Increasing revenue is a major concern for most ecommerce sites. Even a small uptick in revenue can mean the difference between survival and closing down.
Yet, many ecommerce sites struggle with how to increase revenue. Is the problem with the marketing or something on the website?
Increasing revenue is possible and doesn’t take a celebrity endorsement. So let’s dig into five ways you can turn your ecommerce business into something more profitable.
Entice Existing Customers
Getting new customers costs more than hanging onto existing customers. Yet, businesses routinely pour most of their marketing budget into customer acquisition.
Here’s the kicker — repeat customers are more valuable. You’ve already done the hard work of getting them onto the website to make the first purchase.
A tiny investment of time and money can bring them back, which makes their future purchases more profitable. That’s increasing revenue made easy.
Send existing customers emails about new products related to their prior purchases. Give them discount codes on their birthday. It helps cement the relationship and build brand loyalty.
Up Your Product Image Game
Ever squinted at a bad product image on a website? They don’t make you want to buy, do they?
Bad pictures make a product look cheap and shoddy, no matter how good it is in real life. It’s like driving up to a house for sale and seeing an unmowed lawn and dirty windows. It’s hard to shake that initial impression, no matter how great things look inside.
If you can’t take pictures that look great, hire someone who can.
Abandoned Cart Offer
Nearly 70% of people abandon their ecommerce shopping carts after adding something.
Let’s say you get an average of 10 people a day who put something in a cart with 3 completed sales. Let’s also say you average $10 of profit for each completed sale. That’s $210 a week and $10,920 in annual profits.
Abandoned cart offers can change those numbers. Offering customers who are about to leave a discount or reduced shipping costs can convert them into sales.
Let’s say your offer converts 2 more sales per day, with an average profit of $7. That works out to an extra $5,096 in profit per year.
Bundle Products
Bundles help you with increasing revenue by boosting the average order size. A common example is the “buy X amount and get 1 free” deal.
You can also use bundles as a way to introduce customers to a new, related product. Say that you sell handmade necklaces and want to start selling handmade bracelets. You can bundle a necklace and bracelet at a discount to get customers interested.
Cross-Sell Products
Another option is to cross-sell related products. This is where you suggest options that complement the product the customer just added to the cart.
Say you sell camping gear. If someone adds a tent to the cart, you might suggest a ground cover tarp or camping lantern.
Parting Thoughts on Increasing Revenue for Ecommerce
Boosting the revenue for your ecommerce business is something you can take in steps.
Entice existing customers to return and shop again. This is cheap and you already did most of the work.
Get better images in place. Customers want to buy things that look nice.
Offer people a deal when they’re about to abandon their carts. Some profit beats no profit.
Bundle and cross-sell products. It boosts your average order size and increases revenue.
