It is not easy to gain profits through online shop with many competitors exist today in the e-commerce arena. Competing in the rapid developing marketplace, there are many hassles faced by online retailers in order to maintain their position. Profit margins can determine whether your business will rise or fallen particularly in today’s hypercompetitive e-commerce industry.
Increasing the profit margins is the top list in retailers’ business goals. The pricing strategies will be the key point to reach the goals that they targeting. In order to improving their profits, how can retailers overcome the issues that they might face?
This is the ways to do it:
1. Reduce or eliminate abandoned carts
Missing out the potential orders is a lost to merchants since every online store will face the same problem. However, this phenomenon is well-studied which is when customers add their items to carts hence abandon it during checkout.More than 41% of online shopping carts were abandoned before completed. The cart abandonments occur
at the stage of payment. One of the reasons why customers abandon the carts is because of the price and additional fees that they might face if they proceed with the online purchase. One of the most effective ways to reduce the abandonment rate is by using follow-up emails. A simple automated sequence can also help to reduce abandoned carts thus increase productivity and remind the customer of what was in the carts to grab their attention.
2. Integrate social media
With the increasing number of internet users worldwide, integrating with social media would be advantageous to gain more profits. According to Statista, the number of social network users worldwide is more than 2.3 billion in 2016. One of the top drivers of social commerce worldwide is Facebook. Facebook is among the highest-performing sites besides YouTube, Twitter etc. Using Facebook ads also can boost merchants’ sales.Instagram can also be one of the social media platforms to gain more profits by engagement with the users.
Using user-generated photos are a great way to generate social proof, thus demonstrate to the potential customers that we have the happy current customers. Social media can drive sales more than ever. Merchants will miss the important opportunity to grow the sales for the business if they avoid using social media. Make sure to be creative whet the whole market starts using social media.
3. Customer service
Having customer service in your business is the most important service for online retailers. It is because, when there are problems occur, customers can get immediate support from customer service provided by the online retailers.
The number of customers to repurchase from the retailer will depend on the ways of how call centres or email support handle issues that they faced. Majority of shoppers are willing to pay more for great customer service that they will get. It is because customers know that they will be taken care of no matter what the problems that might occur. Having good customer service will guide the customers to make a better purchase.
4. Improve the web design
To gain more profits, make sure to have the best web design for your online business site. It is because having bad design site will lead to losing customers. Your sites will face of untrustworthy, lack of clear value proposition, bad product descriptions and difficulty in navigation. These are not good to increase your business profits.Create a great theme for your sites to attract more customers visit your online business thus purchase your product. Merchants also can create a exit offer to customers. Whenever the customers want to close out the sites, a special offer will be pop up. Merchants also can
make a other offers such as free shipping or discount to attract more customers to purchase items.
Besides the ways stated above, there are other ways to gain more profits such as shipping and handling costs, pricing, insurances and tracking. Gaining more profits or to maintain the profits for your online business is not easy. In order to gain more, merchants must be willing to take a risk to improve their business.
To find out more about payment method for your business, contact MOLPay. We are very happy to assist you.