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In case you missed it in the flurry of new acronyms over the past few years, FOMO stands for “fear of missing out.” While this term is often used in reference to seeing what others are doing on social media, ecommerce retailers can also use FOMO to sell products. Let’s talk about a few ways you can generate FOMO in your eCommerce business to boost conversions.

In eCommerce, FOMO is induced via the scarcity principle. This economic principle refers to a low supply and high demand. We assume that if a product is scarce, it must also be valuable and desirable. When a customer sees that a product they are looking at is running low or only has a certain number remaining, it encourages them to make the purchase. To demonstrate scarcity, add an inventory number on your product page that displays when a certain threshold is reached. For example, when there are 20 items left it stock, it would show a message that says “Hurry! Only 20 left!” and automatically adjust with each purchase. To do this in Magento, navigate to Systems > Configuration > Catalog > Inventory and edit the Stock Options as desired.

Time limits are another way to create urgency and FOMO. By making a product or discount only available for a limited time, shoppers are more compelled to buy now. In addition to running a sale that ends on a certain date, online retailers can include a countdown on product pages. For example, “buy within the next 6 hours for 30% off” or “sale ends tomorrow!” Amazon does something like this with shipping dates: “get it by Wednesday if you order in the next 12 hours.” There are several Magento extensions available that can do this.

Exclusivity creates FOMO because everyone wants to be “on the list.” One way to create exclusivity is with a rewards program where only shoppers who meet chosen criteria can take part. The membership threshold could be as low or as high as makes sense for your business: making one purchase, giving their email address, spending a certain amount of money, making a certain number of purchases, AOV, etc. Reward program members receive special benefits, like early access to a sale or unique discounts. There are many Magento extensions that make it easy to administer a customer rewards program; Sweet Tooth is one of the most popular.

Finally, social proof can help generate FOMO. When we see that our friends and peers have bought something they like, we are more likely to want it, too. This is one reason why 82% of shoppers read product reviews – we want to know what other people think. Encourage shoppers to leave reviews on your website and social media by sending a reminder email after a recent purchase and offering an incentive for doing so. You can also allow customers to upload photos of themselves using the product in their everyday life. This helps other shoppers see the item in context. Merchants can also build engagement and sharing on social by running contests in which users have to comment and/or share your company’s post or photo to be entered.

The upcoming holiday shopping season is a perfect time for leveraging shopping FOMO. Customers flock to websites and physical stores on Black Friday, Cyber Monday, and the rest of the season to get in on limited-time sales, exclusive offers, and popular buy-before-they’re-gone products. Start implementing these FOMO strategies now, and you’ll drive major holiday traffic this year. Don’t just use FOMO on your website, either – you can use it in email campaigns, on your social media, in paid ads, and more.

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