An eCommerce business is a booming industry but it takes more than selecting a brand name to make it profitable, it all boils down to how much traffic you can generate to your site. In simple words, you must get buyers and have them purchase from your online store to make enough profits. As a brand marketer, you must consider important pillars of ecommerce profitability like supply chain optimization (introduce omnichannel fulfillment), product selection, pricing and promotion, anticipate buying patterns, behavioral data, optimize inventory levels, automate processes and focus on customer acquisition and retention.
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Strategies to make ecommerce business profitable
The key to a thriving ecommerce business is to constantly evolve and upgrade with the latest technologies, as that shapes and strengthens the foundation of this specific business. To make your ecommerce business grow successfully you have to always be one step ahead of planning everything. We have listed down the points that will effectively help you to strategize your ecommerce business:
- Pay special attention towards Personalization. In today’s marketing arena, brands are busy establishing a rock solid business with the help of the latest technologies and equipment. Though this has made things comparatively easier, it also has increased competition and expectations to meet customer demands excellently. Every customer individually wants to experience a seamless and personalized shopping experience, and the best way to prove that your brand isn’t like every other budding ecommerce store is to invest and concentrate more on personalization.
- To fully utilize the perks of digital advancements, make good use of social media. Make videos, GIFs, get creative and indulge your audience with more visually created content. The more you inculcate creativity to your advertising projects, the more attention it grabs to make larger marketing impacts. After making videos and other visually appealing contents, brands can upload it on their social media pages, the brand website or send it to customers personally via mail and messages.
- Before starting off with your ecommerce transaction, design, develop and implement a content strategy. It is crucial for any brand, big or small, to have their content strategy brilliantly planned and ready for execution at all times. A content strategy is exclusively needed to derive clear brand values so that it can be reciprocated back to the target audiences. It also builds brand awareness along with giving weight and worth your community.
- Keep asking for customer feedback and more reviews that can be posted publicly in your official brand page. With the gradual progress made in the ecommerce department, marketers need to ensure that all benefits are successfully drawn. One of the easiest and the most effective ways to drive more sales in this department is to encourage customers to leave more public positive reviews that will efficiently cater to the goodwill of the company. Your brand can initiate a feedback process easily by sending follow up emails to customers after they make a purchase. You can also incentivize the entire process for better and faster response.
- The most potent strategy is to keep enabling your most loyal customers. Always make sure your brand identifies and rewards loyal customers as they are the backbone of any thriving business. Strategize and design a referral program and reward them for bringing new leads for the business. You can also send them free samples and give away exclusive products before it hits the market. Make sure to use social media to enhance and beautify every customer relationship. Organize open contests in social media and openly celebrate your brand’s success along with showing off your most loyal customers.
Types of Ecommerce Business Models
If you are planning on starting your own ecommerce business, it is imperative to go through all the other ecommerce business models that can possibly uplift and contribute to your business values and ethics. Below mentioned are the types of ecommerce business models that will help you to make your online business successful along with monetizing it properly:
- B2B (Business 2 Business)- Commercial transaction between one business and the other.
- B2C (Business 2 Consumer)– Commercial transactions made between a business and its customer.
Successful Ecommerce Businesses
Sephora- Sephora was already running in the ecommerce game back in the 90’s. The brand highly owes its success to a super efficient ecommerce business model, which the brand knew was a necessity from a really long time. Being one of the first brands to hire an inhouse web developer, Sephora changed its ecommerce game by launching a revamped website focusing on improved visuals, and a guide for all customers across the globe to access product information. Creating a stable team of inhouse designers and developers, be it web or web based content, the brand smoothly adapted to various omnichannel platforms to efficiently meet customer needs.
Amazon- Since the brand’s origin in the year 1994, it has been evolving and adapting to several technological advancements. When other brands in the similar marketing arena were figuring out how to establish and implement the most feasible ecommerce business model, Amazon had already established its first high technology based contactless stores, branded as “Amazon Go”. The most enticing factor about this initiative was that it needed zero labor force. The retail giant could run an entire business with no human employees, setting a benchmark for pulling off an initiative absolutely automation based. Owning an advertisement business worth a few billion dollars, the brand has successfully reached out to millions of customers with the help of smart technology and perceptive digitization.
Walmart- Walmart uses the sales ecommerce business model to bring in maximum profit to the business. Increasing sales upto almost 79% in the beginning of 2020, Walmart is now the second largest US based ecommerce retailer. The secret to Walmart’s ecommerce success is an efficient network of online stores that give customers complete control over their shopping experience. Any online purchase via Walmart’s ecommerce website gives customers higher discounts, saving more time and making the process convenient. Unlike other brands that follow the online marketing model, Walmart doesn’t only provide exceptional service in meeting customer demands but also empowers the firm to identify individual needs of customers to keep coming up with upgraded and effective strategies.
To cater to the convenience and comfort of customers, marketers have adapted to the ecommerce business which is a highly competitive marketing arena. Though ecommerce business can be highly profitable, it largely relies on the business model and the strategies the brand implements in their business.