Factor Blue Insights

Factor Blue partnered with Hypernode to Boost eCommerce Performance

Beginning of the partnership between Hypernode and Factor Blue?

The partnership between Hypernode and Factor Blue started after working on a successful customer case. “As an eCommerce hosting provider, we are always looking for ambitious development agencies to collaborate with. Correspondingly, we can offer customers the best solutions for eCommerce webshops.” – Dion van de Griend, the account manager at Hypernode.

The same was the point of view of the CEO at Factor Blue, Jesper van den Bogaard. “The ultimate goal is to meet unique requirements of the clients while delivering a best-of-breed eCommerce solution.“

Core features or capabilities of partners?

Developer-Friendly Environment

From the point of view of our development team, Hypernode is always a good choice. It provides a developer-friendly environment that enables seamless collaboration and efficient workflow. With tools like Git deployment, SSH access, and PHP version control, our developers can easily manage and deploy code changes, ensuring a smooth development process. Hypernode also offers integration with popular developer tools and frameworks, allowing developers to leverage their preferred technologies. This flexibility empowers developers to customize and optimize their Magento webshops to meet specific business requirements, delivering a tailored shopping experience to customers.

One of the developers at Factor Blue shared his thoughts on the importance of Hypernode in Magento webshop developing. “Most of our clients are from the Netherlands. Having a hosting partner with servers located in the same country leads to much better performance and stability. It also improves SEO rankings, since it directly affects website loading speed.”

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Importance of a reliable hosting solution for webshop

In today’s competitive online landscape, establishing a strong digital presence is crucial for the success of your e-commerce business. As you embark on this journey, one of the most critical decisions you’ll face is selecting the right web hosting solution. While seeing the words “cheap hosting options” may seem tempting at first, it’s essential to understand that the words “developing a Magento webshop” don’t fit in the same sentence as before mentioned.

There is only an option of choosing a cheaper, not optimized hosting and an optimized hosting that is specific for the application needs. It is also important to understand the key differences between the two and make an informed decision that aligns with your business goals.

What makes a reliable web hosting service so important? Opting for a cheaper hosting platform would cost less, sure. However, it often falls short when it comes to delivering the performance, security, and scalability necessary to thrive in the e-commerce realm. If you’re serious about creating a professional online store, investing in a paid hosting plan will provide you with better control, performance, support, scalability, and security. For this reason, in this article, we list 5 reasons why investing in web hosting would pay off and unleash the true potential of your e-commerce website.

Seamless Customer Experience:

Every second counts in e-commerce. Literally, time is money. With a robust hosting provider, your e-commerce shop will load quickly and efficiently. It will ensure a smooth and frustration-free shopping experience for your customers. Studies show that even a three-second delay in page load time can result in a significant drop in conversion rates. And load times are directly linked to your web hosting. Don’t let slow loading times jeopardize your business growth.

Uninterrupted business:

Downtime is a nightmare for any e-commerce business. It can be a result of an issue in the CMS, or unreliable web hosting. A reliable hosting solution ensures your webshop stays up and running, 24/7, without any disruptions. If a server has lower uptime, your whole webshop will be unstable. By minimizing downtime, you don’t only maximize sales opportunities but also maintain customer trust and loyalty. Remember, a lost sale due to a downed website might mean a lost customer forever.

Scalability and Flexibility:

As your business grows, your webshop needs to adapt. Scalability refers to the ability to effortlessly incorporate additional storage, bandwidth, and a significant number of CPUs to handle the influx of visitors and accommodate your growing customer base. A reputable hosting provider offers scalable solutions that can accommodate the increasing demands of your online store. Whether it’s handling high traffic during peak seasons or expanding your product catalog, a flexible hosting infrastructure ensures your webshop can scale effortlessly, providing a seamless experience for your customers.

Security and Data Protection:

Protecting your customers’ sensitive information is paramount. Even companies that belong to the Fortune 500 list, like Yahoo or Facebook, experienced huge data breaches. This lead to exposing the private data of millions of users. A trustworthy hosting provider implements robust security measures, such as SSL certificates, firewalls, and regular backups, safeguarding your webshop from potential threats. Besides, choosing a good, reliable web hosting company leads to having a secure IP address. This is a necessity since maintaining a secure environment builds trust with your customers and protects your brand’s reputation.

SEO and Search Visibility:

Google considers many factors when ranking search results, and since 2010, page speed is one of them. Search engines prioritize websites that offer a fast and reliable user experience, on both desktop and mobile devices. Besides the internet connection, of course, page speed depends on TTFB (Time to First Byte) and accounts per server. By choosing a high-quality hosting solution, you ensure your e-commerce business meets these criteria, enhancing your search engine rankings and visibility. Don’t underestimate the impact hosting can have on your overall SEO strategy.

Composable Commerce – The Next Big Thing in Ecommerce

The increased number of internet users leads to an incline in demands that challenges online businesses in capturing them. Outdated processes are, however, holding back the optimization of business strategies.

Traditional e-commerce platforms are showing us that one system can’t do it all. They tend to offer quite a standardized set of features and capabilities, with less emphasis on customization. They are monolithic and don’t offer much integration flexibility or personalization. So if you want to scale up and build a scalable business, you need something else. Something else is named “Composable commerce”.

What is Composable Commerce?

Composable commerce refers to a type of architecture. The use of microservices allows businesses to include features such as: better search experiences, shopping carts, personalized product recommendations, dynamic pricing, payment gateways, product catalogs, multiple sales channels, shipping carriers, checkout processes, etc. These modules are designed to be decoupled from each other. This means that it is possible to change or upgrade individual pieces of the puzzle, without disrupting the rest of the system.

Furthermore, a composable strategy provides seamless integration with other tools or systems, such as customer relationship management (CRM) or inventory management (WMS), and Enterprise Resource Planning (ERP).

Composable commerce strategies use APIs (application programming interfaces) to allow for easier integration. The purpose is to allow merchants to “compose” their own unique ecosystem by combining different applications with different features.

The architecture based on PBCs helps create more user-friendly business solutions. Packaged Business Capabilities (PBCs) are software components developed over a specific business function, consisting of data schema, APIs and a set of services. In other words, features of the independent, modular components that can be easily combined, or better said, composed and integrated with other ones into a custom application landscape to create a flexible and customizable commerce solution.

Some examples of composable commerce systems include webshops of H&M, Lululemon, Gymshark, etc.

Composable Commerce vs. Traditional E-commerce

Customization

The approach of the composable commerce ecosystem is allowing merchants to customize and tailor their e-commerce experiences to their specific needs and goals. In other words, this can include personalized product recommendations, dynamic pricing and discounts, and integration with other tools or systems. Traditional e-commerce platforms, on the other hand, tend to offer a more standardized set of features and capabilities. Furthermore, it offers less emphasis on customization and personalization.

Integration

Composable commerce ecosystems often use APIs (application programming interfaces) to allow for easy integration with other systems and tools. This can include integration with CRM systems, inventory management systems, and other business-critical tools. Traditional e-commerce platforms, on the contrary, may not offer as much integration flexibility.

Scalability

Composable commerce ecosystems are often designed with scalability in mind. This allows businesses to easily add or remove components as their needs change. Hence, it makes it easier for businesses to adapt to changing market conditions and customer demands. Traditional e-commerce platforms may have limited scalability, making it difficult to add new features or functionality as the business grows.

Cost

Composable commerce systems may have higher upfront costs than traditional e-commerce platforms, as businesses will need to invest in the development and integration of multiple components. However, over time, the flexibility and scalability of composable commerce platforms may result in cost savings compared to traditional e-commerce platforms, which may require costly upgrades or replacements as the business grows.

Conclusion

6 reasons why AI will shape the future of conversational commerce

What is conversational commerce?

Before talking about the use of AI in conversational commerce, let’s get an introduction to this term. The term “conversational commerce” was first coined by Chris Messina in 2015. But the concept of it has been around for quite some time.

The practice of using chat and messaging for commercial purposes goes back to the early days of the Internet. Nevertheless, back then it existed in a very limited form, with no intention to use chat rooms and forums for commercial use. However, some businesses recognized the potential. And eventually, started using them to sell products and services, or to communicate with customers and provide support and service.

With the rapid growth in the use of mobile devices and messaging apps in recent years, the usage of chat and messaging for commerce has become more prevalent. Conversational commerce now refers to the use of messaging and chat platforms to facilitate online transactions and customer service interactions. How and why can it be so meaningful to e-commerce? Most of all, it allows them to provide more convenient and personalized experiences to customers.

AI chatbots vs CSR

Implementation of conversational commerce is possible with or without the use of Artificial Intelligence (AI). For example, a business can use live chat or messaging platforms. This way, Customer Service Representatives (CSR) interact with customers in real time. A CSR is responsible for answering individuals’ questions and helping with making the purchase.

It can include the sophisticated and personalized interactions enabled by AI-driven chatbots on a website or mobile app, as well as integrating with messaging apps such as Facebook Messenger, WeChat, or WhatsApp. 

AI can be useful for creating customer segmentation, based on their purchasing history, browsing behavior, location, etc. This tool allows the use of information, such as if they have called before and why, or what is their preferred channel of communication. The use of this data can provide personalized interaction and enhanced customer satisfaction. Not only that, but it’s also useful in creating more targeted marketing campaigns. Customers who haven’t bought anything yet can be directed to a chatbot that provides information about the products. Instead of a CSR, a chatbot can answer most of the questions they might have, and provide assistance with the purchase process.

How is AI being used in conversational commerce?

Benefits of using AI in conversational commerce

Challenges and Limitations of AI Chatbots

As there are two sides to each coin, there are some downsides to using AI in conversational commerce. We could name the complexity of natural language as one of them. AI-powered chatbots still struggle to understand the nuances of human language and may have difficulties understanding the context of a conversation. Misunderstandings can then lead to irrelevant or inappropriate responses.

Besides, AI chatbots may not be able to provide the same level of personalization as human representatives due to the lack of empathy. Some customers also may not trust the technology or prefer speaking with a human representative. Businesses, however, must ensure that their customers understand when they are interacting with an AI chatbot, and also it is important to be clear about the data collection. Not to mention that with the boosted use of AI chatbots in customer service, there is a risk of potential job loss for human customer service representatives.

Future developments and potential impact

• Improved natural language processing.
  As AI technology continues to improve, the expectations are that the ability of chatbots to understand and respond to natural language will become more sophisticated. This will enable them to provide more accurate and personalized responses to customer queries and requests.
  
• Advancement in personalization and self-learning.
  AI chatbots will become more advanced in personalizing the customer experience, as well as in learning from customer interaction. This should lead to better predicting customer needs and preferences.
  
• Integration with other technologies.
  Anticipations are that AI in conversational commerce will integrate with other technologies such as virtual and augmented reality to create more immersive and engaging customer experiences.
  
• Betterment in security and transparency.
  With the increasing use of chatbots and messaging, businesses will need to invest in more robust security measures to protect customer data and prevent fraud. They will also need to ensure that their customers understand the type of data collection.
  
• Upgrades in Human-AI collaboration.
  AI chatbots will be designed to work hand in hand with human representatives. It means they will be providing CSR with the necessary tools and information to offer customers the best possible experience.
  
• Impact on industries.
  AI in conversational commerce will, besides customer service, have a significant impact on various industries such as retail, healthcare, and banking. More efficient customer service will help businesses to improve customer satisfaction and increase sales.

Conclusion

The ultimate goal of conversational commerce is to provide customers with a more natural and convenient way to shop and interact with an enterprise. A conversation with a virtual assistant or chatbot makes it easier to find the information they need and make a purchase, rather than navigating a website or app. This can lead to increased customer engagement and sales.

Equally important, it leads to improved customer service and support. Customers can quickly and easily ask questions and get help with any issues they may have. Overall, conversational commerce can help businesses to improve customer satisfaction, increase sales, and gain valuable insights, which can drive business growth and success.

Magenta Madness: Incorporating the color of the year into your Magento webshop design

At the beginning of the new millennium, Pantone announced its first color of the year. 22 colors later, according to Pantone, Viva Magenta is the color of the year 2023. This bold shade of pink is described as a bold and vibrant hue that can add a touch of personality to any design. That includes a design of a shop, perhaps a Magenta color, on the Magento platform!

MAGENTA

MAGENTO

Combination of the two

One way to use magenta color in a Magento platform would be to integrate it as an accent color in the overall color scheme. This could be done by using it as the primary color for call-to-action buttons. Furthermore, you could be using it as an accent color in the site’s typography. Additionally, you could use magenta in the site’s product images, as well as in the background of key sections of the site.

Another way to use magenta in a Magento site would be to use it as the primary color in the design. This could be done by using a magenta background on the homepage or by using it as the main color for the site’s navigation.

Ultimately, the key to successfully incorporating a Color of the Year 2023 into a Magento website design is to use it in a way that complements the overall aesthetic of the site. That helps to create a cohesive and visually appealing experience for the user.
The use of color can help to set the tone and establish a brand identity. Equally important, the Magento platform comes up with a range of features and functionality for managing an online store.

Overall, combining the color magenta with the Magento platform can create a distinctive and effective e-commerce website. In other words, it brings a stand-out from the competition and provides a unique and engaging shopping experience for customers.

Innovations in ecommerce you should know about in 2023

“The only way to predict the future is to create it.”

Abraham Linkoln

2 – Artificial intelligence in ecommerce

One of the trending innovations in ecommerce that has been gaining momentum is the use of artificial intelligence and machine learning to personalize the shopping experience for customers. This can include recommending products based on a customer’s past purchases or browsing history, as well as dynamically pricing products based on demand and other factors.

Conversational commerce

Many ecommerce retailers are already becoming more sophisticated with their AI capabilities, and one approach widely developing is known as conversational commerce. So what is a chatbot? By definition, it is a specific program that is designed to stimulate or maintain a conversation between human users and the robots. By automating order processes and providing all repetitive customer service, businesses lower cost, time and energy. Nowadays, chatbots are maturing and leveraging themselves to that extent that this become a necessity for the e-commerce industry. Online retailers, that have to manage a huge number of users at a single time, can’t find it practical to hire sales or customer representatives. The chatbot is the innovation in ecommerce that doesn’t only lay down the cost, but also provides a much better experience and at a much faster pace.

Managing the orders

Just imagine getting thousands of orders per hour and managing all of these orders manually. Won’t it be a mess? But again – here is the AI to save the day! AI is providing some out-of-the-box solutions to manage the orders and track the progress of them. They can manage the path of dispersing the orders in an optimized manner, with real-time updates for customers. Besides, the AI can decide routs in an optimized way, which reduces both costs to the company and delivery time. And convenient delivery options are providing a company a way to stand out in a competitive and demanding online market.

This is merely the tip of the iceberg of how the AI is playing a vital role in the future of the e-commerce industry.

3 – Blockchain technology in ecommerce

This innovative technology has a potential to improve payment security and supply chain transparency in ecommerce.

It can securely store and process payment information, making it more difficult for hackers to attack and access sensitive data. It can also be used to prevent fraudulent activities by creating a tamer-proof record of transactions. Blockchain payments are decentralized, they allow for transactions to be tracked from beginning to end, and recorded transparently. It also eliminates the need for third-party verification and can make it easier for customers to return and receive refunds.

Another area it can help with is the logistics business. Blockchain can track the entire supply chain process, from the origin of a product to its final destination. This increases the traceability and efficiency of, and reduces shipping costs and potential risks of counterfeiting.

4 – Livestream Shopping

Livestreaming isn’t a new thing. Its popularity rocketed within the gaming industry and social networking. However, livestream shopping is still something uncommonly practiced. Everywhere, except in China, it represents innovation in ecommerce. Livestream ecommerce has become a huge trend in China, logically, since it is the market with the biggest ecommerce empire in the world. After the dramatic growth among Chinese, this form of shopping became popular with the merchants in the whole Southeast Asia. Moreover, this marketing strategy also found its way to the west – Amazon has upgraded its livestreaming functions in 2022.

Live-streaming shopping represents a fun experience where a host, usually an influencer or a celebrity, streams a video to showcase a product with the purpose of selling it to viewers in real-time. While demonstrating the goods, the host answers questions from viewers and offers special discounts. Viewers have options to purchase the shown products directly through the streaming platform or website. It is the entertaining way of engaging with customers online, covering the importance of the social aspect. The interaction helps businesses build a sense of community and connection over the same product with their customers.

5 – Mobile devices

6 – Headless ecommerce

Headless ecommerce is, by definition, an ecommerce platform where the frontend and backend are decoupled. This separation allows developers greater flexibility when building frontends, using any technology they choose. The backend remains used for managing products, processing orders, and handling customer payments. The connection between the frontend and backend is an API bridge, which allows development to be done faster. This innovative approach leads to improvements in scalability and better user experience. The website built this way behaves like a progressive web app (PWA) with all its virtues. Even when the connection is unstable or off, browsing and filling the shopping cart is allowed. It also boosts SEO rankings and supports personalized push notifications, which proved great importance in the competitive world of ecommerce.

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How to choose an ecommerce agency

E-commerce is not an industry; e-commerce is a tactic.

Tobias Lütke

After the pandemics’ lockdown, the interest in online shopping has boomed. Due to the convenience of making a purchase with just a few clicks, the e-retail sales surpassed 5.3 trillion U.S. dollars worldwide in 2021. According to statista.com, the digits are going wild! The forecasts indicate that by 2026 the retail ecommerce market worldwide will make up to 8.1 trillion U.S. dollars. They also predict that the ecommerce is going to make up to an impressive 24% of global retail sales by 2026.

Yes, the numbers of online sales are increasing. However, a significant number of visitors leave the website before purchasing anything, and that number has been gradually rising to almost 70 percent in 2021. The reasons for abandoned online purchases are additional costs, taxes, fees, but people are also drawn back by errors on the website, total order cost not being calculated right away, too long checkout process, etc.

Two heads are better than one, so reaching out for the help of an ecommerce agency is a usual thing. That’s why choosing the right agency to be in charge of your online webshop is of a great importance.

What is an ecommerce agency?

These companies specialize in assisting businesses thrive in the online retails space through ecommerce platforms or their own websites. Ecommerce agencies can provide a variety of services and expertise. The range of services includes: website design and development, search engine optimization (SEO), marketing and advertising, consulting, and more.

What is the main feature of ecommerce agencies?

Their main feature is their competence to help businesses handle the complex and never-ending evolution of the world of online commerce.

Ecommerce agencies usually have a team of experts who are knowledgeable about the most recent trends and best practices in online retail. With their knowledge and resources, ecommerce agencies can grease the wheels of online businesses in so many aspects. They can help in reaching the goals, engaging with the target market, improving the online visibility and webshop performance… Depending on particular needs, they can build a new online store or optimize an existing one. Hence, the outcome of their services is the increase in sales and revenue.

Of course, not all the agencies cover all areas and meet everyone’s expectations. That’s why when choosing an ecommerce agency, it’s equally important to consider their experience and track record, as well as the specific services they offer.

What areas can an ecommerce agency help with?

Website development:

The team within the ecommerce agency can develop the webshop and assure it is optimized for conversions. They can also be assigned to integrate the webshop with other systems and platforms, such as payment processors, shipping and fulfillment services, and customer relationship management (CRM) tools.

SEO:

Ecommerce agencies can offer improvement of the search engine rankings and drive more organic traffic to the website through SEO strategies.

Marketing:

They can help businesses develop and execute marketing campaigns. A well-structured plan of promotions will reach and engage the target audience, whether through social media, email, or other channels.

Sales and customer service:

Ecommerce agencies can step in and manage the online sales and customer service operations of businesses, including order fulfillment and returns.

Overall, ecommerce agencies can provide a range of valuable support and expertise to businesses looking to succeed in the world of online commerce. Making a choice will depend on identifying specific services and capabilities needed from an agency.