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shipping pre order and delivery

Fill That Pipeline! Our Top Tips for Pre-Order eCommerce Advertising

Global supply chains, amirite? One of the most interesting and complicated disruptions in eCommerce advertising in 2021 has been the global supply chain crisis caused by COVID-19. Seemingly unrelated, right? Think again!

Even if the particularities are news to you, you’ve probably felt the repercussions. Many manufacturers who typically produce consumer goods either stopped manufacturing entirely during COVID, or quickly refocused on masks, hand sanitizer, cleaning products, personal protective gear, and more. 

Now, normal manufacturing has (mostly) resumed, and demand for shipping from Asia is at an all time high, causing 6-8 week delays in inventory for many eCommerce websites. And a lot of headaches. Experts anticipate that the backlog could potentially not be resolved until Q1 2022. 

This leaves eCommerce companies without fulfillable inventory for 6-8 weeks (at least), but no way they can simply stop taking orders. Especially while their competitors continue to proceed as usual. 

It’s become a total shift in thinking: instead of the instant satisfaction of next day shipping from Amazon Prime, many people aren’t getting their orders for two months after they’ve ordered it. And, as we see it, this shift is here to stay. (Even Shopify agrees with us). What started as a necessary pivot to compensate for major manufacturing hiccups has become a proof of concept that can benefit eCommerce businesses long after we say, “see ya” to 2021. A quick few reasons:

  • Positive effects on cash flow
  • Flexibility on product launches
  • Risk offset

For our clients to stay competitive as their industry shifts around them, we’ve developed and tested multiple pre-order strategies to create new user flows and define new best practices for eCommerce pre orders. 

Use Your Own Data

The boogie man of digital advertisers—iOS 14.5—has thrown wrenches when it comes to attribution and data collection for many eCommerce companies. If you’ve been heavily reliant on Facebook Ads Manager for attribution reporting, you likely are feeling the burn of the change, and are looking for different ways to target users and discern how effective your campaigns are. 

The good news is that despite iOS 14.5 causing tracking issues within Facebook Ads Manager, Google Analytics and your own proprietary data within your eCommerce CMS should have emerged from the iOS 14.5 battle unscathed. If you are using manual UTMs for your advertising campaigns, you can still audit campaign performance in Google Analytics, Mixpanel, or your other tool. Further, you can segment this down to the campaign and ad level, so there’s no shortage of data you can pull – time on site, CVR, pages per session, etc. that can help you optimize your eCommerce advertising campaigns

If you’re using an eCommerce CMS such as Shopify, you can also use your existing customer data to optimize your eCommerce pre-order campaigns. Some of the many ways you can utilize this data in creative ways to increase your total pre orders:

  • Take the emails of your customers, upload to Facebook as a Lookalike audience, layer on additional targeting parameters, and drive traffic to your site for more pre orders.
  • Take the emails of abandoned cart users, upload to Facebook and retarget with ads to improve your CVR.
  • Take the emails of abandoned cart users and create a special drip campaign to improve their knowledge of your product and offer a discount to convert.

Test Different Campaign Optimizations

Effective eCommerce advertising campaigns take a three-prong approach: Top of Funnel, Middle of Funnel, and Bottom of Funnel. The movement from awareness, to consideration, to conversion is essential for creating an engaged audience who would pre order from your eCommerce brand. 

One of the best tests for pre-order campaign optimizations is trialing different campaign objectives and bidding types. Take, for example, Facebook. To exit the learning phase, Facebook requires approximately 50 optimization events before the campaign starts delivering at an optimized level. If your conversion metric is a purchase event, that’s 50 purchases before your campaigns start delivering normally. 

For top of funnel campaigns, consider optimizing for a higher funnel conversion metric like landing page views or video views. The primary focus is to drive awareness and consideration prior to purchase, so consider a cheaper optimization event so you can focus on converting users deeper in the funnel. 

For middle of funnel and bottom funnel campaigns, consider optimizing for add-to-cart events, or checkout initiated events prior to optimizing for the purchase event. 

The same applies for PPC campaigns, even though they aren’t as affected by iOS 14.5 as Facebook. If you’re utilizing Google Search or Shopping for driving pre orders, consider testing different conversion metrics and bidding types (max clicks vs. max conversions, manual cpc vs. target ROAS, etc.) to see what works best for collecting pre orders. 

Using Facebook’s lead generation objective is way overrated. 

Many agencies are promoting the collection of first-party data as a response to iOS 14.5 – namely, increasing the number of tangible items they can target users with. As a result, there has been an increased focus on collecting emails, and then using them to nurture users through a lead funnel. The thought process is pretty simple: if you can collect an email for a reasonable rate, say, $2.50 an email, you can use your email service provider like Klaviyo or Mailchimp to nurture the lead into a normal conversion rate. The problem is that it’s not quite that simple. 

Normal eCommerce email conversion rates for top of funnel campaigns are decreasing. According to Klaviyo, the conversion rate for eCommerce email can vary from 0.96% to 2.13%. If we take the average of that, 1.54%, and then look at our cost per lead, the expected cost per acquisition would be approximately $162. 

($2.50 x 100) / 1.54 = $162

For a lot of eCommerce companies, this customer acquisition cost (CAC) would far surpass the lifetime value (LTV) of their customers. In addition, this is an average across all industries and email capture techniques. Typically, leads generated from Facebook have a lower quality than leads captured on a landing page. 

In a recent project with a Tuff client, the client provided an email list of 3,200 users generated by another lead generation agency to fuel a pre-order crowdfunding campaign. The email list had the relevant, important data you would expect – first name, last name, and email address. The average email lead cost was $1, and the product they were selling retailed for approximately $95. The entire list was subjected to a drip campaign, and generated 22 purchases for $2,200 in total revenue, and a CAC of $145 ($50 more than the AOV / expected LTV for a single purchase product). In this instance, the email list generated a conversion rate of 0.67%, while all other traffic generated a conversion rate of 1.42% overall. All this to say – email can be an incredibly effective compliment to your eCommerce pre-order campaign, but should not be your primary focus. 

Over-Communicate With and Educate Your Customers:

Purchasing a product online can be stressful, even though most consumers are used to buying products online at this point (Statista estimates that 230 million Americans will buy something online in 2021). The added lag time of delivery for a pre-order product can cause consumers anxiety and second guessing. You can tackle this head on in three simple ways:

  • Be transparent about pre-order delivery estimates
  • Keep users updated with relevant order information 
  • Spending time educating customers on the benefits of your product (especially in top of funnel marketing campaigns) 

The objective of these three strategies is two-fold: 

  • Educating—using your ads and landing pages—on product benefits helps prospective customers buy into your brand and know their purchase is worth the wait. You’re fighting a consumer base that is trained to expect their Prime delivery within 48 hours, so they really need to believe in you to fulfill their expectations.
  • Perform an audit on your ad creative: are you using your copy to provide testimonials, product benefits, and use cases? Is your creative showing the product in use? Don’t lead with a cold sell in your top of funnel campaigns. Educate your users before your sole objective is to get them to buy. 
  • Being transparent that your product is backordered or pre-order only, and spending time keeping users updated on estimated delivery dates (delays, etc.) can help reduce the amount of order cancellations, churn, and negative consumer sentiment. It’s all about managing expectations. If you pre order a product with a two-month wait time, and a month into the wait you receive an email saying it’ll be an additional two weeks for delivery, it’s much better than sitting there waiting with no context or information. Save your customer support some time and be proactive in your communication. Communication is a core component of creating positive customer experiences, and should be a focus point for your pre-order campaigns.

Don’t Focus Solely on Last Click Attribution

Because eCommerce advertisers are more reliant on using Google Analytics to optimize campaigns, it’s easy to make assumptions regarding which campaigns are driving sales. More often than not, these assumptions are part of a larger picture. Since pre orders require multiple touch points and larger consideration time than a normal purchase behavior, spend time familiarizing yourself with the multiple routes users take to make a purchase decision. 

For this Tuff client, 67% of all their pre orders are made with two or more interactions with the website. Some of the top conversion paths include Google PPC to direct or organic sessions that convert, Paid Social to direct conversions, and more. Understanding how your customers reach a purchasing decision, and monitoring the amount of interactions it takes to convert, can help eCommerce advertisers know how to optimize their spend and campaigns. 

Google analytics attribution information

Taking pre orders can be an essential part of an effective eCommerce strategy. If you’re hoping to grow your eCommerce business and are looking for a partner to supercharge your growth, schedule a free Growth Marketing Strategy session with Tuff today!

Facebook shops.

Facebook Just Shook Up Your ECommerce Strategy With Facebook Shops

How to setup Facebooks Shops and Instagram shopping.

Instagram Shopping and Facebook Shops are here, and they allow businesses to sell physical products directly through the Facebook and Instagram apps. The game-changing aspect is that there is check-out functionality so users can buy after a click on tagged product without ever leaving the apps.

In this article, I’m going to share details on how it works, how to set it up, and pros and cons of this new service. 

Here’s what’s included:  

  • What is Instagram Shopping and Facebook Shops? 
  • Purchase Flow From Post to Check-out
  • How to Set-up Instagram Shopping  
  • How to run a Facebook Ad that Includes a tagged product or catalog. 
  • Strategic Implications for ECommerce Brands 

What is Facebook Shops and Instagram Shopping? 

On May 19th Facebook announced a new service, Facebook Shops to “…make it easy for businesses to set up a single online store for customers to access on both Facebook and Instagram.” Importantly, they also said, “We’re starting to roll out Facebook Shops today [May 19th, 2020], and it will be more widely available in the coming months.” So if you’re reading this in early summer 2020, there’s a chance this feature hasn’t been enabled for your Facebook Business Manager account yet. 

For people who have been in eCommerce and managed a catalog on Facebook this announcement was a long time coming since Facebook rolled out a Buy on Instagram beta this time last year to brands like Adidas, Uniqlo, Pottery Barn and other major retailers.

Key Features of Facebook Shops 

  • Tag products and collections in posts, stories, and live feeds  
  • ‘View Shop’ button on Instagram Profile 
  • Shop tab on Facebook Profile 
  • Facebook and Instagram Check-out (Requires a Facebook Commerce Manager account) 

From Post to Check-out; Instagram Shop Purchase Flow: 

Posts with products tagged from Facebook Shops will show a small briefcase. 

Example of a post with products tagged from Facebook Shops.

A white dot and view product overlay appears on the post when opened. 

Example post with products tagged from Facebook Shops

When the image is clicked the product name and price appear. Click again and product details open. 

Example post with products tagged from Facebook Shops.

Similar to an eCommerce checkout flow, a click on “Add to Bag”, transitions the user to the shopping cart with the option to proceed to checkout. 

Example of Facebook Shops user flow.
Checkout functions as you would expect on an eCommerce website or Amazon, but here’s where it gets weird: you’ve never left Instagram.

This checkout on Facebook and Instagram approach comes with two downsides.

  • A 5% fee paid to Facebook (Be sure to confirm this amount in the Facebook Commerce Manager in case the fee has changed since this article was published). The 5% transaction fee is considerably lower than Amazon’s 14-17% fee for apparel, though it’s likely Facebook is keeping this fee low to entice sellers to join.
  • Instagram Checkout makes it so users don’t visit your website, which may cause you to lose valuable analytics audience data, and the ability to retarget to users who start, but don’t complete checkout.  

The implications for Facebook and Instagram checkout are profound. Facebook is essentially becoming its own eCommerce platform. It’s likely they have ambitions for Amazon and Shopify’s new Shop app. Layer this eCommerce ambition with Facebook’s own Libra currency, and we could see a day when people around the world are pushed to use Libra rather than their own currency to transact in this environment, but this level of functionality is likely years in the future.

For those who don’t want check-out to take place in Facebook or Instagram either because of web traffic concerns or the Facebook transaction fees, there was an option to list products in Facebook Shops, but with a redirect back to a website as seen below. 

From Dan at Facebook Support, We have updated our checkout experience in order to create a more seamless and safe end-to-end shopping experience on Facebook.

This new feature will no longer allow users to be redirected to a third-party website. The checkout method available has been established within the Facebook site, and it can be managed through your Commerce Manager.

Moreover, you can still create posts promoting your products and your website and redirect users to your website using a URL link…

… the product that has been tagged in your Instagram Shopping will have an ability to redirect to your website, as long as your account has been approved for the Instagram Shopping feature.

Also, you can still tag the products and let the user redirect to your website.

The implication of this statement is that Instagram Posts like the one below will continue to have a ‘View on Website’ option as long as they want it, thus bypassing check-out in Instagram (or Facebook). 

Instagram shopping example.

The Three Steps to Set-up Your Instagram Storefront

Official Facebook Business Instagram Storefront Guide

1. Determine Eligibility (Must answer yes to all five questions)

    • Are you in an eligible market?  
    • Do you sell physical goods? (Facebook has hinted service offering will be available at a later date)
    • Can you comply with commerce policies? You’ll want to review Facebook’s 25 prohibited product categories. 
    • Is your Instagram Account setup as a Business Account? 
      • How to check: go to your Instagram settings, if there’s a settings option that says: “Switch to a Professional Account” then your profile is still a personal account.
    • Is there a Facebook Page connected to your Instagram Account? 

2. Get a Catalog Connected 

  • Option 1: Use the catalogs feature in your Facebook Business Manager account, which includes connecting to an existing catalog.
  • Option 2: Us a partner integration. Instagram Storefront catalog partners include: 

eCommerce integrations with Facebook.

3. Signup in the Instagram App.

  • Go to your business settings and tap ‘Business’ then tap ‘Instagram Shopping. Follow the prompts to set-up your Instagram Shop. 

That’s it! After step three there is an eligibility review period which will likely take 2-7 days depending on Facebook’s review bandwidth. Once approved you may begin product tagging within posts and stories (image only at this time, but additional placements including live feeds are in the works) on Instagram and Facebook. You’ll also have a ‘Instagram Store’ button on your profile.

How to run Instagram Ads with tagged products

Currently, there is no way to tag products when creating an ad in the Facebook Ads manager. What you can do however is use an organic post for your ad. 

When creating an ad in your Facebook Ad Account, use the “Use Existing Post” option. Select an Instagram or Facebook post with a tagged product or collection. 

Steps on how to run Instagram Ads with tagged products

If your account has had shopping enabled, the post will have a ‘Checkout’ toggle. 

Steps on how to run Instagram Ads with tagged products

Turning it on, will allow you to include the tagged product and a check-out in app. 

Strategic Implications and Considerations for ECommerce Stores Determining if They Should Use Instagram Shopping 

The huge pro for eCommerce retailers moving forward with Instagram Shopping is the ability to reduce friction for shoppers. Clicking a post with a tagged product to ordering it can be done in under a minute. Facebook and Instagram store user billing and shipping info (You’ll now see this info in your own personal Instagram App settings), so there’s no need to add it on a seller’s website. In fact, there’s no need to visit a website at all, which in its current flow, will typically require users add the products to a cart, go to the cart, and check out. 

Another benefit is your listings can be on the Facebook Marketplace. Prior, the Marketplace was more like Facebook’s version of Craigslist for people to sell second hand items locally. The Facebook Marketplace is evolving to include product listings, and promoting products there both organically and in a promoted capacity could increase sales. 

For people interested in attribution, Instagram Shopping is huge. With actual transactions relayed through the Facebook Commerce Manager, there should be no question as to if a sale should be attributed to Facebook. This is huge for advertisers who grapple with website analytics not matching what’s reported by Facebook. 

There are downsides to Instagram Shopping. Facebook will be collecting a 5% transaction fee. This fee will likely rise overtime. There are lost analytics as users no longer interact with your website. This means there’s not an opportunity to build retargeting segments based on how far a user progressed with checkout. Should a company become too dependent on Instagram Shopping as a sales platform, they could face issues with changes to functionality and policies to the platform as is often seen with Amazon. Here’s one example of this (on Amazon) from a seller policy change last year.

As a brand new feature it’s also likely there will be bugs and hiccups along the way. Right now for example, it’s not clear how data from behavior in Instagram Shopping and Facebook Shops will be shared with the Facebook Ads manager data that’s often critical for Facebook Ads optimization. 

There are 120 million Instagram users in the US alone, and one billion users worldwide*. Facebook, Whatsapp, and Oculus have billions more, so leaning into this and allowing users to transact easily will make sense for many brands despite the downsides. 

I’d love to check out your account and see what’s possible for your eCommerce company. If you want to schedule a 30-minute strategy session to learn more, please do!