• by Jack Loechner , Staff Writer @mp_research, November 12, 2015

According to the latest Shotfarm Product Information Report, quality and completeness of product presentation in online retail has a quantifiable and direct impact on product sales. But often, data is inaccurate, inconsistent, incomplete, and even outdated, leading to increased returns, serious brand erosion, and lost sales, all of which have significant financial ramifications for both retailers and manufacturers says the report.

The 2015/2016 Report shows that consumers place a significant value on high-quality product content, regardless of product type, price, or purchasing channel. Retail trading partners can maximize sales, minimize returns, optimize speed to market, and enhance their brands by improving the quality of product information they provide to digital shoppers, says the report.

 Key Findings

• Product information quality is an important factor in the success of online sales. 78% of consumers say the quality of product content is very important when making purchase decisions.
• 87% of consumers say they would be unlikely to consider a retailer again if they provided incorrect information for a purchased product.
• One in four consumers say they have abandoned a purchase because of poor product information.
• 57% of respondents rank consumer electronics as the industry offering the best and most complete product information.

Product information plays a key role in online sales, according to the Report. 95% of those surveyed say product information is important when making a purchase decision, with nearly four in five indicating that it is very important.

In particular, product descriptions and images are critical, with the vast majority of consumers saying they are important (30%) or very important (63%). While product reviews are also important in the sales process, only 39% of consumers say they are very important, highlighting the value of information that comes directly from the seller or manufacturer.

Product Information Quality and Completeness Impacts Product Sales Conversion Rate…

With only Item number and price:

   - 80% conversion

Adding Low Res image & product specs:

   Base (nominal conversion)

Including product description,High Res & 360° image video:

   +35% (conversin increase over Base)

Overall the type of product information that matters most to consumers varies, as does the path shoppers take in finding and consuming product content. In the end, products are purchased from retailers and brands whose product information makes shoppers feel confident in doing so.

42% of consumers have returned an online purchase in the past year specifically because of poor product content, says the report. The clothing and apparel category sees the most returns as one in four consumers has returned an item due to inaccurate product information. The costs associated with each return can be significant.

The most significant impact to manufacturers and retailers of poor product content is arguably the resulting brand erosion. According to the survey, nothing directly impacts the experience of the individual customer like a product that doesn’t meet expectations.

87% of consumers say they would be unlikely or very unlikely to make a repeat purchase with a retailer that provided inaccurate product information, leaving just 13% who would likely shop with that same company again.

Whether the customer’s negative perception of a retailer or brand is temporary or permanent, it is always costly, says the report. In many instances, say consumers, a less than optimal retail experience can be traced to poor quality, inaccurate, or incomplete product information.

90% of online shoppers report leaving a purchase behind at one time or another. And while consumers list cost and delivery time as the top two reasons for not completing a purchase, poor product descriptions and low-quality images follow close behind, with more than 25% citing them as reasons for abandoning carts. In addition, a lack of quality content has a greater impact on whether a sale is made than a lack of product reviews.

Consumers have different content expectations depending on the type of product being considered.

In no industry is the desire for quality product information greater than in consumer electronics. Not only did respondents rank consumer electronics as the category where product information is most important, but they also ranked the quality of product content as the highest of any industry. Clothing and apparel, on the other hand, ranked last in the quality of information provided, which is especially noteworthy since these products are the items consumers say they purchase online most often, observes the report.

In addition to differences in content from industry to industry, consumers also see disparities in the quality, accuracy, and completeness of product information across retail channels. More than three in four consumers say they have noticed inconsistent information for the same product across channels. 87% of these consumers indicate that such discrepancies, at a minimum, delayed their purchase. In some cases, it kept them from buying a product altogether.

With gross sales reaching $600 billion, the grocery industry is by far the largest retail sector in the country. But only 23% of consumers currently shops for groceries online, and the industry ranks next to last for quality of digital content. Additionally, nearly 40% of consumers say they are uncomfortable shopping online for groceries, citing product content availability or a lack of trust in the content provided.

In summarizing, the report notes that the quality of product data impacts all facets of the online retail business. In the eyes of the digital consumer, a product is only as good as the information associated with it. If that information is incomplete in any way, purchases are delayed, products are returned, and brand equity is lost.

For additional information about the Shotfarm report, please visit here.