B2C e-commerce website conversion rate of orders

Do e-commerce, there are three general ideas: the Internet, retail and supply chain.
The conversion rate is equivalent to the site experience, usually Internet origin designers or product managers, they place special emphasis on the visual effects of the site, interactive and friendly;
The e-commerce as a retail channel, generally do traditional retail background, they like to shop everywhere, such as settled in Lynx, patting, Dangdang, etc., and then regularly engage in some discount promotions;
Understanding eCommerce as a supply chain, typically Amazon, has no beauty in the interface design (albeit a good one), without a promotional atmosphere, just as a person alone chooses something in a large warehouse, but its supply chain Very done in place, highlighting the inventory of goods everywhere on the site, delivery time.

Which one should we choose? There is a principle, that is, the user conversion rate, that is, how many people after the user into the store pocket.
Whether the user ends up placing an order is a holistic experience. If the user does not know the website, and the first time he enters the discovery interface is very simple, he or she will naturally feel insecure. Therefore, we should pay attention to the visual style of the website.
If it is the old user, in fact, the interface is less concerned about the visual effects, more concerned about the purchase, the convenience of orders and category and logistics; So I think, Amazon is focused on the old users, my first single is my Know it two years later, used once I think it is my favorite e-commerce site. The reason why I did not buy a refrigerator above it, because I do not believe such a cold website will provide me with quick on-site installation services, so I chose Jingdong.

What should we strengthen the site? Depends on the user's demand point and the company's competitive advantage. Like Amazon, with its massive, sticky user base and its robust smart-run system (automated merchandising and stock replenishment), it minimizes operational costs and offers lower-cost services daily (without the need for a strong promotional atmosphere ), While the supply chain is the focus of attention of such loyal users.

In other ways, I will not start. The figure below is the core of the conversion rate.

Conversion rate is a comprehensive factor that needs the collaboration of various departments of the company. I believe many product managers are deeply frustrated: why did I upgrade my website so faithfully that the conversion rate rose by 0.5 percentage point? If the site's product prices generally increase 5%, or competitors suddenly cut prices by 8%, you see, your website conversion rate will drop much, if this happens to happen in the new version, you as a product manager, etc. Unjust, if your boss does not understand the map above.

After the website came online, design intuition as a product manager at that time was verified by operating data. At the same time, operational managers need to think about how to improve conversions.

In my opinion, operations manager = improve operational efficiency + increase conversion rate.

The first step in improving conversions is to monitor conversions. The first step in monitoring conversion rates is traffic segmentation, which breaks down in two main dimensions: traffic sources and traffic decay rates (purchase funnels).
The traffic source determines the quality of the traffic, that is, the user's needs flowing in and the relevance of the website product. If you are in a ALICE forum to promote mother and child users, conversion rate certainly appalling. If you promote Dangdang in a well-known blog, such as reading on the left bank, it is estimated that this conversion rate is good.
Traffic source is the first core factor in conversion rate.

When the user traffic subdivided, we should subdivide traffic, such as books B2C, take the search users and users who go the first page of the channel, the user behavior is completely different, one is a clear purchase intention of the active users, one is Passive users who have the desire to buy a book but do not have a clear purchase intention, for example, he has a 20 yuan coupon expiring soon, but I do not know what to buy. Such as the back of such users, you give him the book charts or book topics, he may start.

After subdividing traffic through both inbound and inbound traffic, you should begin to pay attention to its purchase decay rate, the abandonment rate at each step, and find out what is at its core. Such as shopping cart abandonment rate of 45%, because the registration resistance or just because of the shopping cart as a parity tool? For a user who purchases 10 books at a time, what really makes sense is comparing the prices of shopping carts for each book site rather than a single book. This depends on the user who has abandoned the shopping cart, how many clicks went to the checkout counter, because clicking "go to checkout counter" has a huge resistance: you need to register. This requires monitoring the click of "go cashier" traffic.

The figure below is a detailed indicator we need to monitor.

In fact, product manager and operations manager, are responsible for the same thing: website conversion rate. Before going online, the product manager designed the site based on intuition and qualitative analysis. After the site was online, operational data from the operations manager was more often used to quantitatively guide the further optimization of the site.
According to the above monitoring statistics to the data, we must begin from the traffic sources, landing pages, old and new users, these dimensions to weigh the design of the site. Such as Amazon, if 70% of the old users, site layout and visual style can not be a big move (or keep the old site entrance), because it will affect the browsing habits of old users.

Previously, I wrote two related innocent blog, may wish to refer to:
The Essence of E-commerce E-commerce Website Trust

Next time, let me talk about how to guide product design and operations from the perspective of user segmentation and user behavior.
Some superficial understanding of e-commerce, you can refer to my Sina microblogging: http://weibo.com/zwchen

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