Convenient shopping 24/7, unlimited choice of products, possibility to compare prices – numerous advantages of e-commerce cause that more and more online shops are created every day. In the face of dynamic technological changes and the attitude of consumers focused on shopping «here and now» e-commerce allows generating significant profits from sales. How to run a profitable online shop? We will give you a hint!
An online shop that earns money
The global pandemic has accelerated the growth of the e-commerce industry in recent years. For many entrepreneurs, the restrictions on fixed-line business and its transfer to the Internet mean a chance to get out of the crisis without significant losses. There are also new players on the market – small and large online shops, offering a variety of products and services. Running your e-commerce is a big challenge which requires taking care of many aspects. How can you run an online shop so that it can generate profits? Here’s how to do it!
Fact 1: Free shipping supports online sales
Low delivery prices are a critical factor in choosing a given e-shop. Low delivery costs are essential for 37% of respondents – a result slightly less important than attractive product prices indicated by 45% of e-consumers. What is the conclusion of this? Shops offering cheap, or preferably free delivery, are more popular with consumers. It is worth noting that products with low or zero shipping costs are promoted on Amazon, which allows them to distinguish themselves from competitive offers effectively.
Contrary to appearances, free shipping does not have to mean a significant financial burden for an online business owner, especially since the cost of free shipping can be calculated in the price of the product itself.
Fact 2: The ease of finalising transactions is crucial
Abandoned shopping carts are a nightmare for shop owners. Meanwhile, to make money in the e-commerce industry, it is worth focusing on the appearance and functionality of the website first. Particularly important in the context of user experience is its intuitive interface – a clear layout and the location of important buttons in clearly visible and easily accessible places are the basis. Equally important is the product search engine which should be designed to make it easier to search and browse products. After adding them to the basket, it is also worth making sure that the number of steps necessary to complete the transaction is as small as possible. A multi-page form, requiring the completion of many fields, may effectively discourage a potential customer. The necessity of registration may also distract them from the purchase.
These seemingly small elements of an online shop may determine the level of sales – quick and comfortable transaction completion is extremely important today, as online purchases are made not only on computers but also on mobile devices.
Fact 3: Customers return to shops they trust
Although online shopping has become popular, it still raises some concerns for several customers. This reason is enough to ensure the credibility of the shop’s image when selling online and to gain the trust of shoppers. In particular, clear messages about returns, complaints, costs and delivery are needed. Any doubts of Internet users can also be dispelled by answering their frequent questions – for example, in the FAQ section. It is also good practice to place prizes and certificates or customer opinions in a visible place. The website must also contain information about the company. All this increases the shop’s credibility and encourages shopping. As a result, it is reflected in the sales profits generated.
Fact 4: The average value of the shopping cart can be easily increased
Online shoppers are bargain hunters – they are ready to check the offers of several online shops to find the best prices for products. Therefore, in running an excellent online shop, it is essential to organise frequent promotional campaigns and inform about them on all channels. Various special offers such as shop birthday promotions or Black Friday are also an effective way to stimulate sales. These very often lead to an increase in the average order value.
The average value of the shopping cart is also influenced by other tricks recommended to online shop owners. In the case of profitable e-business, upsell and cross-sell techniques are helpful, i.e., offering more expensive versions of products or related products respectively. The gratification also gives a similar effect. You can prepare a discount for subsequent purchases above a certain amount – the customer endowed with it will be motivated to revisit the shop. It is also a good idea to sell products in sets, emphasising the profitability of such a collection concerning the costs of each item separately. The final purchase decision of undecided customers is also supported by messages such as «Customer X has just purchased product Y».
Fact 5: Multi-channel sales pay off
Our factsheet on the profitable online shop closes with the omnichannel strategy, which is the basis of e-commerce. Linking several sales channels together is an opportunity to tap into sales potential and reach a wide range of consumers. Omnichannel also allows increasing brand credibility and recognition, which in turn increases the number of returning consumers. Today’s consumers visit many places on the Internet through which they can buy products. It is worth being everywhere they are.