Published on March 18th, 2020 | by Sunit Nandi0
Why The Right Product Labeling Is Important For E-commerce
Over the last decade or so, you have probably noticed a seismic shift in the way companies conduct business and trade. A large number of companies are creating online sales’ platforms to reduce store costs and simultaneously reach out to larger customer bases.
As a business owner or an entrepreneur, you have probably noticed how ecommerce has had a massive impact on product sales. However, while jumping onto the online sales bandwagon, it is likely that you have forgotten about the grave importance of product labeling.
Let’s discuss why the right product labeling is important for ecommerce.
1. Greater Chances For Sales
When a customer orders products online, he or she doesn’t have the option to check out a sample. Most people, who order products online, end up selecting the item on the basis of the product label. The more attractive and informative product label, the greater the chances of the sale of the product.
When getting the label for your product designed, make sure that you use captivating colors, memorable logos and most importantly provide all the essential information like price, quantity, expiry date and other such information of the item.
2. Creates Brand Recognition Globally
Most eCommerce portals offer global shipping for products. If you have listed your products on eCommerce platforms, it is essential that your products have proper labeling for brand recognition.
When a non-local customer purchases bottled water for the first time, he or she will most likely make the purchase decision based on the appeal of the product packaging and l labeling. Once the buyer has consumed the water and has understood the quality, all future purchases will be made on the basis of brand recognition through the product label and package.
3. Item Grades Can Be Easily Identified
Some companies specialise in selling different grades of the same product. Having color coded labels for each grade of the product can make it much easier for customers to identify the grade that they want.
It can become extremely confusing for the purchaser to select non-labeled products with multiple grades on ecommerce platforms. Since they don’t have the option of checking out a sample, they may end up purchasing the wrong product.
Further, shipping back wrongly purchased products to the seller can also be quite inconvenient. Hence, it is absolutely essential to have proper product labeling for your manufactured goods.
4. Prevents Mishaps and Health Hazards
Companies that are selling food products, or products that contain allergens, have to mention the details of the ingredients on the product label.
Selling products on eCommerce websites without proper labeling can lead to mishaps and health hazards. If a person with allergies ends up consuming your non-labeled product only to find out that the ingredients in the consumables contained something that he was allergic to, he could fall seriously ill, or worse, die.
So in order to prevent such mishaps, having proper product labels on your goods is necessary, especially when the items are being shipped globally where not all buyers recognise your brand.
5. Gives the Buyer the Information That He Needs
Online shoppers are extremely careful before they hit the ‘buy now’ button. They conduct proper research before they make a decision on which product to buy. Since these ecommerce platforms are usually global, the number of available brands for the same product is limitless.
As a seller if you want to ensure that it is your brand that is selected over the countless other available options, your product needs to have informative labeling. All the necessary details, ingredients and information of your product should be mentioned in the product label for increased online sales.
6. Helps You Offer More Attractive Products
Imagine purchasing a product that comes in an unattractive package without proper labeling. Chances are that you will never make another purchase with that same seller again.
When selling goods, the presentation of the item has a major impact on the buyer. Presentation for the most part includes attractive packaging and labeling.
When an individual makes a purchase of your product on an eCommerce platform and he gets a beautifully labeled package delivered to his doorstep, he is likely to recommend your brand to others and also make repeat purchases in the future.
7. Legally Required In Most Countries
Most countries have made it illegal to sell food and skincare products without a proper mention of the ingredients on the product label. Some countries have gone a step ahead and made it compulsory for companies to mention the calorie content of packaged food items on the product labels.
To prevent and avoid lawsuits, detailed and informative labels for your products are required. Imagine having a non-labeled product that results in the death or hospitalisation of one of your buyers. Chances are that you will get sued and you will have to pay quite a heavy compensation.
Thus, it is always better to have proper labeling on your products so that you’re in sync with local laws.
8. Necessary for Understanding How to Use the Product
First time buyers or users of your product may not have the technical knowledge on how to use the item correctly. An informative label with instructions on how to use the product can prove to be extremely helpful to a buyer.
For instance, if you’re selling clothing items, a machine wash may end up permanently damaging them. In this case, printing a ‘hand-wash only’ sign on the product label will end up giving the end user the information that he needs and saving the product from damage.
Product labeling and packaging has become an integral part of marketing. Companies from all over the globe are giving great importance to product labeling. As you can see, product labeling is important for a wide range of reasons and can help increase your sales and annual turnover drastically.