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5 Strategies to Reduce Customer Attrition to Other Marketplaces

With Amazon taking the top spot for the most popular online marketplace with its one-stop-shop approach, it has become increasingly difficult for eCommerce stores to retain customers and keep them shopping on their site. However, it’s important to note that selling with Amazon is a great way to increase reach, discoverability, and social proof. To help brands save on fees and keep customers purchasing directly through them, we’ve summarised 5 strategies to reduce customer attrition to other marketplaces.

Why do customers choose Amazon and how can brands implement these strategies?

Wide product selections, competitive pricing, convenience, prime membership, trust, and reliability are just a few of the many reasons why consumers choose Amazon. So how can brands take a leaf out of Amazon’s successful book? We delved into customer surveys and shortlisted 5 simple strategies from Amazon that brands can implement to reduce customer attrition to Amazon, eBay, or any other platforms. 

Shipping

Amazon excels with its selection of shipping options providing convenience, speed, and reliability to consumers. Amazon's extensive logistics network allows for fast and efficient delivery, including free two-day shipping for Prime members. The reliability and consistency of these shipping services reduce uncertainty and help to provide a seamless shopping experience to the customer. The combination of fast, reliable, and customer-centric shipping options makes Amazon a preferred choice for many shoppers seeking timely delivery of their purchases.

Brands can follow in Amazon’s footsteps by enhancing their shipping options and offering multiple shipping choices, including a variety of carriers and delivery speeds. It’s important to add that Amazon has an expansive network of warehouses and fulfillment facilities which is what gives them the edge in their shipping and fulfillment. However, by exploring fast and reliable shipping options and showing real-time delivery times, customers feel more confident in knowing exactly when they can expect their order. In addition, streamlining order processing, providing transparent shipping policies, and implementing free shipping thresholds drastically improve the customer experience and increase average order value. Additionally, brands should prioritize efficient handling and fulfillment, to ensure products arrive in excellent condition, and utilize shipping protection to ensure a seamless service on every order.

Learn more about how shipping protection can enhance your brand's post-purchase experience.

Variety

Also known as the one-stop shop, Amazon stocks a vast selection of products across numerous categories. This wide variety allows customers to find niche or hard-to-find products easily and conveniently. The breadth and depth of choices available on Amazon make it a preferred choice for customers seeking a wide range of products, ensuring they can find exactly what they want in a single online marketplace. Within this variety, Amazon does a great job of upselling and cross-selling these products with the “frequently bought together” and “bundle with” options below, making it quicker and simpler for customers to get everything they need in one click. 

Brands can better utilize cross-selling and upselling while ensuring they sell necessary items to complement and complete orders. For example, an eCommerce store selling jewelry may also want to sell products to clean the jewelry, jewelry boxes, and gift boxes. This helps the store to become the one-stop shop within its niche and also increases average order value. 

Reviews

Another element setting Amazon ahead of the rest is its vast number of reviews. This allows customers to share their experiences and opinions, offering valuable insights for potential buyers. In addition, due to the verification processes, Amazon has in place, customers find these reviews and ratings trustworthy and honest. This rating system and the ability to ask questions or engage with reviewers contribute to the helpfulness of Amazon's reviews, making it a go-to resource for customers seeking feedback and recommendations before making a purchase.

Reviews provide social proof, helping to build trust and credibility for the brand and its products which are crucial for eCommerce stores. Positive reviews can sway potential customers and increase conversion rates and also offer valuable feedback and insights into customer experiences. This enables brands to identify improvements and address any areas of concern. By showcasing these reviews, brands also demonstrate transparency and authenticity, helping to build trust and loyalty.

Clear Return Policies

Amazon returns are simple, straightforward, and convenient adding yet another gold star to their customer experience. Amazon provides a hassle-free and transparent return process, allowing customers to return items easily with clear instructions for packaging and shipping. This includes features like prepaid return labels and free return shipping in many cases, making the process more convenient and cost-effective for customers. Prompt refunds and responsive customer service also contribute to a positive experience, helping to instill confidence in customers and ultimately enhancing overall shopping satisfaction.

For brands, it’s essential to have clear and simple returns policies displayed on the site to reassure customers that their purchase is risk-free, helping to build trust in the brand. Secondly, easy returns contribute to customer loyalty and repeat business. When customers have a hassle-free experience with returns, they are more likely to become loyal advocates for the brand and make future purchases. Finally, clear and easy returns help minimize negative reviews, reduce customer complaints, and mitigate potential damage to the brand's reputation.

Offers and Membership

With over 200 million Amazon Prime members in 2023, this membership offers a multitude of benefits, including free two-day shipping, access to streaming services, exclusive deals, and early access to sales. This incentivizes customers to join and renew their Prime membership, creating a loyal customer base. Second, Amazon's Lightning Deals and Daily Deals offer time-limited discounts on popular products, creating a sense of urgency and encouraging impulse purchases. Third, personalized recommendations and targeted promotions based on customer browsing and purchase history help to showcase relevant products. If that’s not enough, Amazon's Subscribe & Save program provides discounts and convenient recurring deliveries, further encouraging customer loyalty. Overall, these special offers play a crucial role in enticing customers and fostering a returning customer base by providing value, convenience, and a sense of exclusivity.

Brands can learn from Amazon's approach and effectively use special offers and memberships to entice and retain customers. Firstly, creating a loyalty program or membership with exclusive benefits and rewards can incentivize customers to stay engaged and return for future purchases. Offering free shipping, early access to sales, exclusive discounts, or personalized recommendations can enhance the value proposition for customers and help them to feel valued. Additionally, time-limited special offers, such as flash sales or limited-time discounts, can create a sense of urgency and drive immediate purchases. Brands can leverage customer data and preferences to personalize offers and promotions, tailoring them to specific customer segments.

 

To reduce customer attrition to other marketplaces, it’s key for brands to adopt effective strategies from the industry leaders such as improving shipping options, offering membership benefits, leveraging customer reviews, providing special offers, and simplifying return options. By implementing these strategies, brands can foster stronger relationships with customers, increase loyalty, improve the customer experience, and reduce the likelihood of customers migrating to other marketplaces.

Book a demo with Corso today and learn how Green Shipping Protection can support your brand.

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