eCommerce Lifestyle
Shares

Less is More

Shares

In today’s episode of the podcast, I talk about why offering less on your eCommerce store and in your promotions lead to more sales, more revenue, and more profit for your business.

If you have any questions or suggestions, please feel free to leave it in the comment section.

What's Covered in This Episode:

  • Promo that had good results

  • Experience with a top supplier
  • Why we build niche specific stores
  • Conditional logic
If you liked today’s show, please subscribe on iTunes to The eCommerce Lifestyle Podcast! The podcast is also available on all major podcast players including, Stitcher and Spotify.

Links From This Episode:

This podcast is also available in video form. Click ‘Play’ below to start watching. Make sure to subscribe to our YouTube Channel for weekly updates and insights!

Transcript

What's up everybody? Anton Kraly here from ecommercelifestyle.com, and welcome back to the podcast. If this is your first time listening, you should know that this show is designed to help eCommerce store owners to increase their revenue, automate their operations, and become the authority in their niche. We have brand new episodes that come out every single Monday and Thursday morning, and this show is on every major podcast player. So if you're not subscribed, just go to e-Commerce Lifestyle, find your podcast player of choice, click Subscribe, and you'll get notified every time we have a new episode come out. Now today's episode, I'm recording this on Monday morning, right after we just had a team call where we reviewed some numbers, and that just put this in my head.

It's something I've known for a long time, but sometimes slip up on. It was something that had been proven to be true yet again with a promotion we had last week. Specifically, what I want to talk about and hopefully help you with, is why offering less on your eCommerce store and in your promotions can and typically does lead to more sales, more revenue, and more profit for your business. I want to explain this a few different ways, because this applies to all different ways we do e-Commerce, all different parts of the business, but the way that it just reappeared in our business is, we had a promotion that ran last week, at the time I'm recording this. That promotion ran from Monday through Friday, a promotion that went out via email. Now, the promotion that we ran was for a product at a discounted price. That was it. That simple.

This is the normal price. This is the price you pay now. Five-day promo sent out via email. Did pretty good. Right? I'm happy with the results. Now the thing is, that same promotion we did maybe three or four months ago, but the last time we did it, three to four months ago, we had, "This is the product on sale. This is the normal price. This is your discounted price, and as a special incentive to have you buy this now we're going to include X, Y, and Z, and all of these extra things." Now back then when we did it, it did okay, and the thing is, that this time when we just did this promotion with only the money off, which by the way, same amount of money off, same exact purchase price, this time it did much better. About 25% better in terms of units sold. Obviously the profit was higher because there's not these extra costs for all these extra things that we included last time we did this promotion.

Why does this matter, and what can you take away from that? Well, whenever any of us, right, as business owners, we're thinking of, "Okay. This is going to be our promo for Labor Day, 4th of July, Cyber Monday, Black Friday," whatever it is, we start thinking as the business owner of how amazing can I make this actual offer? Let's just say you're selling stand-up paddleboards. Can I take 10% off all my stand-up paddleboards? Can I also include a paddle for the person purchasing? Can I also include an instructional video series on how to paddleboard the best? Can I include wax, or a rash guard, or what else can I do? You try to make this huge bundle of things to have the highest perceived value for your promotion.

Again, we do this too sometimes, but what we just realized, again, this has proven to be true so many times, is that by overdoing it, especially by really overwhelming the potential shopper, it actually leads to less people buying. Especially when they have things that they actually have to consider. So not just you're going to get a free paddle, because that of course, "Awesome. I'll take a free paddle." But the more you add on to it and the more that the consumer or the shopper actually has to evaluate the value of each additional piece, the harder it is for them to make that decision of should I just buy? So again, what we just saw is instead of having money off, plus all these things, it was only some money off. Some money off did about 25% better than everything else.

Reason is the person on the other end of the computer doesn't have to make as many decisions. They can simply say, "Oh, you know what? I wanted this product. Now it's on sale. Now is the time for me to purchase." So this is something I definitely want you to test and try in your business. Also, like I said, I want to show you some other ways that this holds true with e-commerce. Back in the day when I was first getting big, big, big into drop-shipping and really starting to have a sizeable business, I remember talking to, he was the owner at one of the top brands that I sold for, and most of the products that they made they made in black and white. We would occasionally have customers call us or email us and say, "Hey. Is this product available in whatever, brown, red, blue, other colors?"

So as I was talking to the business owner, I said, "Can we get these products in other colors," and he just said, "No. We're not doing that because if people really want this, they're going to choose black, they're going to choose white, and they are going to get one of them." I remember thinking, "Okay." Then I thought back to actually the Ford Model T about how customers can get it in whatever color they want as long as it's black, and it's basically what he was saying.

But the reason he said they're doing that is because they didn't want to be one of these companies that has a warehouse with millions and millions of dollars of inventory in it that they don't know if they can even sell, that's just sitting there for the occasional person that might want something in a different color, and it's something that would slow down their whole manufacturing process. It's something that would introduce all this extra work and extra storage fees is for the slight chance that somebody will only buy this thing if it's in that color.

Now, another lesson I learned from this company owner that was really helpful is, their whole company probably had, I don't know, 25 or 30 different SKUs, so 25 or 30 individual products where some of the brands have thousands. They literally have just nonstop products, on products, on products. I realized that we were selling more for his small collection of products rather than everybody else that had thousands of SKUs. Again, I asked him, "Why don't you expand your product line," and he said, "Because we do what we do. We make it really well, and if customers want it they buy it." I thought, "Okay, that makes sense." Again, less is more. You can have better products, you can have better offers, you cannot really confuse your own potential customers by giving them too many options.

Because even though people say they want all the options in the world, when those options are presented to them, it's much harder for them. This includes me. This is all of us. But it's much harder to make a purchase decision. So that was something that really stood out to me and I've implemented and used in our businesses over the years, and also another reason why less is more. You should know this if you're part of my company Drop Ship Lifestyle. If you're not, by the way, you should go check out dropshipwebinar.com. I'll link it up in the podcast description as well. But we build niche specific stores. Right? We sell one type of product per store.

The reason we do that is because, when in the past we built these shopping mall-type stores or general stores, what we noticed is, we get sales but the conversion rates are not great. Meaning, out of all the website visitors there's not that many people buying as a percentage. What we realized, again, this is going back like a decade ago, is when we build niche-specific stores selling one product type, we can get that conversion rate way up. Why? Because again, we are speaking to a certain type of customer. We are giving them what they're searching for, and less is more. We're not saying, "Hey. Check out this stand-up paddleboard, and by the way, do you want to add a baby stroller to your cart?" Right? We're giving them a tailored experience.

While that general store approach can work for giants like Amazon, I'm telling you, for most people if you're building your own eCommerce store, whether you're drop-shipping or not, niche specific is definitely the way to go. Another thing here. I just want to keep building on this because again, it shows itself and it just becomes true like in all different parts of our business. But when it comes to how we cross-sell, right, somebody's on one of our product pages, instead of just saying ... Let's use the paddleboard example. Instead of saying, "Okay, you're on this paddleboard page. It's a thousand dollars," and then showing, "Do you want to add a paddle for a hundred? Do you want to add a carrying case for a hundred? Do you want to add a car mount for a hundred? Do you want to add wax for 20?" Whatever it is.

Instead of having this page with all this stuff in their face, we use conditional logic for cross-selling. So they're on the page. They're seeing exactly what they want. We're not overwhelming them. Then if we do want to use cross-sales, we'll have very simply, "Would you like to add," let's say, "a paddle to your order?" They can go ahead and click yes, or they can click no. If they click yes, then with our conditional logic we'll have the next possible product show up. But we're walking them through a series of steps one by one, and we're presenting less to get more in sales or more in revenue. When you put everything in front of everybody at the same time, that's more decisions that they have to make right then. It's going to lead to more people leaving without buying.

One more example, and I think that will really drill the point home for everybody listening. Also, another thing we do on our eCommerce stores is try to make it so when people visit they can make as few clicks as possible to actually buy and complete their purchase. Now, this is something that I learned, or I guess I really started to focus on after I read an article about dell.com. This was years, and years, and years ago, but the article was something about how they got it down to two clicks or something like that. That people can go to their website and literally buy a product. Right? I got to pull that article up because it was a good read and it changed the way I thought about this. But their hypothesis was, it used to be you would go to dell.com. Maybe you would click on laptops.

Maybe you would click on this series of laptops. Then you would click on what size screen you want in that series of laptop. Then you would choose what CPU, and GPU, and RAM, and all these different things. It was like, again, I haven't read this article in years, but something like 10, 15, 20 clicks that people had to make before they can even actually buy from the website. So they focused on optimizing it to get it as quickly as possible. You can get to the website, get to the product page, get to your cart and be done, and have the item purchased. Again, less is more, especially when it comes to sales, and revenue, and conversions. So that's something we've also focused on heavily. Something I would recommend you do as well.

The final thing I'll say is, a lot of the normal way of thinking, right, that we all think is counterintuitive to how this actually works, and as business owners, as entrepreneurs, as marketers, we always want to just keep adding on, and adding on, and adding on. But just like in all these examples I just gave you, very often less is more, and I would highly encourage anybody out there listening to this that's running an eCommerce store, to internalize this, to start implementing it, and to see how the results come in, and let me know about it by the way.

If you implement this, and you get results you want to share, definitely go to ecommercelifestyle.com. Click on Contact, and share your story with me. I would love to hear it. Also, if you're listening to this and you're not running a store yet, be sure to go to dropshipwebinar.com. I'll link it up again in the description. You can get a free training from me there. That's it guys. I'm going to sign off. I'll be back on Thursday with a brand new episode. Be sure you're subscribed so you don't miss that one, and I will talk to you then. See you everybody.

>