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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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