One of the most interesting sectors worldwide is the online fashion industry. Large online pure players such as ASOS, Zalando and Boohoo.com are conquering the online world, but physical retailers such as Zara and JD Sports are not lagging behind. Yet fashion e-commerce remains a challenging business. Consumers must give up the choice to try on clothes and opt for a completely different experience. Due to the global pandemic, sales in the fashion industry have increased by 26.5%, making the choice between online or offline shopping that much easier for many consumers. Because consumers are forced to order online, the number of returns is also piling up. This is a problem for many organizations, as it often creates a lot of work and challenges at fulfillment centers. Is your organization ready for the increasing growth in fashion e-commerce? We will give you 5 success-determining KPIs in fashion e-commerce that you can get started with.
1. Conversion values
When you start selling in a new market as a retailer, you have to adjust your expectations to the local reality. The average conversion rate can vary greatly from country to country. A German retailer, who is used to the average conversion rate in Germany, cannot expect his Italian business to achieve the same conversion rate in no time. The average conversion rate in fashion e-commerce is currently 2.32%.
2. Bounce Rate
Many e-commerce companies put a lot of time and effort into generating traffic on their website. However, a lot of traffic does not always lead to more sales. If there is a difference between the visitor’s expectations and what they find on your landing page when they visit it, they will quickly leave your website again. The average bounce rate in fashion e-commerce is 51.64% (IRP/statistics 2021).
Tip: Invest in your website’s landing pages and make sure they match your visitors’ expectations. Keep in mind the preferences of your (local) audience, as well as the expectations you create for yourself when setting up the campaigns. Usability and content are the key to success!
3. Abandoned shopping carts
Consumers who do not complete their order and abandon their shopping cart is a familiar challenge for many online retailers. On average, 68.3% of shopping carts in fashion e-commerce are abandoned, the purchase is not completed and the consumer leaves the webshop. The main reason why the shopping cart is abandoned is during the checkout process, when the consumer realizes that the shipping costs are too high or that they had to create an account to complete the payment.
Tip: There are a number of factors you can take into account when organizing the checkout process to ensure that the consumer does not give up. Transparency is important! Make sure you are clear about shipping costs, shipping times and the total price at all times. Unwanted surprises will scare the consumer away.
Keep the ordering process simple. Make sure there is not too much information on one page and spread it out over several steps to lower the threshold for continuing with each step. Finally, make sure consumers can use the local payment methods they are accustomed to so they can complete their order quickly and with confidence.
4. Shipping costs and delivery options
Online fashion consumers all over the world greatly value free shipping; it is even one of the most important decision factors when ordering from a website. But delivery times also play a major role in this and customer expectations continue to increase sharply. The rise of same-day delivery is here to stay and even 37% of consumers worldwide indicate they are willing to pay extra for this delivery option. In order to meet the sky-high delivery expectations of your consumers, it is important that your (international) fulfillment process is in good order.
Tip: fulfillment should be one of the priorities in your (cross-border) e-commerce strategy. By weighing all the options for streamlining your deliveries and returns in foreign markets, you can easily reduce costs and promote efficiency.
Operating in a foreign market can bring many opportunities. However, each market has its own wants and needs and requires a different approach. An international fulfillment provider has all the knowledge and tools to help your organization expand internationally. Take advantage of the large network and ship locally, which allows you to ship more cheaply and quickly.
5. Customer loyalty (repeat buyers)
One thing is certain: customers will only return if their experience with your web store is good. Research even shows that 51% of consumers will never return if they have had a negative experience. It is therefore important to ensure that you offer your customers the perfect customer experience. Some factors that play a role in this are: user-friendliness, short delivery times, native customer service, transparent costs, a clear but simple returns service and, of course, easily accessible after-sales service. Invest enough time in improving the customer experience, because loyal customers are the most profitable!
Tip: Invest in a customer loyalty program. This will help you to bind more customers to your organization and ensure that they will make repeat purchases more often. It can motivate your customers to come back more often, to create an account or they may like it so much that they recommend it to other consumers. A win-win situation!
