Ecommerce businesses are constantly looking for ways to improve their conversion rates. The more sales you get, the higher your profits will be. While many strategies out there can help increase ecommerce revenue, we’ve identified 10 techniques that can help boost profitability by boosting the likelihood that customers will purchase from you instead of someone else.
Higher Profits Often Come from Strategy and Not Higher Prices
You can’t simply raise your prices and expect an immediate revenue increase. Instead, focus on the customer experience. What do they want? How can you provide that?
While there is some psychology in offering a higher priced bottle of wine, countless studies have shown that people cannot tell the difference in a standard taste test. You are trying to replicate this value in your ecommerce store – the ability to demonstrate that your products are worth the price.
However, that price may seem too high to some. To get around this, try any of these strategies, so the perceived value is increased without changing the product itself.
1 – Target Customers with Greater Purchasing Power
The first step to maximizing potential ecommerce revenue is targeting customers with greater purchasing power. This means understanding your audience and what they value, then using this information to identify the right audience for your product or service.
Luxury is a powerful word and target market value. It creates scarcity around an item people want as a status symbol to show they care about whatever niche you are marketing.
2 – Marketing How Your Product Solves a Problem
It’s perfectly acceptable to market a product based on its features. However, a far more effective way to do this is by focusing on the problem you are solving, not just the project.
Think of all those pharmaceutical commercials. They have to list endless side effects, but the visuals and calming music are all everyday people enjoying fun and engaging activities with friends and family. They are selling the freedom to enjoy life and not the drug itself.
3 – Create Bundles
Bundling products together is a great way to offer more value without lowering your prices. It also helps you cross-promote products and make it easier for customers to find what they want.
An excellent way to do this is with kits. If you are selling exercise equipment, add some water bottles, branded towels, or essential items that expand the value of the kit. Or you can create packages of pet accessories into gift bags for new dog owners. There are many ways to get creative with this strategy.
4 – Promote Bonuses & Free Gifts
Unsurprisingly, giving gifts to customers is a sure-fire way to increase ecommerce revenue. The key here is to offer your customers something they want but not something they need or expect.
The best way to do this is by offering free items and bonuses with each purchase. For example, if someone orders three different items in one order (e.g., two books plus one shirt), you could give them an extra bookmark for free as well.
5 – Build Exclusivity
In the world of ecommerce, a sense of urgency can be vital in getting your customers to buy. If you want to increase ecommerce revenue and profit, try building exclusivity into your store by offering limited time offers (LTOs).
You should also consider making it exclusive to your store by selling products that aren’t available anywhere else online or offline. This will help drive traffic back to your site and increase sales volume even further than usual.
6 – Write a Book About Your Products
Writing a book about the problem you are addressing, how your product solves that problem, and offering tips around that niche drastically impacts your potential sales. You’ll be viewed as an expert in your field, and the authority of your website will grow naturally. This improves SERP as well as the product value perceived by your target market.
7 – Upsell & Cross Promote
Upselling and cross-promoting are two great ways to increase ecommerce revenue. Upselling is offering customers a higher-priced product, while cross-promoting is offering them an additional product that complements the original product.
For example, you could offer your customer an upgrade from their current purchase (i.e., more memory or storage) or give them another item that goes well with what they’re already buying (i.e., a laptop case).
8 – Offer 24/7 Live Chat Support
Live chat support is a great way to improve customer experience and build trust with customers. But it’s also a powerful tool for upselling products, cross-selling products, and even handling returns.
You are improving the flow of information between you and the customer. They feel like all their concerns and questions are being addressed quickly, and you are getting incredible insight into what you can improve and streamline for future sales.
9 – Automate to Improve Customer Experiences
Automating your ecommerce business can be a powerful tool for improving customer experiences and boosting ecommerce revenue. Automation can help you save time and money, scale your business, improve customer service, and more.
A key way to automate your WooCommerce online store is through custom plugins. At OPMC, we offer everything from dropshipping to accounting to security automation, allowing you to focus on more critical revenue-building strategies. Visit our storefront today and experience the power automation will bring to your overall customer experience.
10 – Add a ‘9’ to the End of the Price Tag
As our last strategy, be sure to add the number ‘9’ to the end of your prices. There have been studies showing something like $100.99 or $49 sells better than $101 and $50, respectively. Basic psychology like this points to a price that is just below a new level of cost. Consumers will think they are getting a solid deal while you are simply grabbing profit opportunities as they are presented.
Conclusion
The key to maximizing your ecommerce revenue is to know your target audience and establish connections with customers for a higher conversion rate. You can do this by offering freebies, bundles, and bonuses that appeal specifically to them. But the most valuable strategy will be to constantly improve their experience with your brand. That is why we know our automation plugins will be an essential benefit to your online business.
