One-Click Shopping Ads are a Way to Boost Sales, but They May Cause Other Problems
A new and noteworthy trend in ecommerce advertising is the addition of ‘Buy Now’ buttons to social media. Although sales from these ads accounted for less than 2% of online sales over the 2015 holiday season, the potential impact of one-click shopping on the future of ecommerce is huge.
However, are these ads really the sales boon they appear to be, or is there a downside?
The Power of Impulse Shopping
Ads featuring a ‘Buy Now’ option target consumers’ browsing and shopping habits, offering products which each individual would likely find interesting. Adding the option to buy the item instantaneously with just a couple of clicks has a potent psychological effect.
As Chargebacks911® COO Monica Eaton explained in a recent article on Retailing.org, targeted ads with a ‘Buy Now’ option rely on peoples’ tendency toward impulse shopping. More than 3 in 4 Americans make impulse purchases regularly, and roughly 30-50% of all purchases made at brick-and-mortar establishments are based on impulse.
These ads have the power to capitalize on the $4 trillion lost annually to shopping cart abandonment, converting many of the sales currently being lost to excessive friction or buyer hesitance.
The reliance on impulse purchasing, however, may also prove to be a fraud risk for merchants.
Impulse Shopping Leads to Friendly Fraud
What if a shopper makes a purchase, but is then struck with crippling buyer’s remorse? He or she might opt to return the item legitimately; however, if they do not feel like dealing with a lengthy return process, the purchaser might simply request a chargeback instead.
Does that mean that one-click shopping and ‘Buy Now’ options are too risky for merchants? Not necessarily.
With Chargebacks911’s™ help, merchants can conduct their business without fear of chargebacks stemming from friendly fraud. Our unique services include:
Merchant Compliance Review
Our 106-point inspection scours every aspect of the customer service experience from the moment the customer hits your landing page until after the product arrives at their doorstep. Our thorough process evaluation eliminates the potential for chargebacks resulting from merchant error.
Chargeback Alerts
We control the world’s most comprehensive alerts network, combining our own detection technology with other third-party providers. Our network identifies and intercepts disputes before they become chargebacks, allowing merchants and customers to reach a mutually-satisfying conclusion.
Tactical Chargeback Representment
When merchant error and criminal fraud are eliminated, friendly fraud is the only remaining source of chargebacks. Our chargeback experts provide representment services with the industry’s highest win-rates and a proven track record of successfully fighting friendly fraud.
Turn Impulse Shoppers into Loyal Customers
Sixty-three percent of impulse shoppers are likely to buy from merchants known for good customer service and straightforward, clear policies and procedures. Providing that kind of excellent service by implementing business best practices will not only ensure that you see fewer chargebacks, but can also help turn some of those casual impulse buyers into loyal, repeat customers.
It’s easy to boost sales and retain more revenue with Chargebacks911’s™ help.
