How Zappos solves the online coupon problem

Zappos does it again. One common problem with online retailers who provide coupon codes is that they display the promo box asking the customers to enter a discount code if they have one. Why is it a problem?

It interrupts the purchase process
Once they reach this step in the order, the customer has pretty much committed to buy the item.

Can cause the user to leave your site
The promo box tells them to google a promo code and try their luck finding one that works. While searching, they may get distracted and abandon the cart.

Loss of $
If the customer does find an online coupon, you as the retailer will loose $ on something that most likely would’ve been sold as list price.

Zappos does a great job dealing with this. The ultimate killer is that they don’t offer coupons. They also made a page (with a great title) explaining why they don’t do so. This of course is the #1 result when searching google for “Zappos coupons”.

Welcome to Zappos.com. Many other sites out there may claim to have Zappos coupons, but the truth is Zappos does not offer coupons. Zappos.com is based on service and selection, not price.

From Zappos coupon page. If you do offer coupons you can get rid of the box and just stick the promo info in the url or add an email form next to it so you can capture addresses. Say something like, “Enter your email to receive promos”.

Simple things to kill buyer anxiety

In my translation and design service on PinoyTattoos.com, my customers order designs that are supposed to mean something. I would say the buyer anxiety is much higher compared to ordering a typical product. Getting a wrong or meaningless tattoo would be really bad. Some customers have expressed it’s taken them years to choose what to get inked. I myself took 10 years. I’m glad I waited, otherwise I might have been stuck with a barbwire armband or cartoon character.

To reduce (probably cannot kill it) buyer anxiety, I implemented a few simple things to my checkout page.

1) Paypal Verification seal
2) Contact info including a phone#
3) A Meebo Me widget that connects to all my IM accounts

I’ve had more than a few customers call me while they were on the checkout page needing assurance of the product or the checkout process.

Want more tips? My favorite E-commerce blog has more.

Image by enviied

Out of stock!

Had my 1st screw-up with my t-shirt business today. Since I sell them on 2 different sites (LakasProject.com & PinoyTattoos.com), I was also using 2 different shopping carts. Going forward, I will use E-Junkie.com as the credit card processor and inventory system of record. The shopping cart has been pretty much flawless since I started using it for my Baybayin transliteration service.

I emailed my customer advising him of my screw-up and offered him a discount when the new shirts come in at the end of the month. He was cool with it.