ECommerce business model: “From low sales to growing sales”
You, as my fellow eCommerce community friend, we must admit that we have both been there... or maybe some of you who will be reading this is actually at the point:
Traffic is low, sales are low and the overall performance is low.
WHAT TO DO THEN?
Most people are desperate to create sales so they take quick decisions, but you got to to stay calm.
Turn your focus to long term success with the following eCommerce model.
When sales, conversion rates and traffic is low, keep one thing in mind, because I see too often that people panic and starts to spend money on traffic just to continue the bad curve.
Instead you should focus on how you can create more sales and then optimize you site for this:
1. Increase AOV (Avarage order value)
2. Increase the amount of customers
3 Increase the number of repeat purchases
The above 3 bullets should be on your mind 24/7 as an eCommerce entrepreneur - it is the ONLY 3 ways that you can increase online sales.
Optimize on-side eCommerce performance
The first thing you have to do is to optimize from your data and test everything on your eStore so you are 100% sure that your target audience likes your site, can use your site and need your site.
There are millions of ways to optimize your o line shop and your goal is to aim for a conversion rate of 2-4% (It depends on your industry and whatever you are selling) but bellow 2% is not good enough.
When you have a conversion rate of about 2% you should be good to start make a digital marketing funnel strategy. For example this is one way to optimize:
Relevancy will keep your costs low
Facebook for example, is all about relevans since the users are online to “kill” some time or see some random updates in their news feed. Facebook knows that the longer users stay on side, the better experience they have. This means that if you are running a Facebook ad, Facebook will lower your CPC cost if they can “see” that your campaign is relevant to the users.
This means that you can get more traffic cheaper.
More traffic and better conversion rate
Now that you have optimized your webshop design and user experience, you are driving more traffic whichwill convert into sales. This a the beginning of your new marketing funnel and your time to get more creative with new ideas and campaigns.
Increase the number of repeat purchases
Depending on your marketing funnel I will suggest that you get a permission from your customers before giving them the last sales push - a 24 hour special offer. Make sure that all your traffic converts into lead on yiur newsletter. The newsletter can help you create loyal customers, which will lead to an increased number of repeated purchases.
Tip: When designing you digital sales funnel use the good old AIDA marketing funnel. It’s my favourite business model of all times. Greate
Cross-sell and up-sell to increase your AOV
“Instead of buying this for 20USD you should do as 95% of our other customers and upgrade to this products for only 5USD extra . Standard price is 30USD. Save 5USD today and get a better value.” Get more value now >>
Remember that people don’t buy your stuff. They buy a perciaved value. Use copywriting and sharp Call-2-Action to make people buy.
Start optimizing on-side. When you know your webshop is ready you can start to scale and increase online ad spend. An overall ROAS on about 1000% should (Use 1 penny and get 10 pennies back) do it for most companies - if not you should reconsider your business model; Who is your audience, what does your product help them with and how does your product help them.
Thank you for reading this short blog post. I wrote it all on my smartphone before going to bed so I apoligize for spelling mistakes.