New brands are being launched constantly, and with the process of commercialization being democratized by the variety of platforms that promote both new and legacy brands, the competition is stiffer than ever. Additionally, the changing conditions brought about by world events, like the pandemic that made sales cycles unreliable, and the necessity of competing on a global level means that being able to generate revenue in various ways has become paramount.
One fantastic thing about running an e-commerce site in terms of how to increase profit margin is that there’s always something that can be done better, a new app or technology that can assist you. There are possibilities everywhere. Here’s a quick look at a few things you can do.
Traffic
If you have yet to invest in paid advertising or search engine marketing or made sure your website is optimized for search engines, the time to do those things was yesterday. If you don’t have an online presence complete with adequate traffic, you can’t survive. It begins with organic searches and then improves with content building, social media, and advertising.
Also read: 6 Tips To Increase Traffic on Your Website
Conversion
Have you mapped the journey of your customers? You may be getting quite a bit of traffic without a lot of conversions to sales. Mapping their journeys can help you find out where you’re losing them. E-commerce tools and simple things such as adding a pay later option right at the checkout or a simple welcome offer on the home page might increase your conversions at only a small cost.
Increasing Your AOV
AOV stands for average order value or average order volume. One way to increase this is to create bundled offers that will encourage your visitors to put even more items into their carts. You can also package similar items, such as three pairs of pants for a single price. Another option is to suggest additional items right at the checkout based on whatever your customers have put into their cart.
Repeat Customers
When you have first-time customers, try slipping an insert into their order confirmation email, offering them an incentive to return. You might consider creating a loyalty program to encourage them to shop frequently and engage people on social media. If your product is designed to get repeat purchases, think about starting a subscription program.
Also read: 11 latest Ecommerce Trends You Should Watch Now
Reduce Returns
If you want to stop losing revenue, one way to do this is to reduce the rate of returns. There are quite a few solutions for RMA (Return Merchandise Authorization) systems that will streamline the process while helping you turn the situation into an opportunity to upsell.
For example, some apps allow your customers to exchange your products for a new size, color, or something totally different. Some apps will even credit the customer’s account even before the product has been returned and then encourage them to use that credit before they leave your site.
Opportunities Are Everywhere
Slow periods of sales are ideal times to test new products, improve your website, clean up email lists, streamline operations, and do all of those seemingly endless tasks that get put on the back burner while things are crazy. Don’t waste your opportunities.
For all e-commerce businesses, both the challenges and the opportunities will continue since the industry is continuously evolving, but there are quite a few ways to deal with your hurdles and grasp the endlessly growing variety of opportunities that are presented. The six strategies you’ve just read can translate into bottom-line as well as top-line growth as you increase your volume and decrease the amount of lost revenue.
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