Best Tips To Boost eCommerce Profitability In 2021
The eCommerce sphere has been losing for a long time now. It continues to blossom even more as a growing number of brands flock towards the online bandwagon. And, while today it’s easier than ever to set up an eCommerce store when it comes to ensuring sustainable growth and generating revenue, it’s not always the easiest task on the list. So, in this article we look at how you can manage profitability from your online store in 2021 and years beyond that.
The eCommerce sphere has been losing for a long time now. It continues to blossom even more as a growing number of brands flock towards the online bandwagon.
And, while today it’s easier than ever to set up an eCommerce store when it comes to ensuring sustainable growth and generating revenue, it’s not always the easiest task on the list.
So, in this article by SPOPLI Web Development & Services – we look at how you can manage profitability from your online store in 2021 and years beyond that.
Optimize Your On-site Experience
A big part of online profitability from an eCommerce store relies heavily on how good of an experience a site offers. In simple terms, the on-site experience. You can use a bunch of tools to review this experience. For example, Google Analytics.
It tells you things like average time spent by people on the site, pages they are most active on, places where they tend to leave the site, etc. Get access to this data and use it to gauge insight. Then use it to optimize the structure of your site. To that end, you can do multiple things.
- For example, you can check the layout of the menu and the way pages are internally linked. Optimize the flow of movement around your site to provide a smooth user experience.
- Look at ways to bring down the cart abandonment rate and improve the order value per customer. To bring down the rate of cart abandonment you can use email sequences. And, to increase the order value, you can cross-sell and upsell products to your customers.
- Test out multiple changes to see which ones work best in improving customer experience. Run multivariate or A/B tests to pick the best-performing versions of the page.
Use Data Analytics For Razor-Sharp Targeting
Data analytics gives you a lot of insight into your potential customers. For example, you get to know things like –
- Who your ideal customers are?
- What do they want to buy?
- What products are doing better?
Once you know the answer to these questions, you can finetune your eCommerce strategies. You can also use the data insight for myriad purposes. For instance, you can create similar kinds of audiences across different social media channels such as Facebook and even Google Ads. Also, it is important to know how Google Ads automation works for you to understand more about the metrics and relevance of your ad.
Since you are targeting more or less the same kind of demographics, you can copy-paste those behavioral elements on different channels. You can, thereby, create powerful advertising campaigns to generate a high Return on Investment.
You can also use insights and data from analytics to create powerful newsletter and marketing campaign. For instance, if you see a blog post or best-selling products, you can mention them in your email list.
Categorize Your Products
One of the worst things you can do to hamper your store’s growth is to miss categorization by lumping all the products together. Having no categorization is good when you’re dealing with only a small inventory.
However, as your store grows, it gets important to pace all the right products under the right category.
For example, you need to place different fashion clothing under ‘kids’, ‘women’, ‘toddler’, ‘men’s section. Although this is not a practice, related directly to SEO, it is a useful one.
Do not make the mistake of putting everything under one category. People expect everything easy and well organized. In the absence of proper categorization, you could wind up frustrating your visitors. Amazon is an excellent example in this regular. You could take notes from the way they categorize and place everything based on genres and subcategories.
Offer Free Shipping
People love free stuff. They love it, even more, when they can get their hands on their favorite products without having to pay extra for them. One of the best things you can do to skyrocket your store’s profitability in the year 2021 is to test out free versus paid shipping.
Sites like Flipkart, Amazon, and AliExpress will offer many of their international products for free. If not free, the shipping will usually be at a low-cost express service.
Especially when you’re a small store and you don’t have a lot to incentivize the users with, having the option to ship free can be a huge helping hand in attracting customers from everywhere.
Create Ads From Day One
If you’re going to run an e-commerce store, then you simply cannot do without running a paid advertisement campaign. And as you do, keep experimenting with multiple products until you figure out the most winning product and the most winning ad. Also, remember to keep aside a set budget.
For example, if you aspire to make a revenue of about $10,000, you will need to invest about $3, 200 in ads. The initial cost of running ads can be a big high so always start small. From there, you can slowly kee building momentum. Remember – it could take up to 5 days for ads to start optimizing.
Ideally, you should reinvest the profit you earn from advertising into the business. That’s one of the quickest ways to ensure exponential growth. In a few weeks, you will figure out the best products for creating sustainable ads and whether or not the option of an ad is even right for you.
Keep Running Retargeting Ads
Would you believe if we told you that retargeting ads work better than abandoned cart emails, original ads, and every other form of targeting? That’s essentially because these ads are targeting people who are almost one step away from finalizing the purchase.
These ads are shown to people who already actively looked for your product, added them to the cart, and almost bought them.
By making the products appear in front of them once more time, they are much more likely to make the purchase. It’s often like the final nudge or motivation they need.
With successful retargeting ad campaigns, you can generate up to 9X more ROI.
Bottom Line
Managing an e-commerce store is a full-time job. So, you must keep putting in consistent efforts if you wish to secure sustainable growth and profitability.
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