It’s no secret that the e-commerce industry is flourishing in nearly all places in the world as an increasing number of companies are moving into the online realm. In this day and age, creating an e-commerce store doesn’t require much thought, but expanding operations to create revenue can be a bit tricky.
What in the World Is E-Commerce Marketing?
E-commerce marketing is defined as the implementation of promotional tactics—online and offline—to increase traffic to an online shop and to convert visitors into customers. A sound strategy helps build brand awareness, driving loyalty and ultimately boosting sales. Promoting your online shop can be done using various e-commerce marketing tools, either for your business as a whole or for a specific range of products.
7 E-Commerce Marketing Tips to Increase Profitability
Below, we’ll discuss seven tips on how you can optimizecan use optimize e-commerce marketing and increase profits in 2021.
Tip #1 – Upsell your products
“Would you like to supersize your order?” Offering your customers a more premium version of a product they were initially going to purchase can be an effective way to boost profits. Worst-case scenario, they’ll reject the upsell and settle on the original product.
More often than not, customers aren’t aware that a higher quality version of a product is available, or they might require proof that an upgraded product or package will better suit their needs. Make sure that the products you’re trying to upsell are related to the original product and meet the budget range of your customer.
Tip #2 – Market on Instagram
With half a billion active users every day, Instagram has become the leader of the social app pack. Businesses can utilize this app to introduce their brand or products to a broader market. Uploading exciting pictures, using hashtags, and posting at the right hours can be an effective, inexpensive way to create a gathering of online followers and potential customers. Consider holding contests, showing off the behind-the-scenes of how a product is made, or even pay Instagram to have a greater chance of “winning.”
Tip #3 – Decrease abandoned carts
Here’s the sad truth: every time a shopper abandons their cart, your business is losing money. Baymard Institute researched this topic extensively and found that a majority of online shoppers don’t click on the checkout button. A simple yet effective way to decrease the number of abandoned carts is by reminding the users via email. SaleCycle discovered that almost 50% of those who received email reminders returned to their shopping cart, and one-third of them finalized their purchase. While we’re on the subject of emails…
Tip #4 – Improve email marketing campaigns
Shoppers can have difficulty locating your brand or product among the vast sea of tweets and posts that bombard their social media every day. However, by sending cold emails, you can initiate a more personalized and intimate interaction with potential customers. Emails let you spread your message in as many words, videos, or images as you like.
However, it’s not enough to have a million email addresses on hand. You can improve your email marketing campaigns by sending welcome messages to first-time customers, sharing content that’s relative to their most recent purchase, run a buy-one-get-one campaign during holidays, and soliciting feedback from non-shopping visitors.
Tip #5 – Choose marketing KPIs that matter
Companies can use an infinite number of key performance indicators (KPIs) to gauge how much they’ve progressed to reach their goals. So, online shops should only focus on those that make sense and matter the most. While Return on Ad Spend (ROAS) is considered the “holy grail” of e-commerce KPIs, profit per transaction is a non-factor. Profit on Ad Spend (POAS), on the other hand, takes the various expenses that businesses incur per sale. Using profit-based optimization in setting crucial KPIs can be the key to knowing how much money you’re actually making for every penny spentd on ads.
Tip #6 – Make a killer, user-friendly website
A poorly designed website is one that does not instill trust, lacks value proposition, uses illegible fonts, and/or contains misguiding navigation arrows. But even if you’ve fixed the aforementioned dimensions, it’s still possible that your website isn’t as engaging as you’d like. Images are a good way to tell a story, but too many images at once can confuse shoppers. Find a balance between visuals and captions, and consider using different themes that are in line with your business’s message.
Tip #7 – Get in direct contact with visitors
Engaging with your customers as they’re “window shopping” at your online shop is an effective way to keep them around for longer. An actual live chat representative can direct visitors to a certain product or page. On the other hand, chatbots are less costly and can offer basic guidance, but they lack a human touch to the conversation. Consider using a mix of live chat reps and chatbots to enhance a shopper’s experience at all times of the day.