As everyone knows, the first two years of starting any business can be a real struggle. It takes a long time to start turning a profit, and statistically, you are more likely to go out of business than become a success. One area you need to focus on to survive is your bottom line. It’s especially true for ecommerce businesses.
While your first thought will be looking for new customers, it’s sometimes the savings you make rather than sales that keep a company afloat. Today, we’re going to explore some effective ways of boosting your bottom line and lay a better foundation for the future of your operation.
Focus on user experience
The first step is to make sure that your website is as user-friendly as possible. Limit the number of clicks it takes for a customer to checkout – this will help you reduce your shopping cart abandonment rates. Look at your site’s layout from a client’s perspective and ensure it has speedy service and is easy to navigate. A UX professional might be able to help you out here.
Invest in web technology
There are hundreds of different ways of giving your customers a better online experience. Look into automated product recommendations that should help you increase your order value. If a client feels a product isn’t quite right for them, this will help you offer alternatives that match their needs. Invest in better search technology, too. It can help you identify what it is your customers are looking for so you can invest in more popular products.
Seek better transport solutions
A large part of success in supply chain management involves finding better logistics solutions. Look at the effectiveness of your deliveries and find better options. The ideal solution will reduce your costs without affecting your customer service. Plan better when it comes to arranging shipments – maximize every load you send to cut your delivery expenses. Doing this will enable you to pass on your savings to your customer, too, giving you a competitive advantage.
Every piece of stock you invest in that sits on your shelves is costing you money. However, it’s an avoidable waste. You can eliminate it by keeping closer tabs on your inventory and running strict controls on your order process. Look into inventory management solutions, too. They will help you setup minimum order levels and automate the process as much as possible. The key to success is to run as lean a system as possible. Keep enough stock to satisfy customer demand, while avoiding waste in the buying process.
Put more focus on current customers
Finding new customers is a lot more expensive than developing better relationships with current or past clients. So, never forget the value of keeping in touch with your clients, past or present. Contact them by email on a regular basis, offering deals and better value to entice them to come back. Provide content on your website that can help them get the most out of the products they buy. Finally, always offer upsells and additional purchases that match your customer’s original orders.