E-commerce is growing at an unprecedented rate across the world. Global online retail sales totaled BRL 2.8 trillion and projections show growth of up to BRL 4.8 trillion by next year. The e-commerce industry is growing at a rapid pace and it depends on e-commerce business owners to take advantage of this growth. If you’re looking for ways to grow your ecommerce business, here are 5 essential ways to grow your ecommerce revenue.
1. Recurring customers are important
Online retailers tend to spend most of their resources on strategies that attract new customers, but not buy them again. Instead of focusing all your efforts on customer acquisition, you should work on your customer retention strategy.
First, repeat customers spend more on each purchase. According to Adobe, the revenue generated by one repeat customer is equivalent to the revenue generated by five new customers. Second, repeat customers spend more at important moments. The average shopper spends 17% more per transaction during the holiday season, but the frequent shopper spends 25% more per transaction during the holiday season. Finally, repeat customers are more likely to shop with you again and again. After a purchase, the customer has a 27% chance of returning to your store. If you can get the customer to come back and make a second and third purchase, they have a 54% chance of making another purchase.
Recurring customers are the key to a profitable business. So build relationships with them. Stay in touch. Send emails or messages whenever there is a new campaign. Be personal in your approach and send greetings on their birthdays. According to Hubspot, a customer with an emotional relationship with a brand is much more likely to become a repeat customer than those without an emotional relationship.
2. Don’t Let Product Returns Hurt Your Revenue
An excessively high number of returns online is one of the biggest problems in the e-commerce industry today. Last year, total online retail sales in the United States, for example, were around $517 billion, but returns reached a massive $156 billion, representing 30% of all sales. This in a market that is a reference. There is no doubt that online product returns will affect your revenue. What’s more, online retailers can lose repeat customers if they are not satisfied with the return process.
A great solution to reduce product returns is to record your packaging process before each item is shipped and send recorded videos to your customers. Customers who receive packaging videos before their products arrive are less likely to return for a few reasons. First, your customers will appreciate transparency and will be more likely to trust your brand. Second, there appears to be a deterrent effect on return fraud when there is clear evidence that your product or shipment has not had any issues. According to Return Logic, online retailers who use packaging videos see a 40-50% reduction in their product returns.
3. Mobile-optimized shopping is the new trend
Smartphone ownership is growing rapidly in recent years. 81% of Brazilians now own smartphones, up from just 35% in 2011, and spend an average of 4 hours on their smartphones every day. With the growing popularity of smartphones, mobile shopping has become a new trend in e-commerce. A Google study showed that mobile-optimized shopping experience was a major factor in purchasing decisions, with 72% of consumers indicating that a mobile-optimized website makes them more likely to buy products.
There are three different ways to provide your customers with a successful mobile-optimized shopping experience.
First, increase the page load speed. According to Kissmetrics, a 1-second delay on the page can cost up to R$2.5 million in lost sales every year. Toxy it , for example, saw a 64% increase in sales after optimizing their website’s load time . Second, personalize the mobile shopping experience. According to PwC, 25% of millennial shoppers say their mobile shopping experiences can be improved with personalized offers. You can ask for permission to access your customers’ personal information and their geographic location. This helps you understand their buying behavior to deliver personalized incentives and experiences customers are looking for.
Finally, simplify your website navigation on mobile. You must offer a simple browsing experience so that your customers don’t get lost in your webpage on their small cell phone screens. You can provide a search box to customize users’ navigation, use easy-to-read fonts, and allow customers to return to the home page by clicking your logo.
4. Use social media to build relationships with your customers
Social media has become an amazing marketing tool for ecommerce businesses. According to BigCommerce, 75% of customers have purchased something online after discovering it on social media.
To use social media to increase your revenue, you must first create content that resonates with your target customers. By addressing a particular challenge, pain point, or topic of interest to your target customers, you are telling your audience that you understand them and care about their needs. Next, you must tell your customers what to do (called a call-to-action) in your post. If you have a clear call-to-action like “order now” at the end of your post, your conversion rate will increase dramatically.
5. Don’t let your customers abandon their carts
Cart abandonment is a big problem in the ecommerce business. The average ecommerce store loses over 75% of its sales due to cart abandonment. You can easily increase your ecommerce revenue if you can reduce cart abandonment rates. There are two most effective ways to reduce cart abandonment rates by over 80%.
First, fully disclose the costs. The biggest reason for cart abandonment was an unexpected cost that shows up at checkout. Transparency is highly valued by digital buyers, so the best course of action is to declare all costs up front.
Second, offer guest check-out. In the last year, 28% of shoppers abandoned carts because they had to create new cashier accounts. Customers want to get things done quickly and get instant results, so you should make the checkout available to guests.
As a proud owner of an ecommerce store, you are probably looking for tactics that will help you increase your revenue. If you follow these 5 essential tips to increase your revenue: focus on repeat customers, provide a mobile-friendly experience, reduce product returns, utilize social media, and reduce cart abandonment rates, your ecommerce revenue will increase quickly.