Why Your eCommerce Business is Losing Money
eCommerce can be a very lucrative business model in today’s tech-savvy society. However, eCommerce still requires some extra efforts made in a few aspects, in order to combat the challenges particular to an online platform storefront. Here are a few of those aspects that you should focus on to ensure that your profits increase rather than the opposite!
Challenges from Competition
Essentially all eCommerce businesses have access to the same resources—social media, online marketing advertisements, technologies and online platforms—but some find ways to utilize these resources more effectively than the rest. This is important because they may be able to use resources on a much larger scale, or they can offer and provide special deals or benefits to their business that you cannot match. While it may be impossible for you to keep up in some ways, you can increase your efforts to surpass your competition in other ways that give you some increased attention. Look into the more vulnerable parts of your competitors business strategies and push to make those your strengths!
“Cart abandonment” refers to a customer exiting the purchasing process before completion. This may happen for a number of reasons: something or some thought between the “add to cart” and the “pay now” that changes the consumer’s mind enough to abandon the product or service. So, how to keep them determined to purchase? First, more payment options can reduce cart abandonment. Giving the customer a variety of ways to pay increases the chances of their comfort with the purchase. In addition, making the transaction process simple, straightforward and quick will help customers get through their purchase without cause for hesitation. Giving them less time and reason to reconsider will increase purchase completion significantly.
Shipping or Transportation Costs
Finally, your business may be losing more money than you expect simply because of the cost of shipping or transporting your goods and services to customers! If you are not taking advantage of deals on logistical moves for your business, your shipping bills will add up extremely quickly. Take whatever measures possible—from packaging to postal service and everything in between—to cut corners on costs! Use as little packing material as possible while ensuring the safety of the product, purchase in bulk if it allows for cheaper overall expense, and look into using a postal consolidator if at all possible! Each of these will save you substantial amounts of money for your business.
These are a few places your business may be “leaking” money. Tighten up your weak spots, and your profits will grow!
Check out this article on what matters most when designing your eCommerce experience!