Four tricks online retailers use to encourage impulse purchases
Just like physical stores, online shops are putting the chocolates close to the tills.
Online shopping has made everything so much easier!
LISTEN: Goo Goo Dolls share the most "unbelievable" thing about SA
Don't want to cook? Just order in. Looking for a product or brand that is not available in your area? Just hop online and it'll be at your door in no time.
It's convenient in so many different ways, quick and easy to take care of, and there is the pure excitement of waiting for your package to arrive.
READ: Desk workers can decrease risk of death with one change, study reveals
Unlike walking around in a physical store, you are probably taking quite some time to fill your online cart before making any purchases.
Or that's what you might think.
In truth, there are a few smart strategies online retailers use to convince you that you do need to buy that one item.
VIDEO: Actress Shimmy Isaacs styles Rob Forbes' hair
Gary Reichmuth, associate professor of instruction in executive education at the University of Texas at Dallas’ Naveen Jindal School of Management, told HuffPost that this can be done in various ways, one of them being low-stock alerts or discounts.
It’s the value perception — if they feel that there’s just a few left, there’s that exclusivity that they’re getting something special. If there’s a run on products, then there’s social proof, a belief that if other people are buying it, it must be good.
If you want to know more about the tactics they use and how to avoid falling into the trap, this is for you.
Here are the four most common methods used by online retailers to encourage you to make a purchase:
1. Sales and Discounts
- According to some surveys, 80% of consumers are more likely to make a purchase if they have a coupon or discount.
- Free shipping for spending a certain amount and offerings with a percentage off a purchase help retailers sell more.
- Companies usually come out ahead with these offers because people buy many more discounted items.
- Brands offering discounts in exchange for signing up for loyalty programs, emails, etc., also allow them to collect data and personalise your product recommendations and offers.
VIDEO: Woman shares strange truth behind her wedding pictures
2. Last In Stock
- These messages create a sense of urgency leading you to make a quicker decision.
- This strategy works well for flights and accommodation.
- Reputable retailers will be truthful about low stock/availability.
3. Cart-reminder messages
- If you add things to a retailer's cart, you might receive a notification reminding you that you were shopping with them.
- This is said to also create a sense of urgency, make shoppers feel valued and has been shown to increase sales.
4. Bundling and Upselling
- Retailers can drive sales by offering the opportunity to upgrade a travel ticket for a small percentage more, which is upselling.
- Bundling refers to a discount being offered if you buy multiple related items.
- Or offering you a related product at a discounted amount if you buy something else.
Why they work
Shopping is a complex activity and the decision-making process by consumers is not straightforward and linear. Many factors play into a decision to purchase or not.
How to avoid falling for it
- Wait 24 hours before making a purchase
- Unsubscribe from mailing lists and texts
- Set a well-defined, hard budget
- Take the time to compare prices
Tune in to 'The Drive with Rob & Roz', on weekdays from 16:00 - 19:00. Stream the show live here or download our mobile app here.
Listen to Jacaranda FM:
- 94.2
- Jacaranda FM App
- http://jacarandafm.com
- DStv 858/ OpenView 602
Follow us on social media:
Main image courtesy of iStock/Abdullah Durmaz