This guide summarizes few tried and tested tricks that will help you increase your profits as an eCommerce business owner. Effective planning for maximizing the return on your e-commerce business requires forward-thinking and monitored strategies to keep your efforts worthwhile and manageable.
In this article, we will show you 8 simple and cost-effective steps to improve your balance sheet and quickly increase your online store’s profit. So buckle up!
1. PRODUCT DESCRIPTIONS
The major criteria to follow while writing a product description is to include all the information that will lead the customer to make a buying decision, without over-stuffing the details. Understanding customer behavior will help you frame an explanation of the product features and benefits, that will create an impression on the potential buyer.
2. ACCOUNT CREATION AND LONG CHECKOUT PROCESS
Spending more time and effort than expected is a significant source of friction for the customer and might lead them to abandon the cart at the last moment. Rather than forcing users to register before buying you can always go for a third-party signup service through Facebook or Google. Also, remove unnecessary form fields as it can cause annoyance and confusion. The simpler the process, the better the conversion.
3. TESTIMONIALS, REVIEWS AND RATINGS
Social Proof is a psychological phenomenon where people tend to copy the actions of others in an attempt to reflect correct behavior for a given situation and testimonials are a powerful form of social proof. Also, reviews and ratings provide credibility to the company and the product which will develop a sense of trust. According to BrightLocal - Local Consumer Review Survey, 82% of consumers read reviews for local businesses, including 93% of people aged 35-54.
You can send a customer satisfaction survey or an automated email, a few days after delivery for collecting customer reviews and rating for your online store.
4. PRICE DIFFERENCE AT CHECKOUT
The unexpected increase in the displayed price at checkout can provoke the customer to abandon the cart. Be clear about the shipping, taxes, and other fees right from the very beginning to give the appropriate idea to the customer from the initial stage. This can result in lesser cases of abandoned carts leading to an increase in your online store’s profit.
5. MAKE USE OF SOCIAL MEDIA
Given the amount of time people spend on social media sites, it would be a crime if you are not promoting your business on this platform as social media marketing can help you to build brand awareness, drive traffic to your site, and increase sales. It is an effective method to engage your target audience in a platform where they spend most of their time online.
6. COUPONS/DEALS AND DISCOUNTS
Better Pricing on the competitor sites will trigger the customers to buy from elsewhere as they are prone to comparing. Coupons/Deals and Discounts will encourage customers to buy from you as only a very few shoppers expect to pay full price for products when they purchase online. Also, this is one way to boost customer loyalty and increase your profit. Offering Referral Discounts will convert the loyal customers into your site’s marketing helping hands.
7. UTILIZE URGENCY AND SCARCITY
When something is scarce, you will be tempted to get it as soon as possible. This principle works well when it comes to e-commerce business and will persuade the customer to take a faster buying decision. Stock scarcity, Size scarcity, Limited Period offers, Discount hours etc will create a sense of urgency in the minds of online shoppers.
8. SELLING ACROSS MULTIPLE CHANNELS
Multi-channel selling is the selling of products at every possible online channel that customers access. According to a blog published by Techjury in June 2020, an average internet user spends 2 hours and 33 minutes a day, socializing online. It makes perfect sense that someone can see a listing for a product on Facebook or Instagram, and order it directly from these channels without needing to be redirected to the seller’s website. This being an inexpensive platform, it has multiple benefits like Wider Reach, Increased Awareness, and Improved Customer Perception.
In his book, The Great Pearl of Wisdom, the author Bangambiki Habyarimana said “The most successful men work smart, not hard.” Just creating an online store is not enough to get customers. There are several shops offering the same product/service and you need to have advanced thinking in order to succeed in a competition. As entrepreneurs, a good plan is always needed to stay on top of your game. You can begin by following the above 8 simple practices that will help you in increasing your online store’s profit. After all effective and effortless measures are the essential features of a good plan.