eCommerce is a growing business model and almost everyone wants a piece of the pie now. The truth is, running an eCommerce business requires some effort and dedication from the owners and may not be rosy at all times.
Business owners need to be aware of how they can reduce customer churn during difficult times. There are other complexities you should be aware of before jumping in but do not be frightened because running an eCommerce business is totally possible. How can you stay healthy and profitable in your eCommerce business?
Here is how you can still profit and succeed in an eCommerce business, even under tough situations like the COVID-19 global lockdown.
Generate a demand for the product offers you have
In marketing, there is always more than one option of selling the products you have. For example, you can use an angle on the target market depending on the current industry trends. Even when there is no demand for your products, you can generate a demand using angling.
During the COVID-19 lockdown, some businesses have successfully angled their product offers. For example, optometrists have been selling anti glare glasses for a very long time but since the outbreak and the closing of schools, they changed their angle.
Since schools have closed, learners have been encouraged to use the eLearning approach. Optometrists have marketed them as a way parents can protect their children’s eyes against UV rays emitted from the increased screen time.
Although you are not an optometrist, brainstorm methods of angling the products your eCommerce business provides to fit the current market trends.
Come up with a new product range
Sometimes it may be beneficial to cut your losses in a certain product range and invest in creating a new one. In tough times like these, you can profit by selling relevant products that are currently in need.
For example, Ferrari has come up with respirator valves for hospitals to support COVID-19 relief efforts. Although Ferrari donated these valves, you can sell these products, but make sure that you are not too far off from the usual product range. Join the cause and show people that you care.
For companies selling t-shirts creating humorous printed merchandise with jokes related to the current situation can help. There are t-shirts that gave people a good chuckle. One of them had printed the following words on it, “I survived the greatest toilet paper shortage.”
Using that approach by creating a new product range could be all your online business needs to stay healthy and profitable. In whatever industry you are in, there is most certainly a product that is a need or interesting enough for customers that can help sustain the business.
Increase the sales channels you use
Another strategy you can use to stay healthy and profitable in your eCommerce business is increasing the number of sales channels you use. For example, if you were using Amazon to distribute products, add eBay or other sales channels.
That will expose you to more eyeballs and grow the business’ recognition. Subsequently, the eCommerce business will be able to move more products in less time and remain profitable.
You should do a competitor analysis to target and shortlist the best sales channels that will be used by the business. Alternatively, consider using a cost-effective affiliate marketing strategy. Affiliate marketing programs are often cost-effective because you pay the marketer once the lead has been generated.
In some cases, the marketer is paid once the lead has made a purchase. It does not matter what option you choose, but increasing visibility using different sales channels or affiliate marketing can help the online business thrive throughout these difficult and trying times.
Double down on sales
One of the most successful methods that profitable eCommerce businesses use include personalized suggestions. These suggestions can help businesses double down on sales and leverage their profit immensely.
Amazon has used this strategy for years now and great success has been derived from it. For example, when buying an Access Point router on the eCommerce platform, you will receive two or three other suggestions.
The suggestions will have maybe cabling needed to connect the Access Point and a Wi-Fi router to distribute the internet connection. You can also use this strategy by including related items or accessories when customers make a purchase.
Do not make the mistake done by other eCommerce businesses by including similar products on the suggestions. Instead, market products that are needed to use the purchased product or to improve it. Doing so will also leverage the profits made by the business benefiting the financial health of eCommerce.
Dealing with low demand
In some cases, the product you are selling online may have a very low demand in hard times like the current epidemic outbreak. Those items include products that are a want and not need like handbags and watches. Customers may identify that these products are not necessarily essential and should not be purchased.
Others may make this decision out of fear of their finances and the risk of being laid off at work. If the products you are selling have a low demand like this, it might be beneficial to lower the prices to meet customers halfway.
Alternatively, you can create a sense of fearing to miss out, like mentioning that there is limited stock, or even better, plan promotion and say that it’s a limited time offer. Some businesses have switched their approach by including freebies of essential goods.
Another business flipped this strategy by selling a toilet paper roll for $3,999 with a freebie of a diamond ring. There are a lot of ways you can creatively sell products even when the target market is holding back on spending.
The bottom line
It does not matter what state the industry is in; you can still maintain a healthy business and profitable eCommerce you’re running. Double down on the sales you are generating, increase the sales channels you use or turn to affiliate marketing to stay profitable. Alternatively, change your product range if there is no way to angle their marketing to fit the current situation.
Leon Collier is a UK-based freelance writer and editor. He’s an academic writer and his current assignment is with assignment help Australia. He enjoys reading new books, watching documentaries and immerse in tabletop gaming with his friends. Follow him on twitter @LeonCollier12.