Explore the Role of Online Reviews in E-commerce

CX Strategy

The Role of Online Reviews in Shaping the E-commerce Experience

Jan 15, 2024

7 mins read

Manisha Khandelwal

Contents

95% of customers read online reviews before buying a product. Over nine out of ten customers (95%) read product reviews before they choose to purchase something. Additionally, 58% of these shoppers say they are willing to pay more for products that have good reviews. — Global Newswire

This behavior differs from the traditional patterns when buyers purchase products through advertisements and word-of-mouth. 

The shopping industry is rapidly changing, and e-commerce is the primary reason why. It is affecting how consumers find, evaluate, and purchase products. One of the key factors of this phenomenon is online reviews. They may seem like mere comments and ratings, but they are a critical factor influencing consumer behavior, brand image, and market trends. They’re necessary guideposts for informing consumer choices and showing businesses what their target consumers want. 

An increasing internet user base and digital transparency are behind this paradigm shift. These shifts are why online reviews shape customer trust, brand perception, and purchasing decisions. For any brand to grow and stay ahead of the competition, they should understand and use online reviews to their benefit. This article will look at the role of online reviews in the digital world and how they change e-commerce, affect consumer trust, and boost the economy.

The Impact of Online Reviews on Consumer Behavior

Let’s look at how online reviews influence shopping patterns and customer behavior.

Credibility through Customer Feedback

A major disadvantage of online shopping is the lack of physical examination, and that’s where online reviews come in. 93% of online shoppers believe online reviews help them make accurate purchase decisions.

Reviews are the yardstick to guess a product’s quality and reliability. Don’t worry; this isn’t some anecdotal statement!

The Psychology of Reviews

To understand the popularity of online reviews, you must first understand their psychology. When you see a review, you see social proof. Someone else made the same decision you’re contemplating, and after that, their experience influences your decision. Online shopping can be risky, and observing other buyers’ positive experiences with a product decreases the perceived risk and increases the purchase likelihood.

The Evolution of Consumer Behavior

Modern consumers increasingly prefer peer opinions and personal research over conventional marketing strategies. This change is partially because of improved information accessibility, letting customers research products and read multiple reviews before purchasing. Customers gain more control over purchasing decisions, compelling businesses to prioritize transparency and customer satisfaction. For instance, this About Us page underscores the value of the brand’s customers, and by focusing on its customer service and reviews, it is an industry leader.

Amplifying Customer Voices

Through online reviews, the voice of the customers has grown powerful. They can publicly share their experiences and opinions on a product. Anyone can impact a brand’s image, whether a small-scale customer or a business. Positive reviews can lead to marketing success for a brand, while negative reviews can damage their reputation. These reasons are why online brands must take customer feedback seriously and constantly improve their services. 

Growing Reliance on Reviews

Millennials and Gen Z shoppers rely on reviews as the central source of product information. Businesses must actively manage their online reputation to attract these customers. The effect of these reviews extends beyond individual purchases and shifts brand perception and customer loyalty

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For instance, a best-selling product on Ubuy is the Nervure 175PCS Clear Black Plastic Plates, and it’s easy to see why. The product has largely positive reviews and multiple pictures to win customers’ trust.

The Benefits of Online Reviews for E-commerce Businesses

In this section, we will examine how online reviews benefit the e-commerce industry. whether it’s an electronics, fashion, or picture frame materials e-commerce.

1. Sales and Revenue Growth

Online reviews fuel about 20% of sales as they increase customer spending by 30%. 

A positive review proves a product’s quality and reliability and is a powerful force behind sales in this industry. 

2. Influence on SEO

Search engine optimization refers to creating content that suits search engine algorithms. Customer reviews naturally include relevant keywords for the product or service. Hence, reviews improve a brand’s search ranking. Plus, you don’t even need to create this content! It’s organic marketing at its best. 

For example, when searching for ZOA Zero Sugar Energy Drinks, this Ubuy product page has a high Google rank. Why? It has multiple ratings, reviews, and customer queries, boosting its SEO.

3. Molding Customer Perception and Brand Image

Online reviews decide how present and potential buyers view your brand. 74% of consumers say that reviews increase trust in a company while a negative review can drive away 40% of potential customers. They can create a favorable sentiment or damage your reputation.

4. Influencing Marketing Strategies and Product Development

Online reviews help businesses find product deficiencies and customer needs. Brands can also analyze trends and industry preferences by analyzing review data to shape product development and service improvements. All these steps create customer-centric business practices for a more democratized market.

Strategies for E-commerce Businesses to Manage Online Reviews

  1. Encouraging Customer Reviews: Actively solicit reviews from satisfied customers through various channels, such as email requests and post-purchase follow-ups.
  2. Responding to Reviews: Promptly respond to both positive and negative reviews, demonstrating responsiveness and professionalism.
  3. Addressing Negative Reviews: Use negative reviews as an opportunity to identify areas for improvement and address customer concerns effectively.
  4. Leveraging Reviews for Marketing: Showcase positive reviews on product pages, social media, and marketing materials to enhance brand reputation. Consider partnering with an eCommerce development agency to optimize review integration and presentation across your online platforms.

The Challenges of Online Reviews

Let’s look at some of the challenges with online reviews. 

Addressing Negative Reviews

A negative review can drive away 40% of potential customers. And not just that, 53% of consumers expect brands to respond to negative reviews within a week. So, it’s high time brands start engaging with the detractors and focus on turning their negative experiences into positive ones by addressing and resolving their issues. 

Moreover, balancing negative and positive reviews shows a realistic picture of your products and increases customer trust. 

Legal and Ethical Considerations 

You can employ tools to measure the authenticity of your reviews and avoid spam and trolls. You should maintain complete transparency and honesty while managing and presenting customer feedback. Also, check for compliance with relevant laws and regulations when handling online reviews. 

Conclusion

Online reviews have revolutionized the e-commerce landscape, empowering consumers to make informed decisions and businesses to improve their products and services. By understanding the impact of reviews and implementing effective strategies, e-commerce businesses can leverage this valuable resource to enhance customer satisfaction, drive sales, and achieve long-term success.

 

Author Bio:

Dhari AlAbdulhadi is the founder and CTO of Ubuy and is currently based in Kuwait. He attended Kuwait University, where he graduated in 2008 with a Bachelor’s Degree in Economics. Later AlAbdulhadi earned a Master’s of Arts in Economics from Claremont University and furthered his education at this institution when, in 2012, he graduated with a PhD in Economics, specialising in International Monetary and Financial Economics. 

Manisha Khandelwal

Senior Content Marketer at SurveySensum

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