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Ways to increase profits in an e-store

Optimally operating e-stores are able to compete better on the market, and activities that support them often bring benefits on many levels.

The main goal of every e-business owner, and even manager, is to increase sales profits in the company. Reducing fixed costs undoubtedly increases business profitability, but it may also involve the loss of conversions, for example from paid advertising or other marketing activities.

The fact is that increasing the number of transactions concluded will result in an increase in the conversion rate and, above all, an improvement in the profitability of the e-store.

However, behind this simple statement there are many possibilities and small actions that will be helpful in achieving this effect.

Conversion rate

Extensive knowledge and regular analysis of this coefficient shows the traffic on the website and indicates how it translates into sales. Knowledge obtained from thorough analyzes helps direct potential customers along the purchasing path - remembering that it also needs to be short. In parallel to working on the coefficient, you should work on acquiring customers, i.e. new traffic to the website. How to do it?

Accurate knowledge of the trends of customers visiting our store allows us to obtain comprehensive knowledge about what they buy. This makes it possible to tailor products to the consumer's interests, i.e. personalization. Establishing such interaction between the company and the customer makes it seem more personal and human.

This may increase their interest in a given product and make transactions at this level more often. UX/UI analysis using heat maps will work well at this stage. Thanks to the analysis, we will receive information about the places on the website that are most interesting among visitors.

Such knowledge will allow you to optimize and properly place CTA buttons to maximize their function. Further information provided by the analysis concerns satisfaction with the operation of the internal search engine and filtering. This allows you to determine the level of customer satisfaction with search results and the achievement of assumed goals.

If it does not meet customer expectations, it should be optimized immediately. An incorrectly configured search engine for customer needs is one of the most common mistakes when designing online stores. It often happens that the website is regularly optimized thanks to the mobile version, and its position in the search engine also remains at a high level.

UX/UI analyzes do not indicate that the website traffic is going in the wrong direction, and yet the profit is still small. Then what? If none of the above technical activities increase the profitability of your store, it is worth thinking about building loyalty among current customers and encouraging them to make further transactions.

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Building a relationship

The foundation for building good relationships with clients is mutual communication. We can start building relationships with activities related to e-mail marketing and a properly prepared newsletter. Take care of your customers, send them information about unfinished purchases, promotions, and even thanks for making a purchase.

Positive impressions and a well-remembered store increase the likelihood of repeating the transaction and sharing a positive opinion with friends who will look for products from competing companies. Allow your customers to post comments and opinions about purchased products.

Warm recommendations will allow you to increase the number of users visiting your online store and, as a result, buyers. It is also worth thinking about integrating the platform with courier companies and payment systems. A wide selection of available options will give consumers the freedom to decide which delivery or payment methods they want to use. Make sure that buyers are informed about everything via e-mail and notifications available from the customer account.

Engaging programs

Properly designed and implemented loyalty programs will certainly fulfill their purpose in every store. These do not have to be large, time-consuming programs, seasonal lotteries or small referral-based activities will suffice, in which customers will receive a benefit in exchange for an action specified by the organizers. These may include, for example, discounts on subsequent purchases or free delivery.

 Another equally popular method is the points program, in which users collect points for each purchase. Their use is specified in the regulations and may be vouchers to be used at a specific time or a virtual currency that the customer can exchange for material goods.

Engaging customers and preparing a goal for them to strive for will provide us with constant profit with little effort. If we create the opportunity for consumers to invest their time and emotions in interacting with our company, we will receive their loyalty and spread information about our products or services. Small actions encourage buyers to make regular transactions because they see an additional benefit for themselves. 

Loyalty programs are tailored to the needs of a given store. An individual approach affects an extremely valued value in the business world, which is customer trust in the brand. Acquiring loyal customers and creating an image of a store worth recommending undoubtedly increases profitability. The most important benefits of implementing loyalty programs include stimulation of the purchase of specific products.

Average order value

Increasing your average order value can be a great solution with just a few small changes. A customer who is already in the sales funnel is more likely to choose additional products that you offer him just before finalizing the order. You just need to present them in the right way. There are several strategies to increase the value of orders. The first is cross-selling, which is characterized by the presentation of products that complement the existing contents of the basket.

The second most frequently used action is bundling, which presents a package of complementary products at a more attractive price than in the case of purchasing each product separately. The last strategy is up-selling, in which the seller offers the customer the product he or she is looking for with higher parameters as a more expensive but better-equipped model.

Each method is characterized by a slightly different approach to the client, but they can complement each other.

Other costs

Staying on the topic of the customer's basket, it is worth adding elements that will benefit both the customer and the store, and their attractive presentation will encourage consumers to take advantage of the presented offer, while increasing profit.

Raising prices does not always have to mean losing or scaring away customers. Stores often set a minimum order value to encourage customers to place larger orders.

This action determines the average basket value, which still remains quite low. The minimum order cost may be, for example, PLN 49, customers will search for products that slightly exceed this amount, which will increase anyway as a result of the additional delivery fee. It may also be a good practice to eliminate the minimum order value in exchange for a free delivery offer for orders exceeding, for example, PLN 99. 

In the eyes of the customer, spending a higher amount on products they had not planned will be more attractive than paying shipping costs. Bundling will work well with this type of solution, as customers are more likely to choose product packages exceeding the minimum amount.

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Popular products

When analyzing website traffic, it is also worth focusing on the analysis of the most profitable products. The most frequently purchased items can be used for cross-selling, bundling and, above all, for up-selling strategies. This will give more people the opportunity to buy the complete package or what is generally perceived as a good product.

Information about popularity can be placed on subpages, presenting what other customers have bought along with their opinions and comments. When choosing each of the solutions described, remember to build credibility, which is necessary when generating sales and increasing profits.

Using all kinds of sales automation tools will attract customers, but whether they will stay with us depends on how they are treated and what reputation the e-business enjoys. Building your position on the market is a long-term process that can be supported by positioning. Agencies that prepare an effective content marketing strategy and software houses come to the rescue.

Thanks to their support, the online store can have a user-friendly home page and subpages so that customers can easily find what they are looking for with detailed descriptions. Transparency of transaction costs and prices builds trust, and the preparation of extensive descriptions enriched with good quality photos promotes the number of transactions and reduces returns.

None of these actions guarantee an immediate increase in the profitability of the e-store. The increasing competition that can be encountered on the Internet makes the process of building a brand longer, so that the initial expenses related to the implementation of individual tools may be more than the profits. However, regular analysis, optimization and advertising on the Internet will certainly attract a group of customers that will constantly grow.

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