Running an e-commerce store isn’t as easy as it looks. There are a lot of moving parts that have to work just right for it to be profitable. First and foremost, there is a lot of competition so usually you’re running at very slim profit margins. Luckily, there are several ways to boost revenue so those profit margins can fatten up a bit.
Even if your e-commerce store seems to be doing just fine, there is surely money being left on the table. By taking some time to optimize your store, you can increase revenue quite a bit. In this article, we will go over several ways that you can do this.
1 – Analyze the data
One of the best things about having an online store is the amount of data you are able to get over time. You can find out far more about your customers than you normally would be able to with a traditional store.
This data can then be analyzed so you can understand more about your customers and your business and look for areas of opportunities. The first step is to take a look at your key performance indicators, or KPIs.
Some of the data is going to show you what your conversion rates are, for instance, so you can see areas that need improvements. If you have a low conversion rate, then you can make some changes to optimize the site to increase conversions. Then you are able to make more money with the same traffic, for example.
If you dive in and see that most of your customers are middle aged women then you can change your marketing strategy to use the right language that they are more likely to respond to. All of the data is there and ready to tell you where to focus your attention.
2 – Improve customer service
Returns will eat into your profit margins so the best strategy is to minimize them as much as possible. This involves improving your customer service so there is less likelihood that they will happen.
One of the areas to improve is having a quick response to customers’ questions. Returns generally happen when people get something that they weren’t expecting. If you are available to answer their questions then they will be less likely to order the wrong item.
Use a chatbot on your site to answer the most common questions that people have. The benefit of the chatbot is how they are available 24 hours a day so there is no downtime.
3 – Build an email list
Email marketing is a very effective way to boost sales. When you are able to directly market to your core audience for very little money it is a tool that is worth doing. This is where you can alert people to when there is a sale happening, or if there are new arrivals that they would be interested in.
Since they were willing to give you their personal email then this means that they are likely to convert when they get the email.