Growth Strategies for Developing a Profitable Tech Store

Sometimes, it’s hard to shop for technology that varies by numerous technical characteristics, costs a lot, and requires in-depth knowledge to purchase. Technology is always pushing forward, new products are coming out, and the competition among electronics merchants is staggering.

Staying competitive in the tech market requires store owners to know how their customers behave and how to make their shopping convenient enough.

In the following article, we will talk about the top 5 elements we think are vital for every tech store. They are critical to user experience and convenience - the essentials that make your website useful and easy to work with.

Imagine how various customer segments are interacting with your E-Commerce website and if it has the following features to offer:
 

1. Technical specifications. What are tech geeks most interested in when looking for a new laptop or smartphone? Features, performance, design, efficiency, etc.

2. Filtering system. How can athletes find red, water resistant headphones for sports and exercise? Colors, features, activities, etc.

3. Customer reviews. How can a reader find out if a tablet is any good for enjoying his favorite novels? Ratings and other people’s opinion.

4. Flexible financing. Not everyone can pay for a 4K TV or a DSLR camera in full, how do we handle that? A convenient payment plan.

5. Upsell & related products. How can photography enthusiasts find useful accessories and upgrades to their new camera drone? Suggest popular items that go with it.

6. Bonus Section.
    

Let’s reveal more about these essentials and why tech stores needs them. We will show how offering customers a better shopping experience not only leads to a purchase, but also makes them come back for more.

Technical Specifications

Be clear and thorough when describing features and performance

Source: Apple.com

Why is this information so valuable for tech websites?
 

89% of customers say they almost always conduct online research on a product they are about to purchase.
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This is a great opportunity for tech stores to build better trust and loyalty by addressing the subject with more detailed product descriptions and technical data.

Consumers have learned to research their products extensively, especially when buying online. They are looking for detailed descriptions and rich technical specifications in your product pages.

Having enough technical data will make it very easy for customers to understand what the item does. It’s important to note that marketing only goes so far when we are strictly speaking about technology. Real information is what customers want and expect.

Gone are the days when you could persuade a customer that a fancy new gadget is going to solve everything in their life without telling them how and what makes it so revolutionary.

You have an advantage if the technical specifications, product information and reviews in your store are enough to save customers time from reading a few articles and looking for further information from multiple resources.

It means that you have been useful with enough information, that you know your products, that your website has offered real value, and that customers can rely on you for their next purchase.

Let’s see how Jessops.com have shaped their product page. You can see they have included a separate tab for the product features and the description of technical details.

Scrolling down in their description, we see a lot of information about the GoPro’s performance and key features. It’s descriptive and tells consumers all they need to know about the built-in Wi-Fi and Bluetooth, waterproofing and 4K video quality.

Explain the benefits of the features

Placing the data in your product page is one thing. Of course it helps, but to a degree. It’s another thing to clarify the product features and break down the benefits that come from them. Explain the particular advantage that each feature gives so visitors know what they are getting and why it’s such a good purchase.

Another example is this Dell monitor from Bhphotovideo.com. The key details are displayed and visible next to the product images and the rest of the technical specifications are listed below.

The information necessary for customers is abundant. Since screen size and resolution are not all that matters when purchasing such a product, so they have also included important information about connectivity, power consumption, even details such as environmental and compliance standards.

Visual Description

NCIX.com is a computer and tech store that does reviews of their products, explaining all the pros and cons in professionally created and edited videos. They also include reviews from other video creators, like we see in this example:

Video reviews are particularly valuable not just because visual content is easier for consumers to comprehend. The products are visually displayed and all their specs are explained so users can actually see what the device is, how it’s used, and how it performs. They can better imagine owning it and using it as well.

Notify about device compatibility

Compatibility issues are also a major part of the consumers’ decision-making when it comes to technology. Depending on the type of the gadget, newer generations and models often bring up the need to ensure that there’s compatibility with older versions or separate devices.

Make sure to include information about the devices that are compatible with your products, like Sphero have done with the description of their BB-8 droid:

This will prevent product returns from disappointed customers who ordered a product that is not compatible with their devices and cannot be used.

In-Depth Filtering System

Let users find exactly what they want, quickly enough

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Source: Overstock.com

Filters help users narrow down the selection of products and are vital for user experience. If they are implemented properly and offer enough detail, thorough filtering systems have a great impact on conversion. This is essential for tech stores where we typically see an immense variety of product options, settings and specifications.

Baymard Institute conducted a comprehensive research on major E-Commerce websites and their filtering systems. Here are some of the key insights they concluded:

• “16% of major E-Commerce websites offer a good filtering experience”

• “42% of websites lack category-specific filter types for several core categories”

• “Only 16% actively promote important filters on top of product lists”

However, the most important find was that:

“Filtering performance varies greatly by industry, with electronics and apparel websites generally suffering from insufficient filters, while hardware websites and mass merchants take the lead in the filtering game.”

Visitors need to easily define the technical specifications they are interested in, narrow down the number of products and find what they need. The quicker - the better. That means turning every distinctive trait of a product into a part of the filtering system.

Let’s take Newegg.com for example:

The entire filtering system is quite extensive, offering both a lot of categories and many attributes to select. Besides Manufacturer, OS and Screen size, their filtering details also include Graphic type, HDD, Resolution, Weight and many more.

This type of broad filtering system is what visitors will actually find useful, unlike 34% of websites with a poor filtering experience, that seriously limits the users with even the most basic product requirements.

Adjusting your filtering system

In 2012, VWO published a case study showing A/B results from a store that included filtering in their product page. Revenues increased by a stunning 76%.

Later, they showed a different case study with a store that removed their filtering system. The results were a 27% increase in engagement on the product page due to lesser distraction from the filters.

However, this is not a reason to avoid implementing filters, but exactly the opposite. It just goes to show that not any kind of filtering system will work all the time. The distraction issues can be solved by creating a filter that can actually be relevant to the product category.

Category-specific filtering is a proven way to eliminate confusion among visitors. 42% of E-Commerce websites lack this type of filter and it’s chasing consumers away. Unless each product category has its own set of filters, visitors will find it difficult to sort through tens or hundreds of items.

Basic product specifications are the first things that need to be present in the category-specific filter. Details such as type, model, brand, and product features are the ones to start with. However, you will always need a broad filtering system with more detailed options for your visitors to use and simplify their search for the right item.

Adorama.com, an excellent example for product-specific filtering:

The filters labeled Lens Included, Media Type, Frames Per Second, etc are only applicable for their Photography and Digital Cameras categories. Consumers who know what they are looking for can simply input the specifications and get results for the items that match their criteria. Truly a refined search.

There is an important takeaway here. A filtering system is not just another perk you install, hoping for sales to spike. It’s a comprehensive feature that needs to be tested and adjusted in order to give consumers the tool to find what they need, instead of another distraction that does not work properly.

Customer Reviews

Let social proof do the work for you

Source: Firebox.com

Influence Central researched consumer behavior and what customers do before they make the final decision to hit “Purchase”, regardless of the product. They found that 88% of shoppers go on the web for reviews and additional information before buying a product.

Customers most frequently check articles and reviews for the following product categories:

• Appliances - 87%

• Home Electronics - 91%

• Tech (Computers, Tablets, Smartphones) - 88%

• Toys & Games - 53%

Consumers do more research than ever

The Internet lets users access tons of information about products in a matter of seconds. That is why 63% of customers are more likely to purchase products from a store that shows ratings and reviews about it.

Source: Amazon.com

For computer & electronics stores, ratings are particularly important because not everyone is tech savvy. The majority of consumers need enough social proof and reassurance that the product they are buying has enough approval and is better than the alternatives.

Online reviews of products are currently available in all possible forms - as blog posts, podcasts and online videos. This Google Trends graph shows the interest of users for the term “unboxing.”

Unboxing videos are user-generated content (UGC) from people who have purchased a product and describe the item. The video creators also share their honest thoughts and opinion about the product, which is why customers find them so useful.

They see what the product actually is, how it can be used, does it hold up to their expectations, etc. All of this is valuable information without any kind of marketing involved.

To see the full explanation of what makes reviews so powerful for E-Commerce sales, check out this post.

Financing

Ensure that users get favorable rates and sufficient financing options

Source: Bestbuy.com

New technology requires costly manufacturing, making it more expensive. Not everyone can afford this, which is why financing is crucially important for tech & electronics stores. Forrester’s findings about the 15% increase in AOV (Average Order Value) and 17% increase in incremental sales (going up to 20% during holiday shopping season) describe the impact of financing quite well.

Financing is broadly used across all industries from clothing and apparel to auto parts, and especially in technology. It’s an alternative payment method that stimulates more and larger orders.

Big retailers have been using financing for years as it gives customers more purchasing power. This is because financing narrows the gap between tech stores and value-conscious customers who might not be able to purchase an item if they have to pay a large sum at once.

The benefits go both way, as Forrester Consulting found in a research conducted on behalf of PayPal. Buyers and sellers find financing options quite useful as they help drive more sales and is a convenient payment option.

The pros for the customers:

30% of customers make more and larger purchases

Financing empowers consumers to make a bigger purchase. The more lucrative the offer is - the bigger the chance of conversion. Special options such as “No Interest if Paid in Full in X Months” give a lot of breathing room for customers who want to make a big purchase, but want a lighter impact on their wallet.

93% of first-time credit buyers admit they want to do it again

Almost all of the customers who use financing find it useful and see it as an advantage over the standard payment. It’s all about making a tempting offer that will compensate the fact that customers will be paying off the item over the next 6, 12 or more months.

The pros for merchants:

Your store gets the entire order value within a day or two

At the moment when the financing lender approves the transaction - the sale is finished and that’s it on your part. From then on, the financial aspect is handled by the customer and credit lender.

94% of buyers would recommend the financing method to other people

There is no argument that nothing is better than getting recommended by your customers. Convenient financing options are a huge advantage over stores that lack this method from two major perspectives - customer experience as well as increased sales.

Financing for small businesses

We typically see flexible financing options at big retailers, but rarely from smaller merchants. This is because many lenders require businesses to pay a monthly fee for offering credit.

However, a publication in the New York Fed from 2000 - The Emerging Role of Banks in E-Commerce reveals why banks would want to be involved in E-Commerce, helping small businesses build their infrastructure and payment capabilities.

Also, PayPal Credit is free as you only have to pay the standard per-transaction fee like with every regular sale.

Example

Here is a comprehensive and detailed table displaying all of the options and costs for financing from Laptop.bg. You have 3 possible lenders and 6 time period options.

You can input the down-payment, which will determine the rest of the payments. You also have three mandatory conditions for applying - 18 years of age, employment contract for the last 6 months and no bad credit history.

This is a necessary safety precaution protecting you against customers who might not be able to fulfill their payment within the specified period of time.

Here is another example of a tech store that has implemented 0% financing for their products - Mediamarkt.de.

The customers can set the Purchase Price, the Term and the Monthly Rate they prefer to pay. This is quite convenient because you decide how much your initial payment will be, how many months you will be paying off the loan and how much you will be paying each month. The thing that makes it so useful for customers is that it has a 0% interest rate.

That way, you as a store owner will instantly receive the full value of the order, while your customers pay it off in a way that is easier on their budget. The price-conscious demographic is not small and many consumers would easily choose the “Buy Now Pay Later” method if the offer is good enough.

Upsell, Cross-sell & Bundles

Make a better offer, pair related products, suggest discounted bundles

Amazon and all other big retailers have used cross-selling and upselling to increase revenue for years. It’s a technique that has gained the largest Internet retailer a 35% boost of revenue in 2006 and it keeps on giving. Upselling is one of the easiest marketing methods to drive additional sales and it’s used among all industries.

Let’s define the three methods:

Upsell - offering an upgraded version of the product

This means suggesting better versions of an item, something that adds more performance, features or protection for the product. For example:

Cross-sell - offering additional products from other categories

In this case, you are suggesting items that might go with the product without being related to its type. Such items can aid the performance of a device, but come from separate categories. Offering batteries while a customer is purchasing electronics is one example.

Nikonusa.com are proposing a 2-year extended coverage as an additional option for customer purchasing a camera. It’s a perfect example of cross-selling because you are offering a separate service that goes with a product.

Bundles - combining related products for a discounted price

You have probably seen a lot of stores offering products that customers “Frequently bought together.” Such items can often be used simultaneously and go together like a mouse and a mousepad.

This is how Microcenter.com showcase their bundles. A “Frequently Bought Together” section in the product page that suggests a adding NOD32 Antivirus and Microsoft Office to their laptop. It’s natural to use antivirus and document editing software when purchasing laptop, so they have put them all together in a discounted bundle.

Which products should be your subject to cross-selling?

Not any item can be chosen for cross-selling. You can make the selection easier both for you and your customers.

There are three product categories you can use for cross-selling and bundles - best-selling, highest rated and most relevant. That way, you can be sure that the products you are suggesting are relevant because many customers already prefer them. It also adds authenticity to the offers, giving users more convenience, confidence and faster shopping.

Bonus Knowledge: Product Comparison

Make it easy for users to learn the differences

Comparing products is a natural part of shopping and almost everyone does it, unless they are entering a store already knowing what to purchase.

It’s important for a tech store to make this possible and easy for consumers so they can see the items side-by-side and identify the similarities and differences. Sometimes, a single feature that is not so important for a user might be the reason for the product with a higher price. Here is another good example from Laptop.bg:

You clearly see the main reason for the price difference of the two laptops - the processor grade.

If the website lacked this convenient feature, you would have to open each product separately and try comparing their description manually, which is not as convenient and takes more time. Another useful advantage that enhances user experience for your E-Commerce store.

Final thoughts

Tech and electronics is a difficult industry for many retailers. The E-Commerce report from Bigcommerce stated that it’s the highest Return on Investment (ROI) producing industry, which is why the competition is tough. However, this should not be discouraging since you already saw the statistics - many stores lack these essential features and marketing techniques. This means that doing things the right way is your opportunity to shine above a competition that overlook basics customer experience and fundamental elements of a successful online store.