How to sell electronics online

According to Statista, between 2023 and 2028, revenue in the consumer electronics market is forecasted to increase by 21.3 billion euros. This makes the electronics industry one of the fastest-growing industries in the world. Additionally, according to the same source, in the consumer electronics market, 45.9% of total revenue will be generated through online sales by 2023.

In this article, we will explore the conversion path when selling electronics online and what are the main challenges of advertising electronics via shopping ads on Google. Additionally, we will provide specific tips to improve your electronics’ titles. 

From now on, we will use the term “electronics” to refer to any product or device that uses electronic technology for communication, entertainment, or information purposes. This includes products such as smartphones, laptops, tablets, game consoles, ebooks, cameras, and speakers.

The conversion path in the electronics industry

Commonly, the customer journey in the electronics industry is long, because consumer electronics are normally high-ticket and complex products, with a wide range of features and options. As products that are considered long-term investments that are expected to last for several years, they are typically not impulse purchases.

Additionally, the electronics sector is constantly changing, and new technologies and devices are being released all the time. This leads to a long process in which consumers often research different products and brands, ask for recommendations, read reviews, and compare prices before making a purchase. 

Our recommendation for longer conversion paths is to analyze your data using a 60-day data range instead of a 30-day data range. Thus, you will have more information to analyse channel performance. 

If you already use Producthero PRO, you can set the date range in the Advertising section by clicking on the ‘Edit Strategy’ button (this was formerly known as Labelizer Wizard). By doing that, the Producthero app will be able to identify more products that are performing quite well (Heroes), products that are performing somewhat well (Sidekicks), and products that are not performing well and are eating up your budget (Villains). This information can be used to improve the performance of your Google Shopping campaigns.

Edit date range in the Producthero Platform:

Also, note that you should only increase the date range if your products don’t experience lots of seasonal fluctuations. Otherwise, the data collected can be misleading, as it won’t accurately reflect the overall performance of these products throughout the year.

We will talk about seasonality in the electronics industry further in this article.

Top challenges of advertising electronics on Google Shopping

As in any other industry, the electronics sector has its unique challenges. Let’s dive into the most common challenges advertisers face when using Google Ads to advertise electronics.

1- Different variations of the same product:

Just like advertising apparel products on Google Shopping, you might have lots of Zombies (that is, products that almost get no impressions or clicks) when advertising electronics, especially if you are selling products like cell phones, which are usually available in different colours or with different amounts of storage (see examples below).

To reduce the percentage of zombies, we recommend you put them in a separate campaign, while you keep your heroes, villains and sidekicks in another campaign. By doing this, you will push Google’s algorithm to show your zombies.

Check this article to get better results from your Shopping Ad campaigns using Producthero’s Labelizer Strategy to segment your products based on their performance.

2- Seasonality

Even though seasonality may vary depending on the country, region or product, in general terms, the electronics industry is highly seasonal. Here we describe the main factors that cause a peak in sales during the year:

1. Weather: in summer, electronics like cameras have a higher demand due to people travelling more, going to festivals, weddings or any other outdoor event.
2. New products: during the launch period of new electronic devices, many people have a great interest in them. This often causes a peak in the weeks and months following their release. As an example, Apple reported it sold 10 million iPhone 6 devices in the first three days after its launch in September 2014.
3. Holidays: the holiday season is one of the most important times of the year for electronics retailers. This is because people are more likely to have disposable income during the holiday season, as they have received holiday bonuses. Additionally, during Christmas, electronics are one of the most common gifts.
4. Black Friday: Black Friday is well known to be one of the biggest shopping days of the year for electronics, in which deals normally lead to a great surge in sales (see the image below). However, it’s also important to take into account that the discounts offered during Black Friday can create a lot of competition among retailers.

Seasonality can be very challenging when it comes to prospects. Additionally, as we mentioned earlier, it can lead to fragmented performance data. However, understanding the seasonality of your products will help you stay ahead of the competition and improve the results of your Google Ads campaigns by targeting the right audience at the right time, and allocating the budget accordingly. 

3- Highly competitive market

Ultimately, competition is one of the greatest challenges when it comes to selling electronics. As we mentioned at the beginning of the article, users normally compare prices between advertisers before purchasing an electronic product. 

The most probable option is that they choose the lowest price option, even if it’s just a couple of euros cheaper. This is why it’s vital to constantly monitor how your price is compared to the benchmark price. At Producthero, we have developed a pricing benchmark tool that offers insights into how your product pricing compares to that of competitors selling similar products.

See here how using price monitoring software can influence Shopping Ad performance

Optimize the titles of your electronics

When optimizing the titles of your electronic products, you can follow the tips given in the Ultimate guide: product title optimization for Google Shopping Ads. However, in this article, we want to add 2 more specific tips.

1- INCLUDE THE BRAND

When searching electronics online, many users will include the brand in the search term, especially those users who are familiar with a particular brand and trust its products.

Adding the brand to your product titles will help your products show up in relevant search results and, consequently, your ads will experience a Clickthrough rate (CTR) increase.

2- INCLUDE RELEVANT AND SPECIFIC FEATURES

As we mentioned before, some of your products might be available in different colours or with different specifications. This may lead to all being eligible for the same search term, thus creating internal competition between your products.

For example, if you a user type the search term “Samsung laptop 15.6 Inch” several of your products may appear in the Google Shopping tab.

By including features like colour, storage and any other relevant features in the titles of your electronic products, you will avoid getting clicks on your Shopping Ads that don’t convert, as users will click on those products that meet their requirements.

According to Google, users will usually see only the first 70 or fewer characters of your title, depending on screen size. Thus, we recommend placing the most important details at the front of your titles.

Regarding electronics, we recommend that you follow this structure Brand+Attributes+ Product Type+Model. Ex: Samsung 15’’ i7 laptop NPO45X7F.

Even though there is a part which is non-visible to users, it’s crucial to use all the 150 characters available, as that information still influences Google’s decision on whether or not to show your ad to users.

In Producthero, we have developed a specific tool to optimize all your product titles. Try Producthero’s title optimization tool for free for 30 days to see the results.

Consider the margin of your different products 

When selling electronics with Google Ads, it’s important to understand the different margins associated with different types of electronics.

If you’re selling products with different profit margins, you may need to adjust your bids accordingly. For example, if you are selling a new video game with a 30% profit margin, you can afford to bid more than if you’re selling a camera with a 10% profit margin.

Typically, electronics like VR headsets, the latest smartphones or video games have higher profit margins, while televisions or printers tend to be lower-margin products.

Phone and camera accessories like cases, tripods, bags or batteries are well known to have high-profit margins. By optimizing landing pages to strategically place relevant accessories alongside the main product, businesses can leverage the power of cross-selling and upselling, enticing customers to make additional purchases. This can lead to a significant increase in overall profitability, as well as a more comprehensive and fulfilling shopping experience for customers.

To conclude, by understanding the customer journey and setting a longer data range, the top challenges of advertising electronics on Google, and how to optimize the titles of your electronics, you can make the most of your Google Ads campaigns. Additionally, by considering the margin of your different products, you can ensure that your bids are aligned with your profit goals.