A social commerce report on online retailers shows that the use of customer reviews will increase the overall sales for your website.  According to e-consultancy and Bazaarvoice’s “Social Commerce Report 2007? report, customer product reviews are increasing retail e-commerce conversion rates, site traffic and average order values,

It was found that 28% of online sellers were using customer ratings and reviews. More than half said they were considering it.

Asked about the effects of customer ratings on their Web sites, over half of online retailers in the United Kingdom, the United States and Europe said their overall conversion rates had gone up in the past year, compared with only 9% who said they fell.

Nearly eight in 10 online sellers thought a major benefit of such reviews was to increase conversions, while 73% thought improved customer retention and loyalty were major benefits. Nearly six in 10 thought the fact that customer reviews improved search engine optimisation was a significant benefit.

“Tapping into social commerce can be a great way of gaining a competitive advantage, for example through ratings and reviews,” Linus Gregoriadis, E-consultancy’s head of research, said in a statement. “But apart from the early adopters, this is something a large proportion of online retailers are only just starting to think seriously about.”