Negative reviews can destroy a brand in different ways. Despite 91% of young consumers turning to them to make an informed decision on a product, many businesses often choose to ignore them, which can be a big mistake.

Ignorance isn’t bliss in business. Find out how negative reviews can affect your e-commerce brand.

Customer Retention

A reported 67% to 90% of consumers will look at customer reviews to make an informed decision on a product. While you might believe a negative review might impact your sales, this isn’t necessarily the case.

Most consumers understand that no brand is perfect and that mistakes can happen. Rather than holding it against you, they will look for signs that they can trust your business. Improve confidence in your brand by replying to a frustrated customer with an apology and attempt to rectify a problem. For example, you should ask them to call or email your team to discuss a problem and resolve the issue, such as sending a gift card or providing a refund.

A few negative reviews along with many positive comments can also indicate that you are not attempting to bury bad reviews. It can lead to greater confidence that the feedback is impartial and honest, which can boost your company’s credibility. However, you might need to review your operations and customer service if you continue to attract bad comments from your customers.

Account Suspension

While the occasional negative reviews can positively affect your brand, too many can lead to serious repercussions for your business. For example, if you are selling products to customers via Amazon, you must adhere to their Order Defect Rate (ODR). This is the order percentage for negative feedback or an A to Z guarantee claim. To sell on Amazon, a company must remain under 1% or they will be suspended. When this happens, they’ll be forced to cease trading on the e-commerce platform, and they may need to recover their account with an Amazon appeal service.

Lower Sales

According to a study by Harvard Business School, a brand will experience a 5-9% increase in annual revenue for every one-star increase. If your brand continues to experience a low number of stars or drops a star rating, this could seriously affect your e-commerce brand’s profitability. For this reason, your business must look closely at every negative review and aim to address its various issues, which can lead to greater customer satisfaction, glowing feedback, and a stronger profit margin.

Conclusion

E-commerce brands cannot afford to ignore customer reviews. In addition to destroying your brand’s reputation, they can also lead to account suspension and a loss of sales. While the odd negative review can improve your company’s trust, you should never ignore disappointed customers. 

It is vital to address your customers’ issues, apologize for your mistakes, and to generate as many glowing comments as possible in an ethical manner. It will improve your company’s trust, reputation, and sales throughout the years.

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