Running an eCommerce business is ideal for many entrepreneurs worldwide. Low overheads and the ability to test, stock, and sell a vast range of products can give you lots of flexibility as an eCommerce business owner. However, margins are critical, with high competition and delivery costs significantly impacting your finances. This article will look at how to maximize profits when you run an eCommerce business.
Ensure You’re Getting The Best Price For Your Deliveries
Delivery costs are potentially the biggest outgoing for an eCommerce business. An order fulfillment cost calculator can help you calculate the value per pallet, unit, and order frequency each month, allowing you to see clearly how much delivery will cost you. Order fulfillment is the process of delivering, packaging, and storing items going to customers. There are third-party fulfillment centers that can do this for you. The actual time also ensures your deliveries.
Sell Across Multiple Platforms
Selling across multiple platforms allows you to diversify your revenue stream and maximize the visibility of your product. Etsy, Amazon, and Shopify are some of the most prolific eCommerce sites, but you can use many channels to reach customers. For example, social media sites like Instagram are great for getting customers and benefit from targeted advertising. In addition, you can test different ways of acquiring your customers by selling on multiple platforms.
Maintain A High Level Of Customer Service
Reviews will make or break a business, and a high level of customer service is critical to repeat business and recommendations. A mix of live chat and chatbots is an excellent way to make your customers feel heard and prevent customers from being held up in frustrating phone queues when they are having a problem with their order. When receiving negative reviews, also take the time to respond constructively and see if you can help the customer.
Stay True To Your Repeat Customers
As little as 5% improvement in customer retention can boost your profits by 25%. Repeat business is a far more sustainable profit source than constantly relying on new customers. High-level customer service will be vital to your repeat business, but it’s also important to incentivize your returning customers to buy from you again. Consider initiatives like subscription services and repeat customer discounts to keep consumers coming back again and again.
Make Sure Your Email Marketing Stands Out
Your email marketing needs to stand out amongst other competitors in your customer’s inbox. Email marketing incentives, easy newsletter sign up, and free guides will offer added value to your customer. Personalized email marketing has increased in popularity and success over the past few years, so investing in your email marketing is going to maximize profits for your eCommerce business.
Offer Smart Payment Solutions
People want to pay via the best method, whether Apple or Google Pay, PayPal, or a monthly payment scheme like Klarna. Payment is the final part of the customer journey, and not having their preferred payment option can kill the sale for many customers. Be diverse and forward-thinking in your payment options, and keep your customer happy in the final part of their purchasing.
Invest In Cybersecurity
Cybersecurity is essential for the protection of your customer’s data as well as your business information. Your customer expects their transactions to be secure, and a data breach can have huge ramifications for your eCommerce business. Ensure your website is protected and that customers’ financial information is adequately protected. For an initial upfront cost, you can protect your business from downtime, security breaches, and hefty legal fees.
An eCommerce business can be a hugely successful and viable solution for entrepreneurs. You can cut back on additional expenses if you get on top of your delivery costs and consider an order fulfillment center. Diversify where you sell your products and your payment options to keep the customer happy on their purchasing journey. Finally, focus on customer retention and what you can do to keep your customers happy. Chatbots and live chats are viable solutions to prevent frustrating wait times and maintain customer satisfaction high.