Product reviews enhance shopping experiences

Digital commerce has revolutionised the way we shop, offering shoppers unparalleled convenience and sellers not only an effective sales channel but also access to global markets. 

However, the wide digital reach can also create challenges. Consumers are finding it increasingly challenging to make informed, well-thought purchasing decisions. From the perspective of sustainability, avoiding impulsive or misjudged shopping is increasingly important. Thankfully the said value influences the purchasing decisions of many people. By incorporating online reviews to a customer journey is a way to endorse this behavior, as product ratings and reviews can signal trust and quality for online shoppers. 

The online retailers who understand the power of product ratings can transform their business to become even more profitable. Indeed, there are many ways to increase profitability, like the four dimensions of footfall, conversion, margin and increasing average purchase.

The following text presents the tangible benefits of product reviews and illustrates why investing in product review service is not only beneficial but rather essential for e-commerce success.

Product reviews build trust through transparency

Trust is the cornerstone of any successful online store and based on research, product reviews have a significant impact on consumer trust. The study found, maybe not that surprisingly, that potential buyers tend to trust products with higher ratings. But increasing trust is very important as it, in turn, directly influences consumers' willingness to buy. Especially in an environment where buyers cannot physically inspect or try products, ratings and online reviews act as a substitute for quality assurance. By presenting product reviews, online retailers can build an open relationship with their customers and create a sense of security and trust that rewards with a faster purchase decision.

Another factor affecting trust in the world of product reviews relates to who conducted the review. Unverified, or anonymous, reviews are less effective in providing reassurance than those that can be vouched for by the online retailer. 

In other words, the buyer wants to be sure that the product has actually been sent to the customer, that they have tried it and used it, and that the customer has then given their own, impartial, assessment of the product they have bought.

For the sake of fostering trust, online retailers should ensure that the product review service they use has the above mentioned things covered:

• Online reviews are from real people buying and using the product
• The reviews will be verified and
• Product reviews are impartial, eg. reviews are collected in a sustainable way without any rewards.

Product reviews enhance customers’ decision making process

Product reviews facilitate the consumers’ decision-making process by streamlining the thought process. As several studies have shown, product reviews help reduce information overload, allowing consumers to make faster and more confident purchasing decisions. 

Research highlights that product reviews act as a filter, directing consumers to products that have been tested and approved by others. This has several benefits: not only do reviews improve the shopping experience by making it more efficient, but they also increase the likelihood of satisfaction with the product purchased. This in turn leads to lower return rates and greater customer loyalty.

Online reviews Improve sales and conversion rates

The impact of product reviews on sales cannot be overstated. Studies reveal a direct correlation between product reviews and sales performance. Products with higher ratings and more reviews tend to sell more. It is estimated that a one-star increase in ratings can lead to a significant increase in sales revenue. This is due to the higher visibility and perceived value of highly rated products. In addition, product ratings can significantly improve conversion rates. Potential buyers are more likely to purchase a product with numerous positive reviews as they are an indication of the quality and performance of the product.

Product reviews increase customer loyalty and encourage feedback

The digital market is crowded and competition is fierce. To stand out from the masses, online retailers need to use all the tools at their disposal to improve the shopping experience, build trust and increase sales. Product reviews are not just a feature, but an essential part of a successful online business. The benefits are clear:

• Product reviews have a positive impact on consumer behavior
• Online ratings increase trust and simplify decision-making
• Product reviews increase sales and 
• Showing online reviews promotes engagement.

Investing in an easy-to-use product rating service is not an expense but a strategic step towards a better and more profitable shopping experience.

Author: Noora Kahra, Chief Marketing Officer

RateCompass / Vilkas Group