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eCommerce Guide

Preparing for the Holidays

For experienced online merchants, it’s always a good idea to look back on last year and assess how your holiday sales went, what worked and what didn’t. Is there a particular product that you need to stock more of? Was there a glitch in your shipping system? Do you need to hire more people temporarily to help you handle the increased sales volume?

It’s also helpful to look at the new strategies you implemented during the first part of 2012. If something brought you an increase in sales, visits or conversions, you might want to consider adapting it for the holiday season.

For merchants new to eCommerce, it’s important to gather as much eCommerce knowledge as possible, using resources that work best for you. A great place for tips is the Magento Go blog1 or its webinars2. Studying other merchants is also a good way to gather additional ideas. Is there one you’d like to emulate? Determine which strategies would work for your business and which you are able to execute. You’ll be introduced below to some best practices that you can start implementing now.

From promotions to shipping, to managing customer relationships, here are some tips to help get you started and prepared for this year’s major shopping season.

Most eCommerce merchants often start planning way in advance for the holiday season to be ready for the shopping influx to come during the holidays and increase their opportunity to capture more sales. Whether you’re new to eCommerce or a seasoned online merchant, it’s still not too

late to start planning to ensure you provide a great shopping experience for your customers that translate into a prosperous selling period for your business.

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TABLE OF CONTENTS Page

12 Holiday Sales Strategies .................................................................................................................................................... 3

eCommerce Shipping Guide .................................................................................................................................................. 5

10 Holiday Email Marketing Tips ......................................................................................................................................... 7

Cyber Frenzy .............................................................................................................................................................................. 8

Appendix .................................................................................................................................................................................... 9

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12 HOLIDAYSALES STRATEGIES

1. Don’t Make Your Shoppers Guess What’s in the BoxLet your shoppers know exactly what they’re getting. Write clear descriptions, include comprehensive product images or videos, and tell them what comes with the items they’re buying. For instance, if you sell toys, are batteries included?

2. Make it Easy to Buy and CheckoutMake sure there are no glitches in your cart and that customers know exactly where they are in the process. The fewer checkout windows the better when you’re trying to complete a sale. Clearly outline your shipping options, and be specific about when you ship; state, for example, “We ship your item within 24 hours.”

3. Don’t Make Them Ask TwiceRespond quickly to customer questions. It’ll help you close a sale faster and increase conversion, since shoppers who get their questions answered quickly are more likely to purchase. During the holidays, customers often want to get their shopping done as fast as possible. If you wait too long, you might lose the sale. Buyers may also be testing your response time as an indicator of what it would be like to do business with you. You can save time by creating a library of simple email replies for your most common answers and creating a page of frequently asked questions.

4. Make it Easy to Give BackA good return policy, money-back guarantee, or warranty service can make buyers feel more confident, especially when they’re purchasing a gift for someone else. eBay Consumer Research has found that 21% of nonbuyers cite “lack of return policy” as the reason they buy elsewhere.” That same research shows that even with a liberal policy, actual returns are usually few. Clearly state your return policy and communicate it using positive language. Oftentimes merchants scare off customers by giving them a laundry list of terms they must follow…or else. Say “We’d be happy to give you a refund for unopened items” as opposed to “If a box is opened, we will not honor your refund.”

5. Become the One-Stop ShopTurn your web storefront into a one-stop shopping destination. Hold a sale and drive multiple purchases by cross-promoting. Create gift baskets of complementary products and create a category for them. Make gift buying easy by offering Wish Lists and e-Gift Cards. Make sure they’re clearly displayed on your home page. Offer gift wrapping.

6. Heavily Promote Your Gift CardsAnd allow for later shipping deadlines on those items. Gift cards are a last-minute shopper’s saving grace. It’s quick and easy, and if they can still buy one on December 23 for a Christmas Eve arrival, it may be their last chance and an extra sale for you.

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7. Extend Your Returns WindowConsider accepting returns until at least the end of January so that gift recipients can return gifts easily. For instance, if your window is usually two weeks, you may want to give customers a few more weeks to account for the holidays.

8. Offer a Deep Last-minute DiscountUse promotions to attract last-minute shoppers eager to buy, and they’ll remember you for next year. Offer a percent off discount, create a two-for-one promotion, or give a special gift with purchase. It will also help you move holiday inventory.

9. Cross-sell and Up-sellWhen people look for gifts, they often find items that are not quite right. Make it easy for them by showing them similar products, complementary items or a more premium model. It may just give them the push they need to buy that perfect gift.

10. Offer a Free Gift with PurchaseConsider this old retail trick that brick and mortar stores often use during the holidays. Online shoppers usually have three or four storefronts open on their desktop, so a free gift might encourage them to choose your store if they’ll get a bit more for their money. You may even be able to incorporate this at little or no cost, especially if your vendors are used to doing holiday promotions and agree to supply the free merchandise.

11. Be a Holiday HeroA favor done for a panicking holiday shopper could bring you a customer for life. As those shipping deadlines loom and inventory decreases, ask customers who call with unusual requests how you can help them solve their gift-giving problems. If you go the extra mile, shoppers will remember that holiday spirit.

12. Have a Backup PlanHoliday sales are still at their height, and things can go wrong – a snowstorm disrupts your shipping schedule, an employee calls in sick, or you run out of inventory. Troubleshoot those possibilities before they happen so that you have a game plan to keep up with your shoppers.

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eCOMMERCESHIPPING GUIDE

Much of holiday sales is focused on shipping. Not only can smooth shipping policies help increase sales and conversion, but effective management can also help you lower costs and improve your bottom line.

Increase Sales, Offer Free ShippingMany shoppers do their research online but buy at their local brick & mortar because they don’t want to pay for shipping. Free shipping is a big draw, especially during the winter shopping season, so consider offering your shoppers this holiday bonus. At the very least, offer reasonable shipping rates.

Post Your Holiday DeadlinesUSPS has yet to release its holiday shipping deadlines, but when they do, make sure your customers know the latest they can order to ensure that their holiday packages arrive on time, whether they celebrate Christmas, Hanukkah, Kwanzaa or New Year’s Day.

Stock Up on Supplies Make sure you have everything you need – boxes, mailers, tape, bubble wrap, postage. If you run out, you could waste a lot of time and money trying to locate more

Get Your Shipping System in PlaceWhether you use USPS, FedEx, UPS or another shipping company, it’s important that you have your shipping process running smoothly before the holidays hit. If shoppers catch you unprepared come December, it could be difficult to fix any problems quickly. Multicarrier online shipping software, like ShipWorks3 can help streamline your process and save you time so you can concentrate on your selling strategy. ShipWorks downloads your orders and makes it easy to create shipping labels, manage customers and emails, and update the online status of each order.

Save Time and Money, Ship OnlineSave on postage when you use the U.S. Postal Service’s online services. Not only do you save money, but you also save time. Just order free Priority Mail4 and Express Mail5 supplies from USPS.com6, and they’ll be delivered right to your door. You can create labels, pay postage by credit card, and even purchase insurance online. Then let the USPS know your packages are ready, and your mail carrier will pick them up. Afterwards you can easily view your shipping history.

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Remember, priority mail ships at a flat rate, so no matter how heavy your items, you can ship whatever can fit in one box for one price.

If you need a more robust shipping system, an online service DYMO Endicia7 or Pitney Bowes8 can help make your back-end more efficient and cost-effective.

Update Your Shipping TableIf you’ve relocated your warehouse or expanded your shipping locations, don’t forget to update your shipping table. If you haven’t done so before, table rate shipping lets you calculate shipping rates based on a combination of several conditions. The rate can be based on weight vs. destination, price vs. destination, or number of times vs. destination. Most importantly, setting up a shipping table allows you to provide the best rates to your customers.

Print Once with PayPal Multiorder ShippingPrint up to 50 domestic USPS shipping labels at one time, complete with postage, right from your PayPal9 account. You pay postage costs, but the service is free.

If you also use the USPS SCAN form10, postal employees can scan the bar codes for every package in your shipment at once. You and your customers are then able to use USPS’ Track & Confirm11 tool to verify that a package was actually sent.

Join in National Free Shipping DayFree Shipping Day12 this year is December 17, when more than 2,000 merchants offer free shipping with delivery by Christmas Eve. Join them to stay competitive.

Attract the Last-Minute ShopperOffer expedited shipping options during the two weeks before Christmas (when traditional retail stores do the most business), so buyers feel comfortable doing their last-minute shopping with you.

Ship as Fast as SantaYou may not have a lightning fast reindeer-led sleigh, but you are able to ship within 24 hours of an order. When people have to get their gifts in time for the holidays, speediness is imperative if you want to grow a happy and loyal customer base.

Subscribe to Delay AlertsSome shipping providers email notifications of any weather delays that affect your delivery dates. If you get the information early, you can adjust your schedule before one of your shoppers has a gift-giving fiasco.

Get the Most Out of Your Shipping ProvidersIf you offer multiple shipping providers, determine which ones your customers are using the most and find out if there are special discount programs those providers offer to merchants or even ask for a better rate and pass on the savings to your customers. If only a few shoppers are using a certain service, you might want to consider removing them to reduce your operating costs. Before doing so, review the sales volume processed via those providers to make sure it makes sense to remove.

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10 HOLIDAYEMAIL MARKETING TIPS

1. Get a Head StartNow is the perfect time to get a head start on your marketing strategy for the holiday season, especially when it comes to your emails and newsletters. Plan now so that come November, you’ll know just how to reach your customers.

2. Create a Holiday-Themed Navigation in Your EmailIt gives you the chance to feature holiday gifts, shipping deadlines, and your holiday return policy. Direct shoppers to your most important products and categories.

3. Give Shoppers Links to Categories Defined by Price or Gift RecipientIf they’re looking for gifts for the “Dad,” “Toddler” or “Runner” in their lives, they can easily browse your recommendations. Also include a shop by price navigation so shoppers can easily find gifts within their price range, whether it’s high or low.

4. Offer Shoppers Gift RecommendationsCreate a page to feature your top-rated products or your “Staff Picks.”

5. Create a Catchy Email FooterYou can include important key promotions and holiday information, like shipping deadlines, wish lists, gift cards or customer service information.

6. Don’t Clutter Your Shoppers’ Inboxes with Over-Frequent EmailsIf you want to email shoppers twice within a short period of time, consider targeting the ones who opened your email but did not click through or people who clicked but did not purchase. That way, your email list is more focused.

7. Create an Exciting PromotionA countdown promotion or a flash sale can infuse energy into your site. Some merchants even ask their shoppers to subscribe to a “Deal of the Day” email where they deeply discount one product a day. Be sure to send the email at a time that your shoppers have enough time to open it and still participate in the sale.

8. Encourage People to Follow You on Your Social NetworksHave them like you on Facebook13 and follow you on Twitter14 by offering them Facebook- or Twitter-only discounts throughout the holidays.

9. Create Emails that Encourage Shoppers to Use Your Mobile ProductsGet them to sign up for mobile alerts, download your mobile app, or check out your mobile-optimized web-site so that you can more fully engage with them in real time during the active shopping season.

10. Send a Holiday CardIt could just be a classy thank you note. Some merchants also offer a holiday gift in the email card, like free shipping or a 30% discount.If you’re approaching a holiday shipping deadline, send shoppers an

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CYBERFRENZY

email telling them it’s their last day to buy.

Not all holiday selling days are created equal, and to be most profitable and stay competitive, you need to have a solid eCommerce marketing strategy that’s timed right.

Black Friday & Cyber MondayIf you have a special store event planned for Black Friday, the day after Thanksgiving. If so, consider extend-ing it past the weekend. Contrary to popular belief, the year’s biggest shopping day is not Friday, but Monday. That’s when most online retailers launch their promotions, and the online gift-buying season goes into full swing.

According to the The New York Times15, “The name Cyber Monday grew out of the observation that millions of otherwise productive working Americans, fresh off a Thanksgiving weekend of window shopping, were returning to high-speed Internet connections at work Monday and buying what they liked.”

Last year, Cyber Monday lured a record number of online shoppers, leading to a 33 percent jump in U.S. sales compared with the Monday after Thanksgiving in 2010, according to an IBM report16. Consumers also spent an average of 2.6 percent more in 2011 than they did in 2010.

An increasing number of people are also using mobile devices to purchase online. 10.8 percent of shoppers used a mobile device to visit a retailer’s website on Cyber Monday 2011, up from 3.9 percent in 2010. Mobile sales also grew from 2.3 percent in 2010 to 6.6 percent in 2011.

Incidentally, peak shopping time was 11:05am PST/2:05 EST, according to the IBM report. Online shoppers were also active during commuting hours.

Attract those Cyber Monday shoppers by holding a sale or running a promotion. Notify your loyal customers through a marketing email. And don’t forget to upsell and cross-sell.

Preparing for the holidays can be overwhelming for even the best eCommerce merchants. Don’t feel like you have to implement every single tip on this list. Start by incorporating a few from each category. Take into account what you sell and who your customer is, and choose the tips that are the most relevant, important or doable for your business. It’s also important to consider other to-do items that may not have been mentioned here but are important to your particular goals. You can then adjust and add to your holiday plan as the season evolves and further improve your holiday traffic, sales and conversion rates. 8

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Appendix

1. http://go.magento.com/blog/

2. http://go.magento.com/webinars/

3. http://www.shipworks.com/

4. http://www.usps.com/shipping/prioritymail.htm

5. http://www.usps.com/shipping/expressmail.htm

6. www.USPS.com

7. http://www.endicia.com/

8. http://www.pb.com/

9. https://www.paypal.com/us/cgi-bin/webscr?cmd=xpt/Marketing/shipping/Center-outside&bn_r=m

10. http://www.usps.com/clicknship/scan-form.htm

11. http://www.usps.com/shipping/trackandconfirm.htm

12. http://www.freeshippingday.com/

13. http://facebook.com/

14. http://twitter.com/

15. http://www.nytimes.com/2011/11/29/technology/cyber-monday-sales-give-retailers-a-holiday-shop-ping-boost.html?pagewanted=all

16. http://www.coremetrics.com/solutions/thankyou_cybermonday11.php?cm_mmc=holiday2011-bench-mark-reports-_-cyber-monday-_-wire-pr-textlink-_-pdf