According to a recent BrandZ report, Amazon is currently the most valuable brand globally, surpassing both Apple and Google for the top position.
Image Source Amazon’s immense and enduring success can be attributed to many factors, but its emphasis on user experience (UX) is paramount. While Amazon’s ecommerce UX design may appear deceptively simple, it’s rooted in data-driven principles that yield remarkable results.
This article will delve into five crucial conversion rate optimization (CRO) lessons we can glean from Amazon’s approach to ecommerce UX. Enhance your ecommerce strategy with a multi-channel approach. Get our complimentary guide to Google Shopping and expand your brand’s reach today!
Lesson #1: Recommendation Engines Fuel Sales
One of Amazon’s most significant ecommerce UX triumphs is its recommendation engine. Amazon masterfully employs this engine to guide users toward relevant products, significantly improving user experience and driving revenue growth.
To illustrate the potency of Amazon’s recommendation engine, consider my recent experience attempting to purchase a Dell Chromebook 11 on their platform. As soon as I added the Chromebook to my cart, the following pop-up appeared in the sidebar:
The suggestion to safeguard my new laptop with a case was perfectly timed and undeniably tempting.
Further down the product page, I encountered this:
Ultimately, I didn’t buy the Chromebook from Amazon. However, the ecommerce giant didn’t give up. Days later, I received this email with recommendations similar to my initial order:
What’s the secret to Amazon’s method? Research conducted by Marketing Sherpa that studied email conversion rates compared two campaign styles: the generic “batch-and-blast” and Amazon’s “targeted” approach. The latter, which personalizes offers based on user interests and behavior, yielded a staggering 208% increase in conversion rates.
Amazon’s recommendation engine excels in two key areas:
- Data-Driven Insights: It leverages vast amounts of data to predict user preferences immediately after a purchase.
- Strategic Product Placement: It strategically positions recommended products alongside items in the user’s cart, prompting immediate consideration.
The results have been nothing short of remarkable. Amazon’s recommendation engine is responsible for a substantial 35% of Amazon.com’s total revenue. This achievement is even more impressive considering that Amazon alone accounts for roughly half of all US online retail sales.
Lesson #2: Email as an On-Site Experience Extension
Amazon excels at seamlessly integrating email into the on-site user experience. Their ecommerce emails often serve as a direct extension of a user’s browsing session.
This is achieved in two primary ways. First, Amazon maintains a consistent visual identity across its emails and website. The color scheme and minimalist design create instant brand recognition.
Second, Amazon streamlines actions initiated from emails, whether it’s making a purchase, adding an item to the cart, or leaving a review. For instance, clicking the review option in an email takes users directly to the product review page. Similarly, clicking to add an item to their cart from an email seamlessly transfers them to their Amazon.com cart.
Lesson #3: Efficient Checkout Reduces Cart Abandonment
Research from Baymard Institute indicates an average online shopping cart abandon rate rate of 69.57%. In simpler terms, nearly 70% of shoppers who reach the checkout page abandon their orders. This highlights a significant opportunity to recover lost sales by optimizing the checkout process, which is precisely what Amazon does.
Firstly, Amazon prominently displays the order button above the fold on product pages, making it effortless for users to initiate checkout:
This strategic placement minimizes friction and encourages users to proceed with their purchase.
Secondly, Amazon simplifies the process of adding recommended products without restarting checkout. In the example below, while the Gumdrop and AmazonBasics cases are recommendations and not part of the original order, the option to “add all three to cart” or “add all two to cart” is clear and convenient:
Thirdly, Amazon employs a multi-step signup process to streamline the checkout experience.
Multiple studies confirm that excessive form fields can hinder conversions, while reducing them can boost results.
So, how does Amazon gather necessary information without overwhelming users? By implementing a multi-step signup process that creates an illusion of speed and prevents conversion drop-offs. Venture Harbour’s Marcus Taylor highlights the at several examples of multi-step forms in driving conversions, citing a case where switching from a basic contact form to a multi-step version increased conversions by an astounding 743%.
Lesson #4: Design Changes Should Be Deliberate
Founded in July 1994, Amazon has existed for 25 years—an eternity in the digital realm. Yet, unlike many tech companies that have come and gone, Amazon’s design has evolved gradually.
Amazon exercises caution when implementing design changes. Consider Amazon’s homepage design from January 2016:
Now compare it to the design from July 2019:
The changes over those three and a half years appear minimal. It might seem counterintuitive that an ecommerce giant like Amazon wouldn’t prioritize constant redesigns. However, as Snap Inc discovered the hard way with its redesign, users are resistant to drastic changes in familiar platforms.
When users are accustomed to a particular design aesthetic, it’s crucial to introduce changes subtly, maintaining a sense of familiarity while avoiding stagnation. Amazon excels at this, rolling out gradual and almost imperceptible updates that users seamlessly adapt to over time.
This approach aligns with Weber’s Law of Just Noticeable difference which states that the “difference threshold” or “just noticeable difference” represents the minimal change in stimulus intensity required for people to consciously perceive a difference.
While Amazon’s design evolution may seem glacial, it has been significant over the years. Their genius lies in implementing changes subtly, ensuring user comfort and minimizing disruption.
It’s also worth noting that some core design elements remain consistent. For example, Amazon has consistently used the orange call-to-action button, which has proven effective in boosting conversions not just for ecommerce but also for software services and also for reviews.
Lesson #5: User Reviews Are Powerful Social Proof
When considering a purchase on Amazon, what do you check after examining product specifications? If you’re like most online shoppers, you likely turn to reviews for insights from other buyers. In fact, a study by Baymard Institute revealed that a staggering 95% of consumers rely on online reviews to inform their purchase decisions.
Recognizing the weight of reviews in the purchasing journey, Amazon has meticulously integrated them into the user experience.
Moreover, Amazon actively encourages users to contribute reviews through a system of rewards. Users earn badges and rankings for their contributions, which can indirectly lead to opportunities to receive free products for review.
Elevate Your CRO with Amazon’s UX Insights
With a market valuation exceeding $900 billion, Amazon might seem like an unrealistic benchmark for smaller businesses. However, its approach to user experience offers invaluable lessons for companies of all sizes.
By embracing the five key strategies outlined above—leveraging recommendation engines, extending the on-site experience through email, optimizing checkout flow, implementing design changes gradually, and harnessing the power of user reviews—ecommerce businesses can significantly enhance user experience and drive substantial growth.