Increase the profit margin of your webshop? If you are a webshop owner then basically the only thing you want is more online profit. You want more visitors, more customers, a higher spending and that your customers come back more often. In this blog article I give you tips to realize more profit margin with your webshop.
1. Get more relevant visitors to your webshop
More relevant visitors generate more customers (provided your shop sells well). You can get more interested visitors by, among other things, working on search engine optimization, building a community on social media or by buying traffic via, for example, Google or Facebook via PPC marketing (pay per click). An objective can be to get 100 visitors per day through these 3 methods.
The higher the relevance, the higher the conversion. After all, you bring more people to your webshop who have genuine interest. This will improve your overall profit margin.
2. Increase profit margin with a high conversion rate
By increasing the conversion of your webshop , the percentage of buyers increases compared to the number of visitors. Suppose you get 100 visitors and buy 1, then you have 1% conversion. By implementing improvements, you can increase this percentage to, for example, 1.5%. The total turnover of your webshop increases by no less than 50%! You can increase the conversion by making the web design more beautiful, expanding your product information, applying videos, using an SSL certificate and offering good sales arguments such as free shipping, short delivery time, etc.
For example, set you buy 100 clicks from Google for €0.30 each. This costs € 30,-. With a conversion of 1%, 1 order costs about € 30,-.
The conversion increases to 2%. The cost of 1 conversion suddenly drops to € 15,-. For that € 30,- advertising costs you suddenly get 2 orders. The profit margin suddenly becomes € 15,- higher. This amount can determine whether or not your business is profitable.
3. Increase profit margin by increasing order value
Increasing the profit margin of your webshop does not necessarily have to be a result of more visitors and customers. You can also try to increase the average spending of your customers. The marketing costs you incur are then suddenly spread over several products from 1 order. The gross profit margin increases.
In the previous example we had a marketing cost of € 30,- per order, assuming an order with 1 item. If there are suddenly 2 items in an order, the marketing costs are suddenly € 15 per item. With 3 items even € 10,- per item.
You can increase the order value by putting related products together (cross-sells), offering more expensive variants (up-sells) and using retargeting via Google or Facebook. For example, if someone has bought a sofa, you can show advertisements of items that also fit well into the interior where the sofa will be placed.
4. High customer retention for a high webshop profit
High customer retention means that existing customers come back more often. Customer retention can be 1 time per year. If you manage to put this to an average of 2 times, your turnover will increase drastically. A good metric to measure this is the NPS score (Net Promoter Score). With this score you measure the loyalty of your customers. More about the NPS metrics on Wikipedia.
You can increase customer retention by building a mailing list, being active within your social media accounts or by blogging regularly. It’s about staying top-of-mind with your customers. They should immediately think of you when you have a solution for a problem. Competitors should have no chance.
By accommodating customers in a CRM package, you only pay marketing costs for the first sale to that customer. The follow-up purchases have much less costs, which increases the profit margin.
Increase webshop profit margin in no time!
You can start getting more webshop sales today. If you want to make serious steps in this yourself, I advise you to take a look at my program E-commerce Mastery. Would you rather outsource it and work more on your business? View information about my E-commerce Marketing here.
Dear Internet Entrepreneur,
Are you tired of struggling to make sales on your online store? Are you overwhelmed by the ever-changing world of e-commerce and unsure of how to make your webshop stand out from the competition?
If so, it's time to take control of your online sales and become a master of e-commerce with our exclusive webshop mastery course.