Ecommerce is booming with billions of dollars being made each day. But how can you get your slice of the pie?
Choose a niche. Whether it’s bunny-shaped “Hoppy Spring!” throw pillows or beach-themed garden gnomes, sell products that are relevant to a particular season. This will ensure that you’re not stuck with inventory that will quickly become out-of-date.
1. Sell Digital Products
Without the overhead and shipping costs of physical products, digital products are a profitable way to make money in the Ecommerce space. This includes everything from downloadable apps to customizable web design templates. The key is to find a niche and fill it.
Also, it is important to think about what season you are targeting. For example, bunny-shaped “Hoppy Spring!” throw pillows and beach-themed garden gnomes will only sell during certain times of the year.
Another smart strategy is to offer a money back guarantee. This can help reassure potential buyers and increase your conversion rates.
2. Offer Discounts
Offering discounts isn’t a new strategy in the eCommerce space, but it’s still one of the most effective. Discount pricing is based on the principle of price elasticity, which states that as prices go down, demand goes up.
The key is to only offer a discount that is within your profit margins. Additionally, don’t offer discounts too frequently as this will train customers to only purchase from your store when it’s on sale.
Another great way to use discounts is to run them during specific events or seasons when buyers are looking to buy a certain type of product. This is called retail arbitrage.
3. Offer Free Shipping
Ecommerce is booming with new companies joining the industry each day. Whether you are chin deep in the pool already or just getting started, there are some smart tactics that can help you grow your business and make more money.
One such strategy is to offer free shipping. This can increase your average order value and offset any loss in margins. You can try out different thresholds to see which works best for your business.
Another way to offer free shipping is through a loyalty program. For example, Sephora has their Beauty Insider program which offers members benefits like early access to products, free shipping and other perks.
4. Create a Blog
When creating an ecommerce website, you will likely focus on beautiful product imagery and detailed product descriptions. However, many businesses overlook the power of adding a blog to their site. A thoughtful blogging strategy can help nurture customer relationships, raise brand and product awareness and generate recurring inbound traffic.
A successful blog can also encourage visitors to subscribe to your newsletter or browse your latest collection. The key is to make it easy for them to take action. Fortunately, some ecommerce platforms, like Shopify, come with a built-in blog feature.
5. Use Social Media
Using social media is one of the best ways to promote your ecommerce store. It can increase traffic, build an email list, and collect data about your ideal customer.
You can also use it to make money by promoting other products or services. This is called affiliate marketing. It is a great way to make some extra cash and reach your target audience.
Another way to make money in the ecommerce space is to create a blog that drives traffic. This can be done by creating high-quality content and optimizing it for search engines.
6. Retail Arbitrage
Retail arbitrage involves buying discounted products from brick and mortar stores and selling them online. This allows you to make a profit without having to pay any inventory costs. This is a great option for those who aren’t ready to invest in a private label or dropshipping business.
However, retail arbitrage is time intensive. Successful sellers often spend 40 hours a week shopping for new inventory. This is not a good long term business model.
If you’re considering retail arbitrage, be sure to check customer reviews before purchasing any products. This will help you avoid making any costly mistakes.
7. Use Affiliate Marketing
Affiliate marketing is a powerful, scalable and ROI-positive way to increase your online sales. It involves letting others promote your products for you, and then paying them when they make a sale.
There are a number of different ways to do affiliate marketing, including using social media and email. Some companies also create microsites that target specific audiences. For example, if you’re selling kids toys, you might want to create a blog where bloggers can review the product.
Managing an affiliate program can be a bit tricky, but it’s worth the effort for a significant increase in revenue. The most important thing is to find the right partners for your business.