eCommerce Marketing Tip21 - Price Right and Double Your Profits

 

Ecommerce Marketing Tip 21 image by Think Big Online

 

How do you go about setting the right price for your product or service? That’s a question that people in the ecommerce business often end up asking themselves. Well a common approach for many businesses is to look up competitors and attempt to undercut them in terms of cost or charge more and add a premium to the products or services offered.

Another way that people often go about is through percentage of sale. So let’s say the manufacturer gives you the product for a set amount of price plus your mark up percentage equals the selling price on your ecommerce website. The problem with these methods is that it often leads to a lot of errors and involves a lot of guess work that can lead to businesses overpricing or under pricing the products or services that they offer.

Now the real answer to the question on how to set the right price for your products or services is actually fairly simple – it’s however much the market is actually willing to pay for it! The truth is that there is no exact mathematical formula for coming up with the right price for your product or service. What businesses should do instead is focus on asking the market how much they are willing to pay for individual products or services in order to maximize profit. How should one go about doing it though?

Well you can start by split testing prices on your website to see which ones actually end up bringing more profit in your bank account. Let’s say you are in the business of selling cameras and you’ve set a price of $500 because that’s what most of your competitors are selling at. However, if you’ve taken the time to install split testing software on your website you can then run different prices for your product – perhaps $500 for one visitor and $600 for others.

Of course goal of split testing is to determine over time which price point contributes the most profit to your bank account. Think about it – at the $500 price point you have to consider a number of fixed costs that you’d have to deal with in order to deliver your products or services to your customers which includes:

  • Cost of goods or services
  • Staffing cost
  • Insurance
  • Shipping
  • Superannuation

 

What if through split testing, you find that your market is willing to pay you $600 for your product? That means you’d be able to add $100 of pure profit to your bottom line. Sure it might decrease the number of buyers that actually do make a purchase from you but you will most likely find more profit in your pocket at the end of the day. You may be surprised how much profit your business is potentially missing on if you stick with your original price point without proper split testing!

Don’t simply take our word for it though – take the time to split test your prices and see what it actually does for your ecommerce business. If you found this useful please subscribe to our channel, share the video and leave a comment below. I’ll be seeing you in the next video!


eCommerce Marketing Tip20 - Doubling Your Profit Overnight

Doubling your profit overnight

Looking for ways to quickly and effectively increase profit in your ecommerce business? Well the best way of doing just that is to remove any risks perceived by your buyers.

Now the biggest and most common risk buyers are often so concerned about is investing or buying a certain product or service and not getting what they really need out of it. Some people are still skeptical about making purchases online not to mention giving out their credit card information with no assurance in shipping or a refund. What people in the ecommerce business needs to do in their marketing campaign and their business website is remove such risks from the sale.

Removing your buyers’ risk from the sale

So how exactly do you go about removing buyer risks which may be hindering your business from maximizing profits? Well the easiest way to do this by confidently offering guarantees and one of the best guarantees that you can see in the market today is a 365 days no questions asked money-back guarantee. As a merchant, you may feel uncomfortable about offering such a guarantee but in return buyers would be more confident and makes it more likely for them to actually make a purchase.

Now going such a route may get you to process a couple of refunds but think about it – you are probably going to have to give out refunds any way for buyers that are unhappy about your product or service. We can’t change the fact that there will always be customers who are unhappy about what your business offers and will demand a refund so you might as well have a guarantee in the first place and attract as many buyers as possible.

Most people are honest and will generally do the right thing. Some of the things that you can expect to happen once you start guaranteeing your products or services includes:

  • A significant increase in conversion rate
  • Generate more sales from the same amount of traffic
  • Increase in average sale value

 

Now looking at it hypothetically, let’s say that you’ve had a number of people visit your ecommerce website and in a month, 200 of them actually made a purchase totaling to $400 so your average sale value is $40.  How fantastic it would be if you’ve managed to increase the number of buyers in a month to say 300 and your average sale value to $50? From the same amount of traffic, you’d be increasing your net sales from $8,000 to $15,000.

It’s certainly all possible by offering guarantees and getting rid of anything that buyers would interpret as a risk in their decision to invest or purchase from you. Of course don’t simply take our word for it and go try it out for at least 3 months and see how it works out for your business. If you found this useful please subscribe to our channel, share the video and leave a comment below. I’ll be seeing you in the next video!


eCommerce Marketing Tip19 - Effective Blogging For Your Business

 

Effective use of blogging for your ecommerce business

Most ecommerce websites have blogging capabilities these days and for good reasons.  For one thing, it enables us to create more relevant and useful content for your target market. Needless to say, this translates to more opportunities for bringing in traffic from major search engines like Google, Yahoo and Bing.

One other reason why people need to take a good look at blogging for their ecommerce business is the fact that it presents a great opportunity to add credibility to your business by blogging up topics that are relevant to the products or services that you offer. You can consistently blog about the latest products that are coming out in the market as well as presenting reviews and drawing out comparisons.

All these things can serve to build more credibility for your business and generate more traffic which means more purchases in your online shopping cart.

Having a blog is like having your own media platform – you can broadcast anything you like and control the manner in which your business is perceived in the market. It’s something that a lot of people tend to overlook and yet it’s a powerful marketing tool that no ecommerce business today should miss out on especially in improving both sales and search engine rankings.

Topic ideas for your blog

Having trouble coming up with good topics for your blogs? Well why not check out Google News and simply type in keywords that are relevant to your product or service. You’ll see trending topics and current events in another country which can give you ideas on what to write about. You can also check out relevant forums and look up hot threads to see what people are actually talking about in your market.

Another great way of looking up topic ideas for your blog is to look up industry leaders in your market and reputable manufacturers. Follow their blogs using an RSS reader such as Google Reader and uncover great ideas for your blog topics and put them up on your ecommerce website which will ultimately help attract more visitors and more sales.

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E-Commerce Marketing Tip #10 - Integrated Marketing For Fast Profit

 

Integrating ecommerce with offline marketing

A lot of people in the ecommerce business believe that there is no need for them to bother with offline marketing at all which is rather unfortunate. Offline marketing presents a huge opportunity especially after a sale as it enables businesses to re-engage previous buyers and make it more likely for them to actually do business with you again.

Some of the quickest and most affordable ways to effectively supplement your ecommerce business with offline marketing is to provide buyers with small business cards aimed at leading them back to your ecommerce website or better yet to one of your social media profiles – Facebook page, Twitter account or Pinterest. Whatever the case, it’s important to remember that the sales process doesn’t have to end after hitting the checkout button and think long term keeping your customers coming back to you.

Another great way to leverage offline marketing in your ecommerce business is to offer coupons after every sale. It’s a good strategy for getting customers to purchase again from you sometime in the future as you effectively attempt to draw them back in with great discounts or offers that they claim for a set period of time. The goal is to somehow create a habit for your buyers and get them to keep coming back to you with repeated purchases.

One other thing that you can do is have knick knacks or give away items made specific to your brand that is useful enough for them to keep and utilize in a regular basis and at the same time remind them about your business should they need anything. Depending on the nature of your business, the item can be a pen or a bottle owner engraved with your brand or business name on it.

There are a lot of affordable promotional products out there that you can include with your product or service for an additional dollar or so. It’s a small price to pay but can add a lot of value for customers and that extra bit of wow enabling your business to make its mark in the minds of your customers as they are better able to recall your business and what it’s all about.

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E-Commerce Marketing Tip #5 - Profit or Growth?

 

Profit or Growth?

Depending on where your business is in the ecommerce cycle, people need to run a different strategy at any given time. If your business is a newcomer in the market and isn’t well established yet then you really ought to focus more on business growth above anything else and put all of the profit back into the business and perhaps more.

What about those people that prefer a profitable marketing strategy? Well then ask yourself – would you prefer to have a business taking $2000 a month and yielding a 50 percent profit or would you rather have a business doing $200,000 per month and making 10 percent profit? Which business would you rather be on?

If you already have a good market share then you might want to look at tweaking things to make the business more profitable such as increasing conversion rates, per visitor value and average sale value. No matter what level your ecommerce business is at, the important thing is that you plan your marketing strategy and stick with it for a definite period of time. Strive to get consistent results and decide which strategies actually work best for your business.

When starting out or planning your marketing strategy for the business year, you want to think about which strategy you are going to run. Are you going for growth in the next 12 months or profit? If your goal is business growth then your marketing strategy will be tied around acquiring as many sales as possible regardless of how much profit you end up with.

Although it might sound surprising, it’s not unusual for a number huge online retail ecommerce businesses to spend more in their efforts to acquire a sale than what they actually make out of it. For instance, they may spend $2 securing a $1 sale but why in the world would they do such a thing? Well there are certainly a number of good reasons which include:

  • Quickly increasing market share
  • Preparations for a buy out
  • High average lifetime client value – businesses may lose money on the front end but ultimately yield a good profit on the back end.

Don’t be caught in the trap of thinking that running a profitable model is a must when starting your own ecommerce business. It is better to ask yourself if there are any opportunities your business is missing out on. If you are going to run the profit model without enough substantial capital upfront, what is it actually costing you?

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E-Commerce Marketing Tip #18 - Google Plus

 

We all know how important it is to have one’s ecommerce website appear high up on Google. Since Google introduced Google+ in 2011, we’ve seen some dramatic changes in the way search engine rankings are being decided particularly with Google+ - Google’s social network, which now significantly influence search engine results. How exactly is this so?

As people in the ecommerce business already knows, “Likes attract Likes” and with Google+, it’s all about the number of people that you have in your circle of influence and their likes or interests. Let’s say you have friends on your network that are interested in clothing and one of them has shared or clicked the Google+ button on a fashion website. You are then more likely to see that certain website on top search engine results when doing relevant queries on Google.

Needless to say, Google+ is affecting the world of ecommerce and search engine optimisation in a great way and you can bet that it’s only the beginning. Google’s ultimate goal is to dominate people’s online experience which includes:

  • Search engine results
  • Social media
  • Online shopping
  • Ad platform

 

People need to start implementing and making good use of Google+ for their respective businesses because it’s only going to affect search engine rankings more in the future. Ecommerce businesses can start doing just that by adding a Google+ button on their webpages. If your website visitors end up liking what they see then they can just press such a button and it will help raise your rankings in Google instantly!

Another great way for ecommerce businesses to start implementing Google+ to further their business goals is to set up a Google+ page for their business. And start a personal profile for themselves as well. It’s a good place to produce quality content in a consistent basis related to your business and the problem that it solves for people.

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eCommerce Marketing Tip #13 - Search Makes Money

 

Making money with online searches

What kind of traffic sources are you targeting for your ecommerce business? Well there actually quite a number of them aside from the ones generated by Google and other major search engines like Yahoo and Bing. This includes social media, e-mail, videos and various other online sources that can be used to drive traffic and ultimately generate more sales for your business.

The great thing about search is that you can effectively and accurately predict what people are looking for and hopefully make a sale out of it. For example, users may type in “buy canon camera online” and you can tell what exactly these users are looking for and structure your campaign to target those people making it more likely for your business to create a profitable sale online.

Now there are two types of marketing – pull marketing and push marketing. Pull marketing which is also known as search engine marketing is a marketing strategy catering to people actively searching for your business for whatever they need online and coming to you.

Push marketing on the other hand refers to conventional methods of marketing a product or service which includes TV, radio and banner ads as well as social media advertisements like the ones found on Facebook. This type of marketing is also known as push marketing or interruption marketing and the name may already suggest, it involves briefly interrupting whatever the target market is doing at the moment in the hopes of catching their attention, getting them to visit your  website and make a sale.

Now the problem with push marketing is that people may not actually be at the best state of mind to pull out their wallet and spending money when they do see your ad. Thus while Facebook is perfect for push marketing as it enables you to target your prospects specifically, the chances that they are in the mindset and actually need what you have to offer at a certain time can be very unlikely.

With pull marketing, the chance of ecommerce businesses making a sale is that much higher as it caters to prospects actively searching for what you have to offer which means you’ll need a lesser amount of traffic in order to make a sale and create a more profitable business.

Just to give you an idea of the opportunity behind pull marketing – there are 19 billion searches made online every month! Now a number of them may not be actively searching for what you have to sell and some of them may simply be looking for information but the main point is that if you are able to position your ecommerce business in front of these people, you’ll literally have the money in the bag!

Looking to know exactly how many people are searching for what you have to offer online? Well you can do just that with Google’s keyword tool! Look for keyword tool on Google and simply type in the keywords relevant to the product or service that you offer and it’ll give you a clear picture of how many people are actually doing those searches online. You can use this information as a part of your market research and create content around the products or services that you are offering.

There are several great ways that ecommerce businesses can all look into in order to step in front of people that actively searching for what your business offers and are more likely to invest or make a purchase. One is paid online advertising such as Google Adwords wherein you pay each time a user clicks on your ad and visits your website. It does require considerable knowledge to set up and work in a profitable manner for your business but nevertheless, it is a scalable and has the potential to make a lot of money if done right.

Another approach is SEO or search engine optimization – a process of tweaking your website in order to optimize its chances of appearing higher on relevant search engine listings. SEO is more like renovating your house as opposed to paid advertisements which is like renting somebody’s advertising space. A tweaked and optimized website is a most valuable asset in ecommerce as it helps generate sales consistently.

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eCommerce Marketing Tip #12 - Always Split Test

 

If you are most people in the ecommerce business, you may be leaving a lot of profit on the table when it comes to all the traffic coming in to your website. Why exactly is this so? Well the answer is simple – there is always a better version of your website (landing page, call to action, checkout button, etc.)

Now how are we to know if we are already using the best possible version of our ecommerce website? Well the only way to do that is to split test. Split testing enables us to pinpoint website elements that work and eliminate or make changes to those that don’t. It basically involves setting up tracking codes serving two different versions of your website.

In split testing ecommerce websites, visitors will be divided among different versions of a certain website as they come in. The goal is to of course determine which version of an ecommerce website actually converts better and yields more profit. You can then use that version of the website more as default.

Split testing is a relatively simple thing to do and yet roughly 99 percent of ecommerce businesses forego doing it and leave a lot of money on the table. As mentioned earlier, you can split test just about any element on your ecommerce website which includes:

  • Price
  • Images
  • Buttons
  • Colors
  • Sizes
  • Design
  • Layout

 

Keep in mind that such elements can influence your prospect’s decision to buy from your or not which is why it’s so important. Let’s say that for every 1000 visitors to your website you have a 1 percent conversion rate, your business ends up with 10 sales. Without split testing, you’ll never know whether or not you can increase that conversion rate to say, 2 percent which translates to 20 sales for the same amount of traffic thereby doubling your business.

There are various great tools that you can use to split test your ecommerce website. We highly recommend Visual Website Optimizer and Zen Tester.

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eCommerce Marketing Tip #11 - Client Lifetime Value

 

Focus on the lifetime value of clients

 

All too often, people in the ecommerce business think only about the first sale and nothing more. If you want to establish a strong a profitable business presence online, this certainly shouldn’t be the case. It’s important for ecommerce businesses to look beyond simply making a sale especially if you are mostly selling low-priced items with low margins.

Think about it – just because people bought a low$5,  $10 or $20 item from you at a very low margin, it doesn’t mean that they are not going to buy from you again. If you have $10 item and you have a client buying it for 10 times in a certain period of time, you’ll end up with a $100 average lifetime client value.

Most people in the ecommerce business have it all wrong by looking solely on the $10 sale at the front end and are often easily discouraged with how little they have to play with in terms of the amount that they are investing in their ecommerce marketing campaign and what they are initially making out of it

There’s a huge difference if you are looking at your marketing budget and tell yourself that you’re simply going to make a $10 sale as opposed to saying that you are going to make sale, take care of the client and ultimately end up making a $100 in sales. Thus we urge you to shift your focus from making a single sale to the average lifetime value of a client. So how do we start doing just that?

Let’s say your ecommerce business is offering an amazing value and service for your clients that they end up telling their family and friends. You’ve only paid to acquire such a client on the front end but they may not only end up making multiple purchases from you on the back end but they can also tell their others  which helps drive more business on the front end for free and so on.

Increasing the average lifetime value of clients in your ecommerce business isn’t difficult t all and there are a number of things that you can look into in order to do just that.  For one thing, you can set up an auto responder for every purchase that will send out follow-up emails to your buyers after 5 days. That email can simply check on any problems that your clients may be having about your product or service and how satisfied they are with it. You can then invite them back to your website to post a review or recommend more of what your business has to offer.

Building a good relationship with clients and nurturing their average lifetime value is such a simple thing not to mention the fact that it doesn’t really cost you anything more other than that bit of extra effort. Besides, how many businesses these days follow up on their clients making sure that they don’t have any problems with the products or services that they sold? Not to many I reckon so it’s really not that hard at all and it’s something that your clients are sure to appreciate!

Needless to say, such efforts at improving your client’s average lifetime value will also support future sales and provides the foundation for re-engaging clients for your business.

Improving average client lifetime value with surveys

Surveys are another great way to improve the lifetime value of clients in your ecommerce business.  By running surveys, you’ll get valuable feedback from your target market itself which includes among other things:

  • What your business could have done better? Areas for improvement?
  • What are they unhappy with? Common problems or complaints?
  • What are some the things that your clients feel are missing in your business offerings?

 

The answers to all these questions will certainly help you add more value to your business and keep your clients coming back to you thereby increasing average client lifetime value ultimately putting more money in your pocket.

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eCommerce Marketing Tip #9 - Commitment To Marketing

All too often do we come across people that approach ecommerce business with a “we’ll see attitude”. They look at their marketing as something more of a hit and miss as they simply try to see what works and what doesn’t which is fine. Of course we don’t want to keep beating our head against the wall and keep doing things that are making us lose money.

Now the problem with many ecommerce businesses today is that they fail to properly define how long they are going to test their marketing strategy and how much money they need to actually put into it. The result – they only push forward when everything is going well and quickly shut everything down if it isn’t instead of being resourceful and looking for ways to improve it.

In ecommerce, you can never expect to get everything right on the first try. The only way to succeed at running a truly profitable ecommerce campaign is to push forward and modify or improve your strategies and methodologies as you go. One must define the time that they are going to stick with a particular strategy and the amount of resources you are prepared to spend testing whether its going to turn out to be a profitable campaign or not.

Let’s say you are running a search engine optimization campaign, on a rough estimate we’re looking to spend at least 6 months to properly define the effectives of your SEO strategy. With Google Adwords, you’ll want to run it for at least 6 months as well or around 300 clicks per product or category. These well defined parameters should give you enough data to assess whether running your campaign is really worthwhile or not.

Continuing to go about your ecommerce business without properly testing your campaign strategies is pretty much like running a national election but allowing only 1 percent of the population to cast their votes. It’s not going to give you a true reflection of what is really going on.

Are you still uncertain about how much resources you should put towards your ecommerce campaign?   You can go ahead and seek out someone who is already doing it or shoot us an e-mail and we’ll tell you roughly how much money you need to put into your campaign to test its effectiveness and profitability.

The important thing is that you define a specific period of time for testing your ecommerce campaign and stick to it! These campaigns always have their peaks and drops – we need to avoid reacting to small jitters in the market. In order to make an accurate assessment concerning the effectiveness of their respective campaigns, one will need to stick with what they had defined and implement everything to the letter.

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