5 eCommerce tips to increase sales during COVID-19
As the coronavirus temporarily pauses our physical interactions, many of us are turning to the digital world for entertainment, interaction, and an escape from reality. Below are five ways that 13 eCommerce leaders are using this shift to invest in long term growth during this complicated time. Read on for actionable tips to decrease your refund rate, acquire new customers, and grow sales.
With week over week eCommerce sales down 15.5% for apparel and accessories, the time for eCommerce marketers to test and diversify sales channels is now. (Source: Shipbob)
1. Invest in live streaming
In late January 2020, Chinese skincare brand Lin Qingxuan was hit hard by the coronavirus. Nearly 75% of the retailer’s sales came from physical retail locations before the outbreak, but those sales dropped by 95% in a matter of weeks. Lin Qingxuan CEO and founder Laichun Sun used Taobao Livestreaming to personally engage his customers on Valentine’s Day—instead of hiring influencers to advertise via live streams, as usual. Sun launched a large-scale live-stream shopping event with more than 100 of the retailer’s shopping advisors, in which he delivered a genuine message of reassurance to his viewers.
The effort was a success. The live stream attracted over 60,000 viewers, and the brand hit 400,000 RMB ($56,632) in sales – a 45% increase from the year before. Now, eCommerce sales account for 90% of the retailer’s business. A simple solution provided enormous relief to Lin Qingxuan’s pandemic panic.
Create a weekly calendar with planned live-streaming topics based on your audience’s interests.
How can you invest in a live-stream strategy to help your sales soar, even as physical retail locations face uncertainty? Live streaming is a unique way to demo products, highlight key personnel, and showcase your brand personality. Here are a few tips to get you started:
Choose one of these live-stream platforms to increase sales:
Create a weekly calendar with planned live-streaming topics based on your audience’s interests.
Promote your live stream via paid social media to boost your initial viewer numbers.
Schedule email and social media marketing before going live to promote the stream to your shoppers.
2. Donate products
During Laichun Sun’s successful live stream, the CEO announced that he was donating 1.38 million RMB ($195,381.63) worth of skincare products to medical workers on the frontlines of the pandemic in Wuhan, China. The products were a huge relief to the workers, whose skin was suffering due to wearing protective suits, masks, and goggles all day.
Chances are good that your company’s inventory can provide a source of relief to a group in need. Not only will you be helping those affected by the coronavirus, but your PR team can create a campaign around the donation that draws attention to your products—and amplifies your brand values.
Here are some more examples for inspiration:
Clove
Happy Returns customer Clove specializes in footwear for medical professionals on the frontline of healthcare. The retailer surprised Philadelphia’s Thomas Jefferson University Hospital with free sneakers for workers treating COVID-19 victims.
FIGS
Medical scrubs retailer FIGS committed to donating 30,000 scrubs over the next two months to hospitals that have been severely hit with COVID-19 patients.
Rothy’s
Happy Returns’ customer Rothy’s donated $20,000 to Direct Relief to provide protective masks, exam gloves, and isolation gowns to healthcare organizations. The shoe retailer created a fundraising Facebook page where customers can make their own donations and leave encouraging comments designed to illustrate that we’re all connected.
Everlane
Everlane—also a Happy Returns’ customer—announced that all profits from its “100% Human” campaign are going to Feeding America’s COVID-19 response fund. The generous donation drives site traffic while helping those in need.
3. Decrease refund rates
While returns are inevitable at any time, they’ll likely increase now that more shoppers can’t try clothes on before buying online. Decreasing refund rates is more important than ever.
Cuts Clothing doubled its exchange rate to 50% above the industry average after utilizing Happy Returns’ one-click exchange feature, which intelligently suggests new products to customers based on the return reason they provided.
Offering one-click exchanges is an effective way to decrease refund rates. Here are some other ways you can use returns to retain revenue and increase customer loyalty:
To help shoppers who are stuck at home, REVOLVE and Rothy’s have extended their return windows to 60 days, while Huckberry extended its policy to 90 days.
Draper James promotes its return policy to customers who have abandoned their carts as an effective win-back strategy, to help them feel comfortable purchasing during this uncertain season.
4. Turn employees into influencers
Chinese sportswear giant Anta was forced to shutter 60% of its brick-and-mortar stores and turn to online marketing efforts due to COVID-19. To adjust to the change, the retailer is offering commissions to workers who sell products to family and friends online. Each employee gets WeChat QR codes that customers scan during purchase, which trace the sale back to the worker-turned-influencer who deserves the commission.
For those who want to fully utilize their associates during the coronavirus, or for any eCommerce retailer with employees looking to increase their earnings, consider adopting this incentive-based social media referral campaign. Here are two more examples:
China’s largest underwear retailer, Cosmo Lady, launched a similar WeChat program recently. In order to motivate the staff to participate, Cosmo Lady developed a sales ranking among all employees that even includes the company’s CEO.
Swimwear startup Summersalt recently launched Joycast, a text message hotline in which employees provide emotional support via things like guided meditations and puppy videos.
5. Emphasize gift cards
Digital small business lender Kabbage has launched a service that helps retailers sell gift cards to use at their locations when the pandemic ends. The retailer receives the revenue within one business day, during a time when they need it most. Meanwhile, Shopify enabled its gift card feature on all of its plans indefinitely, so that communities have another way to support small businesses.
Once you’re set up, tell your existing customers that the gift cards are a great way for them to continue supporting your business while they’re staying safe at home. Below are some tips to get you started:
Email your customer list to notify them of changes to your operations and services. Inform them that gift cards help support your business through this time, even if they don’t need your products or services right away.
Stay active on your social media accounts to connect with customers; it's more important than ever that they hear from you. Check in on how they’re doing, let them know how you are, and remind them that gift cards are one of the best ways to show support.
Reach out to your local community through online channels, such as groups and forums, or to local Facebook pages and influencers. Small businesses are a staple of our communities, and people, especially loyal customers, want to rally around their favorite shops. Many communities are even organizing spreadsheets and directories, so customers can quickly find and support small businesses in their area.
Promoting gift card purchases helps eCommerce retailers boost online sales and increase customer loyalty. Plus, there’s not a big impact to your supply chain – an important consideration as COVID-19 slows everything down.
eCommerce retailers have an opportunity to increase customer loyalty and lifetime value through initiatives that drive growth, even in these uncertain times.
We look forward to hearing which of these creative ways best engage your customers and drive growth while we get through COVID-19 together. I wish you, your family, and your team the best of health and happiness in this unprecedented time.
Joelle Ayala
Senior Manager of Growth Marketing
Joelle Ayala is the Senior Manager of Growth Marketing at Happy Returns. With over a decade of experience in B2C and B2B eCommerce marketing, you can find Joelle collaborating with other eCommerce marketing leaders on LinkedIn. To get more tips and eCommerce growth hacks on how you can retain revenue and increase your customer lifetime-value, sign up for our blog newsletter below.
