Merchants Seeing Higher Conversions Through Price Comparisons
The use of online price comparisons is one of the most intriguing and compelling trends in e-commerce today. It is intriguing because the concept of displaying prices from competing businesses on your own website seems counterproductive to some merchants. But many retailers are attributing their rising conversion rates and increased revenues directly to the implementation of price-comparison tools, making for a very compelling argument in its favor.
This week’s newsletter will look at some of the latest information surrounding this hot topic, aimed at helping you decide whether a price-comparison platform is right for your e-commerce business.
There are two definitive facts about onsite comparative pricing: 1) consumers want it, and 2) a growing number of e-commerce retailers are providing it for them. Online shoppers are spending more time researching products and prices than ever before, and the use of price comparisons has become a successful tool for many retailers to keep customers from leaving their sites.
Giant e-tailers Amazon.com and Buy.com have implemented internally designed systems with proven success for several years now. Overstock.com, Tigerdirect.com, Backcountry.com, Hayneedle.com and hundreds of others are utilizing price-comparison platforms provided by companies like WinBuyer. In a recent case study performed on the sites of six users of its application, WinBuyer arrived at the following conclusions using a blind A/B test:
• The average order value increased by 3.2 percent on pages utilizing the price comparisons
• There was an average revenue lift of 4.9 percent on pages that applied onsite comparative pricing
• Total site revenues increased by 2 percent after implementing the comparisons
The data suggests that providing price comparisons to customers does more in the way of building confidence and loyalty than in driving shoppers to competing sites. “Since implementing WinBuyer’s comparison shopping application, we’ve seen higher conversion rates and an increase in repeat shoppers due to the greater customer confidence our users gain from the comparative pricing,” said Chris Smith, President of Aqua Superstore. “Users online today are already comparison shopping, so including comparative pricing on a retail website only helps.”
WinBuyer’s comparison suite can be implemented within just a few minutes to give customers the pricing information they desire, but it is essential to ensure that the information is always accurate and up to date. The trust a merchant hopes to gain by providing price comparisons can be lost immediately by posting false or inaccurate data.