Make Your E-commerce More Profitable: As eCommerce continues to boom, more and more entrepreneurs are jumping into the online channel. That has increased competition and thin profit margins as merchants employ price war tactics to drive sales.
So if you’re in the eCommerce game, you need to find ways to make your business more profitable and win the competition without hurting your bottom line.
Luckily, technology has availed many AI-enabled business tools, like market research tools, to help online sellers reduce costs and widen profit margins.
Financial tools, like an online business loan calculator, are also great when it comes to helping businesses obtain financing at favorable terms.
Main business aspects to analyze to improve your profitability
There are key business aspects that you should analyze to improve and increase your business profitability. They include:
- Reducing your costs
- Increasing turnover
- Increasing your productivity
- Increasing your business efficiency
Once you nail these areas and ensure that your business runs efficiently like a well-oiled machine at minimum costs, you’ll be in for huge profits.
Great online strategies to improve your e-commerce profitability
- Work with the best suppliers
Your margins determine how profitable your business will be in the e-Commerce game. That’s why savvy eCommerce merchants source goods from top Chinese suppliers at rock-bottom prices and sell them online to their customers at significant markups.
AliExpress is a top online wholesale marketplace to find low-cost suppliers and sources quality products from the comfort of your home.
- Sell profitable products
Faster stock turnover is a great way to make your business more profitable. To ensure quick stock turnover, you need to find excellent and popular products in your niche that are trending and increasing in popularity. Thus, you won’t get stuck with slow-moving products for months.
You can easily do that by taking advantage of online tech tools to find rare, low competition, and useful products that appeal to your customer base.
- Nail your pricing
How you price your product is vital in eCommerce. An excellent place to start is researching how similar products are selling on your competitors’ websites.
Once you’ve nailed that, you can then calculate a reasonable margin to keep your customers buying while making sure that your products are consistently profitable.
The key point is that you should review your pricing regularly to accommodate changes in your marketplace to ensure that you aren’t selling too low or too high.
Focus on customer experience
The whole point of focusing on customer experience is to build brand loyalty. Once you have a loyal customer base, they become brand ambassadors and help your business stay profitable with repeat purchases, referrals, and word-of-mouth marketing.
Therefore, listen to your customer complaints and respond quickly to their concerns if they raise any issues with a product they purchased from your website.
Sell more to your best customers
Another great way to make your business more profitable is to consider selling more products to your existing customer base.
For instance, you can upsell premium products with more profit potential or cross-sell complementary products that go well with products that a customer has already purchased or put on their cart.
You can also diversify and develop new products and services that meet the needs of your existing customer base.
Order fulfillment is one of the most important aspects of an eCommerce store because it determines whether you’ll end up with happy or disgruntled customers. That said, it’s also a labor-intensive and time-consuming process, which makes it a significant cost center in eCommerce.
Instead of keeping order fulfillment in-house, you can outsource fulfillment to a reputable third party. The best part is that third-party fulfillment companies have powerful warehousing and inventory management software that sync with your store to help you stay on top of your inventory.
Expand your market
If you do your research well and identify potential opportunities in new markets, expanding your eCommerce store to new areas is a top way to increase profitability.
Just create a few product pages for the next city, state, or neighboring country and partner with third-party fulfillment companies, suppliers, and shipping couriers who will ship your products to your new customers in those areas.
Helpful tools to increase your business profitability
Thanks to the internet and cutting-edge business technology. Today, it’s easier to do your research and grow your business profitability with little to no guesswork. Here are top tech tools to help you do exactly that.
Market research tools
Tech tools have made it a breeze for eCommerce merchants to identify top-selling and profitable products. Top ones include:
- Amazon bestseller page: Lists best-selling products on Amazon and allows you to browse items by category. Best Selling Products on Amazon are more likely to have a quick turnover on your website.
- eBay top seller page: This page lists profitable and on-demand products on eBay. Best-selling products on Amazon and eBay are more likely to help you realize more profit on your website.
- AliExpress: This online tool helps you to find hot products on AliExpress and provides you with a list of the best suppliers for that product.
- SaleHoo Market Research Lab: SaleHoo is a great tool to help you find bestselling and low competition products in your niche, as well as a list of low-cost suppliers who will supply you with those products.
Business loan calculators
To make your eCommerce business more profitable, you’ll need funds to drive your marketing efforts, purchase inventory in bulk, and build the right partnerships. That’s where business loans come in.
But before you dive, you need to make sure that you are getting the best financing deal.
A business loan calculator helps you determine your loan costs upfront, including total interest, monthly installments, and other fees. Thus, you can decide upfront whether the loan will make your business more profitable or not.
Extra tips to make your e-commerce more profitable
Have a robust marketing strategy
Of course, your business won’t become more profitable if nobody knows that you exist. That’s why you need to put in place a robust online marketing strategy to tell more people about your business and drive more traffic to your site.
Social media and email marketing are great strategies to get you started. Also, Don’t neglect SEO. Have a blog section on your website where you post unique and value-adding content to help your buyers understand your products and services and how they will help them solve their everyday pain points.
Partner with the right lenders
Finally, cash is the lifeblood that will keep your business growing and expanding. That means reducing your financing costs is a top way to make your business more profitable. As such, it helps to work with the best lenders so that you obtain business loans at favorable terms.
Fintech lenders are reputed for their simple and faster lending process. The best ones offer a business loan calculator and a quick prequalification process on their website to determine your loans costs and loan terms upfront before the actual application.
Visit the link in the intro to see how a business loan calculator can help you determine your financing costs.