Here's how a few of our peers handle "page not found" scenarios:
Boden (too technical and not really helpful, although complete)
John Lewis (offers some tools instead)
White Company (sends you to the home page)
Asos (technical message + redirects to the home page)
Argos (big browser error - ouch!)
Marks & Spencer (very nice and wins the award - shows populare categories & makes alternate recommendations, but then again, we are talking Amazon!)
The bottom line - try to engage your visitor in some other way and offer help. Imagine how a (good) shop assistant would handle it in the real world and automate that.
On another note, I read in Practical Ecommerce about a Google Widget for helping customers somewhat more:

2 comments:
Try this one: http://www.screenpages.com/ecommerce/not_here
Commenter is right & this is surely a case of the cobbler's new shoes.
Anyway - we stand corrected and now have a 404 page!
http://www.screenpages.com/never_there
Post a Comment