Profit Analytics Blog
Read expert articles with insights about e-commerce profitability from analyzing thousands of e-commerce businesses' data.
Business metricsCalculating CTR For Beginners: Formulas, Guides & ExamplesClick-through rate (CTR) is an essential metric that can help businesses evaluate their advertising campaigns' performances. Depending on the industry and platform, CTR averages can vary. For example, Wordstream shares that business services' paid search CTR average is 5.17%, whereas apparel has a 2.24% average CTR. So, this metric should be treated as more of a guideline than a definitive benchmark. Understanding your CTR can also provide insight into revenue and profits by highlighting how effectively you're utilizing your marketing budget.
Understanding CTR
CTR measures the engagement of online ads and other digital content, such as emails or website pages. To understand this engagement's correlation to revenue, you would need to also calculate metrics like conversion rate, cost-per-click (CPC), and others.
CTR can be analyzed by subsections, such as micro conversions, search ads, and display ads. Each of these could provide different results, which can offer data for comparison to find from which ad type, for example, you garner the most conversions.
Why Should You Track CTR?
Tracking your CTR allows you to understand your marketing strategies' strengths and weaknesses. It can help better your business with:
Increased conversions - Knowing where your campaigns are successful can help you identify and utilize effective techniques more widely, resulting in higher interaction and conversions.Insight into marketing campaigns - This can guide you to points in your campaigns that need optimization or costs that should be cut. By tracking CTR, you can better understand user behavior and, therefore, tweak your marketing approaches for better conversion and customer retention.Improved ROI - With a better understanding of your marketing campaign, you can increase the chances of users completing sales actions and the likelihood of turning profits.
Track Profits From Your Marketing Conversions
Automatically integrate your advertising data and easily track sales profits.
UTM-based tracking allows you to analyze and optimize all engagement from social media to ad campaigns.Get an aggregated view of your business performance.Accessible on mobile and desktop devices for real-time team collaboration.
BeProfit offers a customizable platform to track your advertising performance using key metrics.
» Looking to do some CTR manipulation? Here are 5 expert tools and techniques
How to Calculate CTR
CTR is the ratio of clicks to the number of users who viewed the page, email, or advertisement. Some metrics to decide between before doing any calculations are unique clicks and overall clicks. If you want to categorize every time the same user clicks on the same link as one click, that's considered a unique click. Whereas overall clicks count every click, even on the same link and by the same user, as numerous clicks.
Aside from industry benchmarks as a guideline, it's worth having your own benchmarks so you can measure your improvement from one period to the next. Although the CTR can vary based on platform, content, and channel, calculating it uses the same method and should be done at regular periods.
CTR (%) = (Clicks / Impressions) x 100
Example of a Good CTR
CTR (%) = (Clicks / Impressions) x 100= (75 / 3,000) x 100= 2.5%
In this example, a call-to-action (CTA) button in an email campaign had a CTR of 2.5% Because email marketing CTR averages at 2.3%, this result is positive. This high CTR may have been achieved through extensive user behavior analyses or retargeting to ensure it was reaching people more likely to be interested. Successfully reaching a desired target audience can help businesses assess their marketing prowess and retain customers, which can improve conversion and help maximize profits.
» Want to know more? Here's how email marketing practices can improve your ROI
Example of a Poor CTR
CTR (%) = (Clicks / Impressions) x 100= (50/10,000) x 100= 0.5%
With the average CTR for Facebook ads at 1.4%, this example of a display ad that appears on Facebook feeds shows a low CTR. This may be a result of poor ad type selection, weak copy, and inefficient audience targeting, among other practices. This highlights how lower CTRs can cause businesses to lose out on potential conversions that could, in turn, lead to wasted costs with little to no ROI.
Ways to Improve Your CTR
Using data insights from tracking your CTR, and other metrics can inform new ways to use that can optimize CTR. Some of these ways include:
Personalization - This includes web personalization, which targets your potential customers' specific interests and fosters a familiarity that can encourage engagement and loyalty.CTAs - By implementing CTAs for more strategic direction and redirection, you can increase the opportunity for users to visit specific pages or product pages.Retargeting - You can leverage social retargeting. This creates display pop-ups when a user interacts with your social content through likes or comments.Improve Ad Copy - Performing keyword research, rewriting, and making use of images and video marketing can optimize your ad copy with data-driven adjustments that can help drive engagement.A/B Testing - Testing various versions of an ad and comparing the metrics can highlight more precise areas of your ad that resonate best with users. You can use this insight and apply it to other ad campaigns for an improved CTR.
» Discover steps to build a successful hybrid e-commerce marketing campaign
Leverage Your CTR to Help Increase Conversions
CTR is a key metric in understanding the success or failure of any given digital marketing campaign. Analyzing which platforms, techniques, and ad types are most successful, and which target audiences are most responsive to certain campaigns, can aid businesses to optimize their strategies for increased sales and profit-driving conversions.
That's where BeProfit comes in. With a customizable dashboard that can easily track your profits and integrate your advertising data for real-time monitoring, you can focus more on spearheading informed strategies to continually improve your CTR.
Profit calculation3 Best Excel Formulas for Calculating Markup vs. MarginAccording to the NYU Stern School of Business, the average gross profit margin across all industries is 36.28%, with online retailers generating an average gross profit of 42.78%. How does yours compare?
As an e-commerce entrepreneur, knowing your profit margin and focusing on the factors that influence your profits and contribute to a robust bottom line is crucial. Grasping the concepts of margin and markup is a key component of this process, and thankfully, Excel makes calculating these vital metrics a breeze!
In this post, we'll delve into the top Excel formulas for determining markup and margin and how you can leverage them to make informed pricing decisions and boost your profitability.
Understanding the Difference Between Markup and Margin
Markup
Markup refers to the amount you charge above the cost to cover expenses and generate a profit.
In the marketplace, markup is expressed as a percentage, that is, the percentage added to the cost of a product or service to determine its selling price. To work out your markup, you need to accurately calculate the cost of goods sold (COGS).
Margin
Margin represents the portion of each sale that contributes to covering expenses and generating profit.
We also express margin as a percentage: the percentage difference between the selling price and the cost expressed as a percentage of the selling price. So, in summary:
Markup is the percentage increase in price over the cost of the productMargin is the profit made as a percentage of the selling price
Below are three key pairs of Excel formulas you can use to calculate your markup and margin.
» Learn more about the differences between gross margin & gross profit so you don't get them confused
1. Basic Percentage Formula
To gain a better insight into a company's pricing strategy and make informed decisions on pricing and sales, we can use two basic formulas that apply to markup and margin.
Markup Calculation Formula
Markup = [(Selling Price - Cost) / Cost] x 100
For example, if a T-shirt costs $23 to produce and the company wants to sell it at a price of $30, the necessary markup would be [($30 - $23) / $23] x 100. This works out to be a markup of 30.43%.
To calculate this in Excel, enter the cost and selling price in separate cells, such as A2 and B2. In cell C2, input the formula:
=(B2-A2)/A2*100
Alternatively, enter the formula =(B2-A2)/A2 and select "Percentage" from the dropdown list in the "Number" field in the top menu. This automatically expresses the value as a percentage.
» Simplify calculations and optimize profits. Book a demo for BeProfit's profit-tracking app
Margin Calculation Formula
Margin = [(Selling Price - Cost) / Selling Price] x 100
Using the same example as above, your calculation would be [($30 - $23) / $30] x 100. The gross margin, therefore, works out to be 23.33%.
As with the markup formula, input the cost and selling price in separate cells, such as A2 and B2. In cell C2, enter the formula:
=(B2-A2)/B2*100
Or you can enter the formula =(B2-A2)/A2 and select "Percentage" in the "Number" field in the top menu.
2. Sales Price Formula
Considering both the cost of producing the product and the desired profit margin is something businesses must do when setting a sales price. Sale prices are another key factor in margin and markup calculations.
Sales Price Using Markup
To calculate the sales price with the desired markup in mind, use this formula:
Sales Price = [1 + (Markup/100) x Cost Price]
Using the same figures are the previous examples, the sales price = [1 + (30.43/100) x 23]. This means your sales price should be $30.
An Excel formula is a much quicker way to calculate the sales price. If you enter the cost price in the cell A2 and the markup in cell C2, the formula you would enter in cell B2 is:
=(1+C2)*A2
Make sure that for B2, you select "Number" from the dropdown list from the top menu, as you can see below:
Sales Price Using Margin
To determine the sales price using the profit margin, use this formula:
Sales Price = Cost Price / [1 - (Margin Percentage/100)]
For example, if you want to achieve a margin of 23.33% on the T-shirt that costs $23, your sales price = $23 / [1 - (23.33/100)]. This works out to be $30.
For a simpler way to calculate the sales price, you can use this formula in Excel:
=A2/(1-C2)
Again, be sure to select "Number" from the dropdown list for cell B2, as you can see below:
By using these sales price formulas, businesses can ensure that they're setting prices that will result in the desired profit margins.
3. Discount Formula
Another common strategy businesses use is discounts to attract customers and increase sales. When it comes to margin and markup calculations, discounts can affect profit margins. If a company offers a discount on a product, the sales price will decrease, which may impact the margin percentage.
Firstly, if you have a discount percentage in mind, you need to calculate what the new discounted sales price will be. To do that, use this formula:
Discounted Sales Price = Selling price x [1 - (Discount Percentage/100)]
To illustrate with our same example, to work out the discounted sales price for our T-shirt with a 10% discount, the calculation would be: discounted sales price = $30 x [1 - (10/100)]. This works out to be $27.
To calculate this in Excel, enter the sales price in cell A2 and the discount percentage in cell B2. Then input this formula in cell C2:
=A2*(1-B2)
Remember to select "Percentage" from the dropdown list for cell B2 and use "Number" for cells A2 and C2.
Once you have this amount, you can work out your new markup and margin values. Use the basic percentage formulas, but replace the original selling price with the discounted sales price you just calculated.
This means the new markup formula will be:
New Markup = [(Discounted Sales Price - Cost) / Cost] x 100
Using our example, the new markup after the discount = [($27 - $23) / 23] x 100. This comes to 17.39%.
The formula to calculate the new margin will be:
New Margin = [(Discounted Sales Price - Cost) / Discounted Sales Price] x 100
Using our example, the new margin = [($27 - $23) / $27] x 100. This works out to 14.81%.
You can use the same basic percentage formulas in Excel, but just make sure you replace the selling price in cell B2 with the discounted sales price. In other words, replace $30 with $27.
By calculating the new markup and margin after applying a discount, you can better understand the impact of the discount on your profits. This will help you make informed decisions about whether or not to offer a discount and how to adjust your pricing strategy to maintain profitability.
» Looking for more help with discounts? Check out more easy Excel discount formulas
Factors That Can Impact Markup and Margin
We already established that markup and margin are key metrics that impact businesses and their profitability. However, several factors can impact these metrics, including competition, market demand, production costs, and pricing strategies.
In highly competitive markets, businesses may need to lower their prices to remain competitive, which can impact both markup and margin. Production costs, including raw materials, labor, and overhead, can also impact markup and margin. Finally, different pricing strategies can impact these metrics, as businesses may need to adjust their prices to reflect changes in their overall pricing strategy.
» Remember to keep your pricing strategy flexible. Learn how with dynamic pricing
Calculate Markup and Margin in Excel for Effective Pricing
In today's competitive market, it's crucial to calculate markup and margin accurately to ensure profitability and sustainability. Using the above formulas in Excel is a simpler, more time-efficient, and more accurate way to calculate these key metrics. By using Excel to calculate markup and margin, businesses can make informed decisions about pricing that will ensure customer satisfaction and boost customer lifetime value (CLV) while still maintaining profitability.
Once you have effective pricing in place, it's essential that you continually monitor, track, and analyze your profits and expenses. BeProfit is one of Shopify's best profit calculators to get the job done. It's an all-in-one analytics tool that auto-syncs your order and expense data to provide real-time product, order, marketing, and expense reports. With a clear overview of your business finances, you can make informed and strategic decisions to scale your store and boost your bottom line.
Profit calculation4 Easy Excel Discount Formulas For Your E-Commerce StoreDiscounts can sometimes make or break a sale. 83% of shoppers say that discount coupons inform their purchasing behavior directly. However, discounts need to be implemented strategically. With monitoring, businesses can calculate optimal discounts, as well as forecast ROI and profits. And Excel can be a powerful and flexible tool to help with this. Excel can streamline and optimize e-commerce operations, allowing businesses to make better-informed decisions and achieve greater success.
1. Discount Price Using Manual Formula
Calculating discount prices using manual formulas in Excel is a simple and efficient way to manage your pricing strategy to help ensure profits.
Let's say you want to offer a 20% discount on a product that originally costs $100.
Here's how you can calculate the discounted price using a manual formula:
1. Enter the original product price ($100) in cell A2.
2. Enter the discount rate as a decimal (0.2) in cell B2.
3. In cell C2, enter the following formula:
Discounted Price = Product Price - (Product Price x Discount Price)C2=A2-(A2*B2)
4. Excel will calculate the discounted price, which is $80 in this case.
You can easily adjust this formula for different products and discount rates.
Monitor Your Sales Performance
With your discounts in place, you can track profit and revenue metrics to find whether your pricing leads to conversions.
View data from mobile or desktop devices.Connect multiple shops for an integrated view of your business's revenue metrics.Create and export customized data reports.
With BeProfit, you can monitor your conversion rates and profits, which can help you spot when product discounts are working for your business.
2. Manual Formula to Calculate Discount Rate
To calculate a discount rate in Excel, you would typically need the optimal price you're hoping to sell the product for first. For example:
1. Enter the original product price ($100) in cell A2.
2. Put in the target discounted price ($50) in cell B2.
3. In cell C2, enter the following formula:
Discount Rate = (Product Price - Target Discounted Price) / Product PriceC2=(A2-B2)/A2
4. Excel will calculate the discount percentage required to achieve the target discounted price. In this example, this would be 50%.
Make sure you format cell C2 as a percentage. You can change this from the "Home" tab in the "Number" section, and select "Percentage" from the drop-down box.
If you'd like to decrease the decimal points so your percentage is rounded to a whole number, you can click on "Decrease Decimal" from the same section.
» Find out how to calculate revenue in Excel using simple formula templates
3. Using Array Formula to Calculate Discount Price
Array formulas in Excel can help you quickly calculate discounted prices for large sets of data.
For example, you have a dataset with 10 products and you want to calculate the discounted price for each product based on its original price and discount rate.
Here's how you can use an array formula:
1. Enter the original product prices in column A.
2. Enter the discount rates as decimals in column B.
4. In column C, enter the following formula:
Discounted Price = Product Price - (Product Price x Discount Rate)C2=A2-(A2*B2)
5. To apply the formula to the other rows, press Ctrl+Shift+Enter. Excel will automatically calculate the discounted price for each product based on its original price and discount rate.
» Discover the 3 best Excel formulas for calculating markup vs margin
4. Find the Discount Rate With the What-If Analysis
Excel's What-If Analysis function is a bit more involved. But it can help you determine the required discount rate to achieve your desired discounted price.
For instance, let's say you have a product with an original price of $100 and a current discount price of $50, and you want to offer it at a final discounted price of $75.
1. Begin by entering the original price of the product ($100) in cell A2, the current discount rate (50%) in B2, and use the manual formula from the first method to get the current discounted price in cell C2.
2. Next, navigate to the Data tab on the Excel ribbon and click on "What-If Analysis."
Tip: Make sure the cell selected before you click on "What-If Analysis" is C2 (the "Discounted Price" cell)
3. From the drop-down menu, choose "Goal Seek."
5. In the "Goal Seek" dialog box, you will see that "Set cell" is auto-filled with C2. Now:
Fill in "75" in the "To value" field since this is your desired discounted price.Click into the "By changing cell" field, then click on cell B2 to select that value.
6. After clicking OK, Excel will automatically compute the required discount rate to achieve the target discounted price of $75. In this case, a 25% discount rate should be used.
Employing the What-If Analysis function can be a great tool to test different pricing strategies and discounts before implementing them, so you can help boost sales and ensure your final amounts will still convert into revenue and profits.
» Need help? See how to increase e-commerce store revenue with customer discounts
Deduce Your E-Commerce Store's Discounts With Ease
By using Excel to deduce your e-commerce store's discounts, you can take the guesswork out of pricing. This can help you increase profit margins, boost customer satisfaction with competitive pricing, and potentially improve AOV.
But monitoring your pricing effectiveness is also vital. You can use platforms like BeProfit for seamless profit and revenue tracking, so you can have a clear overview of the impact and performance of your discounts and pricing.
Profit calculationHow to Calculate Revenue in Excel (Simple Formulas + Templates)Every seasoned business owner knows the value of revenue calculation as it helps them assess their profit, perform financial analysis, and do forecasting. So, how is sales revenue calculated? This article offers start-ups and established businesses alike straightforward Excel revenue calculation templates.
» Book a demo with BeProfit to learn more about the advantages of our revenue calculation solutions
5 Types of Revenue and Their Exemplified Calculations
This post will address the following revenue categories and provide a revenue formula in Excel for each:
Incremental revenueAverage revenueGross revenueQuarterly revenueMarginal revenue
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1. Incremental Revenue
Incremental revenue is the profit a business receives from a certain increase in sales. This can refer to the additional revenue received from releasing a new product or service or trying new marketing strategies.
Therefore, the original revenue that would have been generated before the additional product or service was introduced in that period must be subtracted from the adjusted revenue that includes the new product or service.
Formula
A formula can therefore be constructed as follows:
Incremental Revenue = Adjusted Revenue - Original Revenue
Adjusted Revenue = adjusted number of units sold x adjusted selling priceOriginal Revenue = original number of units sold x original selling price
When using Excel, the calculation can be set up as follows:
Original Revenue and Adjusted Revenue are listed separately.Incremental Revenue is calculated by subtracting the totals (=D3-D2).
» Delve deeper into the differences between incremental cost vs marginal cost
2. Average Revenue
Average revenue is earned for each unit, product, or service you sell. People also refer to it as average revenue per unit or per user (ARPU).
Formula
Average revenue is calculated by dividing the total revenue by the quantity sold:
Average Revenue = Total Revenue / Quantity Sold
So, if a company's total revenue is $5 000 and the quantity sold is 1 000, then the average revenue per unit is $5 000 ÷ 1 000 = $5.
In Excel, the calculation can be set up as follows:
Total Revenue and total quantity sold are listed separately.Average revenue is calculated by dividing the totals (=B2/B3).
» Find out how to track your revenue like the e-commerce giants
3. Gross Revenue
Your gross revenue is the total amount of money your company makes before expenses are deducted. This includes the sale of shares, property, and equipment, as well as interest and exchange rates.
Knowing your gross revenue will help you analyze your financial statements, track your sales volumes, and identify high-impact revenue channels to understand how well your business is doing.
Formula
There are two types of gross revenue: product revenue and service revenue.
Product Revenue = Number of units sold x Average price
Service Revenue = Number of customers x Average price of service
In Excel, the calculation can be set up as follows:
Products and services are listed separately.Quantities sold, prices, and any discounts provided are used to calculate the final total selling price of each product and service.Total gross revenue is calculated by adding the final totals of products and services (=E5+E11).
» Explore the difference between gross profit vs gross margin for more insights
4. Quarterly Revenue
Quarterly revenue measures the increase in your sales from one quarter to the next. You would use it to review the sales of successive quarterly periods or compare the sales of the same quarter in different years.
It's important to note that quarterly revenue can be influenced by seasonal sales. For example, if the Olympics is hosted in a certain country, it may skew quarterly results and give you an inaccurate view of your company's quarterly revenue.
Formula
You can calculate quarterly revenue growth as follows:
[(Q2 - Q1) / Q1] x 100
In Excel, the calculation can be set up as follows:
Q1 and Q2 sales are listed separately with their relevant sales information (units sold, prices, and totals).The formula is applied at the bottom before it's converted to a percentage in the next row.
» Learn the 3 best Excel formulas for calculating markup vs margin
5. Marginal Revenue
Marginal revenue is the increase in revenue that you get from the sale of each extra unit of output. While marginal revenue can stay constant over a specific output level, it follows the law of diminishing returns and will eventually slow down as your output level increases.
As a business owner, you can use historical marginal revenue data to analyze customer demand for your products and determine your most efficient and effective prices. Finally, this calculation helps you understand your forecasts because it determines future production planning and schedules.
Formula
This is the formula you can use to calculate your marginal revenue:
Change in Revenue / Change in Quantity=(Total Revenue - Old Revenue) / (Total Quantity - Old Quantity)
Let's look at a quick example:
Your company sells its first 100 products for $1 000, so that's a selling price of $10. You sell the next products for $8. This means that your marginal revenue for product number 101 is $8.
It's important to note that marginal revenue disregards the previous average price of $10. This is because it only analyzes incremental change. If you sell 115 units for $1 100, your marginal revenue for products 101 through 115 is $100, or $6.67 per unit.
In Excel, the calculation can be set up as follows:
The periods you're comparing are listed separately. In this case, it's simply indicated as "previous year" and "this year".Marginal revenue is calculated by applying the formula [=(D3-B3)/(C3-A3)].
» Learn more about the revenue vs product revenue discrepancy in GA4
Save Time With Precise Tools
There are profit calculation mistakes to avoid if you use the formulas and spreadsheets provided in this article. If you're not confident about how to calculate monthly revenue in Excel on your own, using the Profit Analysis Dashboard by BeProfit can save you time while ensuring your results are accurate.
Once the revenue has been calculated, the next step is to analyze and measure it using metrics such as net, gross, and operating profit margins. Knowing how to calculate net profit margins is essential because it provides insight into how effectively your business is running overall.
» Want to know how profitable your store is? Learn how to perform an e-commerce profitability analysis
Business metrics5 Expert Ways to Lower Your CPA Through Ad SpendWith global ad expenditure at $822,756 million, digital advertising is at the forefront of businesses' strategies. Specifically, cost per acquisition (CPA) can make or break your profitability. The lower your CPA, the more revenue you'll be able to generate from your ad spend. But achieving a low CPA isn't always easy—it takes a strategic approach to optimize your ad campaigns and make the most of your budget.
Understanding CPA
CPA is used as a metric to measure how much it costs for each successful acquisition or conversion.
CPA ($) = Total Advertising Costs / Number of Conversions
A successful acquisition from an online advertisement could be:
A signupPurchaseSubscription to a newsletterAnother goal that you want customers to complete
Monitoring CPA in conjunction with other metrics, like marketing ROI or customer conversion rates, can provide a more complete overview of how successful your campaigns are at obtaining and converting customers.
Good ad spend can differ depending on the industry, target audience, and desired ROAS. The higher the CPA, the more expensive it is to acquire each customer, so lowering this number, typically, should be a top priority. Using CPA data to adjust advertising tactics and budget allocation can help drive profits and minimize overspending.
Monitor Your Ad Data Easily
Simplify your performance and profit tracking with integrated data.
Pull and optimize ad data from various platforms in one intuitive dashboard.Access custom reports in real time.Pinpoint ROAS and conversion rates per platform.
BeProfit provides a hassle-free platform to help you assess your ad metrics and identify your most profitable products or services.
» Discover the ROI and ROAS differences
How to Lower Your CPA
Making the most of your ad spend with data-driven strategies can include a number of techniques based on your marketing goals.
1. Personalization
Personalized ads are a cost-effective technique to avoid irrelevant advertising that doesn't turn into conversions. Personalization AI can produce tailored advertising by using data about:
Customer preferences and interestsBrowsing historyGeographic locationSales data
Personalized ads can help increase engagement and conversions, which can decrease your overall CPA. Additionally, personalizing ads gives customers the feeling that they are being seen as individuals rather than just another face in the crowd. This can inspire trust and encourage better customer retention.
2. Targeting and Retargeting
Targeting involves ads tailored toward specific groups or demographics of people based on their interests or location.
For example, Facebook Ads allows for keyword targeting and tailored audiences so that there's less wasted ad spend on uninterested audiences.
Retargeting allows you to serve specific ads only to those customers who have already interacted with your website in some way, such as clicking on an ad or making a purchase. By appealing to specific interests and demographics, advertisers can make strategic budget decisions and increase the likelihood of customer acquisition through less costly means.
» Using Facebook? Learn how to advertise on facebook like an e-commerce pro
3. Optimize Paid Campaigns
With paid campaigns, you can use audience segmentation based on different criteria like age, gender, interests, location, and more, and performance metrics to analyze efficiency. Then, specific methods can use this data to maximize engagement, including:
Changing when an ad runs based on higher site or page traffic timesLimiting geographic locations where certain ads run based on demographicsTargeting the ads to specific devicesImproving keywords and copy based on relevancyOptimizing landing pages
Additionally, monitoring performance metrics such as click-through rate (CTR), conversion rates, and cost per click (CPC) regularly can help identify any underperforming campaigns that need adjustment. It can also highlight if an ineffective campaign should be paused entirely to minimize wasted ad spend.
4. Leverage Video Marketing
Research from Wyzowl shows that 89% of consumers have been convinced to purchase a product or service after watching a video, and 51% are more likely to share video content than any other online content. This can lead to a higher click-through rate and more chance of lowering CPA. Advertisers have various options, like:
Banner videosIn-feed videosCross-platform social media videosInteractive videos
Incorporating videos in your e-commerce marketing can help prospective customers understand your offerings and provide interactivity, which is useful in increasing engagement and retention. Because customer retention is cheaper than acquiring new customers, this can also help lower ad spend.
5. Analyze Your Strategies
But let's not forget about analytics. Performance metrics, such as CTR, CPC, and sales conversion rates, can help you assess campaign success. Using tools like Google Analytics is one great way to pinpoint areas for improvement. By monitoring any underperforming campaigns closely to determine why they aren’t performing well, you can implement new ad spend and optimization strategies.
For example, if a strategy gets the customer to click on your page, but they don't convert. This could mean you need to revamp your page copy or change ad redirection with more fine-tuned personalization.
Regularly tracking and adjusting your ad strategies and performance can help improve conversion by streamlining or retargeting rather than increasing CPA.
» Check out the ultimate guide to effective e-commerce ads
Optimize Your Ad Strategies for a Lower CPA
Optimizing ad spend shouldn't stop after initial implementation. By adopting omnichannel strategies like expanding reach across various platforms using different paid social types, you can curate customer experience based on location, interests, or channel.
To help, BeProfit provides an all-in-one platform to monitor advertising metrics and profits with ease. This way, you can focus on reducing ad spend waste and optimizing tactics to help keep your CPA low, your conversion rates up, and improve your ROI and profits.
TrackingCAC vs. CPA: Differences & Importance for E-Commerce SellersCustomer acquisition cost (CAC) and cost per acquisition (CPA) are two complementary metrics with a similar important goal: getting conversions (sales) by promoting brand awareness.
CAC does this by measuring the cost of acquiring a paying customer, while CPA measures the cost of acquiring a non-paying customer, including customers that register for your email newsletter, register on your store, participate in a survey or trial, and more.
Customer Acquisition Cost (CAC)
Let's get right down to business. CAC calculates how much you have spent in your quest to get more customers. This metric is calculated over a specific period of time.
The insights that you can get from calculating CAC will help you in two ways:
You'll know which customer acquisition channels to prioritize because you'll know which channels are performing the best.You'll be able to use your CAC calculations to optimize your sales and marketing budgets, thereby assisting with the marketing decision-making process.
How to Calculate CAC
In order to calculate the customer acquisition cost, the following CAC payback formula is needed:
the total cost (sales and marketing costs) of acquiring customers / the total number of customers acquired over a time period
Typical Components
The typical costs included in calculating CAC in e-commerce will vary between companies and industries. The components would typically be as follows:
Advertising costsDirect sales costsProduction costsCost of your marketing team (employee wages)Technical costs (software costs)
Why It's Important for E-Commerce
CAC helps to measure the value of bringing on new customers. This provides further insights because:
It helps businesses understand the larger scope of their marketing efforts to keep expenses manageable.It ensures products are priced correctly.
Monitoring your CAC value will play an ongoing role in your e-commerce store's marketing and sales strategy as your business grows. Using the insights that you get from CAC will allow you to build a sustainable business that continues to show steady growth.
» Are you receiving a return on your marketing activities? Learn how to calculate and increase your marketing ROI
Know Exactly Where Your Business Stands
Boost your conversions with Profit Analysis Dashboard by BeProfit. This app can help you pinpoint metrics and identify your best-selling products with ease.
Get real-time reports on the cost of goods sold (COGS), shipping costs (shipping and handling), processing fees (payment processing), and more.Track and analyze all of your traffic from places like social media, online ads, email campaigns, affiliates, and influencers with the help of a UTM system.Monitor advanced revenue metrics like cost per order with a mix of automated matching and manual tagging.
Cost Per Acquisition (CPA)
CPA measures the total cost to acquire a single paying customer from a specific campaign or channel. CPA is critical for measuring the success of your marketing strategies.
The insights that you can get from calculating your CPA will help you in two ways:
You can pinpoint how much it should cost to get one new customer. This will help you avoid spending more than you should on attracting other new customers.Once you have an accurate CPA, you can formulate accurate costing strategies to sustain the growth of your business and, in turn, the success of your business.
» Discover 5 expert ways to lower your CPA through ad spend
How to Calculate CPA
The following is the formula that must be used to determine the CPA:
total cost of a campaign (marketing and sales) / total number of conversions (customers)
Typical Components
The typical costs included in calculating your CPA will also vary between companies and industries. The components would typically be as follows:
Clearly defined target audiencesThe cost of your sales and marketing teams (employee wages)Advertising budget and creative costs (engaging content)Technical costs (software)Production and publishing costsInventory upkeep
Why It's Important for E-Commerce
CPA helps your marketing team track their success and gives them the opportunity to show business leaders real results for the marketing campaigns they run.
By monitoring CPA on an ongoing basis, your marketing team will know when it's time to end a campaign and start working on something new and fresh.
Finally, CPA can be a reference point for future campaigns. It provides a realistic metric to aim for because it has already been achieved in the past.
» Are you reaching the right customers in the right way? Discover the difference between remarketing and retargeting
Similar, but Not Identical
It's important for you to know the difference between CAC and CPA since they are so similar in order to use them in the correct way. As an e-commerce seller, you need to know how much it costs you to attract paying and non-paying customers so you can use them in tandem to grow your customer base and sustain success.
Once you grasp the importance of CAC and CPA, you can start using the LTV/CAC ratio to drill down into the insights they provide even further. The more you drill down, the more valuable the insights. It isn't only about the bigger picture—it's about the finer details as well.
Business management40+ Best Shopify Apps to Increase Your Profits in 2022The world has shifted online, everyone can agree on that. During the last decade and especially over the past year, more and more store owners are transforming their business to adapt to the new reality of uncertainty and change. But making this kind of change successfully requires courage, initiative, and most importantly – knowledge of the eCommerce space.
That’s exactly where Shopify steps in, making the process of creating an online store, managing products, handling payments, and of course much more, as intuitive as it gets. With over 5,000 Shopify apps that integrate with its online stores and cover a wide range of business optimization needs (including apps to increase profits by selling online), Shopify is one of the most popular eCommerce platforms out there with its market share standing at more than 20%.
In this article we will cover some of the best apps the Shopify app store has to offer to help you optimize your business on your way to grow your store and increase your bottom line.
Best Upsell Apps for Shopify
Rush - Order Tracking & Lookup
Rush is a state-of-the-art, automated shipment tracking solution for Shopify sellers.
The app includes every feature you need to build a superior post-purchase experience. Boost customer satisfaction and increase your AOV and CLV as you go.
Provide your customers with granular updates on their orders status via Rush’s smart order delivery notifications, integrated with Klaviyo & Omnisend.
Build a fully customizable tracking page, add upsells & cross-sells and boost your bottom line.
Rush has an outstanding 5-star rating from more than 90 reviews on the Shopify app store. Pricing starts at $9 per month. Free plan and 7-day trial are available.
iCart Cart Drawer Cart Upsell
iCart is the most powerful conversion and optimization toolkit that helps e-commerce stores boost sales and generate higher revenues.
iCart helps you create gift offers for their customers such as free products, BOGO, product bundles, and many more. Online sellers can also sell their add-on services like gift wrapping using iCart upsell app.
Don't you think your shoppers see the same shopping cart design everywhere? With the iCart app, you can customize templates for the cart drawer as well as their full cart page. The apps offer different helpful widgets that work as sections in the cart template like cart items, checkout buttons, progress bar, custom HTML, birthday collectors, and many more.
The app is free to use up to 50 orders. It has an average 4.8 star rating from over 150 reviews.
Vanga AI - Automatic Upsells for Shopify
Vanga helps you increase your revenue from each order on Shopify using AI.
The app instantly automates your upsells so you don’t have to spend time on configuration or funnel building. Powered by an AI algorithm that upsells better than any human, Vanga automates your revenue growth based on data and customer behavior with no effort or setup required.
Vanga automatically enables upsells for 100% of the products in your store and instantly drives up the AOV from all the orders your customers complete. When you need precision, you can create specific upsells using manual controls for your own funnels
Personalized Recommendations by Perzonalization
Perzonalization app for Shopify lets you easily upsell your products to boost your store’s AOV. The app provides AI powered related products, upsells, cross-sells and many other algorithms to increase loyalty and sales. The app features product recommendations on nearly all page types of Shopify as well as abandoned cart emails (for potential customers who didn’t add any items to their cart) and browse reminder emails. Perzonalization analyzes your customers’ behaviors in real time using AI-powered technology to help you optimize your store and bottom line. The app offers a free trial with monthly fees starting at $9.99 with no upfront costs; it integrates with Magento, PrestaShop, OpenCart and WooCommerce.
PickyStory
Upselling and cross-selling are vitally important to the success of your Shopify store. PickyStory makes it easy to generate more revenue from every store visit by offering highly customizable, irresistible deals that can be displayed on any page in your store. Sell products together with bundles (auto or manual) on your product pages, create a gallery of shoppable looks, use kits for tiered pricing offers, let customers create their own product bundle, aggregate multiple products and sell as one, and more: PickyStory has a deal to suit your every need.
As well as offering upselling deals with proven results, PickyStory comes with several other valuable benefits. PickyStory auto-syncs your inventory at SKU level, making it easier than ever to keep track of your stock. PickyStory’s deals are all created with clicks (no coding skills required) and fully customizable to integrate seamlessly into your store.
ReConvert Upsell & Cross Sell
There’s nothing like getting notified about a new order, every online seller will tell you that. But on the consumers’ end, the process of completing an order is of great importance and should be carefully planned to increase retention rates.
The Reconvert app for Shopify helps users do just that, by optimizing their order confirmation page. By offering an easy-to-use drag and drop interface, the Reconvet app allows full customization of websites’ ‘thank you’ page. The app integrates with many of the most popular apps on Shopify and provides a variety of built-in widgets including discount pop-ups, product recommendations, videos, social sharing options, post-purchase surveys, SMS and email marketing campaigns, and more.
Reconvert offers several subscription plans including a free one, and has an astonishing average 5 star rating from over 2,000 reviews.
Gift Cards and Loyalty Program
Gift Card and Loyalty Program is a certified Shopify Plus app developed by Rise.ai. Its shopify loyalty program helps users drive new customers to their store and increase their profits by creating and sending customized, digital gift cards and gift vouchers. Users of the app are not restricted to Shopify only, as it has a multi-channel capability by which they can offer their gift cards across various ecommerce platforms.
Among many features, you can use automated rules to increase loyalty, offer returns and refunds and even send bulk cards to expand your marketing reach. The app integrates with Yotpo, Klavio, Recharge, Loox and more. It offers a 7-day free trial with pricing starting from $19.99 per month. It has an amazing average 4.9 star rating from over 700 reviews.
Skip to Checkout by Koala Apps
Skip to Checkout is one of the many powerful tools offered by the team over at Koala Apps. This app does pretty much what it sounds like – it helps users end up at the checkout screen more quickly! You probably know by now that the longer customer journeys to the checkout screen end up hurting your sales rates. So what does Skip to Checkout really do?
This top app reduces the time it takes for your visitors to convert to customers, reduces your abandoned shopping cart rates, increases sales, and allows you to customize checkout screens along with your store’s CTAs. Skip to Checkout requires no coding, doesn’t change your store’s theme, and comes with a free 3-day trial. Pricing starting at $4.99 per month.
Best Shopify Dropshipping Apps
Nihao Dropshipping
Nihao Dropshipping provides a one-stop solution for Shopify and WooCommerce merchants in the shape of a free dropshipping app.
Source products from a variety of new and winning niche items which are added every day, and post free product sourcing requests to find the best sources from China.
More features include free warehousing, custom packaging, print-on-demand, dedicated customer service, order tracking, and more. If you’re new to dropshipping, this is the right place to start your journey.
Nihao Dropshipping is free to install and has an overall rating of 4.9 from over 30 reviews on the Shopify App Store.
Printify – Print on Demand
The Printify app enables its users to create and sell their unique designs by handling everything from printing to shipping. It offers a rich catalogue of more than 250 products, a Mockup generator tool, a network of on-demand print providers, and more. Printify’s premium plan costs $29 a month, while offering a free plan which includes management of up to 5 online stores, unlimited number of product designs, 24/7 support, and more. It has an average 4.2 star rating from more than 1,500 reviews.
Dripshipper: US dropshipping
Dripshipper is the go-to app for all of Shopify’s coffee-enthusiast entrepreneurs. It provides its users with a set of tools to kick off their online coffee business, from producing high quality coffee to creating and handling orders. Their freshly toasted coffee is delivered directly to consumers within 3-5 business days, packaged with custom labeling. Pricing starts from $30 per month including a 14-day free trial. The app has an average 4.2 star rating from over 160 reviews.
Spocket: US & EU dropshipping
The Spocket app offers dropshippers a wide variety of low-cost, print-on-demand products, both in the US and Europe. It features super-fast deliveries and an effective inventory management system, as well as 30%-60% discounts on different retail items. A great advantage of Spocket is that it allows users to test products by ordering different samples to verify quality and speed of delivery. The app integrates with Pintful, Privy, Oberlo, Loox, and more, and has an average 4.6 star rating from over 2,600 reviews. It offers a free plan while premium plans start from $24 per month including a 14-day free trial.
Best Free Shopify Apps
Digital Assets – Digital Product Delivery
Downloadable Digital Assets is the leading digital download delivery app on the app store and was chosen as a Shopify staff pick in late 2020. You can sell any kind of digital product such as photos, videos, e-books, patterns, audio, software, podcasts and pretty much anything else.
Digital Assets runs on ultra fast servers that deliver digital products to your customers in no time. It’s super easy to set up – simply upload your files, attach them to your Shopify products and then customize your settings to suit your store.
The user interface stands out above the other digital download apps, with it’s very easy-to-use system. Digital Assets has some unique features such as displaying order downloads in customer accounts, on the checkout summary page and via email, attach personalized files to a customer’s order, fraud protection to halt high risk orders receiving downloads until further verification, send download emails from your company email and much more. Learn how to sell digital products on Shopify here.
Push Owl Web Push Notification
The Push Owl app enables users to bring their potential customers back to their cart by sending automatic web, email or SMS notifications. It features detailed retargeting together with custom reporting, flash sales, subscriber lists integration, optimization of notification sending time, and more. It integrates with Stamped.io, Judge.me, Loox, Fera.ai, Flits Store Credits, and In Stock Alerts. The app has an incredible average 5 star rating from more than 1,400 reviews.
Vimeo Create – Video Maker
The Vimeo Create app enables the automatic generation of high quality videos out of existing product images and texts. Among many things, it features an easy management of all your videos in one place including guided video templates that cover a wide range of ecommerce use cases such as product introduction, new arrivals, highlights of special offers, testimonials and more. The app integrates with Google drive, Google Photos, Facebook, and Youtube. It has an average 4.6 star rating from over 500 reviews.
Free Traffic & Ads
Free Traffic & Ads connects between different store owners and provides an easy-to-use ad exchange service. Each of the store owners receives an ‘Exchange Credit’ in return for displaying ads on their online store. These credits are collected and can later be used to fund ads on other stores. The app features easy management of campaigns and ad creatives, real-time analytics, customization of ads, and more. It has an average 4.5 star rating from over 3,600 reviews.
Free GDPR + EU Cookie
The Free GDPR + EU Cookie app lets Shopify stores display a cookie bar banner asking website visitors for their consent to collect their personal data, according to GDPR law. The app enables customization of the banner’s design and is compatible with all Shopify themes. It integrates with many 3rd party apps like Spocket, Oberlo, Printful, Loox, Recart, Pushowl, Privy, Klaviyo, Kit, and more. The app has an average 4.6 star rating from more than 1,000 reviews.
Abandoned Cart Recovery Hero
The Abandoned Cart Recovery Hero app helps you increase your conversion rates by enabling browser notifications which takes potential customers back to their abandoned carts. The app features customization of notification messages in just a few clicks, with no coding needed. It has an excellent average 4.7 star rating from over 1,600 reviews.
Best Profit Tracker App for Shopify
BeProfit
Considering that many Shopify store owners struggle to accurately calculate their profit margins, BeProfit is your go-to app if you're looking for a precise Shopify profit calculator. It will help you keep control of your store by tracking and analyzing your business metrics, lifetime profit and expenses. It provides an intuitive dashboard which includes a breakdown of your orders, expenses, products, inventory, shipping and much more, all in one place, all customizable.
An easy integration with various ad platforms (e.g. Google Ads, Facebook Ads, TikTok Ads, Snapchat Ads, Pinterest Ads) makes it easier than before to track your ad spend and get insights which can actually translate into more profits.
The app is rich in many additional features like building custom reports, importing and editing shipping profiles, and tracking fulfillment and transaction status of your orders. BeProfit has an excellent average 4.7 rating from almost 60 reviews.
Best Shopify Shipping Apps
In Store Pickup Local Delivery by LogBase
This app is ideal for bakeries, grocery stores, restaurants, florists, cake shops, and other stores that offer pickups, allowing customers to schedule local pickups and deliveries.
The app makes it possible for store owners to set different local delivery and pickup times and dates, limit orders per slot, and set cut-off and preparation times.
It's super easy to customize per your requirements thanks to multi-location, product preparation time, fulfillment, and availability. Additionally, you can set delivery rates based on zip code, order value, weight, and product type.
Currently, the app has more than 445 excellent reviews and a 5-star rating on the Shopify app store. The monthly subscription starts at $6.99 with a free trial period of 14 days.
Return & Exchange Portal by ReturnGo
Seamlessly create a positive return and exchange experience to boost customer satisfaction and loyalty. The Return & Exchange Portal app features a customized return management system that makes it easier than ever to let customers request a return or exchange.
Offer your customers store-credit support in any currency or language. Maximize your profit and Customer Lifetime Value by leveraging a variety of options for customers to pick their preferred alternative to refunds.
ReturnGo has an outstanding 5-star rating on the Shopify app store and more than 90 excellent reviews. Pricing starts at $9.97 per month with a 14-day free trial.
Shipping Rates Calculator Plus
The Shipping Rates Calculator Plus app lets you easily display your shipping costs to your website visitors when they view their shopping cart. As one of the most important things for online shoppers when viewing their cart is getting a breakdown of their total costs, including shipping costs, this can significantly increase the chances of making a sale.
The app uses your Shopify’s API together with data about users’ location to determine the exact shipping rate. It integrates with Multi-Currency, Canada Post, USPS, UPS and FedEx.
The app has an average 5 star rating from over 200 reviews. Pricing is $6.90 per month including a 30-day free trial.
Intuitive Shipping
The Intuitive Shipping app provides all the data you need to determine the exact shipping rate for each of your orders using the SmartBox algorithm. Features include an advanced Rate Blending which allows setting rates from over 40 built-in rules, and a pick-up or delivery options within a specified postal zone (also supports UK postcodes).
In addition, it offers adding special shipping descriptions under your shipping rates section at checkout, and can accurately calculate rates of major carriers including DHL, FedEx, USPS and more. Pricing starts from $29.90 per month including a 14-day free trial. It has an average 4.9 star rating from over 150 reviews.
Packline Pro Shipping Platform
The Packline Pro Shipping Platform app offers an optimization of the entire shipping process, beginning with importing orders, printing labels, as well as picking and packing orders. Among the app’s features you’ll find different automation tools such as bulk printing and setting of pricing rules, as well as constant customer support.
The app also offers an optimization of the checkout process to increase conversions and integrates with Hermes, UPS, DPD, DHL,TNT and GLS. Packline Pro Shipping Platform is free to install and has an average 4.8 star rating from almost 400 reviews.
Advanced Shipping Rules
The Advanced Shipping Rules app for Shopify will help you take charge of your complex shipping needs by managing all your rates and shipping rules by yourself. Using the app you can set advanced package dimensions, restrict air rates or products from specific zones, add insurance and signature options, customize titles and subtitles of shipping rates, and more.
The app integrates with Printful, Printify, Pixels, and Gooten. It offers phone support and an unlimited free trial while using its test mode, while premium costs $9 per month. The app has an average 4.8 star rating from over 300 reviews.
Shipway – Shipping Automation
The Shipway app for Shopify covers a wide range of shipping needs, from automatic allocation of tracking numbers to generation of shipping labels in bulk, and automation of self-service reports. The app provides users with the option to download invoices in an easy way and track the shipping status of all products in one place. It integrates with FedEx, Bluedart, Delhivery, Tally, Aramex, and has an average 5 star rating from more than 300 reviews.
Best SEO App for Shopify
SEO Audit + Image Optimizer
SEO Audit + Image Optimizer allows automating your store's site health and making it more visible on Google. It includes site health analysis, SEO audit, broken links checker and optimization of store metadata. Apart from this, there is an image optimizer that reduces images size and at the same time preserves visual quality.
The app has an average 4.6-star rating from over 680 reviews.
It offers a free plan which includes a general SEO scan, optimization of 50 images and 10 products plus page speed analysis, while the pro plan starts from $12 per month.
Shogun Landing Page Builder
The Shogun Landing Page Builder app features an easy-to-use drag-and-drop page designer including A/B testing tools, all to allow optimization of your online store’s pages, from promotion pages to blog posts, sales funnels and product pages. It includes more than 30 page templates optimized for mobile view and also allows you to develop custom elements using JavaScript, CSS and HTML.
More features include optimization of texts, buttons and images to match SEO best practices, as well as improvement of page speed. The app offers 24/7 support and integrates with Google Analytics, Adobe Typekit, Instagram, Facebook, Youtube and Pinterest. Pricing starts at $39 per month including a 10-day free trial. It has an amazing average 4.9 stars ranking from more than 2,300 reviews.
Avada SEO Image Optimizer
Avada SEO Image Optimizer will help you improve your website’s speed and store rankings. Features include optimization of image ALT tags, Google structured data, meta tags, and more.
The app provides detailed SEO reports including an analysis of your product pages to detect problems and suggestions for improvements. The app integrates with Page Builder: Pagefly, Shogun, GemPages and LayoutHub. Avada SEO Image Optimizer is free and has a great average 4.9 star ranking from more than 800 reviews.
SEO Optimizer: All-In-One SEO
The SEO Optimizer app is rich in features to improve your store’s SEO rankings in Shopify. It includes tools to optimize images and meta tags, monitor broken links, manage Google Snippets, generate easy-to-understand SEO health reports, and more.
The app has an amazing average 4.5 star rating from over 2,600 reviews. The app’s pro plan costs $29.88 per month while a free plan is available and includes different features to optimize images according to SEO best practices.
SEO Booster – SEO Marketing
The SEO Booster – SEO Marketing app is an all-in-one SEO app to increase organic search performance. It features an automatic detection of issues related to your store’s performance on Google, re-organization of your store’s data according to Google’s best practices, re-adjustments of store’s components to be mobile optimized, and more.
The app has a great average 4.7 star rating from over 1,900 reviews. It offers a free plan which includes a general SEO scan, detailed SEO instructions and more, while the pro plan costs $29.99 per month and includes a 7-day free trial.
Best Marketing Apps for Shopify
LangShop - AI Language Translate
AI Language Translate LangShop is a complete language translation & currency converter solution for Shopify stores. The app allows translating & editing content including checkout and dynamic one without limits on words and page views, combining AI machine & human translation.
The app has an excellent 4.7-star rating from more than 550 reviews.
Pricing starts at $10 per month with a 14-day free trial. A free plan is also available.
Adoric - Popup and Gamification
Adoric is an easy-to-use popup and gamification app with many different options for different goals. It allows sellers to increase their conversion rates by showing the popups to the right users at the right time, thanks to their trigger and targeting features.
Adoric offers fun elements that are easy to implement, such as falling gifts, spin the wheel, exit-intent popup, cart saver, and email popup.
Adoric allows users to try any of their plans for 14 days with an unconditional money-back guarantee. A free-forever plan is available as well as 3 paid plans, determined by the number of your page views.
Vidjet - Popup Videos
Vidjet is one of the best on-site video display tools on the Shopify App Store.
The app enables Shopify sellers to display video content on their online shop, without any coding experience required. You just install the Vidjet app, upload your video and have it published.
Choose from a variety of use cases (conversion, engagement, embed, or from scratch) and display your campaigns on multiple webpages, with in-depth segmentation options varying in accordance with your customers' journey. The best part? Videos are displayed as non-intrusive pop-ups, without affecting the website's speed or the customers' shopping experience.
Vidjet is free for all users with up to 1000 video plays per month and has an excellent 5-star ranking on the Shopify App Store.
UpPromote
UpPromote helps businesses of all sizes to optimize their profits and increase customer retention by growing their networks and advertising at no costs.
Among many features, it provides the option to build multiple commission offers to affiliates or influencers, to communicate with them using an in-app chat, and track their performance through numerous channels. The app integrates with PayPal, WordPress, Klaviyo, Bold Subscription and Mailchimp. It has a free plan available while premium plans start at $21.99 per month. The app has an average 4.9 star rating from more than 1,200 reviews.
Ali Reviews
Ali Reviews is the leading review app for Shopify businesses of all models, with a 4.9 average ranking on the Shopify app store. This app helps you take full advantage of customer reviews to build a strong reputation, and most importantly, increase conversion rates.
The Ali Reviews app provides superb features, including collection of reviews via email and SMS, rewarding reviewer’s efforts with discount codes, and reducing cart abandonment rates with review widgets. It also allows you to migrate data from Loox, Yotpo, Stamped, Judge.me, and Shopify Product Reviews with ease.
Ali Reviews is fully responsive on mobile and tablets, working perfectly with the latest Shopify Dawn theme and Online store 2.0. The app offers a 7-day free trial with no prior charge approval. Pricing starts at $9.9 per month.
Reputon Customer Reviews
The Reputon Customer Reviews app will help you dramatically improve your store ratings, trust score, SEO and reputation by working with your happy customers.
Customer Reviews App lets you receive valuable reviews by sending automated follow-up email requests once your customers receive their orders. Improve ratings and customer feedback on a large variety of review websites such as Google Reviews, Trustpilot, Amazon, and more.
Handle negative reviews. Minimize chances of bad reviews on Facebook, Sitejabber and Amazon. Pinpoint negative reviews and get social proof in no time. When your reviews and ratings grow fast on auto-pilot, you get a double profit – increasing your brand loyalty and getting better rankings on different search engines.
Reveal: Increase Your CLV
Omniconvert REVEAL is a Customer Value Optimization Platform that helps merchants understand and predict their customers’ behavior to improve Customer Lifetime Value. It makes complex data easy to understand and visualize, reveals insights and helps them treat customer segments according to different marketing channels.
Reveal increases lifetime value, loyalty and customer retention by using advanced buying behavior segmentation (the RFM model), tracking and rewarding customers based on their lifetime spend, using enhanced email marketing through its integration with Klaviyo, lowering ad spend by using the power of the best buyers, predicting when customers will buy next, maximizing profits and tracking only the metrics that matter.
Nudgify Social Proof & Trust
Nudgify by Convertize is a Shopify app built to boost sales and sign-ups using the power of notifications. Its built-in analytics lets you see exactly how each Nudge (notification) increases your sales. More features include an automatic creation of social proofs to encourage cross-sells, unlimited groups of Nudges and constant in-app chat support.
The app is available in 16 languages and has an average of 4.5 rating from more than 50 Shopify reviews. There is a free plan available, pricing starts at $9 per month.
Growave
Growave is an all-in-one marketing platform for small and medium-sized Shopify brands that helps them reach, engage, and convert their customers. The app offers various tools, such as Reviews, Wishlists, Q&A, Loyalty and Referral, Social login, Instagram galleries, and more. Growave is very easy to install and use despite its extensive functionality.
Growave offers affordable pricing to suit any brand’s growth stage. Such multifunctionality of the app makes it the ultimate platform for online store conversions and sales. It is as much as six times more cost-effective than any of the alternatives on the market. Another highlight of Growave is fast and responsive 24/7 customer support. Undoubtedly, it is the best app for growing Shopify businesses looking to build engagement and increase customer retention.
Loox
Loox is a product review app enabling Shopify stores to get customer reviews automatically. It helps Shopify merchants gain credibility and optimize their customer retention and conversion rates. The app features effective email campaigns to gather reviews and a customizable product review display which allows integrating high quality images.
Loox is available in 17 languages, has 24/7 customer support and is GDPR compliant. Loox integrates with Klaviyo, Recart, PushOwl, Google Shopping, Aftership and more. It has an astonishing 4.9 star rating from no less than 6,000 reviews! Pricing starts from $9.99 per month including a 14-day free trial.
Pop up, Email & Exit Pop Ups
The Pop up, Email & Exit Pop Ups app by Poptin lets you increase conversion rates by enabling a quick creation of embedded forms, many different types of pop ups, and more.
The app features a simple-to-use drag and drop editor, advanced targeting options, settings of various rules, A/B testing of pop-ups, and an integration with some of the most popular marketing automation platforms like MailChimp, Zapier, HubSpot, Klaviyo and more. It is GDPR compliant and has an average 4.9 star rating from over 100 reviews. The app offers a free plan while premium plans start from $19 per month.
Yotpo Product Reviews and Photos
Yotpo is an all-in-one eCommerce marketing platform enabling Shopify merchants to increase their sales by optimizing their content. Using the app you can collect reviews, showcase customer content, optimize SEO efforts, build your own community and get insights to allow improved business decisions.
Yotpo offers several premium plans, as well as a free plan which includes auto review request emails, social and moderation tools, and more. The app integrates with Facebook, Instagram, Google, and Klaviyo, and has an average 4.7 star rating from more than 2,500 reviews.
DataFeedWatch
DataFeedWatch is a leading feed marketing solution combining data transformation with help and advice that empowers Merchants, Agencies, and Enterprises to succeed on eCommerce channels. Businesses can use this tool to transform their product data and meet the requirements of over 2,000 shopping channels with high-quality integrations.
Intuitive and easy to use, DataFeedWatch gives merchants the tools needed to achieve greater visibility and ROAS from their eCommerce campaigns on Google, Facebook, Amazon, and various other shopping platforms. This can be seen through their various case studies. It’s a simple solution for anyone looking to cut back on the time spent maintaining their data feeds while surpassing their competition.
ModeMagic
ModeMagic connects your store’s data to your product images to help you avoid shopper drop-offs, boost your productivity, keep your store updated, and catch your customers’ eyes. Their out-of-the-box automation playbooks empower you to tap into buyer psychology and increase CTR from collections to product pages by 45% and add to cart by 30%.
Add a little bit of magic across your store funnel with customized stickers, badges, icons, product feature cards, and more. Create urgency and nudge your customers towards products they like with this awesome app. ModeMagic has an average 4.9 star rating from over 400 reviews and offers a free plan (their ‘Starter’ plan costs $9 per month).
Reviewbit WhatsApp Reviews
Reviewbit helps Shopify sellers to provide post-purchase customer engagements via social messaging platforms such as WhatsApp. Stores can collect feedback on each order by sending an automated review request through instant messaging systems.
The app allows businesses to provide immediate customer service in response to negative reviews, upsell their products to satisfied or loyal customers, and increase sales through upselling and cross-selling products by sending offers and promo coupons while gathering feedback through chat platforms.
Reviewbit helps merchants retain current customers while also converting new ones into loyal customers, and assures 30% more results in collecting reviews than through email.
Best Shopify Design Apps
Product Labels & Badges Pro
With an extensive library of 3000+ samples, Product Labels & Badges Pro lets you easily customize badges and labels for any event. This app makes it easy to visually design your labels and make them eye-catching for your customers. Moreover, this app ideally suits your every need by offering a variety of customizable label positions that can be displayed with nine pre-calculated positions of product images. The app features several variables for specific labels likeFor Sale, In Stock, and Sold Clearly. It helps store owners drive more sales by motivating customers to purchase products quickly. The users’ preference stands out with its easy-to-use management and instantly displaying numerous labels without disruption. Product Labels and Badges Pro has an excellent average of 4.9 with 454 reviews.
GemPages
GemPages is a top solution designed to help online merchants create professional and high-converting stores.
The drag-and-drop platform is brimming with templates and elements catered to every industry and purpose, spanning from landing pages to product listings, cart modifications, upsell banners, alerts, and more. Simply put, GemPages is an easy and powerful way to customize your online shop with no code.
The app offers three price plans, starting at $15 for the core features including integrations with 30+ apps, SEO optimization, and 2 page types.
Venn Apps
More than 73% of e-commerce revenue is generated from mobile. That's why it's highly important to invest in your mobile app! This is where Venn Apps come in.
With their mobile app builder, sellers can enjoy a 3x higher conversion rate and 20% higher average order value.
Building your mobile app with Venn Apps is super easy and intuitive! Use one of their beautiful templates and customize it to your needs and preferences, or let their in-house experts build it for you. Even if you already have an existing mobile app, the Venn Apps team will be happy to migrate it and do all the work while you sit back and relax.
Venn Apps integrates with all of your favorite Shopify apps, like customer reviews, loyalty rewards, advanced search, sorting & filtering, and Shoppable Instagram.
So go ahead and create your beautiful mobile app without coding!
Shopney - Mobile App Builder
Did you know? More than 80% of eCommerce traffic is generated on mobile devices nowadays, which makes it crucial than ever to make sure your store is mobile-friendly. Shopney for Shopify and Shopify Plus will help you boost your conversion rates by up to x4, by providing an excellent mobile experience, fast checkout and push notifications.
Shopney gives you an easy drag & drop editor to build your mobile app in minutes, without any code or design skills required; there are different layout options for different store types and you can even convert your visitors to clients in real-time with an in-app live chat feature. Also, Shopney provides incredible 7/24, multilingual customer support which guarantees a smooth onboarding and launch process.
Shopney has an outstanding average rating of 5 stars on the Shopify app store from more than 400 happy users.
Smartzer
Smartzer’s interactive video Shopify App beta allows brands to add a clickable overlay to video content to make it shoppable. Consumers can tap and swipe product hotspots to show information with an ‘Add to Cart’ button to encourage viewers to buy straight from the video.
Smartzer’s live stream shopping feature lets brands sell products in real-time. Viewers can click on products displayed in live stream shopping events to add to their cart or be directed to product pages. The shoppable video experiences can be shared on e-commerce sites, social media and email newsletters.
Kiwi Size Chart & Recommender
If you’re selling clothing items, this Shopify app is a must-have. It features a fully customizable Size Chart to help customers make better purchasing decisions as well as a Size Recommender to provide shoppers with instant fit recommendations depending on their age, weight and height. Kiwi Size Chart & Recommender supports all eCommerce platforms and perfectly integrates with Shopify, allowing you to easily add size buttons and charts directly to your product pages.
The app has an excellent 5-star rating from more than 500 reviews. Pricing starts at $6.99 per month with a 14-day free trial. A free plan is available.
PageFly – Landing Page Builder
PageFly is well known as the most loved page builder app on Shopify, trusted by 90k+ Shopify and Shopify Plus merchants. PageFly is currently ranked #1 in the Page Builder category with 4.9/5 rating from over 4,900 paying customers.
The app allows users to build high-converting pages easily with a simple drag-and-drop system, no coding skills required. PageFly also offers an extensive library of 70+ pre-made templates, pre-built sections and integration with the most powerful Shopify apps; which enables merchants to build beautiful and professional stores with the least effort. Moreover, PageFly provides 24/7 live chat support to all plans, every concern will be answered in just a few minutes.
Promo.com – Promo Video Maker
The Promo Video Maker app lets you optimize your marketing efforts by adding visual components in the shape of eye-catching videos. It automatically pulls existing images from your Shopify profile and creates engaging videos of your choice – whether it’s about specific features or the products you offer. As videos are an integral part of marketing in today’s world, Promo.com makes them accessible to all.
Boost sales and Design – Swipify
The Swipify app for Shopify lets store owners optimize their customers’ shopping experience by shifting to a ‘swipe’ mode, resulting in visitors increasing their time on site as well as increasing the number of products displayed on each page they visit. The app gathers different kinds of data to provide merchants with valuable insights on their products.
Swipify offers a free plan which includes a time-limited launch promotion with up to 1,500 monthly visits, while the pro plan costs $29 per month including a 14-day free trial. The app has an average 5 star rating from 6 reviews.
Mobile App Designer – Drobile
Who doesn’t shop on their mobile? Everyone does. The Drobile app offers an intuitive drag and drop app builder for Shopify stores. It features an easy way to build a mobile app from scratch which can be customized, managed and updated as you go, in real time. More features include adding push notifications, reward programs, payment gateways and more. The app integrates with WeGlot, GoSquared, Apple & Google Pay, iPhone and Android, and more.
Best Productivity Apps for Shopify
Connect POS
ConnectPOS is a leading point-of-sale (POS) app with a rating of 4.8/5 stars on Shopify. It’s an all-in-one solution for retail businesses to grow their store, with features ranging from inventory management, order management, various payment methods supported, etc. More than that, real-time synchronization helps retailers stay up-to-date about the latest change between online stores and the POS system.
In addition, ConnectPOS charges no fee when you use third-party payments (unlike many other Shopify POS apps). You only need to pay directly to third-party providers. ConnectPOS offers 3 pricing plans starting from $39/month per device, a custom plan and a 14-day free trial.
Online & POS Payroll and Tools
The Online & POS Payroll and Tools app is a staff management platform that enables you to review and manage all of your stuff’s administration needs in one place, including payrolls, schedules and tasks.
Using the app you can get notified about where exactly each of your employees have visited at your Shopify dashboard, measure productivity levels of employees, set up custom workflows to efficiently manage projects, and more. The app offers a free plan, while pricing starts from $7.99 per month. It has an average of 4.9-star ratings from over 30 reviews.
Excelify
The Excelify app will help you manage and organize your entire store’s data, all in one place. Among many features, it includes options to update prices of products, inventory, Alt texts of images, product variants and SEO fields. It allows migration of data from Magento, BigCommerce, WooCommerce and WordPress, and integrates with Amazon, Google Shopping, Google Sheets and Dropbox.
Excelify offers a free plan, while pricing starts from $20 per month. It has a great average 5 star rating from over 240 reviews.
Only the best Shopify apps for your store
The Shopify app store offers a rich variety of apps to help you boost your store’s performance and, with the right products to sell online, make it as profitable as it can be. The almost countless number of categories and apps available might make the process of choosing the right app confusing at first glance, but it doesn’t have to be.
When on the lookout for the best Shopify apps, try to focus on your goals. Make some research and ask yourself what are the key areas needed to be improved or developed in your store. Then, make a list of potential apps (try to keep it short), go over their features, reviews and rankings, and you’re good to go. Alternatively, use a comprehensive and searchable directory of Shopify apps to find the specific apps to help you accomplish your goals.
Business metricsAOV Beginner's Guide: What Does It Mean For Your E-commerce Business?For an e-commerce business, conversion rates and average order value (AOV) go hand in hand. While these can differ between industries and market sizes, recent statistics show that the average conversion rate for e-commerce businesses is around 1.72%, while the average AOV sits at around $116.72.
So, consistent conversions can help increase AOV because it means more people are completing purchases while maximized AOV can improve revenue and profit margins.
» Want to know more? Learn the best conversion rate metrics for e-commerce startups
What is Average Order Value?
AOV calculates the average amount of money spent by a customer per order over a certain period. This metric directly impacts profits because if an e-commerce business doesn't make enough sales or only makes low-value sales, it may turn a low profit or no profit after expenses are paid.
How to Calculate it?
AOV ($) = Total Revenue / Number of Orders Received
Let's look at an example. An online clothing store received 200 orders and made $10,000 in a month.
AOV ($) = Total Revenue / Number of Orders Received= $10,000 / 200= $50
A lower AOV, like this, may imply that customers are spending less per order, which can hamper profitability.
But a high AOV indicates that customers are willing to spend more money on the business. So, let's say the same online store made $20,000 and received 200 orders in a month.
AOV ($) = Total Revenue / Number of Orders Received= $20,000 / 200= $100
This higher AOV can enhance profitability and highlights positive customer engagement with the store.
Why Should You Calculate it?
Calculating and monitoring AOV can help businesses understand their sales strengths and weaknesses and their customers' buying habits. Some ways include:
Tracking revenue and sales metrics to identify areas where they can cut costs.Businesses can make data-driven decisions to improve sales and revenue.Analyzing AOV can help identify techniques that need improvement to increase customer loyalty and drive sales.
Seamlessly Monitor Your Sales Data
Make sales data and revenue metrics easy to digest with an intuitive one-stop platform.
Use cutting-edge analysis for insights into marketing performance.Access the app using desktop or mobile devices.Create and export custom data reports to assess revenue and profits.
BeProfit offers a user-friendly platform to make conversion, profit, and sales data easy to monitor and comprehend.
Understanding Average Order Value's Impact
Customer retention can lead to a high AOV because when customers are loyal to a brand, they tend to make repeat purchases. The trust and loyalty the business has built with its customers can increase the likelihood of higher-value purchases.
Poor customer retention can negatively impact revenues and profits and can indicate a business is not appealing to customer needs.
For example, this happened when I first started in e-commerce and spent a significant amount on marketing but failed to convert those leads into conversions.
The AOV and profits increased through employing effective sales techniques, like web personalization, because costs were optimized.
» Find out ways to boost product profitability for your e-commerce store
How to Improve Average Order Value
Finding the best techniques to improve conversion and increase AOV is essential to improve a business's bottom line. Here are a few to help your business achieve this:
Upselling and cross-selling: By suggesting related or complementary products to customers based on their browsing preferences or past purchases, businesses can encourage them to add more items to their cart.Customer support: Various channels such as live chats, phone calls, and personalized emails can enhance customer satisfaction, leading to repeat purchases.Digital marketing: Using various digital marketing techniques such as email marketing, social commerce, and other targeted advertising can attract more customers and encourage them to spend more.Product bundling: Offering products in bundles based on customer interests can encourage customers to buy more as it offers them more value for their money, resulting in a higher AOV.Loyalty programs: Rewarding customers for their repeat business through loyalty programs such as points, discounts, and exclusive offers can incentivize them to spend more.
» Discover the best Shopify apps to increase your AOV
Track Average Order Value To Help Your Business
Tracking AOV can help businesses identify opportunities to reallocate funds or cut unnecessary marketing costs, plus assist them in making informed decisions about pricing, advertising strategies, and promotions.
With BeProfit, you can track your revenue-based metrics, retention rates, and profitability in an integrated platform. This way, you can identify your sales trends and make data-driven decisions about your marketing strategies to help increase AOV.
Profit optimization5 Simple Advertising Techniques to Increase Shopify Incremental Profit MarginsShopify is a dominant platform in the e-commerce market. It holds 10% of the global e-commerce tech market and, in 2022, had a total revenue of $5.6 billion. But poor advertising can lead to low sales and missed profits. So, Shopify businesses can revamp their advertising strategies to reap their own successful revenues, help boost reach, and increase incremental profit margins.
What Are Incremental Profit Margins?
Incremental profit margins refer to the additional profits earned by increasing sales or changing product offerings.
The incremental margin formula is as follows:
Incremental Profit Margin = (Ending Profit Metric - Beginning Profit Metric) / (Ending Revenue - Beginning Revenue)
Good e-commerce profit margins can vary depending on industry and business size. For instance, Shopify's gross profit margin in 2022 was 49.2%, and the average for online retail is 42.78%.
Let's look at an example. An e-commerce store adjusted its advertising campaign from one quarter to the next and wants to know how its profit margin changed incrementally.
In the first quarter, they earned $6,000 in revenue and $2,000 in gross profit. By the end of the second quarter, their revenue was $24,000 and the gross profit was $10,000.
Incremental Profit Margin = (Ending Profit Metric - Beginning Profit Metric) / (Ending Revenue - Beginning Revenue)= ($10,000 - $2,000) / ($24,000 - $6,000)= $8,000 / $18,000= 44% (rounded down)
The advertising campaign roughly generated a 44% incremental profit margin, which indicates that the ad spend was effective at turning additional profits.
» Find out the mistakes to avoid when calculating profit for your Shopify store
Track Your Store's Profitability Easily
Evaluate complex ad, sales, and profit metrics in real time with intuitive charts and custom reports.
Uses cohort analysis for detailed insight into ad performance.Analyzes and optimizes all social media, online ads, and email campaign traffic.Accessible from anywhere via mobile or desktop devices.
BeProfit can help you monitor your profit margins and discover actionable ways to improve them for all your Shopify stores, all from one dashboard.
Advertising Techniques for Maximal Incremental Profit Margins
Effective advertising can drive incremental profit margins and also increase costs and decrease margins if not targeted well or if the ROI is too low. Different ad metrics, like CTR, CPC, and CPA, can impact how much profit each campaign generates. Some techniques to try and boost profit margins include:
1. Email Marketing
Built-in email marketing tools and native apps allow Shopify store owners to create targeted campaigns and send automated emails based on customer behavior.
Email marketing can help increase incremental profit margins as follows:
By reminding customers of abandoned carts and encouraging them to complete purchasesAttracting new customers and retaining existing ones by offering exclusive promotions and discountsStrengthening customer loyalty to help boost Shopify sales
» Learn about loyalty programs for Shopify to boost sales
2. Interactive Popups
On-site pop-ups can help businesses do the following to improve incremental profit margins:
Grow their email list and help boost customer loyaltyRetarget customers with personalized experiences and maximize customer satisfactionIncrease sales with exclusive customer discounts or incentives
For example, a Shopify activewear store can use pop-ups to offer a 10% discount to those who sign up for a newsletter, as well as introduce personalized product recommendations based on customers' browsing habits.
Tip: Shopify's built-in discount code feature allows for percentage-based discounts or fixed amounts and can be offered through various channels.
3. Engage On Social Media
Social media ads can target specific demographics and interests, so using social commerce can help businesses:
Increase conversion rates, brand awareness, and reachDrive traffic to their businessImprove profit marginsEngage with customers on a more personal level
Let's say a Shopify store sells handmade jewelry. Using targeted social media ads and discount offers on those who previously interacted with the brand on Instagram and Facebook can lead to more sales and increased profit margins.
4. Upselling and Cross-selling
Suggesting complementary items, upgraded products, or product bundles to customers can improve profit margins and customer satisfaction since businesses can:
Encourage additional purchases, resulting in higher order values and increased revenueOptimize the overall shopping experience through personalization and offering relevant recommendations
For example, a Shopify store selling clothing may use upselling to suggest higher-priced items that match a customer's preferences or cross-selling to recommend accessories that complement their purchase.
5. Referral Programs
Referral programs can help boost incremental profit margins by focusing on customer acquisition and incentivizing conversions. Some benefits include:
Having existing customers refer their friends and family, therefore lowering acquisition costsBuilding customer loyalty and engagement since customers who participate in the program may feel more invested in the brandHelping improve customer retention
For example, a Shopify store selling subscription-based meal kits may offer a discount on the next order to both the referring customer and the new customer they referred.
» Want to know more? Check out the ultimate guide to effective e-commerce ads
Leverage Advertising to Improve Your Incremental Profit Margins
Making the most of Shopify's built-in tools and combining them with simple advertising techniques, like economical acquisitions, incentives, and social media interaction, can help up your sales and incremental profit margins.
And monitoring your ad performance can help sustain your positive profit margins. BeProfit offers powerful profit-tracking and can easily integrate with multiple Shopify stores. Staying on top of your data can help you find advertising areas that need reworking so you won't have profits lower than your ad spend.