If you're an ecommerce store owner, chances are good that you want to make sales. But what if I told you that your focus should be on decreasing costs instead? In other words, if you want your ecommerce website to be profitable, it's important to think about ways of reducing expenses like shipping costs. Here are five tips for making your first year as an online seller profitable:
Track and manage your expenses.
- Track and manage your expenses.
It's important to know exactly how much money is being spent on your website, and where it is going. This will help you create a budget that keeps money coming in while also giving you some flexibility if something unexpected happens. One way to do this is by using an accounting program such as Quickbooks or Xero. From their, expenses can be grouped into categories (such as marketing, customer service, etc.) so that they can be easily viewed for analysis purposes later on down the road. If you don't have access to these kinds of programs or just want something simpler/cheaper there are other options available as well---many services like Stripe allow users to connect their accounts through third-party apps like Excel which makes tracking easy enough even for those who aren't familiar with accounting software! Just make sure whatever system(s) used have been properly implemented before launching so no mistakes happen during launch day itself!
Use an ecommerce platform that integrates with your business software stack.
Integrating your ecommerce platform with your business software stack is a must. Most ecommerce platforms offer integration with accounting, CRM, customer service and inventory management tools, but not all of them do. Make sure the platform you choose has integrations with the tools that your company uses to run its operations.
Once you've chosen the right ecommerce platform for your business, consider adding more functionality by integrating other software apps into it as well. Some popular examples include: payment processors (Stripe), shipping providers (ShipStation), marketing automation tools (Pipedrive) and even social media management systems like Hootsuite or Sprout Social.
Build a customer base by growing your social media presence on platforms like Pinterest, Facebook and Instagram.
Your website is an extension of you and your brand. It's how you present yourself to the world, so it needs to be a reflection of who you are and what you stand for as an entrepreneur.
If you don't have a strong social media presence, it can make people wonder about your business. After all, if no one's visiting your page or following along with what's going on in your life (as well as how much fun that is), then why would they trust buying something from someone they don't know?
But if there's one thing I've learned during this process is that building an audience takes time and effort---but when done right it can lead directly back into sales on your ecommerce website!
Rethink how you handle shipping. Offer free shipping, or if that's not possible, use flat rate shipping whenever possible.
Offering free shipping is a great way to attract customers, and it's also an effective way to increase sales. However, it might not be enough to cover the cost of shipping if you don't consider it carefully.
Free Shipping: What It Means for Your Ecommerce Website
If your ecommerce store offers free shipping, you can reap major benefits in both customer loyalty and sales volume. One study found that people tend to spend 25% more when they receive free shipping than those who pay for their purchases at checkout. But how do you make sure that your business will be profitable with this added expense?
Unleash the power of email marketing. Find ways to grow your customer list and keep in contact with customers who have purchased from you in the past.
Email marketing is a great way to keep in touch with customers, but it's also an effective tool for growing your customer list. Create an email newsletter that introduces new products and keeps existing customers up to date on what's happening at the store. As part of this process, offer exclusive promotions or discounts to entice those on the mailing list to come back and shop again.
When it comes down to it, there is no better way of reaching out to potential customers than by sending them a message through email. It's cheap and easy, plus you have access off-hours when other advertising channels are closed for business!
If you want your ecommerce store to be profitable you should focus on increasing sales and decreasing costs - especially shipping costs.
As an ecommerce store owner, your focus should be on increasing sales and decreasing costs. You can do both of these things by focusing on shipping costs first, then second, and so on.
Shipping costs are one of the biggest expenses you'll face in running an online store. Shipping makes up about 16% of all ecommerce business expenses for U.S.-based businesses; this figure is closer to 20% for international companies. The cost varies depending on what type of product you're selling (shoes vs sweaters), how heavy each item is (a pair of shoes weighs more than a sweater), how far away customers are from you (if they live close enough to drive over themselves instead), where they live in relation to their location relative to yours (whether or not it takes longer for them get to the post office compared with using UPS or FedEx), etc., but generally speaking it's going to be somewhere between $1-$10 per item sold depending on those factors mentioned above plus some other variables like whether or not buyers are shopping during peak hours when rates tend toward higher end due increased demand as well as special promotions offered by carriers like Amazon Prime which offer free two-day shipping at no extra cost beyond membership fees).
You've done it! You've built your ecommerce store from the ground up and are now ready to see what kind of profit you can make. The most important takeaway here is that you need to focus on increasing sales and decreasing costs so that you have a profitable business. If shipping costs are high, look for ways to decrease them or offer free shipping if possible. Also don't forget about email marketing as an effective way of growing your customer base - especially if they have already purchased from you in the past!