Since launching LemonStand’s Premium subscription plan, we’ve begun working more closely with some of our highest volume online retail customers. We help them uncover and test ideas that can guide them to grow their businesses even faster. We work with them on everything from traffic growth to user experience, to checkout conversion rates and more.
To assist other retailers, we’re going to start to share some of the most successful improvements we’ve made with our customers. We’ll share what we did, and we’ll give you hard numbers on the results to help you decide if this is worth trying for your business.We’re kicking things off by sharing some of the work we did earlier this year to help PhoneSoap. PhoneSoap offers a variety of products to clean and sanitize your mobile phones and tablets. Fun fact: did you know that a cell phone has 18X more harmful bacteria than a public restroom? Yuck! Shameless plug, we’ve included a picture and link for their flagship product if you feel the urge to disinfect your phone.
Founders Dan Barnes and Wes Laporte started the business back in 2013. They initially crowdfunded $60,000 on Kickstarter to build their first product. A year later, they landed an investment from Lori Greiner on Shark Tank and have been growing like gangbusters ever since. Today they’re running a multi-million dollar business. Almost half of their revenue comes through their LemonStand-powered online storefront. The rest comes through a mix of Amazon.com, QVC and other channels.
Earlier this year we worked with PhoneSoap as an early adopter to test the impact of adding another checkout flow and payment option for our new Pay with Amazon integration and wow, did it ever pay off! Read on to learn more.
Why Amazon Payments?
One of PhoneSoap’s selling channels in addition to their branded online store is Amazon.com. They’re already getting a minority of their sales from Amazon customers. They’ve also included their products in the Amazon Prime shipping program and have started using Fulfillment By Amazon to ship products to their customers.
But even without this relationship, there is no denying that Amazon’s reach is huge. In the US, in a single 3-month period this year, 81% of all internet users accessed Amazon’s website or other properties. So basically, almost everyone they’d ever want to sell to has an Amazon account. Even better, most of them have saved their payment details and shipping information there.
We wanted to bring the trust of Amazon’s brand to our website.
Dan Barnes, PhoneSoap Cofounder
What We Tested
The idea PhoneSoap wanted to test was whether adding the Pay with Amazon button as another option to their existing flows would improve checkout conversion rates. Their thinking was that this would increase trust and simplify the checkout process. Customers choosing this option wouldn’t have to enter any personal information or credit card details. They could just use the saved information that they’ve already provided to Amazon, and this would reduce the amount of time and effort involved in completing an order.
One of the great things about LemonStand is that unlike most other cloud-based eCommerce platforms, your customers stay on your own domain when checking out. More importantly, we give you the ability to completely customize your checkout process. You can create multiple custom checkout flows for specific payment options or designs, add custom form fields and even do A/B testing to see whether different versions of your checkout convert better.
We had Amir, one of our Premium plan theme support engineers, work with PhoneSoap to set up an A/B test by customizing their website checkout flow. He created a new checkout page test variant that added a Pay with Amazon button as another checkout option. We also timed the test to be ready for an airing of a Shark Tank Episode that included an update on PhoneSoap. That way we thought that we’d be able to quickly test against a large sample of customers for statistical confidence in the results. And boy did we see a traffic spike when that episode aired!
Here’s how these 2 variants looked:
Variant 1 (Original) – No Amazon Checkout Option
Variant 2 (New) – Amazon Checkout Option
Did We Improve Checkout Conversion Rates?
That simple change had a massive impact on PhoneSoap’s checkout conversion rates. Let’s look at some numbers:
- For customers who saw variant 1, which includes standard credit card and PayPal payment options, the order completion rate was approximately 25%. This translates to a 75% abandonment rate, which is close to the current industry average of 69%. Pretty good, but definitely not great.
- For customers who saw variant 2, 30% chose the Pay With Amazon option. This indicated that a large percentage of their visitors saw the value and gave us a nice big sample for a high statistical confidence rate.
- Of the customers who chose the Pay With Amazon option, the order completion rate was 50%. That’s double the result of their standard checkout flow and an awesome checkout conversion rate by almost any measure!
- Since ending the A/B test and making Variant 2 with the Pay With Amazon option their default checkout page, PhoneSoap’s overall checkout conversion rates are consistently over 20% higher than with their old checkout page and well above industry averages. Talk about a a great way to drive 20% more revenue, and without needing to even grow your site traffic!
Pretty amazing result right? The PhoneSoap team definitely agrees!
Our implementation of Amazon Payments has out-performed our original forecast. Our customers feel safer and checkout faster than ever before. We were also extremely satisfied with the LemonStand Premium team’s implementation process and performance and plan to work on more improvements with them in future. Dan Barnes, PhoneSoap Cofounder
Is The Shark Tank Effect Real?
I bet you’re wondering whether we might share any numbers that show how much of an impact the Shark Tank effect really has. Can promoting your product on Shark Tank have a direct impact on online sales? You’d better believe it!
We can’t exactly publish PhoneSoap’s financial information on an eCommerce blog (don’t worry Dan! :-)), so we’re going to share some abstracted numbers that should give you a sense of the impact Shark Tank can have. Here they are:
- In the 24 hours immediately following the airing of that episode, we saw a >60X increase in traffic to the PhoneSoap website.
- In the 72 hours immediately following the airing of that episode, PhoneSoap processed a similar volume of orders to what they would normally process in more than a month
- This spike tailed off but the impact lasted for over a week and we can tell you that PhoneSoap had an amazing month of sales in May of this year!
Let’s take a look at how this looked on their sales dashboard:
Keep in mind this was just an update show with a quick 1 minute follow up, not a full pitch to the Sharks. A full pitch with a great product surely can have an even bigger impact. The Shark Tank Effect is definitely real folks!
It’s also worth noting that unexpected spikes in traffic like these can cause a lot of pain. This is especially true if you’re still running your stores on old fashioned server platforms. The good news for PhoneSoap is that they chose LemonStand, a modern platform that can automatically scale when traffic increases suddenly. Smart move Dan!
While PhoneSoap was extremely happy with the results of adding Amazon Payments to their website, their hunger for growth has them constantly looking for more opportunities to optimize their website. We’re already mapping out a couple of other improvements that we believe will have a major impact on their growth. Don’t worry, we’ll share the juiciest stories with all of you! And if you’re interested in learning more about some of the cool things PhoneSoap has done with LemonStand, check out this case study.
We hope you’ve enjoyed learning a little more about our valued customers, their stories, and experiences with LemonStand. If you would to learn more why LemonStand is considered as the best alternative to Shopify, Magento and BigCommerce by web developers, agencies and fast growing brands visit the following links:
To view more successful LemonStand customers, go to our Showcases page.