As online businesses compete for their share of the market, product customization continues to propel savvy retailers to higher profit margins. From furniture to pizza orders, almost every product or service can be customized. Many consumers appreciate the ability to choose. Customized goods further encourage their engagement with a sale. Providing options is also a fundamental aspect of delivering personalized customer experiences to different user segments.
Amazon provides a feature for its sellers to offer customers personalized products. This feature is called Amazon Custom, which operates as a store within Amazon’s ecosphere. Shoppers can visit this store to customize products by adding their own text, images, logos, or options provided by the seller.
Read this article to learn how and why you can grow your sales using Amazon Custom.
Meet Market Demand
Many people prefer to purchase items that can be personalized. According to a recent study, around 36% of consumers prefer to spend money on a customized product or service rather than a non-customized one.
Why?
This shift towards customization is partly due to the emotional connection that it fosters between the customer and the product. When customers feel that they have made a product their own, it transforms from a generic item to a personal belonging. Businesses that allow their customers to personalize their products are helping to fulfill their customers' desire for customization.
Demonstrate Value
Businesses that offer customized products can significantly improve the customer experience, leading to increased engagement, revenue, and profit margins. When customers can personalize a product according to their preferences and needs, they perceive it as being more valuable. This value is further enhanced when businesses use personal data to tailor products and services. By doing so, companies can demonstrate the benefits of sharing data, building trust and transparency, and fostering greater customer loyalty.
Differentiate Your Brand
As of 2022, there are approximately 1 million physical retail stores and 2 million online retailers in the United States alone. With an overwhelming number of products available in today's market, offering personalized options can help businesses stand out by catering to each customer's specific preferences. This approach not only humanizes the brand but also creates a more authentic and engaging customer experience.
Charge More
Charging more can obviously generate higher revenue. Consumers are willing to pay more for personalized products since they often have a higher perceived value. A study revealed that 20% of consumers would be willing to pay up to 20% more for customized products or services. This demonstrates that businesses can justify charging a premium for personalized offerings.
Increase Sales
Providing consumers with the option to personalize products can lead to increased sales and positive word-of-mouth recommendations. For example, a company that sells phone cases could offer customers the option to add their images or designs to the case, allowing them to create a unique and personalized accessory that reflects their personality. A satisfied customer might purchase another case from the company and tell their friends and family about the store, creating a snowball effect that drives sales.
Decrease Return Rates
Product returns can be a headache for business owners because they can lead to lost revenue and additional costs involved in shipping the product both ways. However, by offering customized products, businesses can significantly decrease the rate of returns and keep customers happy. Customization gives customers shoppers more control over the product and lets them know what to expect, which reduces the likelihood of disappointment later. Businesses can save money when their customers get exactly what they want.
Minimize Cart Abandonment
It can be discouraging to see potential customers abandon their shopping carts without completing their purchase. Many businesses constantly work to identify the reasons behind this behavior to prevent it from happening in the future. Offering customers the option to customize their products and preview them before buying can cause customers to feel more confident in their purchase decision. This level of investment in the customization process may also lead to greater commitment to completing the purchase, resulting in fewer abandoned carts.
Gain Accurate Insights
Customized products can provide companies with valuable insights into their customers' preferences and needs. Leveraging analytics can help companies better understand and meet consumer demand. Identifying trends and patterns can help in product development, marketing strategies, and customer service.
Meet Expectations
In today's digital age, customers expect to customize their orders. Companies that offer customization options can build stronger customer relationships, enhance brand loyalty, and distinguish themselves from competitors. Failing to provide options can result in missed opportunities, customer discontent, and lost sales.
Grow Your Sales
Giving your customers options is only one way to increase your revenue. Partnering with StoreAutomator can help you make good on delivering orders as promised. Automatically retrieving customized orders from Amazon for shipping can reduce both the time and the potential for errors that are associated with manual order processing. Book a demo today to witness how it can work for you.