How Can You Boost Profitability for Your Ecommerce Business?

How Can You Boost Profitability for Your Ecommerce Business?

Take a look at some effective techniques to help you boost profitability and achieve the kind of results that inspired you to start the business in the first place.

When you start your new Ecommerce business, achieving the results you want can be incredibly daunting. You have invested in this enterprise, and if you don’t see a solid ROI fast you worry your business won’t be around for long.

Starting a company may be easier than ever, but building it into a successful money-making machine is enough of a challenge to stun even the most confident would-be entrepreneur. The internet simplifies establishing an enterprise, but it has also led to a much more competitive marketplace.

Must Read: A Beginner’s Guide to Launching a Successful Ecommerce Marketplace

Your Ecommerce business faces a lot of rivals - unless you happen to be bringing a unique product to buyers.

Even then, reaching the right people to secure the sale isn’t as easy as you might think.

Knowing how to market your Ecommerce company and building a valuable customer base requires real consideration and planning. Below, we take a look at some effective techniques to help you boost profitability and achieve the kind of results that inspired you to start the business in the first place.

1. Identifying Your Place In The Market

Before you can start making money on your Ecommerce business, you have to know your place in the market. Buyers today can find anything they want online, whether on Amazon or one of the thousands of other websites selling to consumers.

You can’t expect to build an e-store and start earning big money within a matter of days – the whole process of attracting buyers and boosting profitability takes time.

The type of products you plan to sell will dictate where you stand in the marketplace. Let’s say you have the right to sell a unique item that appeals to a very niche audience. This gives you a real edge – but it also means you have to find a way to appeal to your target buyers. You can’t rely on broader marketing that essentially targets everyone.

Even if you’re selling products that have proven to be a hit with mainstream buyers, you still have a huge obstacle in your way: massive competition.

The more rival websites sell products like yours, the more careful you are in marketing. One effective way to start your marketing efforts is to take a look at your competitors, particularly the most successful. How are they reaching their target audience? Are they advertising on social media, using videos on YouTube, or anything else you can emulate?

Looking at your product’s appeal and the competition level will help you identify your place in the market. You then have to start building your marketing campaign.

2. Harnessing Amazon’s Reach

Without a doubt, Amazon is the foremost name in online shopping. Millions upon millions of products are sold through Amazon each week, but not everyone comes from Amazon. Third-party sellers, either individuals or businesses of all sizes, can reach a thriving audience on Amazon.

Harnessing Amazon’s Reach

The Fulfilled By Amazon (AKA FBA) program gives you an advantage over many other sellers. This program will let you store your goods in an Amazon warehouse, and they will ship it out for you after it’s ordered. The FBA scheme also lets you take advantage of the ‘buy box’, which displays your products as if they were Amazon’s own.

Amazon Sponsored Products give you a chance to appear on results pages above your competitors - offering an advantage even if the rival brand is bigger than yours.

3. Go Direct With Targeted Emails

With email marketing, you can help build a bigger audience of potential buyers for your Ecommerce business. A marketing email is a valuable connection between consumers and your company, allowing you to go to them rather than them having to come to your website. It gives you an ‘in’ – provided they sign up in the first place.

Lead generation for email marketing can be tricky. Your landing page can be a terrific place to start capturing email addresses, but how?

Invite people to submit their email addresses through a simple input box on your landing page. You can present the submission box when they appear ready to leave or as soon as they arrive.

However, when you display it, you need to offer some kind of incentive to sweeten the deal. Give them a discount, promise a coupon code in the first email they receive or provide them with a free download as an incentive for providing their email address.

Whatever freebie you use, make sure it’s as enticing as possible. While some people will submit their email addresses when prompted, countless others will prefer not to. Only something that appeals to them directly will be enough to sway their decision.

Personalizing emails is critical. Incorporate the recipient’s name in the subject line and greeting to make them feel more valued and visible rather than just another anonymous customer.

4. Google AdWords: A Powerful Ally

Google AdWords is helping businesses of all sizes reach bigger, more relevant audiences. It offers a wealth of terrific features and is one of the best PPC platforms available today.

Google AdWords

Make sure you perform testing on your PPC ads to try different ideas. If you have various keyword combinations and voices in mind, run some A/B testing for a couple of weeks to identify the most effective. Choose the option that generates the most clicks.

Once you find the best PPC ad, be willing to spend more than you may expect to. The more you invest in AdWords, the more you stand to get out of it.

Must Read: A Most Brief Guide to PPC For Your Business

And like AdWords, Facebook’s own paid ads are an effective marketing option, putting your brand in front of potentially millions of customers. You can use their Lookalike Audiences tool to target users who share interests with previous buyers, ensuring your money is directed at the right prospects (rather than blanket marketing).

All of the above techniques can help you boost profitability for your Ecommerce company and build a more successful enterprise in the years to come. Remember to be patient and be willing to adapt. Keep testing your ideas and invest real money in the most effective options.

Sam Makad is a business consultant. He helps small & medium enterprises to grow their businesses and overall ROI. You can follow Sam on Twitter, Facebook, and Linkedin.

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