From big-box stores and small mom-and-pop shops to boutique e-commerce sites, we're going to see an explosion of different forms of retail when Covid finally moves off. Every day, thousands of e-commerce businesses are launched on Amazon offering everyone a variety of new, well-sourced niche products.
As a result, retail is no longer just about access to products as much as it is a game of relationships. Consumers can easily find products with a tap or a click, make a quick price comparison, check on delivery details, and, hey presto - the product is in the mail!
So – how to compete in today's bustling e-commerce-based retail market?
Retailers used to spend hours working on merchandising and advertising, but today those same hours are spent working on e-commerce sites and a digital presence.
The savvy online retailer must understand that eCommerce optimization is essential for the continual and incremental improvement of the customer experience. To understand why, let's look at three optimization scenarios that every e-commerce store should be performing on a regular basis:
Site Optimization
Site optimization is an ongoing task. You can never rest on your laurels.
Good site optimization requires getting underneath the hood and putting everything that affects the experience under the microscope - retailers should constantly improve tracking to gain the best insights possible about their customers and what they want. Tagging is not a one-and-done task, but an ongoing process in which insight continually feeds improvements in understanding
Experience Optimization
Experience optimization covers a range of important tasks - from checkout to email delivery, every point in the customer journey must be reviewed and improved. To do this, retailers need insights and analytics that go beyond the standard view-through and click-through metrics. For a simple example, when considering email, you should look at multi-views and multi-clicks. If a person opens an email more than once, that demonstrates a high level of interest, which in turn allows you to retarget him or her with additional, enticing emails. If there's still no conversion, perhaps a discount is in order. The differences in such metrics can be rather small, but they help identify highly engaged customers who deserve a more personalized offer.
Understanding the financials
If you can’t measure it, you can’t improve it. Too many online retailers can reel off at the drop of a hat their sales figures across a portfolio of brands, sectors or products…and they can probably detail their ad costs too. But ask them for profit calculations – I mean, REAL calculations that account for ALL business expenses – and very often they’re in the dark! eCommerce businesses are NOT exempt from basic business concepts – KNOW YOUR NUMBERS!
A word from the author:
Our software Profitizer, is an app that makes it easier for eSellers to understand their marketplace profit & loss data from the top of their business right through to individual or grouped product profitability. For Amazon, eBay, Etsy and other marketplace sellers, Profitizer is “Profit and loss, made simple”.
Find out more: https://www.profitizer.app
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