal, only to find out you have 2 months to use it and 1500 people bought it already. Turn-off.



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