‘Purchase Now’ Ads: The eCommerce Miracle for Conversions?

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With both cellular devices and social media ever-present today, e-retailers are tailoring their approach to appeal to new, more savvy online shoppers. Click-to-buy ads are the hot new trend for increasing earnings.

But, are they really as great an eCommerce development as they look?

What Is This New Technology All About?

Whether searching a recipe, doing research for work, reading a news story, or merely checking the score in last night’s game, it’s common to come across targeted advertisements – followed with a ‘Buy Now’ button.

Instead of redirect shoppers into the merchant’s page to go through the full checkout process, consumers can make immediate purchases before leaving the page they’re on.

Why ‘Buy Now’ Ads Have Not Taken Off… Nevertheless

On the 2015 holiday period, social media’s targeted ads accounted for only 1.8 percentage of online sales. At the exact same time, only 35 percent of millennials imply that they might use a purchase button Facebook; the figures were even lower for Twitter users. If millennials, normally the greatest proponents of seamless tech integration, are tired of those ads, then why even bother?

It isn’t a matter of what customers do now – it’s what they will likely be doing soon. Much like other payment technologies, such as cellular wallets, once consumers become more comfortable with this shopping experience, the popularity of ‘purchase now’ ads could take a giant leap forward.

It may also be a matter of perception and mindset. For example, look to the encounter of stores like Spool No. 72, that found that 84 percent of its sales generated through Pinterest were from first-time clients. With the intention of making a purchase, shoppers didn’t stick out in this case,  but rather that they came across an item they wanted, and social media presented them with a handy way to easily purchase this item.

The Impulse Buy Moves to the eCommerce World

Despite early adoption hesitancy, these targeted ads facilitated by social media appear to be an advantageous arrangement for everybody. Consumers are handily directed to goods in which they’d probably be interested, while the merchant sees a big increase in sales.

One-click shopping radically reduces immunity, which is among the primary barriers for eCommerce retailers in turning a click into a purchase. Considering that shoppers leave as many as 75 percent of all online shopping carts, targeted ‘buy now’ ads offer you the chance to convert more of the $4 trillion in annual earnings that are lost.

There is also a psychological component at play.

Consider your last trip to the grocery shop. In most places, shoppers are very likely to locate a rack filled with small items, such as magazines, candy, or accessories, right near the register. These impulse things are made to entice shoppers into incorporating one or two small items to their buy before walking outside. Because they are right near the register, there’s very little time to decide if these items are a worthwhile purchase; yet retailers trust the customer’s sudden, unreasoned urge.

Ads supplying a one-click checkout function on the exact same principle–it faces consumers in a time when they weren’t likely to do any shopping and says,”Hey, check this out! Don’t let it get away!”

The lure of the impulse buy is a powerful one: a recent poll suggested that 77% of Americans have made an impulse purchase in the last 3 months, while research reveals that 30-50 percent of in-store retail purchases are rising impulse.

However, a recent Javelin report suggests that not everything is so rosy.

Impulse Shopping Can Yield Buyer’s Remorse

Imagine if a shopper is enticed in by a collection of ‘buy button’ advertisements, but then suddenly realizes that he does not really want the five different items he just bought in under five minutes?

In a best-case scenario, that shopper could speak to the retailer for a yield or to cancel the orders. Or, if he doesn’t feel like going through the ‘hassle’ of handling the merchant, he might just ask a chargeback instead.

But, it is not all gloom and doom for retailers who like the convenience (and increased sales) that come from purchase buttons.

Sixty-three percentage of regular impulse shoppers are more inclined to buy from a seller who offers good customer service and easy, fair and easy-to-understand return policies–and with good reason. If you’re a self-confessed, emotionally-driven urge shopper, then you likely operate knowing that you will return many of the things you purchase.

Therefore, while it isn’t necessarily bad to adopt the purchase button, merchants absolutely need to counterbalance that urge shopper lure with company best practices along with a return policy which makes it easy for customers to create returns.

Merchants should be accepting of the fact that returns are a part of doing business, particularly when impulse purchases entice shoppers to spend without thinking it through. When those returns start arriving, retailers must be ready to accept them–or see the company’s chargeback rates spike.

How Can the Pros and Cons Stack Up for You?

Can you believe ‘buy now’ advertisements are a fantastic alternative for your industry? Have you tried these? What do you think?