Why Customer Service is a Key Differentiator for Online retail

My most recent experience with another online retailer’s customer service happened when I had to move houses. As is often the case, moving presents an opportunity to replace a lot of old items with new ones. While browsing Instagram, I came across this ad of a basket that I liked. As an impulse purchase, I decided to buy this cotton rope basket from Acacea. The online purchase process was smooth, and the delivery was impressively quick.

However, once the basket arrived, I had a few questions about how to clean it. I contacted their customer service and had an incredibly pleasant experience. My inquiry was resolved efficiently, and the interaction left me with a smile. More importantly, it made me want to purchase more products from that retailer. This experience got me thinking about how customer service can be a powerful differentiator in the online retail space.

Let’s first define customer service. Simply put, customer service is the support a company offers to its customers during the purchase process or even while they are still considering a product or service(Source). It plays a significant role in shaping how customers perceive the company, ultimately influencing the company’s brand value.
Online retail is a highly competitive and fragmented space. With a low barrier to entry, there are countless players in the market, including multi-billion-dollar giants. Despite operating in such a tough environment, Shopmojo has always prioritized delivering value to customers. We have maintained our competitive edge by keeping operations lean and automating processes wherever possible, allowing us to offer top-quality products at the best possible prices.

Customer service is one of the areas where we truly shine. Our goal is to resolve every inquiry quickly, clearly, and empathetically, ensuring that every customer walks away happy and satisfied. This commitment has helped us build strong customer loyalty. In fact, there is ample research showing that strong customer service is directly linked to high customer retention(Source). We are a great example of how this best practice translates into long-term success.

But can customer service really be a key differentiator in online retail? Given the sector’s unique challenges, that question deserves careful consideration. The competition is fierce, and many businesses focus heavily on pricing and marketing, often at the cost of customer service. While this might seem efficient in the short term, it is harmful for long-term growth.

Customer service is a critical pillar of any well-developed online retail business. Many customers still have hesitations about shopping online, and when they do make a purchase, it’s essential that their experience is smooth and supportive. High-quality customer service helps to alleviate these concerns and builds confidence in the brand, encouraging repeat purchases.

Over time, we’ve seen that customer service can, in fact, be a true differentiator. In an industry not particularly known for customer support, we’ve made it a top priority. That decision sets us apart and it is also why so many of our customers choose to recommend us.