Ways e-Commerce can increase revenue and profitability
With new brands constantly being launched and the process of commercialization being democratized by platforms that make it easy to promote new brands as well as more legacy brands going online, competition has become really stiff. Add to that changing conditions due to world events such as Covid-19 creating more unpredictable sales cycles, as well as the need to compete not only domestically but worldwide, and being able to throttle revenues in a variety of ways has become really important.
Fortunately, one of the great things about running an e-Commerce brand is that there is always something you can do better, a new technology or app you should try or a giant shift you can make to move forward. There are upsides everywhere. Here is a list of relatively simple things you can do:
1. Increase traffic
If you haven’t optimized your website for search engines (i.e., SEO) or invested in search engine marketing (SEM) or paid online advertising, it’s high time you did so. No e-Commerce company can survive without an online presence. It starts with organic search and improves with advertising, social media and content building.
2. Increase average order volume (AOV)
Create bundled offers that encourage customers to put more items in their cart (e.g., buy-one-get-one-half-off deals) or simply package similar items together (e.g., three t-shirts for one price). You can also suggest additional items at checkout based on what’s in their cart.
3. Create repeat customers
Enclose an insert with each order or first-time orders that gives customers a reason to return. Create a loyalty program for frequent shoppers and engage these customers on social media. Or if your product lends itself to repeat purchases, consider developing a subscription program.
4. Go international
Going international is a lot easier than you may think. The internet has already made your products accessible around the world. Now, direct-to-consumer (DTC) brands can take advantage of cross-border solutions that simplify the complexities of international shipping. These platforms are built to handle customs and duty fees, tax collection, language barriers and payment systems in multiple currencies. They stay abreast of international shipping laws and regulations in each country so you don’t have to.
5. Increase conversion
Have you mapped your customer’s journey? If you’re getting a lot of traffic but no sales, this process can show you where you’re losing them. Simple things like adding a buy now/pay later option at checkout or a welcome offer on your home page can increase conversion at little cost to you.
6. Think of it as an opportunity
Slow sales periods are the perfect time to improve your website, test new products, streamline operations, clean up email lists and do all those other tasks you put on the back burner when things get crazy. Don’t waste the opportunity! For e-commerce companies, both the opportunities and challenges continue as the industry quickly evolves, but there are many ways to manage hurdles and seize the ever-growing set of opportunities that e-Commerce presents today.