The Hidden Cost of a Poor User Experience: How it Impacts Your E-commerce Business

How a poor user experience affects e-commerce business

Do you know 90% of users have stopped using an app due to poor performance, while 32% of customers would leave a brand they loved after just one bad experience?


So, if you think you designed your website thoughtfully, you must test its usability twice. If your website makes it difficult for users to access certain information or is not optimized for viewing on various devices (desktop, mobile, and tablet), then you might have a poor user experience (UX).

Poor UX harms website credibility, and hence, it is essential to look over the smooth, intuitive, and user-friendly UX of your e-commerce website.

What Is Considered A Poor User Experience?

1. Confusing navigation

Let’s take the example of Zara. The website is attractive, but it frustrates shoppers because the menu they designed is not visible; I mean, just check the font color and size of the navigation menu confuses shoppers, and they leave without navigating the website further.

Zara's navigation menu will confuse shoppers


Your website's navigation is like a map. It guides visitors to their destination. A well-designed navigation is;

✅ Clear and intuitive and avoids confusing labels and clutter.

✅ Includes a search bar that allows visitors to find what they need quickly.

✅ Has a prominent "Home" button, which makes it easy to return to the main page.

✅ Organizes pages logically and groups the related pages together for easy navigation.

By prioritizing user-friendly navigation, you can improve the overall experience of your website and increase conversions.

2. Lack of information or Too much information

Paper Source, one of the reputed companies, provides less information with almost six to seven CTAs, which confuses visitors.

Paper Source's extra CTAs will confuse shoppers

Your website should be a one-stop shop for all the essential information visitors need. This includes:

✅ Contact information that makes it easy for visitors to get in touch.

✅ Location details, in case you have physical locations, clearly display them.

✅ Social media links to connect with visitors on platforms they use.

By providing clear information to your shoppers, you will create a positive experience and increase trust.

3. Accessibility

Craigslist has accessibility issues, such as overwhelming users with too many choices or a messy layout.

Craigslist has accessibility issues


To make your website more accessible:

✅ Use descriptive alt text for images and provide detailed descriptions that accurately convey their content.

✅ Add captions to videos and audio, which helps people who are deaf or hard of hearing.

✅ Use meaningful link text instead of generic links like "Click here" to describe the destination.

✅ Label form fields clearly, which helps people with cognitive impairments understand what information is required.

4. No Mobile-first eCommerce design

60% of shoppers use smartphones to shop from e-commerce websites. Google even prioritizes mobile-friendly sites in search results.

Let’s take the example of Madewell; it poses a design challenge; they didn’t provide all the navigation options and information a visitor needs without cluttering the interface. So its mobile site doesn’t quite strike this balance.

Madewell poses a design challenge


To ensure a seamless mobile experience:

✅ Optimize the layout that is easy to navigate on smaller screens.

✅ Use larger buttons to make it easy to tap with a finger.

✅ Keep content concise; don’t use long-form content in shorter, digestible pieces.

Focusing on a mobile-first approach will reach a wider audience and provide a better user experience.

What Are The Costs Of Having A Poor User Experience?

User experience (UX) isn't just about making your website look good; it's about how customers interact with your e-commerce site. A poor UX can quietly drain your business's resources and hinder growth. Let’s break down the hidden costs:

1. Lost Revenue

A frustrating user experience can drive customers away before they make a purchase. If your website is hard to navigate, slow to load, or not mobile-friendly, customers will leave for a competitor. Every lost visitor is a lost sale, and those add up quickly.

2. Poor usability

If customers can’t easily find what they are looking for or complete a purchase smoothly, they will abandon their carts. Poor usability leads to high bounce rates and low engagement, which ultimately means fewer sales. Your site needs to be intuitive and user-friendly to keep customers coming back.

3. Wasted time in the development cycle

Developing a website with poor UX is like building on shaky ground. Your team will spend countless hours fixing issues that could have been avoided with proper planning and user testing. This wasted time could have been used to improve your site or develop new features.

The development cycle

4.  User frustration

Navigation is key to a good user experience. If your customers can't find their way around your site, they will quickly get frustrated and leave. Poor navigation leads to lost sales and hurts the overall shopping experience, making customers less likely to return.

Use session recording to find out where is the user getting frustrated

5. Build-rebuild cycle will cost too much

When you ignore UX during the initial build, you will pay for it later. Frequent redesigns and patches to fix usability issues can be expensive and time-consuming. Investing in good UX from the start saves you money in the long run.

6. Poor conversion rate

A poorly designed website fails to convert visitors into buyers. This could be due to confusing layouts, unclear calls to action, or a complicated checkout process. Improving UX can significantly boost conversion rates, turning more visitors into paying customers.

7. Block ways for Upselling and Cross-Selling

If your site is not easy to navigate, it becomes difficult to guide customers toward additional products or services. A poor UX can block opportunities for upselling and cross-selling, directly affecting your selling.

8. Damage brand reputation

Your website is the first point of contact customers have with your brand. If their experience is negative, it can damage your brand's reputation. Word spreads quickly online, and a bad user experience can lead to negative reviews and lost trust, making it harder to attract new customers.

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Tips to improve user experience of e-commerce website

Understanding how the above-hidden costs affect your e-commerce business is important. They don't just nibble away at your profits; they can snowball into significant problems that stunt your growth. Let’s look at each impact in detail:

1. Improve conversion rate

The average conversion rate of an e-commerce website is 1.81%. The E-commerce store will get an average conversion of 0.91% from social media, while search engines help them to convert 1.55% of visitors into buyers. A poor user experience directly impacts your conversion rate, turning potential buyers away before they even reach the checkout. But how to do it?

(I) Simple Navigation:

Ensure your website is easy to navigate. Organize your products into clearly categorized pages and use advanced filters that help shoppers find what they are looking for. Implement a robust search function with auto-suggestions that will help shoppers to find specific items quickly.

Petco. have simple navigation


Petco has clear and categorized navigation and has a search bar too, which ensures the simple, easy and best navigation.

(II) Streamline the Checkout Process:

Offer minimum steps to complete the checkout process. Allow shoppers to purchase without creating an account, i.e., guest purchase. Simplify it by asking only necessary questions, including name, contact details, shipping, and billing address.

Petco. have minimum step checkout process
Petco. allow guset checkout

Petco's checkout process is really short and clear. You just have to check the order summary and hit proceed to checkout. They allow guests to checkout and ask for shipping addresses and contact details, and that’s it.

2. Reduce cart abandonment

The average cart abandonment rate of e-commerce websites is 70.32%. 77.54% of shoppers who came from social media platforms abandoned their carts. E-commerce stores get 63.81% cart abandonment ratio from search engines and 69.39% from direct traffic. It is a common issue for e-commerce websites, but it causes a lack of trust, so using the following tips, you can solve the cart abandonment issues:

(I) Be Transparent About Costs:

Show all types of costs upfront, including shipping and taxes. Implement an estimated shipping calculator on product pages to eliminate surprises during the checkout. Transparency will surely reduce the cart abandonment rate and increase trust.

Nike shows additional cost with price itself


Nike being transparent to their users clearly said the price is including taxes and other duties. Also mark the size which is not available.

(II) Build Trust With Security Features:

Trust badges, such as SSL certificates and clear return policies, should be used to reassure customers that their information is safe. Also, you can provide secure live chat or AI chatbots to shoppers to resolve their issues on the spot, which builds trust.

Nike - provides complete information


They mentioned all the necessary information about the sneakers and mentioned a clear delivery and return policy to ensure shoppers the sneakers are worthy of buying and they are at a trustable place.

(III) Offer Multiple Payment Options:

Provide various payment options, including credit cards, debit cards, digital wallets, UPI, and COD (cash on delivery) also. With this, you allow shoppers to choose the most comfortable payment option that reduces cart abandonment and increases trust.

Nike - offeres multiple payment options


Nike provides various payment options, too. So, as per shoppers' comfort, they can choose their options.

Know why your visitors aren’t converting

riyo.ai shows you what keeps your visitors from buying, so you can make website changes based on real insights, not assumptions, and watch your conversion rate grow.

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3. Focus on Customer Retention:

The average customer retention rate in e-commerce is around 38%, meaning just three out of 10 customers stick with one single brand for more than one year. Poor usability and lack of personalization can make it hard to retain customers, who may leave for competitors that offer a better experience.

(I) Improve Usability

Conduct user testing to identify pain points in your website’s design. Improve site speed, ensure all features work smoothly across devices, and create a consistent, intuitive user interface. Clear product descriptions, images, and reviews can also help customers make informed decisions.

H&M - provides smooth usability


H&M is one of the best examples of having smooth navigation, user-friendly UI/UX design, and high-quality images.

Heatmaps_riyo.ai

(II) Implement Personalization:

Use data-driven insights to offer personalized recommendations, customized email campaigns, and targeted discounts. Personalized shopping experiences can make customers feel valued, increasing their likelihood of returning.

H&M provides personalize by suggesting related products


They suggest other related products that shoppers might be interested in. This personalization approach makes H&M stronger than its competitors.

4. Resolve High Bounce Rates

The average bounce rate for e-commerce sites is 59.92%. When it comes to traffic sources, email has the lowest bounce rate, at 54.37%, and social has the highest, at 63.89%. A high bounce rate indicates that users are leaving your site without engaging with it. This can be due to slow load times, poor design, or misplaced CTAs.

(I) Optimize Site Speed:

Compress images, leverage browser caching, and use a Content Delivery Network (CDN) to reduce load times. Even a one-second delay in page loading can significantly increase bounce rates, so speed optimization is important.

Notebook Therapy have unbeatable website speed.


Notebook Therapy is one of the best examples of having unbeatable website speed.

(II) Design for All Devices:

Ensure your site is fully responsive, providing a seamless experience across desktops, tablets, and smartphones. Test your site on various devices and screen sizes to ensure consistency and ease of use.

Notebook Therapy provides amazing mobile experience


The website is easy to navigate on all devices.

(III) Improve CTA Placement:

Place CTAs logically so they will find it easily within their customer journey. Use contrasting colors to make them stand out, and ensure that the language used is clear and action-oriented, encouraging users to engage further with your site.

Notebook Therapy placed CTAs perfectly


Notebook Therapy has a well-categorized product menu and simple navigation, placing CTA for each category of products.

Reduce your ecommerce bounce rate

riyo.ai has all the tools you need to understand customer behavior and identify ways to reduce your site’s bounce rate.

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5. Focus on SEO Ranking

E-commerce SEO drives an average conversion rate of 2.4%. Poor user experience can negatively impact your SEO ranking, leading to decreased visibility and traffic.

Focus on User-Centric Design:

Google prioritizes websites that offer a great user experience. This includes fast load times, mobile-friendliness, and low bounce rates. Regularly update your site with fresh, relevant content to keep users engaged and improve your search engine rankings.

Apple stores focus on user-centric design


Apple stores focus on user-centric design, which has fast loading time, mobile responsiveness, and easy navigation.

(II) Implement Structured Data:

Use structured data (schema markup) to help search engines better understand your content. This can improve how your website appears in search results, increasing the likelihood of clicks and reducing bounce rates.

Apple has perfectly organized SEO details


Apple store has perfectly organized SEO details, including meta titles, meta descriptions, schema markup, internal and external links, high-quality images, etc., for SEO purposes.

(III) Regularly Monitor and Optimize:

Use tools like Google Analytics and Search Console to monitor your site’s performance. Identify and fix issues like broken links, slow-loading pages, and outdated content that could be hurting your SEO.

Combine riyo.ai with Google Analytics

6. Focus on Revenue Opportunities

All of the issues above ultimately lead to lost revenue, whether it’s from missed sales, failed upselling and cross-selling opportunities, or customers choosing not to return.

(I) Implement Upsell and Cross-Sell Strategies:

Use product recommendations, bundles, and discounts to encourage customers to add more items to their carts. These suggestions should be strategically placed during the shopping and checkout processes to maximize effectiveness.

Sephora has amazing upsell and cross-selling techniques


Sephora has amazing upsell and cross-selling techniques. They suggest relevant products that people buy together with your chosen products under the name “Frequently Bought Together.”

(II) Offer Loyalty Programs:

Introduce loyalty programs that reward repeat purchases. This can encourage customers to return and spend more, boosting your revenue. Personalized incentives, such as discounts on frequently purchased items, can also drive customer loyalty.

(III) Regularly Update and Improve UX:

Treat your website as a dynamic entity that requires ongoing attention. Regularly update its design, functionality, and content based on user feedback and analytics. This proactive approach helps you stay ahead of competitors and maximize revenue opportunities.

ephora’s website is really easy to navigate


Sephora’s website is really easy to navigate, provides smooth UX, has perfectly placed CTAs and everything just seems streamlined.

FAQs

(1) What are the costs of poor user experience?

According to the study, slow-loading websites, often a result of poor UX, cost businesses up to $2 billion annually in lost revenue.

(2) What are the effects of bad user experience?

Bad UX can frustrate users, driving them away from your website or app. It can ruin trust, tarnish your brand image, decrease conversions, and negatively impact your business.

(3) What is poor user experience?

The layout is a jumbled up mess and it seems like all design elements have just one task – getting in the way of users accomplishing the task they've set out to complete.



















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Tapan Patel
Article by
Tapan Patel- BDM

As the head of sales & marketing, Tapan has expertise in the execution and planning of business growth strategies aligning with marketing trends. Tapan has over 10+ years of experience in IT marketing for creating growth strategies and managing sales.

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