Profit Analytics Blog
Read expert articles with insights about e-commerce profitability from analyzing thousands of e-commerce businesses' data.
How BeProfit Helped Suntouched Double Their Profits and Cut Expenses in Half
Learn how Suntouched, the eCom brand enabling sun-kissed, summer hair in every season, uses BeProfit to more than halve their expenses and double their profits. Increased profits by at least 2xReduced expenses by almost 60%Saved 5–10 hours per week in work If I had to sum up BeProfit, I would say this tool is a must-have for any founder trying to scale and make the right business decisions for their brand’s profitability." - Charlotte St-Germain, Founder & CEO of Suntouched About Customers across the globe turn to Suntouched for sunshine in a bottle. The omnichannel brand’s hair-lightening sprays are formulated with clean, hydrating ingredients and help you hold on to your beachy, sun-kissed, summer hair year-round. To gain clarity on their metrics and maximize profit margins, the Suntouched team turned to BeProfit. The Challenge Without airtight analytics, short-term decisions burn through your runway. Charlotte St-Germain, Founder & CEO of Suntouched, admits that juggling endless tasks as a solo eCom founder can be draining — and that finances are her least favorite responsibility. Early on, she got away with very basic startup analytics to stay afloat. However, soon enough, the company’s reliance on inaccurate financial data led to short-term decision-making. For instance, they wound up expanding the team too soon based on Shopify sales numbers, rather than true gross margins or net profit. These decisions based on subpar analytics compounded, leading to maxed-out cards and dwindling runway. Her brand’s challenges with nailing profit margins eventually led Charlotte to BeProfit. As a solo founder, you take care of everything, and finances are just not my favorite aspect of the job. It got to a point where, although the sales were coming in as our top line increased, we didn’t know where the money was truly going.” The Solution The Suntouched team tried a handful of analytics tools, such as Triple Whale, but found these were ultimately incompatible or overpriced when the brand needed to be cutting costs. Fortunately, Charlotte was eventually connected to BeProfit by friends in the eCom founder space. “They just sounded so happy with the real-time insights,” she explains. From there, BeProfit and Suntouched hopped on a call, tailoring the platform to meet the brand’s unique needs and omnichannel setup. After an easy sync with their commerce and ad profiles, Suntouched was ready for more data visibility and accuracy than ever before. The team at BeProfit has been super responsive and optimized everything for my brand’s needs. I’ve received really amazing support in our experience together.” The Strategy Suntouched has leveraged BeProfit to dramatically boost profitability — in three steps. 1. Gain an accurate & comprehensive view of your current finances Before BeProfit, Charlotte received monthly P&Ls, which were often confusing and inconsistent, from her accountants. Now, Suntouched has seen “a huge difference” in data accuracy. As a result, the brand has been able to come to terms with the reality of their finances. Despite believing they were profitable, BeProfit shed light on the fact that Suntouched had been in the red for several months and unfortunately needed to reduce the size of their team. “It was so hard,” Charlotte emphasizes, “but it showed me the resources we had to work with and helped us spend within our means.” 2. Identify your profit centers to allocate runway accordingly Suntouched turns to their profit analysis dashboard to know their numbers and make the highest-ROI decisions on a daily basis. For instance, if returns are climbing for one social channel, Charlotte will ping her buyer to start scaling that creative. Or, in another instance, Charlotte was surprised when BeProfit demonstrated that Amazon was the Suntouched team’s greatest profit driver. While the brand’s top line is higher on Shopify, factors like cheaper ad spend mean they receive ample organic traffic and sales on Amazon. As a result, Suntouched used the data and put more funds toward maximizing that profit center (as opposed to focusing on Shopify for ultimately fewer returns). 3. Save time & money by viewing your KPIs on 1 intuitive dashboard Thanks to BeProfit’s dashboard, which provides a centralized look at all of your real-time eCom data, Suntouched can easily view their Shopify, Amazon, and ad performance on one screen. No more switching between endless tabs, sales channels, and ad managers to understand your net profit, revenue, gross margins, and much more. “It’s a huge time-saver,” says Charlotte. In addition to time and effort, Suntouched also saves on people costs. Previously, Charlotte had to hire staffers to manually manage financial data, and delays in communication led to delays in course-correcting their spending. Today, Suntouched can instantly view their data and make informed, profit-driving business decisions. I definitely use BeProfit on a daily basis. When I open my laptop [or phone], I go to my dashboard right way. It’s made a huge difference in terms of just knowing where to put more funds and focus.” The Results Overall, BeProfit has been a game-changer for the Suntouched team. Since onboarding, our platform has helped the brand drive three impressive metric wins: Suntouched has more than halved their expenses for a roughly 60% reduction. They save anywhere from 5–10 hours per week of manual data analytics labor. Reduced expenses and data-informed budgeting have doubled their profits. I expected BeProfit to give me a stronger understanding of my basic numbers. What actually happened is it completely transformed my business for the better.” The Future Looking forward, Charlotte has an impressive vision for the growth of Suntouched. And she anticipates scaling with BeProfit as her financial partner all the way. She calls the platform “a layer of security” for her company, always keeping operational costs lean while opening up Suntouched to maximum profit margins.
Profit optimization5 Simple Steps to Profitable Product Bundling on Amazon FBACustomers are always on the hunt for amazing deals, whether they’re shopping online or in person. Bundling certain items together can be an excellent way to convince your customers to purchase more with unique offers on related items. Amazon FBA gives merchants a convenient way to bundle their items in a couple of seconds, letting them drive conversions and increase average order value. Learning how to use the bundling process correctly ensures you not only attract and convert the right audience, but boost their chances of sharing your offers with their friends. This blog covers everything you need to know about creating a profitable product bundle from your Amazon Seller Central Account. » Planning to capitalize on the festive season? Discover how to boost your e-commerce sales during the holiday season 1. Select Your Bundle Items First, you’ll need to decide which items you’re going to include in your bundles. Bundles can include a range of 2 to 5 related items that must be identified by a unique ASIN/UPC. So, even if you’re offering individual goods in several categories, you can only sell the bundle in one category. The number of bundles you can sell also can’t exceed the lowest available quantity of any contained product you have. There are various specific rules associated with bundling laid out in the Amazon FBA product bundling guidelines. For instance, you can’t bundle items with a primary product from the Video Games category, or Books, Music, Video, and DVD (MBVD) products. While these items can be added as a secondary item, they need to be related specifically to the primary product in the bundle. 2. Upload Your Product Images Your images will make a huge difference to whether or not your bundles are profitable. Images are among the first thing your customers will see when they’re browsing through their Amazon search results. You can upload up to 9 images for your listing, and it’s a good idea to upload at least one image which shows the bundled items together, as well as various high-quality shots of the individual products. Make sure your images look as professional as possible, with plenty of lighting. 3. Add Your Title Alongside your images, your Amazon bundle product title will be the other key factor helping to draw customers to your items. Ensure to optimize your bundle for Amazon’s proprietary search algorithm. Here are some quick tips to help: Use numerals instead of writing out numbers (5 instead of five)Use title case to capitalize the first letter of each word, except conjunctionsFor products with ASIN variations, specify sizes and colorsInclude the brand name, quantity, and keywords you want to rank for. Although it might be tempting to fill your titles with plenty of information, try not to make them too long, complex, or keyword-stuffed. 4. Define the Price Buyers are price sensitive, and it may be the determining factor in them not buying your bundle. So, the price of the bundled items should be lower than the cost of buying everything separately. You can decide for yourself how much of a discount you want to offer. A good way to start defining potential prices is to look at what bundles of similar products are selling for, but ensure your discount still gives you plenty of room to make a profit. 5. Include Key Product Information Finally, you’ll need to populate your bundle with key product information: SKU This is the stock-keeping unit, the product identifier Amazon needs to keep track of the inventory of each product in your bundle. Make sure you enter the correct SKUs for your products. Bullet points This appears just underneath the price on your product listing. It should outline exactly what your customers are going to receive in the bundle and highlight the key benefits and features of each item. Keep your bullet points concise, and easy to read. Description Your description provides additional information about your bundled items that's not in your bullet points. You’ll need to include a description for each item, highlighting their unique benefits, features, and capabilities. Expert Tips to Boost the Profitability of Your Product Bundles Once you know how to create a product bundle on Amazon FBA, the next step is ensuring it’s as profitable as possible. Here are some quick tips to help: Choose complementary items Ensure your bundles make sense to your target audience. Pick items that are regularly bought together. Choose evergreen products A bundle can’t be changed without creating a new product listing, so it’s best to choose evergreen products over seasonal items. Consider wholesale bundling Instead of creating a new private label product, identify brands that are already selling well on Amazon, open a wholesale account with them, and resell those items as Amazon bundles. Use keyword research Leverage keyword research to improve your chances of good Amazon marketplace SEO. This should boost your click rates. Keep an eye on stock If you run out of stock in one of your items, you’ll need to stop selling your entire bundle, so make sure you set up stock alerts. » Planning to sell on WooCommerce too? Learn how to bundle WooCommerce products Conclusion Amazon bundles can be a fantastic way to increase your sales, and even generate brand loyalty through the world’s favorite marketplace. You can use bundles to reach a wider audience, increase the sales of under-selling products, and strengthen your position on the Amazon search pages. To ensure you’re getting the best return on your bundles, use a tool like BeProfit to measure your profit potential for each value-adding bundle. » Want to start optimizing your profits? Register with BeProfit
Profit optimizationOne-Click Upselling to Boost WooCommerce SalesLearning how to create an upsell strategy in WooCommerce means you can instantly encourage your customers to purchase more items from your store. It’s a great way to increase revenue by tempting your customers before they convert or just after they’ve made a purchase. With upselling, you offer a related product or service alongside the main product the customer has purchased from your store. Since the item is already related to what your customer is buying, they’re more likely to consider purchasing it. How One-Click Upselling Works One-click upselling is a common strategy for any business looking to boost sales for WooCommerce. Through WooCommerce, the easiest way to implement an upselling strategy is to simply use a plugin to offer your customers something through a pop-up or recommendation on the cart page. You can also provide additional post-purchase offers on the thank-you page. When your customer goes through the checkout, they’re offered something else to accompany the items in their basket by your plugin. This item will be related to the existing products your customer is already buying to ensure they’re more likely to buy. With “one-click” upsells, your customer can simply press one button to add the item to their basket without having to go back through multiple pages on your website. Upselling is considered to be an easy tactic for Shopify or WooCommerce sellers because it takes advantage of the fact your customer is already in the latest stages of their buying journey. How to Create an Upsell Strategy in WooCommerce Creating an upselling strategy in WooCommerce is simpler than it seems, thanks to the wide range of plugins available to help you. Simply search for an “upsell” plugin in the WooCommerce app store and install the one you want to use, then follow these steps: Create a funnel Decide whether you’re going to offer your upsell before or after the purchase and what the offer is going to look like in order to design your WooCommerce sales funnel. In some cases, you can even provide a series of different offers with the same app, but be careful not to overwhelm your customer.Add your upsell offer Link in your upsell offer. For instance, you might suggest specific products to go with certain items in your product catalog or certain items from a list of items commonly bought together. To help you decide, learn about the best products to sell online.Test and evaluate Constantly test the performance of your upsell offer, and determine whether you might need to make changes. A/B testing different offers and strategies can improve your profit levels significantly. Within three simple steps, you’ll have everything you need to start upselling to your audience. Why Should You Use a One-Click Upsell Strategy? An upselling strategy is a valuable tool to increase your website orders and boost the value of your online store. There are many reasons why you might choose to embrace the one-click upsell, but some of the most common include: Higher average order value Upsells can help you increase the average order value for every customer who checks out through your website. You can check your WooCommerce sales report plugins to see just how much each average order increases in size.Increased revenue The more your customers purchase, the higher your revenue will be. With one-click upsell strategies, you don’t need to constantly worry as much about finding new customers. Customer satisfaction With the right upsell strategy, you can provide access to additional products and deals your customer wouldn’t want to miss out on. You can even offer bundle deals to make your customer feel like they’re getting a better offer. Plus, adding upsells to your store is straightforward, and often a lot easier than investing in extra sales and marketing tactics to increase your sales. Benefits of Post Purchase vs. Pre Purchase Upselling One of the biggest challenges of implementing upsells into your WooCommerce store is figuring out when to offer your customer an additional product. Timing is everything with this sales strategy, and the two most prominent options are “pre-sale” or “post-sale”. Pre-purchase With a pre-purchase upsell, you offer your customer the extra product, deal, or bundle while they’re still on the checkout page. This means they can simply add the item to their cart before finishing their purchase, without having to worry about going through the checkout again. The key to success here is ensuring you offer the right products and don’t overwhelm your customers with too many suggestions. If you’re too pushy, you could drive your customer away. Post-purchase The post-purchase upsell allows you to offer something to your customer after they’ve finished their purchase and left your WooCommerce payment gateway. You can still allow your customer to take advantage of the same checkout form they’ve just completed, so they don’t have to pay for additional shipping costs or enter details again. The benefit of this strategy is your customer has already made a purchase, so you don’t risk losing out on anything. However, your customers may not pay as much attention to offers after the purchase is completed. You can check analytics on WooCommerce profit analysis plugins, or other WooCommerce analytics, to see which methods work best for your brand.
Profit optimizationUsing Amazon ROI to Maximize Profit MarginsReturn on investment (ROI) is a measure of the efficiency of an investment, usually expressed as a percentage of the investment's original cost. It compares the amount of money gained or lost on an investment relative to the amount of money invested. The higher the ROI, the more efficient the investment. Difference Between ROI and Profit Margin One of the most important distinctions in business is the difference between ROI and profit margin. They may sound similar, but these two concepts are actually quite different. ROI measures how much money you make on your investment, while profit margin measures how much you make on each dollar of sales. In other words, ROI tells you how efficient your investment is, while profit margin tells you how efficiently your company converts revenue into profits. COGS, or the costs of goods sold, is another important metric that Amazon merchants should keep their eyes on. Check out this guide to see how to calculate cogs for your Amazon business. How to Calculate ROI and Profit Margin Calculating ROI and profit margin are essential for all businesses, regardless of their size or industry. The first step is to calculate your ROI, which is expressed as a percentage of the profit you earn on your investment. This is calculated by subtracting the initial value of an investment from the final value of an investment. For example, let's say your business invested $2,000 in advertising. One year later, the advertisement campaign generated $10,000 in profits. Therefore, the net profit was +$8,000. With these numbers, the ROI calculation would be: (8,000/2,000) x 100 = 400 This means that the initial investment in the advertisement campaign generated a 400% return on investment. Once you have your ROI, you can then calculate your profit margin, which is the percentage of each dollar earned that results in profit. This can be calculated by dividing net profit by net sales. For example, let's say a business generated a profit of $10,000 from $25,000 of net sales. The ROI calculation for this would be: (10,000/25,000) x 100 = 40 In other words, the business has generated a 40% profit from $25,000 in sales. Knowing these two numbers will give you a clear picture of how efficiently your business is running and where it could improve. It will also help you make more informed decisions about where to allocate your resources. If this looks too complicated, time-consuming, or both, there is an easier way to calculate profit for Amazon merchants. To do so, check out the best profit calculators for Amazon here. Healthy ROI for Amazon FBA Sellers For Amazon FBA sellers, a healthy ROI is essential for the success of their business. Sellers need to keep track of their expenses to minimize these as much as possible and boost sales through effective marketing to ensure that their profits exceed their costs. There are a number of considerations that factor into calculating a seller's ROI, including the cost of inventory, shipping costs, and Amazon fees. So what is a good ROI for Amazon FBA sellers? An ROI of around 100% is considered sustainable. Anything lower than this is working on profit margins that are too tight, putting a business at risk. For further reading, see how to track and calculate profit on Amazon here. Amazon ROI Strategies to Maximize Profit Sellers who want a healthy ROI should focus on keeping their costs as low as possible. Sourcing products from wholesalers or manufacturers can reduce inventory acquisition costs, and shipping costs can be reduced by using a fulfillment company like Fulfillment by Amazon (FBA). Amazon fees can also be minimized by using the right selling plan and taking advantage of promotional opportunities. If you'd like further insight into how to maximize e-commerce profits, see our guide on ways to improve profit here. Or, to kick-start your earning potential, check out the best products to sell online in 2022 here.
Profit optimizationUsing Instagram With Shopify to Boost Conversions: Benefits and GuideThe use of social media and e-commerce shopping platforms has reached an all-time high, with Instagram quickly becoming the newest social media platform for online retailers using Shopify. This omnichannel approach to business can help boost conversions by generating brand awareness, customer loyalty, and lead generation. This article looks at Instagram shopping, the benefits of linking Instagram to your Shopify store, and gives you the steps to do so. What Is Instagram Shopping? Instagram Shopping is a new form of electronic commerce that allows for the purchase of products directly from the images on an Instagram post. Purchases are made by clicking or tapping on an image, which brings up a detail page with more information about the product and its cost before directing the user to their desired payment method. This creates a very accessible shopping experience. With high engagement rates and a billion monthly active users, you’d be crazy not to leverage Instagram as a sales channel. Just be aware of Instagram's shopping fees, which are set at 5% per shipment or a flat fee of $0.40 for shipments of $8.00 or less. How to Link Shopify and Instagram Step 1: Switch Instagram Account to Professional Open the Instagram app and go to your business’ profile.From your profile, tap the ☰ icon.Tap the “Settings” option.Tap “Account” and then “Switch to Professional Account”.Select the category your business falls within, confirm your contact details, and be sure to connect the Instagram profile to your business’ Facebook Business Page. Step 2: Setup Instagram Shopping Through Facebook’s Sales Channel From your Shopify dashboard, select “Facebook sales channel” and then “Overview”.Click “Set up to start” under the “Instagram Shopping” section.Next, connect the Facebook account to the Facebook sales channel.Accept the terms and conditions and apply for a review by clicking “Request approval”. Step 3: Add Shopify Products to Instagram Once your application has been approved, reopen your business’ profile on Instagram and head back to the “Settings” section.Once there, tap “Business”, then “Shopping”, and confirm your Facebook account.Select the Shopify product catalog you’d like to connect and tap “Done”.Ensure the products are shoppable.If you need to make any changes, edit the product listing on Shopify and publish the updated version to Facebook. Benefits of Linking Shopify and Instagram Customer Reach The linking of Shopify and Instagram increases customer reach by providing a platform for users to showcase their products through a visual medium - a powerful strategy for invoking an emotional response from customers and subsequently boosting conversions. Brand Discovery Linking Shopify and Instagram increases brand discovery by integrating different marketing channels to reach a wider audience. The integration, which includes the creation of a storefront on Shopify that functions as a feed on Instagram, has been successful in driving traffic to brands' websites and increasing sales. Instagram Ads Ads on the Instagram platform are primarily illustrated with images or videos, making them an excellent choice for many types of products. Instagram ads are also an excellent way to generate leads as it's one of the few platforms that doesn't discriminate against businesses without a significant following. Hashtags Hashtags are tools for categorizing similar posts under common topics. Creating an Instagram hashtag for your Shopify products will make it easier for people to find your posts and products. If you want to draw attention to a specific product, such as a new release, you can promote the hashtag in posts on other social media sites or use paid advertising on social media that targets Instagram users. Shop Tabs Shopify business owners can optimize their online storefronts with Instagram shop tabs, making it easy for shoppers to find the product they are looking for on Instagram. Furthermore, the tabs help increase sales by reducing the need for customers to browse through search engines or social media feeds to find the products they want. If customers can't find what they're looking for, they will usually abandon their shopping carts and look elsewhere. Influencers A retailer can use influencers on Instagram to enhance their digital marketing campaign. A company could assign specific tasks such as posting pictures of the products they sell on Instagram and sharing them with their followers. The more followers an individual has, the more influence they have, and the easier it is for a business to reach a wider audience. Removing friction Instagram removes friction throughout the shopping experience, enabling a quick and easy way to purchase a product. Conversion rate experts will tell you: The easier it is to make a purchase, the higher conversion rates are likely to be. Increased Sales Through Integration With Instagram's Shopify integration, consumers can purchase products in-app without ever leaving the platform. This feature ties in the two major social media platforms to create a seamless shopping experience, which has been shown to increase sales. The in-app store allows for consumers to mix and match different product options, browse through different collections, and even preview swatches of color before making a purchase. By leveraging great-looking photos and a little effort, you can boost your site’s traffic, increase sales, and take home more profit than ever before. Couple these efforts with a profit/revenue analysis tool and you’ve got yourself a serious marketing strategy that is sure to take your online business to new heights.
Profit optimizationCustomer Profitability Analysis: Benefits, Formula, and Step-By-Step GuideCustomer profitability is the difference between the gross profit margin earned on a customer and the cost incurred to acquire them. Most businesses determine customer profitability with the help of a cost and profitability analysis. This analysis helps prioritize clients, services, and marketing campaigns in order to increase profitability. It considers the costs of servicing each customer and the profits made by maintaining that client. The analysis measures the profitability of new customers versus existing and retained customers. Step-By-Step Guide to Customer Profitability Analysis 1. Determine Cost of Servicing Customers A good place to start a customer profitability analysis is by determining the expenses incurred by obtaining and retaining your customers. These costs include: MarketingCustomer supportStaff wagesTransit and shippingWarehousingTaxes Once you’ve determined what each customer is costing you, it’s time to designate them into separate groups. 2. Segment Your Customers Segmenting customers based on their profitability to a business is important to a customer profitability analysis because it allows for the identification of high-profit customers. This information can be used to ascertain what customer segments are worth targeting, how much they are worth, and what they are most likely to buy from you. There is no definitive way to do this, but you could determine the groups by profit ranges that you define as "worth it" and "not worth it." 3. Track Your Data Now onto the most important part of any analysis, data tracking. Data tracking is the only way to accurately and consistently quantify outcomes, such as those represented by metrics like ROI (return on investment) and TCO (total cost of ownership). Customer profitability analyses also help to forecast what will happen in the future. Data can be used to see how customers are behaving now and predict what they will do in the future, which can help a business determine which products they need to focus on and where they need to provide better service. Advantages of Customer Profitability Analysis A customer profitability analysis offers businesses substantial advantages. This type of analysis helps: Optimize customer acquisition strategiesFind new customers with the maximum potential profitIdentify customers that are not profitableReduce customer churn and increase customer retentionCreate segmented customer lists How to Calculate Customer Profitability The product profitability calculation looks like this: Total profit per customer = (total generated revenue) - (total incurred costs) In a real-life profitability analysis example, the formula looks like this: Customer A places an order totaling $450, but the cost incurred to the business to entice them to make these purchases was $300. Therefore, the total profit generated from customer A stands at $150. Customer B places an order totaling $300, but the cost of enticing the purchases they made was only $50. That makes the total profit for customer B $250 Even though the revenue attained from customer A was $450, which was $150 more than customer B, they were not the more profitable customer. The cheaper cost of acquiring customer B made them $100 more profitable than customer A, even though the total order amount was less. We suggest that you read more about the mistakes to avoid when calculating profitability to ensure that your figure is accurate. How to Benefit From a Customer Profit Analysis The data generated by a customer profitability analysis can be used to optimize marketing and sales activities by determining which customers are profitable and which should be prioritized. Once customer profitability has been assessed, it's possible to determine if one customer segment is more profitable than another, or if a certain group of customers has a higher profit margin than expected. The insights gained from this type of analysis are also perfect for creating marketing strategies that will boost a business’s overall profitability. This may include the following methods: Customer segmentation strategies Implementing a customer segmentation strategy to identify consumer groups with maximum profit potential and create a targeted marketing campaign for these segments. Building brand loyalty Increasing the number of customers who buy goods at full price by building brand loyalty among shoppers will entice them to become regular shoppers and spenders, increasing the total long-term revenue without spending more on acquiring new customers. Using discounts sparingly Discounts can be a great way to acquire new customers or hold on to existing ones but can undermine profits if used too frequently. If you’re serious about determining the profitability of your customers, use the BeProfit app to easily conduct various profit analyses.
Profit optimizationThe 5 Best E-Commerce Business Revenue ModelsThe e-commerce business revenue models are varied and cover a wide range of verticals and industries. To keep your operations running and profitable, we will explain exactly which revenue models apply to e-commerce and break down the different revenue models based on the various e-commerce operations you may wish to pursue. What Is a Revenue Model? An ecommerce revenue model aims to define where an online store’s revenue is predominantly sourced from. This is determined by which revenue sources to pursue, what value to offer the market, how to price this value, and who the customer base is. 5 Types of E-Commerce Revenue Models 1. Dropshipping The dropshipping revenue model is a method of selling goods online without ever holding stock. The store owner simply lists the item for sale and when an item sells, the store owner purchases the item from a third-party (or uses its warehousing services) and has it shipped directly to the customer. Dropship models example: StardustLEDS is a great example of a dropshipping business model. They source colorful LED lighting products that are sold directly to customers from a manufacturer through their storefront. 2. Manufacture The manufacture revenue model is a more of a traditional style of selling goods. Unlike the dropshipping model, online business owners source raw materials and then design, manufacture, and sell the products themselves - all conducted in-house. Manufacture models example: Vew-Do manufactures a wide range of board sport products directly through their online store. 3. Wholesale Distributor The wholesale distributor revenue model categorizes online businesses who act as a middleman between manufacturers and wholesalers. Most commonly, a distributor will promote the goods of a manufacturer and sell the manufacturer’s goods to a wholesaler. Wholesale distributor models example: The best example of a wholesale distributor is AliExpress. They connect millions of suppliers with e-commerce storefronts from around the world. 4. Subscription-Based The subscription- based revenue model works just as it sounds. Customers sign up for a subscription-based service and goods are distributed on the agreed upon frequency over an allotted period. Subscription models example: Manscaped has quickly climbed the ladder and positioned itself as the ultimate subscription-based e-commerce store. Selling men’s shaving products through their subscription services directly to customers around the world. 5. Private Label The private label revenue model involves an online store teaming up with a third-party company that offers white label e-commerce products. On receiving the product, the merchant often brands it with their own labeling and presents it to customers as their own product. Private label models example: The white label revenue model is becoming more and more popular. One of the best examples of this is e-commerce stores using online marketplaces to source and sell rebranded products directly to their customers. Is There a "Best E-Commerce Revenue Model" for Your Business? Determining the best-suited e-commerce revenue model for your business can lead to serious success. Although, as you may have already worked out, the e-commerce revenue model that is great for one store may not be the best for another. The type of store, the product it sells, and the target audience are all important factors to consider when determining which e-commerce revenue model is best. Get this right, and your online e-commerce store is not only sure to succeed, but absolutely thrive.
Profit optimizationHow localizing your eCommerce website can increase profitThe internet has forever changed the way businesses market themselves and their products. Very few brands are now genuinely local, as potential markets span the globe. If you want your eCommerce business to compete successfully in this global world, the content of your online marketing and the way you reach customers through your website has to change. No matter where a potential customer lives, speak to them in their own language and resonate with them like a local brand, and you'll convert them from browsers to customers in no time. What is localization? Throughout history, most businesses had small local markets. In the 20th century, a few brands such as Coca-Cola and Kodak broke out of this small market to conquer the world. How did they do this? By tailoring their products and marketing to the customs, interests, behaviors, and regulations of the countries they operated in. This localization or tailoring to local markets builds relationships with target audiences, leading to increased sales. Take a look at every part of your eCommerce website to ensure it is properly localized. For inspiration, take a look at how Amazon has tackled it. Amazon may sell many of the same products around the world, but pages for different countries are presented in different ways. All content such as product descriptions, images, payment options, measurements, and even colors is localized for different markets. Why is localization important? English may be the global language of the internet, but studies show that non-native English speakers and non-English speakers want content in their own language: 75% want to purchase products described in their mother tongue73% of online shoppers want product reviews written in their first language65% of non-native English speakers choose to shop in their own language where possible40% will only buy products described in their own language92% want to use their own currency to make purchases What is the key to using localization to increase your profits? Localization needs to be a whole-company policy with a detailed, goal-oriented plan drawn up to address it. To get your process started, we've highlighted five key points. 1. It's important to connect with multiple markets To transform a single-language, single-market eCommerce business into a global success, you need to localize all aspects of your eCommerce website. This means not only translating to other languages, but focusing on your website's visual elements such as product images, videos, and infographics. Ensure photographs, graphics, and videos reflect the diversity of your market. For example, are the local population and the local landscape represented? Is the weather correct? Are cars driving on the correct side of the road? Consider carefully how you use color. Red for promotional pages is acceptable in China where it reflects attributes of joy and celebration. In Japan, however, red signifies danger or anger. Even using the 'thumbs-up' gesture can be tricky. To most people, it's a positive gesture, but in many middle eastern countries (as well as Greece) it's considered extremely rude. Even badly designed symbols can have disastrous consequences. When Apple launched their Macintosh computer, many Europeans mistook the trash icon for the mailbox icon with disastrous results for international communications! The bottom line is, do your research and you'll create a diverse and repeat customer base. 2. Local and seasonal events trigger spending sprees Valentine's Day, Mother's Day, Thanksgiving, Black Friday, and Christmas Day are guaranteed to trigger spending sprees in North America and much of Europe. Product releases and advertising campaigns are planned around these key days. Localization takes this further, recognizing and capitalizing on special events unique to different cultures. You may be surprised to know that the combined revenue of Diwali (India), Singles' Day (China), and El Buen Fin (Mexico) is greater than that of Black Friday and Cyber Monday! Target these countries in the run-up to these events and your products will be snapped up by shoppers who feel their experiences are valid and valued. Events such as the Olympics come around less often but are big revenue opportunities. Create products, blogs, and promotions tied to the event, but with content tailored to the host nation. You'll be surprised how much more often the content is read, shared, and acted upon. 3. A seamless shopping experience is important A localized shopping experience goes further than product descriptions and web layouts. Make the whole shopping process as effortless as possible. Dates, dimensions, and any other practicalities in product descriptions and reviews should be in a format familiar to local customers. Menu options, navigation tools, and even button colors need to be as culturally appropriate and unambiguous as possible. And, if your checkout process is unclear or unfamiliar, browsing may not convert to purchases. To ensure a click-through to the final payment, offer customers a choice of familiar methods of payment in their own currency. 4. SEO needs to be global Marketing content created in North America and Europe is aimed at achieving high Google search rankings. To be truly global, however, your eCommerce site must be optimized for international search engines. Carry out thorough research on the preferred phrasing and search priorities of the search engines used by your target market and create content accordingly. Correctly localize search terms, don't just translate them word for word. Even where countries share the same language, such as the United States and the United Kingdom, different words have different meanings. Just think about lift versus elevator, boot versus trunk, or pavement versus sidewalk. Successful localization eliminates shopper and search engine confusion, and ensures online shoppers will find your site more easily and buy your products. 5. Localized customer support leads to conversions Offering a personalized website experience improves site traffic and drives conversion rates, as well as leading to repeat eCommerce customers. This personalization should encompass customer support. Consider the wording and responses of FAQ pages, localize product guides and manuals for specific markets, and if your website features an AI-driven chatbot, make sure it's adapted for multiple cultures and languages. In the States, it's acceptable for a chatbot to greet customers by their first name. In Japan, this is considered extremely disrespectful. A customer's last name followed by the respectful suffix '-san' should be used. Even better than chatbots? Real people who can answer their questions will give shoppers that push towards purchasing on your site. While it is, of course, not feasible for many eCommerce companies to have a support team that speaks all languages, utilizing a multilingual helpdesk, like the Zendesk integration from BLEND, helps translate support tickets in real-time so you can help your customers in their native language. BLEND can help you properly localize all aspects of your eCommerce website and increase profit. Its knowledgeable and experienced local linguists guide you through the development of a successful localization strategy.
Profit optimizationHow to Boost Sales With Upsell and Cross-Sell for WooCommerceOnline merchants are always looking for ways to maximize their potential to drive more sales and profits. The more sales you can procure and the more profit you can generate, the more secure your business’ future. This post will look at upselling and cross-selling and some very helpful WooCommerce plugins that will make both strategies super easy to implement. The Shared Objective and Key Differences of Upselling and Cross-Selling Both upselling and cross-selling are mainly concerned with increasing sales of existing customers. Although, there is a difference between them in idea and application. The aim of up-selling is to increase sales by selling a more expensive product to the same customer, while the aim of cross-selling is to increase sales by selling additional products to the same customer. What Is Upselling? In e-commerce, upselling is a marketing technique that encourages customers to purchase a more expensive product than the one they initially intended to buy. Let's say, for example, that you are visiting an online store and you want to purchase a camera lens. You pick out what you want and head over to the checkout. Unexpectedly, the checkout page suggests a faster lens that's compatible with your camera. You can’t resist; you buy the extra lens for little extra cash and leave happy knowing you just narrowly missed purchasing an inferior product. What Is Cross-Selling? Cross-selling is a marketing technique that aims to get more sales and profits by selling additional products. These add-on products are meant to complement the original product and are often offered to customers when they are ready to make a purchase. For example, if you visit an online electronics store to buy a camera, the checkout process may suggest you buy some accessories like a spare battery, a case, or a tripod. Why You Should Use Upselling and Cross-Selling Both upselling and cross-selling are ways to boost the revenue your online store generates. Not only are they both very effective methods, but they are also easy and inexpensive to implement. Plus, both are excellent sales techniques. Upselling allows you to maximize the profit per order, while cross-selling allows you to make more money overall by increasing the size of each order. How to Upsell and Cross-Sell Using WooCommerce The WooCommerce WordPress plugin has its own integrated upselling and cross-selling functionalities. To use them, simply follow the steps below: From the WooCommerce dashboard, select “products.”Scroll down and find the “product data” panel.Select the “linked products” tab.Add the product you wish to add as an upsell or cross-sell option.Then select “update.” While WooCommerce’s in-house upsell and cross features are great, they are limited. For more functionality options, your best bet would be a third-party WooCommerce upsell plugin or cross-sell plugin. The Best WooCommerce Plugins for Upselling and Cross-Selling WooFunnels WooFunnels is a WordPress funnel-building plugin that allows you to create custom checkout forms, sales funnels, one-click upsells, and automations within your online store. By using WooFunnels, you can quickly create high converting checkouts, build woo funnels, and construct sales pages that increase your conversion rates and profits. Pros: Includes the best of the best funnel builders, page builders, and upsell plugins in one simple plugin.Generate more sales, leads, and customers easily and painlessly for your e-commerce store.Get started with an ever-growing library of pre-made funnels, upsell pages, and more. Cons: No WooCommerce post-purchase upsell options. YITH Deals for WooCommerce YITH Deals for WooCommerce is a very simple, intuitive, and fully responsive WordPress plugin that allows you to create high-performing upsell and cross-sell pop-ups. This WooCommerce upsell pop-up tool will provide your customers with exclusive offers and discounts. This will capture sales by creating exclusive deals for your customers that are only valid at that specific moment. Pros: Makes it easy to offer a variety of products to increase your sales.This WordPress upsell plugin is a one-stop plugin to manage up-selling and cross-selling. Cons: Requires some tech knowledge to set up the plugin as it is not the most user-friendly. Beeketing Beeketing is a WooCommerce 1-click upsell plugin that lets you create high-converting pop-ups and upselling and cross-selling opportunities. This plugin works seamlessly with your WooCommerce store, allowing you to easily add dynamic pop-ups, display products related to the product someone's viewing, or even offer coupons and promo codes. Pros: No coding knowledge required.Has 10+ intelligent modules which help you upsell, cross-sell, and convert more customers.Comes with 40+ stunning demo templates to help you create stunning on-site upsell/cross-sell funnels. Cons: A little pricey for smaller stores, but for larger online stores. Maximize Your Upsell and Cross-Sell Efficiency There are many ways that online stores can increase their revenue - upselling and cross-selling being amongst the best strategies. Just remember that each online store is unique, and depending on your business size and budget, you’ll find different WooCommerce upsell at checkout or after checkout plugins appropriate to your store. Unfortunately, there is no strict guide to determine what will work best for your situation, and so you'll have to experiment to find what that might be.