Wireshape addresses a critical problem in the e-commerce industry: the pervasive issue of inaccurate product information. A staggering a quarter of global online purchases are returned , with a striking 64% of these returns attributed to mismatches between online product descriptions and reality.
This mismatch not only leads to customer dissatisfaction and high cost of reverse logistics, but also has a profound environmental impact, contributing to an alarming 5 billion pounds of waste in landfills each year . Wireshape's mission is to rectify this widespread problem, fostering transparency and accuracy in product data to enhance customer satisfaction and promote environmental responsibility within the e-commerce sector.
Why does this happen?
- Data registration and consultation services are bureaucratic and expensive.
- Centralized curator and provider of information, no consumer audit.
- Typically only GTIN/EAN, product name and manufacturer are provided.
- Registering products in the ecommerce system manually or without a standard.
- Relevant number of product reviews only on major marketplaces (monopoly).
- Fake reviews or often that do not refer to the product itself, but to the shopping experience.
How the Lack of Product Information in E-commerce Affects Sales, Engagement and Customer Satisfaction?
E-commerce has grown significantly in recent years, with more and more businesses turning to online channels to sell their products. In 2021, retail e-commerce sales amounted to approximately 5.2 trillion U.S. dollars worldwide. This figure is forecast to grow by 56 percent over the next years, reaching about 8.1 trillion dollars by 2026 .
However, with this growth comes a set of unique challenges and issues that must be addressed to maintain a successful e-commerce operation. One of the most significant issues facing e-commerce today is the lack of accurate product data, which can have a significant impact on engagement, sales, and customer satisfaction.
The importance of accurate product data cannot be overstated, as it is a critical component of the e-commerce experience. When customers shop online, they rely on the information provided about products to make informed purchasing decisions. Without accurate product data, customers may be misled about the features, benefits, or quality of a product, which can lead to dissatisfaction and a decrease in sales.
One of the primary ways that inaccurate product data affects engagement is by creating confusion and uncertainty in the minds of potential customers. For example, if a product's description is vague or incomplete, customers may not have a clear understanding of what they are buying. This can lead to frustration and a lack of trust in the seller, which can result in lost sales and reduced engagement.
Inaccurate product data can also affect sales by reducing the number of customers who are willing to make a purchase. When customers do not have the information they need to make an informed decision, they may choose to delay or abandon their purchase altogether. This can result in lost sales and reduced revenue for the e-commerce business.
Furthermore, inadequate product data can have a significant impact on customer satisfaction. If customers receive products that do not match their expectations, they may be dissatisfied and leave negative reviews or return the product. This can lead to a decrease in customer loyalty and repeat business, as well as a damaged reputation for the e-commerce business. A lack of transparency and accountability in product information can lead to decreased trust in the product and the brand, which can negatively impact customer loyalty and brand reputation.
It is in the face of this challenge that Wireshape is committed. Our mission is to decentralize product data and create an open and community audited standard of data so that innovative e-commerce and decentralized applications can easily integrate our tools and offer their customers real, complete and relevant information about a product before it is purchased. Increasing customer satisfaction and decreasing the rate of negative reviews and returns.1. SaleCycle, 2020, https://www.salecycle.com/blog/featured/ecommerce-returns-2018-stats-trends/.
2. BBC Earth, https://www.bbcearth.com/news/your-brand-new-returns-end-up-in-landfill.
3. Chevalier, Stephanie. "Global retail e-commerce sales 2014-2026", https://www.statista.com/statistics/379046/worldwide-retail-e-commerce-sales/. Statista, Sep 21, 2022.