Increase your eBay conversion rate by up to 60%
Wiser is a dynamic pricing and merchandising engine that monitors, analyzes, and reprices retail products in real-time. Wiser enables retailers to boost profit margins and revenue, price with confidence, and improve merchandising through a sound pricing strategy. Today Angelica Valentine from Wiser breaks down the latest eBay analytics and what they mean for merchants with real numbers on how simple changes can increase your conversion rates
Since eBay was founded in 1995 as AuctionWeb by Pierre Omidyar, it has improved and grown substantially. It now sells much more than broken laser pointers (fun fact: this was the first item ever sold on eBay) and its customer base keeps on expanding. In 2013 eBay had over 128 million active users, a figure that includes those who have bid, bought, listed or sold an item within the last year. In Q4 of 2013 alone, it added 4.6 million users.
Why eBay is a Top Marketplace
eBay accounts for 19% of the global ecommerce market and and its recent metrics prove that it has come a long way since its humble beginnings. Last year eBay’s net profit grew 9% to $2.86 billion. Between 2012 and 2013 net revenue and sales increased by more than 13% to $4.5 billion and $76 billion, respectively. Mobile is also on the rise, as eBay Marketplace sold $22 billion via mobile in 2013. If you can believe it, worldwide marketplace users trade $2,642 worth of goods every second. With all of these impressive numbers, you must be wondering how can you get your fair share of sales on this growing marketplace.
The answer is not as complex as you might think: it comes down to effective selling and pricing strategies.
Sales Depend on Shipping
Fast and free shipping are ways to increase conversions, in fact 55% of transactions on eBay included free shipping between October and December 2013. Also, eBay merchants who offer free shipping see a 60% improvement in conversion rates. Not too shabby, right?
Sometimes free shipping doesn’t quite make sense, based on the type of item and where it’s headed. Luckily, fast handling is another effective incentive. Sellers who offer handling within 24 hours see a 46% better conversion rate. Shipping in the other direction for returns can get complicated, but sellers that have a 30-day return policy have a 19% boost in conversion rates. Shipping is a tricky part of online retail, but great policies can reduce the odds of a shopper traveling to a bricks and mortar store to get the product faster…. or simply buying from your competitor who can ship faster.
Provide More to Sell More
Other factors that eBay customers value are detailed product descriptions and additional photos. By providing subtitles in the product description, eBay sellers were able to increase page views by 26%. And to cater to the more visually inclined, include a second picture to increase your chance of selling by 7%.
What This Means for Sellers
eBay’s sustained growth presents a great opportunity for sellers. With more users comes more competition and more reasons to implement an effective pricing strategy.
Know of any other strategies that are great for eBay? Feel free to comment with your suggestions.