Reviews in e-commerce are an essential feature of e-commerce websites. E-commerce, best understood as commercial transactions done across the internet, has experienced steady growth over the past few years. The increasing penetration and reducing internet costs in developed and developing countries have contributed to this continued growth. Recent estimates suggest that e-commerce’s share of global retail trade rose from 14% in 2019 to about 17% in 2020. In addition, recent studies indicate that there will be 2.14 billion international digital buyers in 2021. This is out of an estimated 7.87 billion people. Due to the COVID-19 pandemic, more and more businesses have opted to invest in purchasing their goods and services online. This is why companies that intend to transact online should always include the reviews and ratings on their websites.
The client is always king. Reviews in e-commerce are vital in understanding clients’ needs and preferences. Reviews in e-commerce are the easiest way to get direct feedback from clients that guide any alterations or improvements, if necessary. Non-innovation is a death sentence for many businesses. Client feedback helps companies understand why their product or service isn’t achieving the desired sales. This best applies to vendor-specific and seller specific single brand e-commerce websites. Such companies directly control the products or services sold on their website.
In addition, businesses quickly gain insight into what drives their brand loyalty. Reviews in e-commerce quickly provide consumer data that is later analyzed to develop business strategies. It helps companies to define their unique selling position. Furthermore, it enables businesses to gain new knowledge on possible market gaps through the client queries and innovate accordingly.
Online multiple seller marketplaces have become increasingly common today. Etsy, Jiji and eBay are examples of modern-day multiple seller marketplaces. They have simplified the overall nature of commerce by eliminating distance barriers to commercial transactions. Unfortunately, false and fraudulent advertising is a common feature in such websites. This is where vendors display non-existent goods, commonly referred to as fake listings, or exaggerate the performance of the listed goods. This has created the necessity for client reviews and ratings on these e-commerce websites. In addition, it enables companies to easily track and flag fraudulent sellers and, in some instances, buyers.
Over the years, false advertising has cost the biggest brands millions of dollars. Dependent on the laws of individual countries, online marketplaces are liable to any losses to vendors due to false advertising and fake listings. Although often online marketplaces are referred to as third-party sellers and therefore not liable to any client losses, client reviews in e-commerce are still essential in preventing lawsuits that may cost businesses millions of dollars.
The primary goal of all businesses is profit. Therefore, enterprises apply all the necessary marketing techniques to increase their client base as quickly as possible. The longer the length of time needed to understand your product or service, the lower the chances of conversion. This is where the reviews in e-commerce step in. One study concluded that 82% of those who read online reviews specifically seek out negative reviews. I know that stat raises eyebrows. However, it is not all doom and gloom. Research also indicates that users spend five times as long on sites when interacting with negative reviews, with an 85% increase in conversion rate.
Allow me to explain briefly. When clients decide to buy a product or service, they need to understand its pros and cons. They spend a lot of time searching for this information to determine whether the product will meet their individual needs and preferences. Reviews in e-commerce hasten this process. Both the negative and positive reviews carry equal weight. In addition, they are readily available in the same place. So do not fear negative reviews. They may be just what your e-commerce website needs to drive business growth.
When companies develop websites, they hope that their web page appears on the first page on Google. For example, if you are based in Kenya and have an online store that sells shoes, the intention is that when a potential client types shoes in Kenya on the Google search bar, your website appears on page one. Reviews in e-commerce are vital in achieving this goal. Clients will often use the keywords “shoes in Kenya” in their reviews. In addition, thoughts are rarely similar; therefore, it is new content on your website with similar keywords. This helps the Google algorithm easily recognize and understand the nature of your business. Once Google has understood your business entirely, it continually improves your business rankings on its search engine.
At Softlink Options, we offer the most effective digital solutions that best meet your needs and preferences. CONTACT US as we work together to ease the nature of commercial transactions.