Pomelo is Southeast Asia’s leading fashion company. It’s an omnichannel fashion brand that connects users from site to store. We provide a seamless shopping experience with the option to Try First, Pay Later (Tab. Try. Buy). Users can order items to try at the store and pay for what they keep. Last year, we started collaborating with local brands – IG brands, and Thai designers – to bring more variety of product categories to our customers, and now Pomelo has more big bigger brands in the platform such as Nike, Adidas, Calvin Klein, etc.
Since Pomelo had more third-party brands on our platform, we have gained a lot of new users signing up to use our App and website. However, those users aren’t active and have never made any purchases with us. This problem leads us to start investigating the root cause and find a way to increase the new user conversion rate.
The highlight of this project is to share how e-commerce platform increase their revenue in one area
The product page is a crucial page in an e-commerce platform which is can be challenging when we want to introduce any new feature into it
What’s your experience with shopping online on an e-commerce platform?
What makes you spend time so long exploring around and decided to buy something? or What makes you feel like using the particular platform over the others?
As a business owner running an e-commerce platform, the ultimate goal is always to try to scale up the business and meet customer needs.
As a UX designer is to make sure to nail every element in turn to.
This project will be focusing on adding a new element to the product page which is one of the most crucial pages in an online store, how might we include the voucher in the most effective way so that supports users to make a decision to purchase the product?
*Disclaimer for a data geek
The product Page is the most visited page on the Pomelo app, the data shows ~70% of sessions, but Order Conversion overall is only 0.523%, it’s the lowest amongst other flows where the user lands on the App feed at 2.03% or Product List page (0.754%) first.
Before we jump into different ways that can effectively use offers to increase customer loyalty and acquisition, let’s first look at some of the pros and cons:
The pros and cons of online store offers
Increased customer loyalty
Increased customer acquisition
Quickly move stock
Meet sales goals
Decreased margins and profitability
Possible brand damage
Decreased conversions outside of sale periods if you train visitors to wait for offers
Tendency to drive non-loyal (price-driven) shoppers
I went through the benchmarking to see more of what competitors do, and how they show the voucher on any pages, one thing to keep in mind for a UX designer every time we do the benchmarking, as I mentioned in a company overview, Pomelo used to be a fashion platform it’s transforming to the Fashion marketplace, so the perception of the users with Pomelo is still a Fashion brand, especially with a million of existing users, we don’t want to confuse the user so the researches are going to divide to 2 categories and the insight in each category as follows:
Fashion brands (International and Asian):
Most internationals don’t show the voucher on the product page, but some are shown on the Homepage/Feed, Banners, and in checkout flows.
Fashion Asian brands are showing more sales and promotions than Inter-brands in general.
Marketplace (International and Asian)
Every page included a voucher code and more than one placement.
Focusing on the new users
From the research, it might help users make a decision to buy the product quicker, but on the business side offering voucher can affect other aspects e.g decreased margins and profitability, decreased conversions outside of sale periods if you train visitors to wait for offers.
Information Architecture – Product Page Analysis
Ideate and Sketch
To make sure we are aware of the risk, the proposed solution is to roll out this feature only for the new user and measure the success then we will see if that can move forward to all users in the next milestone.
Gained 441% order conversion uplift upon launch and 260%
YoY voucher usage per session uplift, as well as lowered discount costs by 45%.
The feature has been launched for both new and existing users until now (January 2023), and we still keep maintain the risk of adding new elements to the product page, sometimes we are running A/B testing to experiment if it’s worth developing such a feature.