Why More People Aren't Purchasing Products on Your Startup's Website (And How to Change it)

Photo: Tima Miroschnichenko

Did you know that roughly 1 in 5 retail purchases in the U.S. are now being made online? Kinda surprising, isn’t it? With the emergence of popular e-commerce companies like Amazon, Shein, and Temu, you’d think that at least nearly half of all retail purchases were made online.

Nevertheless, if you’re the owner of an e-commerce company, no one has to remind you of how important those 1 in 5 retail purchases (a number that is sure to increase each year) that are made online could be towards the bottom line of a business. 

There are many motivating factors that would compel consumers to make a purchase from your website; as opposed to purchasing from a brick-and-mortar. And there are many more that would also compel them not to make a purchase at all—even if they intended to do so when they visited your website. 

Let’s discuss some of the potential reasons why regardless of how well (or unwell) your startup’s online sales may be going at the moment—more people aren’t making purchases on your startup’s website. 

They made a price comparison 

As the saying goes, to be in business, is to voluntarily be in constant battle. Not only against your brand’s direct competitors, but also other underlying factors that could potentially prevent your brand from appealing to its ideal audience and securing a sale. 

And while you may not view the leading brands in your industry as being competitors at this stage in your startup’s journey, they most certainly view your brand, and all other entrants in the market as competitors. And they are well-prepared for a battle.

One of the most effective weapons that many established brands use to defeat startups like yours is by placing very low prices on their products; in hopes of crushing potential competitors in the market who often cannot withstand such low profit margins.  

Amazon is certainly one of the brands that has perfected the low pricing model. So much so that according to a study conducted by US youth cultural agency Archrival, and published by Vogue Business, 48% of Gen Z consumers now compare retailers’ prices to those of Amazon prior to making a purchase. 

Competing on prices against behemoth brands like Amazon is futile. However, what your startup can and should compete on—is brand. That’s because consumers are far more compelled to pay higher prices for a product sold by brands they feel emotionally connected to. 

So, instead of attempting to win the battle of the lowest price point against the big boys—focus more on building a brand that is culturally aligned to the interests of your target audience. 

You’re not asking for the sale

I often tell startup founders that courting potential customers is a lot like courting a potential partner. And if you’ve ever desired courting a potential partner and things didn’t go as planned, you’d probably agree that one of the absolute worst aspects of that scenario is to wind up being stuck in the dreaded ‘Friendzone.’

Perhaps the worst thing about being stuck in the dreaded friendzone is that you wind up developing a bond with someone that you have deeper feelings for, only to go without having the pleasure of experiencing what you truly want—which is to be in an intimate relationship with them. 

A big reason why people often find themselves being stuck in the friendzone is because when they initially had the opportunity to express their true feelings to the person they longed to be with—they failed to do so. 

Mistakes made during the process of courting potential customers often occur in a similar fashion. Instead of asking those who visit their company’s website to make a purchase, many startups make the mistake of devoting the focus of their website's copy towards talking about their products. As opposed to simply directing visitors to buy them. 

Avoid making this mistake with your startup by having a strong call to action (CTA) on both your product pages—as well as on your homepage. 

Strong CTAs convey to consumers that although your brand is vying to foster an emotional relationship with them—you also desire their business. Strong CTAs also nudge them in the direction of making it happen. 

Let’s chat!

Converting your website’s visitors into actual paying customers is a ceaseless task. If you’d like to discuss the various methods of marketing in which Decryption could help your startup increase its website conversion rate, email us today and let’s chat!