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E-commerce: What are the key factors that help businesses increase conversion rates?

Latest Update: 08/05/2024

E-commerce: What are the key factors that help businesses increase conversion rates?

According to Metric (an e-commerce data platform), in 2023, there were 2.2 billion successful product deliveries across the top 5 e-commerce platforms in Vietnam (Shopee, Lazada, Tiki, Sendo, Tiktok Shop), marking a 52.3% increase compared to 2022. To continue the momentum and achieve breakthrough growth in 2024, experts suggest that e-commerce should focus on enhancing user experience. Page loading speed is one of the most critical factors influencing user experience. Let's explore with VNETWORK the optimal methods to improve page loading speed and enhance conversion rates for businesses through the following article.

Overview of the e-commerce market industry

According to forecasts by Forbes Advisor, global e-commerce sales are expected to increase by 10.4% this year, reaching a total value of $6.3 trillion. This figure demonstrates the strong growth momentum of the global e-commerce market, reaffirming its crucial position in the digital economy and its immense development potential in the future.

The e-commerce market in Vietnam has experienced remarkable growth over the past decade, averaging between 16-30% annually, according to reports from the Department of E-commerce and Digital Economy. It is projected that the market scale will reach $20.5 billion in 2023. With an internet user penetration rate of 74%, Vietnam is considered a promising market for the robust development of e-commerce in the future.

In summary, the trend towards transitioning from traditional shopping to online shopping is inevitable. To adapt to this trend, businesses need to invest in developing e-commerce platforms, enhance service quality, and ensure the credibility of their brands.

Websites play a pivotal role in the success of a business.

Website plays a crucial role in the success of an e-commerce business, extending beyond the confines of a mere digital communication channel. It operates as the central hub for all online activities, delivering significant benefits for both the business and its customers.

First Touchpoint and Online Store:

The website serves as the initial connection point between the e-commerce business and potential customers in the online business environment. It not only introduces products and services but also functions as an online store where customers can explore, learn about, and complete purchase transactions.

Building and Enhancing Customer Relationships:

The website provides an effective platform for building and strengthening relationships with customers. Businesses can offer detailed information about products, interact with customers through live chat, support systems, or contact forms, thereby establishing connections and effectively reaching out to customers.

Convenient Online Shopping Transactions:

The online shopping feature on the website provides maximum convenience for customers. Instead of spending time traveling to traditional stores, they can easily browse products, add them to their carts, and make direct payments from their homes. Shopping becomes easy, comfortable, and time-saving for customers.

Flexibility in Shopping:

The website operates 24/7, allowing customers to shop anytime, anywhere, regardless of busy schedules or limited hours. This is a superior advantage over the traditional store model, meeting the diverse shopping needs of customers in the digital age.

The website plays a vital role in the online business strategy, serving as the key to success for e-commerce businesses. Companies need to invest in building and optimizing websites to provide a perfect shopping experience for customers, thereby attracting traffic, increasing conversion rates, and boosting revenue.

Challenges in optimizing a business website

The website plays a pivotal role in the online business strategy of a company; however, the process of website optimization is always accompanied by numerous challenges. Ensuring that the website operates efficiently and provides the best user experience is not a simple task. Below are some typical challenges that businesses often encounter

Overloaded Website Traffic:

  • Decreased Performance: When traffic surges, the website may become overloaded, leading to decreased performance, slow page load speeds, impacting user experience.
  • Browser Freezes: Users may experience difficulties accessing the website, browsers freezing, or inability to display full content.
  • Revenue and Reputation Loss: Unstable website operation can drive customers away, affecting revenue and the company's reputation.
  • Access Errors: In severe cases, the website may crash entirely, displaying error messages like HTTP 503 (Service Unavailable) or HTTP 429 (Too Many Requests).

Image File Size Affects User Experience:

  • Slow Page Load Speeds: Large image file sizes prolong page load times, especially on slow internet connections or mobile devices.
  • Data Usage Increase: Users consume more data to load images, impacting internet usage costs, particularly on mobile devices.
  • Website Abandonment: Users may feel frustrated and leave the website if image loading times are excessively long.

Website Ranking on Search Engines Affects Revenue:

  • Reduced Customer Reach: When the website ranks low on search engines, the business loses opportunities to reach potential customers, resulting in decreased revenue.
  • Competitive Disadvantage: Businesses are at a disadvantage compared to competitors with higher-ranked websites in search engine results.

Optimizing a website effectively for an e-commerce business involves several key strategies to enhance its performance and user experience

Website optimization is a crucial process for e-commerce businesses to enhance user experience, attract potential customers, and increase revenue. Below are some effective website optimization measures:

User Experience (UX) Optimization

Ensuring that users have the best experience when accessing a business's website is crucial, and designing a simple and user-friendly interface is paramount. Measures to optimize User Experience (UX) for e-commerce websites/applications include:

  • Simple and User-Friendly Interface Design: The website interface should be intuitive and easy to understand, enabling users to easily find information and perform actions such as making purchases and payments.
  • Utilization of High-Quality Images and Videos: Sharp and attractive images and videos enhance the aesthetic appeal of the website and capture users' attention effectively.
  • Optimization of Page Loading Speed: Fast page loading speeds make it easier and more convenient for users to access the website.
  • Ensuring Compatibility Across Multiple Devices: The website should display well on all devices, including computers, smartphones, and tablets.

Improving Page Loading Speed

According to Google statistics, 40% of users will leave if a website takes more than 3 seconds to load, indicating that optimizing page loading speed is an important part of a business's strategy. A slow-loading website can frustrate customers and lead them to switch to other websites. Some effective measures to optimize page loading speed include:

  • Image and Video Optimization: Compressing image and video file sizes, choosing appropriate formats, and resizing and editing dimensions accordingly.
  • Minifying Source Code: Removing whitespace, redundant characters, and unnecessary code in HTML, CSS, and JavaScript files.
  • Utilizing Cache Memory: Installing cache memory plugins to store static data on users' browsers.
  • Using Content Delivery Networks (CDNs): CDNs store website copies on multiple servers worldwide, helping distribute content to users nearest to them.
  • Upgrading Hosting: Choosing quality hosting packages with suitable disk space and bandwidth.
  • Monitoring and Testing Effectiveness: Using tools like Google PageSpeed Insights to check page loading speed and receive optimization suggestions.

SEO Optimization

To achieve high rankings on search engines like Google, Bing, or Yahoo, e-commerce businesses need to implement SEO optimization measures. SEO optimization measures include:

  • Keyword Research: Identifying keywords that potential customers use when searching for products/services.
  • Content Optimization: Using target keywords appropriately in posts, titles, descriptions, etc.
  • Building Quality Backlinks: Creating backlinks from reputable websites to increase website rankings on search engines.
  • Technical Optimization: Improving website structure, optimizing robots.txt, sitemap.xml, etc.

CDN - Effective Website Optimization Solution for Businesses

CDNs are becoming increasingly essential tools in website optimization, offering numerous benefits to businesses, particularly e-commerce businesses.

Increasing Page Loading Speed, Reducing Latency

When using a CDN, static content such as images, videos, CSS, and JavaScript are stored on distributed servers worldwide. When users access the website, content is loaded from the nearest server to them, reducing page loading time and increasing access speed. This is particularly important for users in distant regions from the original server, providing them with a smoother and faster website experience.

Improving Website Performance and Stability

CDNs help reduce the load on the original server, avoiding overload, especially during high-traffic periods. As a result, the website operates stably and smoothly, minimizing lagging or website crashes. Distributing content across multiple servers also enhances error resilience, ensuring the website is always ready to serve users.

SEO Optimization, Expanding Reach

Page loading speed is a critical factor affecting website rankings on search engines like Google. Using a CDN improves page loading speed, thereby enhancing website rankings and attracting more potential customers. Furthermore, CDNs help distribute content to users globally, expanding the reach of potential customers regardless of their geographical location.

Cost Savings

Using a CDN reduces the load on the original server, allowing businesses to save costs on hardware upgrades or additional server rentals. Additionally, CDNs minimize bandwidth usage for the original server, helping businesses save on operational costs.

CDN is an effective website optimization solution, offering numerous benefits to businesses, especially e-commerce businesses. Utilizing a CDN improves page loading speed, enhances website performance, optimizes SEO, expands the reach of potential customers, and saves costs. Businesses should consider using CDNs to enhance website quality and provide the best user experience possible.

VNCDN - Leading CDN Provider in Vietnam and Asia

VNCDN Solution - The leading CDN solution in Asia, developed by VNETWORK Joint Stock Company, ensures fast content delivery speed and stable performance with an uptime rate of up to 99.9% for e-commerce websites/applications. With advanced CDN technology, VNCDN helps improve business efficiency and enhance user experience, while reducing system operating costs and protecting information on e-commerce websites/applications.

Enhancing Website Performance and Global User Reach with a Strong & Modern Infrastructure

VNETWORK owns a powerful infrastructure system with over 280 Points of Presence (POPs) in 33 countries worldwide, built on advanced technology platforms, meeting international standards for reliability, security, and performance. The international uplink bandwidth reaches up to 57 Tbps, enabling VNCDN solution by VNETWORK to provide high-quality transmission services, meeting the needs of businesses and organizations worldwide.

Additionally, VNETWORK's infrastructure system is expanded at leading data centers and achieves tier 3 standards across Vietnam, such as Viettel, FPT, VNPT, and Mobifone. With a total domestic uplink bandwidth of up to 10 Tbps, the VNCDN system can serve over 5 million users simultaneously and successfully handle over 8 billion requests per day.

VNCDN utilizes NVMe+ standard servers, SSD to increase data transmission speed and enhance website performance. NVMe+ SSD standard servers use NVMe (Non-Volatile Memory Express) protocol to connect to PCIe (Peripheral Component Interconnect Express) ports on the mainboard.

Boosting Website Loading Speed, Supporting Multi-content & Multi-device Compatibility with a Powerful CDN System

In addition to a strong infrastructure, the VNCDN solution also provides many outstanding features to ensure flexibility and efficiency for electronic news channels. Supporting the HTTP/3 protocol brings many improvements in performance and security, minimizing latency on all devices by transmitting multiple data streams simultaneously over a single connection using multiplexing.

Moreover, the image format conversion feature to WebP format applies compression, file shrinking techniques, and utilizes low-size image formats, effectively reducing file size while maintaining image quality on the website. This helps reduce the amount of data to be transmitted, thereby speeding up page loading and providing a better experience for readers.

Enhancing Website Security and Stability

The advanced features of VNCDN not only enhance performance but also play a crucial role in protecting businesses from complex cybersecurity threats. By hiding IP addresses, the VNCDN system prevents targeted attacks from network intruders. Additionally, VNCDN's Origin shield helps serve stored content to users when there is no new data from the original server, reducing the number of requests for new data and limiting new connection requests to the original server, maintaining performance and reducing the risk of overload.

Furthermore, the automatic PoP conversion feature maintains stable operation and efficiently restores data in case of incidents, minimizing response time and ensuring continuous operation of electronic news systems. Finally, the ability to prevent content theft and hotlinking on other websites through Token and CORS integration not only protects content rights but also keeps electronic news channel data securely controlled and efficient.

24/7 Monitoring and Support

The timely, flexible, and professional response capability of VNETWORK's expert team ensures effective support for electronic news channels in resolving any issues that arise. With the participation of experienced experts worldwide, VNETWORK's support team is always ready to monitor and detect any signs of anomalies to promptly address potential hidden incidents or DDoS attacks. This helps minimize damage, ensure continuous and stable operation of electronic news systems.

Conclusion

Conclusion With a strong infrastructure, advanced technology, and experienced expert team, VNETWORK is committed to bringing superior values to e-commerce businesses including: Enhancing user experience, Enhancing website operational efficiency, SEO optimization, Expanding markets, and Meeting diverse needs.

Start the journey of optimizing the speed of your e-commerce website/application with VNCDN today. Contact hotline: (028) 7306 8789 or contact@vnetwork to register for integration and experience the positive changes of your business website.

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