With an increase in the number of online shoppers, it's no wonder that e-commerce companies are on a rise. And amidst ever-growing competition, starting a new e-commerce store can appear daunting. However, it doesn’t have to be.
There are some basic concept that applies to most e-commerce business and in this article, you'll know more about them.
Know the Basics
In e-commerce business, it is the oil, gold, and diamond!
Once you have the data, the next important step is to make sense of data through analysis and use it for your business.
So, data that you must track from Day 1, are:
- Average Acquisition Cost
- Customer Lifetime Value
- Conversion Rate
- Average Order Value
- Cart Abandonment Rate
Also, it will go a long way if you start using tools like Google Analytics. Many online retailers track the effectiveness of their marketing through these tools and they offer useful insights into various data you have gathered.
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What Matters in E-Commerce Business
1. Marketing & Branding
- Social Media Marketing
Visual content is the best way to expand your social media presence. Gone are the days of creating boring, run-of-the-mill images and videos.
Here are some ideas to help you succeed with visual content on platforms like Instagram, Twitter, Facebook and Pinterest:
- Create visual content that is relevant to your niche
- Use high-quality images or video
- Tap into trending hashtags and current events
- Create content that attracts your audience
- Dazzle your customers with offers and discounts
- E-Commerce Marketing
While you’re building your brand awareness and cost-effective e-commerce plans, it is equitably important to brainstorm over retention approaches as well. This means implementing strategies that engage your buyers relevantly.
You can try these 5 methods to maximize the number of recurring buyers:
- Exciting deals - Make an offer shoppers won't refuse!
- Rewards via payment gateways
- Brand awareness campaigns
- Delightful shipment experience
- Ultimately, deliver what you promise
- Pay Per Click (PPC) Advertisement
PPC ads on search and social platforms are a great way to reach your target audience. As the name suggests, you are charged on a per-click basis.
Below is an example of a PPC ad.
SEO can be complicated. Make sure you optimize your site for search engines. Every piece of content you publish can make an impression and enable you to rank well.
Use internal and external links to encourage your visitors to further explore your site and update your content on a regular basis. These small initiatives when done regularly can boost your website's traffic which will then help you get more sales.
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Managing all aspects of marketing and SEO can be troublesome, more so, if you are managing operations with a small team. This is where companies like DigiFuels and Nautone come into the picture. Additionally, their services can enable even larger e-commerce companies to augment their existing capacity and benefit from their expertise
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3. Payment Method
Dropouts related to insufficient payment methods available on a website and security concerns form a major chunk of overall dropouts.
Here's a graph by Baymard Institute highlighting key reasons why shoppers dropout:
Payment related dropouts are avoidable, all that you have to do is offer the payment method which shoppers prefer, e.g., Buy Now Pay Later (BNPL).
Buy Now Pay Later is both shopper and merchant friendly. It allows shoppers to pay for their purchase later and enables merchants to boost conversion rate, AOV, and ultimately get more sales.
RBC Capital Markets estimates a BNPL option increases retail conversion rates 20% to 30%, and lifts the average ticket size between 30% and 50%.
Offer what shoppers want and you will continue benefiting from increased sales.
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The Conclusion 🎯
3 Key Things That Matter in E-Commerce Business
- Marketing & Branding
- Buy Now Pay Later Payment Option
E-commerce has changed the way the world shop. New e-commerce stores are emerging and when starting out you need to focus on 3 key things mentioned above.
Scores of merchants are benefiting from emerging technology like voice search and the ones that upgrade themselves with emerging trends are the ones that continue to thrive.
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References: 1 - https://baymard.com/lists/cart-abandonment-rate 2 - https://www.cnbc.com/2021/09/25/why-retailers-are-embracing-buy-now-pay-later-financing-services.html