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What Is Web Personalization and the Profits It Can Bring
MarketingWhat Is Web Personalization and the Profits It Can BringFor many years predicting customers' expectations, wants and needs was one of the biggest challenges marketing had to face. Although merchants all over the world still have to guess and invent new tactics to earn customers’ love and loyalty, the process has become much easier. The key to success is to listen and hear your customers. Of course, physical stores have an advantage here, as they can receive the information from the horse’s mouth. But online marketing invented its own methods, which made eCommerce a competitive sphere. Web personalization is the one. In this article, we’ll try to figure out what web personalization is and what impact it has on sales in eCommerce. What is website personalization (what is needed for web personalization)How to personalize your website (translate, product recommendations, page load speed, interaction with customers)The benefits of web personalizationConclusion 1. What is website personalization? Personalization is the act of tailoring customer experience to meet the needs of each customer individually. Website personalization includes creating conditions to cater to customers' interests and provide a seamless experience on the website. If we look at personalization from a customer perspective, website personalization is the form of assistance from the brand to find desired products and services through conveniently arranged and rendered information, which is oriented on the individual visitor. To display only relevant personalized information to each customer, websites rely on automatic data collection, customer profile and business goals. There are several ways to collect data about the customer: through sign-up forms, where users should fill in their personal information, via cookies (show visitor’s activity) and web beacons (collect statistics of the number of visitors on the page or links clicked), transactional history and other company records, etc. A customer profile also gives an idea of customer interests to make web content personalized. The profile usually contains information about location, gender, age, the industry they are involved in, purchased products and reviews left, etc. And, finally, a personalization strategy should be based on the business goals you set to follow your business needs and wisely guide visitors in the right direction. 2. How to personalize your website The website personalization process can vary depending on your business goals. In this post we’ll describe the main steps you can start from to make your website content more personalized. #1 Translate your website into your customers’ language Website personalization is only possible if your customers understand the language of the website content. Website translation improves customer experience and contributes to trustful relationships with buyers. To make a website serve your business goals, you’ll need to identify your target audience and provide it with the content they understand. Of course if your business is oriented only on local audiences you can skip this step, but bear in mind that selling in multiple markets can increase your revenue greatly and improve brand awareness on the local market even more. Once you have decided on the languages for your website, you’ll need a good translation app to generate quality translation without fuss. For Shopify merchants, there is a big choice of website translators available. We can recommend LangShop AI Language Translate as the most feature-rich and quality engine. The app supports 241+ world languages and allows merchants to translate the entire store with different translation methods: manual, AI machine, pro or agency translation. For quick browsing you can implement a language switcher or customize language redirect, which automatically detects the preferred language and displays the relevant language version. It’ll drive more traffic and improve customer experience in your store. #2 Improve navigation The second aspect you should consider for website personalization is website navigation. Well-arranged navigation works magic. If a visitor can quickly find the desired product and a website helps with it by providing smart product recommendations and filters in product search, the chances to convert increase significantly. Shopify app store offers 50+ apps oriented on product search and filters. Same situation in the product recommendation apps market. But be careful, even though product recommendations allow visitors to find products relevant to them, too many up- and cross-selling blocks on the website will cause nothing but customer irritation. Localization is a crucial part of website personalization. Together with the content translation mentioned above, the design, images and SEO components should be localized to meet audience expectations and needs. You can change the catalog based on the stock for a particular country, use different images to reflect local realities, and consider multilingual SEO to attract an audience from a targeted country. Display product recommendations based on the tastes of the local audience is a widespread practice, especially among streaming platforms. It’s also a form of website localization. #4 Build a strong communication channel What can win customers’ trust more than a brand ready to listen to them and discuss possible issues, share trends, give useful advice, etc? Creating a channel for communication will help to engage your customers, discover more insights and personalize user experience. It doesn’t matter what channel you’ll use: social media, blog or community. What is really important is to constantly maintain communication, answer questions, be sincere, and add interesting and entertaining content. The benefits of web personalization Personalization is a powerful technique to improve customer service and increase profits. Personalization is considered to be a trend in 2023, as it has proved its effectiveness. According to the Accenture survey, 91% of customers claim they’re more likely to buy from brands that recognize and remember their choice to employ it for subsequent browsing. Econsultancy research revealed that in 80% of companies there’s an uplift after implementing personalization, while a McKinsey study proved that 71% of customers today expect to receive a personalized experience on the website. As you can see, there’re a lot of reasons to implement website personalization. But what concrete benefits can it bring? Benefits of personalized marketing: Better customer experiencePersonalization makes the searching and purchasing process much easier for buyers.Makes content more relevantEven if you sell a lot of products, content personalization will simplify browsing and reduce clutter for buyers.More opportunities for customer engagementInteraction with buyers is crucial for personalization.Improved customer acquisition and retentionCustomers are more likely to buy products when a brand takes care of their experience on the website.Improved ROI of a marketing tacticAs more visitors are converted into customers when the website is personalized, the return on investment also increases. Conclusion Website personalization is a powerful marketing tactic to improve customer experience on your website and boost your sales. If customers feel that exceptional way the brand treats them, they pay it back. So, personalization can bring a lot of profits and that’s why it is worth investing.
7 Simple Steps to Set Up Facebook Conversion API in WooCommerce
Tracking7 Simple Steps to Set Up Facebook Conversion API in WooCommerceSocial media advertising is a powerful tool that can help you gain valuable customer insight as well as increase your exposure and conversions. Consider the potential of Facebook's astounding 2,910 million monthly active users, making it the largest social media platform by far. However, new privacy laws and device software updates can make it difficult to gather marketing data. For example, the iOS 14 update gives users the choice to turn off tracking from apps. This can skew data and give you an unclear picture of how your marketing campaigns are performing. This is where Facebook Conversions API comes in. You can conduct in-app tracking by sending web events to the Facebook server, thus allowing you to gather data and optimize conversions. To set up this API on your Woocommerce store, you can simply install and authorize the Facebook for WooCommerce Plugin. » Do you have a Shopify store? Use Facebook Conversions API for Shopify too 1. Log into WordPress & Add New Plugin Log in to your WordPress admin and navigate to Plugins on the left-hand side panel and select Add new. 2. Install the Facebook for WooCommerce Plugin In the top right-hand side search box, search for Facebook for WooCommerce and select Install now on the relevant plugin. 3. Activate the Facebook for WooCommerce Plugin Once the plugin is installed, select Activate from the plugin installation window. Alternatively, you can navigate to Plugins > Installed Plugins, and then find and activate the app from your plugin list. 4. Authorize Integration Once activated, you must grant permission for integration. Navigate from your WordPress Admin to the Marketing page on the left-hand panel and select Facebook. 5. Select "Get Started" From the window that opens up, select Get Started. 6. Continue & Confirm Settings Confirm that you're logged into the correct Facebook account. Select Continue when you're prompted to grant permissions for the plugin and to confirm the settings. Finally, select Next when you're asked what WooCommerce Integration is allowed to do. 7. Authorize the Plugin Through Facebook From your Facebook Home Page, navigate to the Meta Business Suite tab on the right-hand side, then All tools > Business Apps. Under the E-commerce tab, search for and select WooCommerce Integration. From the popup window, select Connect. Start Gathering Better Data By utilizing Facebook Conversion API in your WooCommerce store, you'll be able to gain an accurate understanding of how your customers behave, thus allowing you to make improvements, optimize marketing campaigns, and ultimately increase your conversions. » Unsure how to interpret your data? Let BeProfit help
How to Calculate Your e-Commerce Store's Product Return Rate
Business metricsHow to Calculate Your e-Commerce Store's Product Return RateHigh e-commerce return rates can be a serious issue for your store's bottom line. Currently, statistics suggest the cost of returns each year amounts to around $101 billion in lost cash for businesses. While returns are problematic for any store, they can be particularly damaging for e-commerce store owners. Apart from having a dissatisfied customer, you miss out on a sale and lose cash on two-way shipping expenses and packaging costs. Understanding Product Return Rate in e-Commerce Product return rate looks at the frequency at which customers return items to your online store. On average, studies suggest a quarter of all consumers return between 5% and 15% of all the items they buy online. If your return rate is higher than this, it could be a sign you need to make some significant changes to your quality management processes. Calculating Product Return Rate: The Formula The formula for calculating product return rate is relatively straightforward. Simply divide the number of products returned by the number of products sold, then multiply by 100. Return Rate = Products Returned / Products Sold x 100 Example Imagine your online clothing store sells 15,000 products within a year, but 5,000 of those products are returned by customers. The formula for calculating your product return rate would be: 5000 / 15,000 x 100 = 33%. If your company sold 10,000 products but had 100 of those items returned, the formula would be: 10,000 / 100 x 100 = 10%. What Is Considered a Good e-Commerce Product Return Rate? A "good" e-commerce product return rate can be difficult to define because the average return rate for most stores depends on the industry. For instance, apparel retailers generally experience an average return rate of around 12.12%, while home improvement and houseware brands can experience an average return rate of up to 11.5%. After industry, a business's return policy also holds great sway over the return rate. A generous return policy with free returns may have a higher return rate because customers are less likely to accept a product they’re not 100% happy with. Other factors that can contribute to higher return rates include: Price: Organizations selling high-price items may receive more returns because customers have higher expectations.Seasonality: A quarter of holiday shoppers buy items online intending to return them at a later date. Holiday returns are particularly common because gift recipients aren’t always happy with the item they receive. Poor product pages: Companies who provide little product information on their online platforms are more likely to see higher returns because customers may have made an uninformed decision when buying the item. The versatility of product return rates means it’s important for retailers to look at their metrics in the context of customer behavior. Organizations generally achieve the best return rates when they reduce the need for returns with high-quality products, and deliver customer-friendly purchasing policies. Best Practices to Optimize e-Commerce Returns There are a few ways companies can improve customer experiences and mitigate returns. Some of the best strategies to reduce return rates include: Implement the right return policy: A well-crafted return policy can help to reduce product returns and boost sales, while reducing cart abandonment. Make sure your customers know what to expect when returning an item. Make product information accurate and accessible: Ensure your product descriptions provide plenty of clear information for your customers to make confident decisions. Include high-quality photos, interesting product details, and relevant sizing charts. Keep customers informed about returns: Leverage automatic emails and notifications to inform your customers about the returns process. Around 92% of customers say they will buy from a company again if the returns process is simple. Elevate the value of customer reviews: Use customer reviews to highlight the values and benefits of a product in advance of a purchase. Most customers will check reviews to determine what they can expect from a product before buying. Promote exchanges over returns: Give customers a hassle-free way to exchange their products for something else on your store. This will also help to reduce the amount of money you lose from a potential return. Reduce Your Return Rates Now that you know how to calculate product return rates, it might be time to think about the other metrics and strategies you can use to improve the success of your online store. Tools like BeProfit can give you a behind-the-scenes insight into the factors that influence your company’s profitability. » Want to see what BeProfit can do? Book a demo
Learn eCommerce with Digital Experts
MarketingLearn eCommerce with Digital ExpertsAs eCommerce continues to grow, user penetration of the market is expected to reach 82% by 2024. This industry has proven to be able to withstand economics and geopolitical storms, which is why many want to be part of this fast-growing sector. It may be your dream to become a successful eCommerce seller, but how do you get there? eCommerce training can be an ideal solution for anyone who is starting an online store or wishing to enhance the customer experience on their platform. Courses on eCommerce can provide information about the basics and new advances straight from people who have experienced it all and came out on top. Hyper AB Testing Introducing Hyper AB testing, an online course from the Israeli marketing agency EZ Social. Their experience in dropshipping and sales led them to develop an online course that has become extremely popular. As part of the course, students learn everything from scratch, including: Setting up a store on Shopify Identifying winning productsEstablishing a financially viable website, one that generates sales with large carts, repeat customers, and a year-round varietyAdvertising on Facebook, Instagram, and Google Working with influencersCustomer service basics About the Instructors As they began their careers when they were only 18, Ziv Habob and Elon Allouche both have a great deal of experience in digital marketing. After pursuing their own distinct paths in the world of digital marketing, they founded their agency together in 2015. Businesses of all sizes are advised by EZ Social on how to generate digital sales. The agency offers consulting services in the field of digital marketing, digital stores, dropshipping stores, and creative marketing strategies for businesses and entrepreneurs. By developing a successful; marketing strategy, they help business owners and entrepreneurs sell more, at a higher price, and to a greater audience. For now, the course is taught in Hebrew only. Check it out here.
Boosting Shopify Sales: 7 Proven Tips You Should Try in 2023
Business metricsBoosting Shopify Sales: 7 Proven Tips You Should Try in 2023The e-commerce landscape is growing increasingly competitive. Shopify alone supports no less than 4.1 million stores in more than 175 countries around the world. However, while the competition levels in this landscape are high, there are amazing opportunities available to business owners too. As the world continues to transform digitally, consumers spend increasingly more time shopping online. If you can find a way of separating yourself from the other market-leading stores in your industry, you can benefit from significant sales and incredible growth. The good news? Small changes can make all the difference to your bottom line. » Struggling to track your Shopify sales? Read this essential guide to Shopify sales reports 1. Ensure Your Site is Mobile Friendly Around 53% of all orders placed in 2020 were from smartphone devices. If your site isn’t mobile-friendly, you risk losing the attention of your target audience. Responsive Shopify theme: Ensure your Shopify theme is responsive and optimized for mobile devices. User-friendly design: Consider that most mobile devices are touchscreen, therefore your design shouldn't frustrate the user when they tap a button or try to swipe.Simple navigation: Use the limited screen space of a mobile device wisely with a fixed navigation bar and don't nest too many levels in navigation. Users will give up their search if they don't find what they want quickly.Optimized text: Ensure the screen doesn't get overwhelmed by minimizing the amount of text and considering your font type and size.Site loading speed: Ensure each page loads quickly on a mobile device as users get impatient with slow site loading speeds 2. Pay Attention to Product Page Optimization Shopify store owners often spend a significant amount of time optimizing their checkout page design and other store elements, but they forget to enhance their product pages. Online shoppers can’t interact with these items in person. Instead, they rely on your product information to help them decide whether to convert. Make sure your product pages include: Excellent product descriptions: Write focused product descriptions that are to the point, but information-rich. Address the user's needs by highlighting how your product will help solve their problem. Refer to your product's features, benefits, and any unique features. Finally, ensure the text is easy to read by using the right font type and size.Multiple product media types: Use different media to help your customer envision how the product will fit into their lives. Photos from multiple angles will provide an overview of the construction and features of the product while a video can demonstrate how to use the product. Ensure that all media has the best production quality to lend credibility.Extra details: Consider using reviews and customer ratings for social proof to help boost your chances of conversion. 3. Optimize Your Shopify Store for SEO Approximately 92.96% of all global traffic for e-commerce stores comes from a Google search. Optimizing your store for SEO is an excellent way to reach more potential buyers and prospects. There are various ways you can enhance your e-commerce SEO including: Adding a sitemap to Google Search ConsoleCreating unique product pages, product titles, and keyword-rich meta descriptionsCreating a site hierarchy that makes your site easy to navigateEnsuring product images are high-quality, load quickly, and use alt-textCreating quality blog content to encourage more traffic 4. Employ Cross-Sell & Upsell Practices Cross-sell and up-sell techniques can inspire customers to buy as much as possible. With cross-selling, you suggest more relevant products your customer can add to their cart based on their current or previous purchases. Consider using carousels, recommendations, or bundle deals to highlight complementary items. With up-selling, you encourage your customers to purchase a better version of your product that includes extra features, thereby increasing the value the customer will receive. » Trading on WooCommerce instead? Follow these WooCommerce upsell and cross-sell tips 5. Advertise Strategically on Social Media Platforms Social media marketing has a range of great tools for helping you target specific audience groups with different kinds of content, thereby increasing store traffic and generating conversions. You can: Use shoppable posts on Instagram: Highlight your products on Instagram with high-quality images and allow customers to buy your items within the platform. Social commerce is a great way to increase sales by making customer purchases easier. Leverage Facebook retargeting ads: Boost your chances of attracting customers back to your store after they abandon their carts by targeting them with specific campaigns. Collaborate with influencers: Increase your credibility and your brand reach by using influencer marketing to drive e-commerce sales. Partner with an influencer with a strong connection to your target audience to grab the most attention. 6. Offer Discounts & Free Shipping to Convert Customers Customers are always looking for the best possible deal and a good discount can be the perfect thing to sway undecided customers. If items stay in a customer's cart for some time without being bought, encourage them to take action with a special discount. This can help to generate more revenue. Or you can offer free shipping when customers purchase a certain amount to increase the average order value. » Preparing for the holiday season? Boost your e-commerce sales during the holiday season 7. Leverage Email Marketing to Capture Lost Sales Running an online store means not interacting with customers face-to-face. Therefore, you need a communication channel that's quick, easy, and versatile—i.e., email. Apart from informing customers of any new products or sales, you can also: Follow up on abandoned carts: Remind customers of the items they have yet to purchase and highlight their value so they’re more likely to return to your store.Send back-in-stock alerts: Let your customers know when the items they want to buy are available, so you don’t miss out when customers see an “out of stock” message. Increase Your Shopify Store Sales By following these tips, you can increase your Shopify store sales in no time and generate more loyal customers. Remember to track which campaigns deliver the best results so that you can double down on your efforts in specific areas. The innovative profit tracking and calculating app from BeProfit can help you determine where your profits are coming from. » Curious to see the BeProfit app in action? Test a demo of the app
Abandoned Carts on WooCommerce: Rates, Recovery, and Plugins
Profit optimizationAbandoned Carts on WooCommerce: Rates, Recovery, and PluginsWhen a customer leaves an online store without checking out, their items are left in an "abandoned cart". This is usually caused by the customer not having time to complete the purchase, being distracted, or encountering an error on the site. While most abandoned carts are never completed, they can still be a major source of lost revenue for online stores. Unfortunately, like any e-commerce store, WooCommerce is not exempt from experiencing online shopping cart abandonment. For WooCommerce, WordPress estimates that the rate of cart abandonment could be as high as 80%. That’s a ton of potential profit left on the table. So, to maximize your sales and keep your business trending in the right direction, getting on top of cart abandonment is a must. Reasons for Abandoned Carts Unfortunately, abandoned carts are a common occurrence in online stores. Why does this happen? There are several reasons shoppers might abandon their carts, including: A loss of interest in the itemsThe customer found a better deal on a competitor's websiteAdditional or unforeseen costs, like shipping rates, taxes, etc.The customer experienced problems with the checkout processA store’s shipping and handling fees are too highThe customer was not sure if the store was trustworthy How to Recover Abandoned Carts When a customer abandons a cart in your WooCommerce store, it’s not the end of the world. In fact, there are several ways you can go about recovering those carts and getting the sale, such as the following: Using a cart recovery plugin, like AddifyA profit/revenue analysis, like that facilitated by BeProfitAn email marketing platform, like Mailchimp The average cart abandonment rate across all sectors is around 69.99%. However, adding plugins and tools to your store can be a good way to reduce this number. Email marketing campaigns and “retargeting” strategies can bring 3 out of 4 customers back to your site, and boost your chances of a conversion. According to WooCommerce, sending a simple follow-up email can help recover up to 30% of lost sales on their platform.Around 45% of cart abandonment messages get opened and 21% of them receive click-throughs taking them back to the site. 50% of users who click on a cart abandonment advertisement or email make a purchase eventually. At the same time, tools for profit and revenue analysis and cart abandonment trackers can help you to pinpoint your most “at risk” customers, and determine which factors in your store may be increasing cart abandonment. How Do Plugins Help Recovery Rates? Specialized cart abandonment plugins can seriously help an online business’s recovery rates. They do this by leveraging these features: Purchase history Plugins provide the ability to react to cart abandonment by recommending items based on previous purchases.Payment portals The best plugins can even provide dynamic payment options, such as a discount coupon or free delivery.Email marketing If a customer is shopping for a specific product and then leaves the store, these plugins can land automated email-based recommendations for the same or similar products straight to a customer’s inbox.CRO optimization Some plugins will optimize your website for conversions, focusing on conversion rate optimization (CRO) best practices.Profit/revenue analysis The best digital shopping cart abandonment plugins will feature profit/revenue analysis capabilities. This allows online store owners access to valuable shopping cart abandonment statistics that can be used to reduce cart abandonment. Best Abandoned Cart Plugins for Woocommerce If you run a WooCommerce store, there are several abandoned cart plugins that can help you recover lost sales. The best of these include: Abandoned Cart Pro For WooCommerce WooCommerce Abandoned Cart Pro plugin is the ultimate solution to recover abandoned carts and increase your overall sales. It will automatically email your customers and remind them about their abandoned cart, giving you the opportunity to convert a sale that would have otherwise been lost forever and features a fully interactive dashboard and WordPress widget. Plus, it will automatically delete abandoned orders after a specified number of days to prevent your dashboard from becoming cluttered. Abandoned Cart Lite For WooCommerce Abandoned Carts Lite is lightweight, easy to use, and will help you boost your sales and profits. Unlike the Pro version, this plugin is limited to a few features. However, it will still send an email to the admin when an order is recovered and collects basic abandoned and recovered statistics that can be later viewed by the user. Although, the Lite version doesn’t collect customer emails, won’t automatically send recovery emails, nor allow users to access a full WordPress dashboard area. If you can afford the Pro version, opt for it over the Lite one. Use WooCommerce Plugins to Mitigate Cart Abandonments WooCommerce cart abandonment plugins are a behind-the-scenes remedy that will work to improve your online business’ recovery rates. Such plugins can help keep customers onsite and reduce the likelihood of them abandoning their carts - cart abandonment emails being a prime example. The best plugins for WooCommerce will also eliminate the chance of human error, making your online business more resilient to cart abandonment and profit loss than ever before.
How to Track and Calculate Your Profit on Amazon FBA
Profit calculationHow to Track and Calculate Your Profit on Amazon FBAYou may be wondering what Amazon FBA is, and you are not alone. It stands for Fulfillment By Amazon, a service that helps Amazon sellers outsource their shipping requirements to Amazon. How the Amazon FBA Calculator Works The Amazon FBA calculator is a very handy tool for anyone who is thinking about outsourcing their shipping requirements to Amazon to avoid having to calculate your own shipping costs. It calculates how much money you will make selling your products through Amazon's logistical network. It goes without saying that you need to have a clear understanding of the costs involved in running your e-commerce store, and shipping is an important aspect of those costs. Just make sure you know what mistakes to avoid when calculating profit. Also, take note that each of marketplace has its own revenue calculator, including Australia, Canada, China, USA, UK, and various European and South American countries. Amazon FBA Profit and Loss Spreadsheet Amazon FBA has a few handy tricks up its sleeve—one of them being its profit and loss spreadsheet. Make no mistake, the spreadsheet can be tricky if you don't manage it well; however, it can be managed better if it is all incorporated into an analytical dashboard. How to Use the Amazon FBA Calculator The Amazon FBA calculator is a relatively straightforward tool, designed to show potential sellers how much they can expect to spend on fulfillment, and how much profit they can make. To get started, you’ll need to log into your Amazon account and enter your Seller profile. Click on the Amazon FBA Calculator, or visit this link if you’re having problems. Step 1: Find the Relevant Product Firstly, you must input an “identifier” number to find the product you’re researching. You can use a search term, ISBN, EAN, or ASIN, depending on the information you have, and select a specific location for your search. Step 2: Set the Price Next, you can input values into the fields within the “Amazon Fulfillment” space to figure out a margin for the product. The first value to enter is the price of the item. Research similar products for inspiration and play around with the pricing to see what kind of margin you can achieve when raising or lowering the price. Step 3: Determine Shipping Costs Fill in the “Ship to Amazon” field. If you’re already selling products via Amazon, you should have a good sense of what the average unit price is to ship your items to the Amazon warehouse. This number varies based on the size, weight, and quantity of products being shipped. Again, experiment with a range of costs to see how it impacts the margin. Step 4: Determine Product Cost Complete the “Cost of Product” field. This is where you input the price it costs to purchase your product from a wholesaler or manufacturer. Make sure you use the “all-in” cost, including the price for any overseas shipping, packaging materials, customs, and any extra expenses related to purchasing your items. Step 5: Calculate Your Margins Click the “Calculate” button. From here, the calculator will give you a net profit and net margin for the product as well as your selling on Amazon fees and fulfillment costs. Other Ways to Calculate Profit on Amazon FBA Amazon FBA Profit Margin Calculator This calculator gives a broader view because you can include all your expenses to get to your net profit per unit. To use this calculator, you start by entering some basic information as well as your fixed costs and upfront costs per product. Your job is to replace the red information in the table provided with your own information. You don't need to do anything with the green figures; those are formulas. Just enter "0" if something doesn't apply to your business. The next step is to enter your marketing costs under "advertising" and "promotions and giveaways," but only if you have marketing costs. And finally, enter "calculate," and you'll get your gross margin calculations. Amazon Profit and Loss Dashboard You can also give the BeProfit profit tracker tool a try. BeProfit offers one of the most accurate profit calculators available on the market today. It includes a data analytics dashboard specifically developed for e-commerce businesses. This innovative tool helps you to stay on top of your business finances while optimizing your bottom line. It is easy to navigate and can be a trusted partner that supports you through the highs and lows of your business's journey. FBA is a service offered to businesses that helps them grow by using Amazon's extensive logistics network. It's quite simple in practice—businesses send their products to an Amazon fulfillment center. Once the products are at the center, and a customer buys one, Amazon receives, packs, and ships those orders, while taking care of customer service, returns, and refunds. This isn't the only way to fulfill your e-commerce orders with Amazon—read our Amazon FBA vs FBM post and our dropshipping on Amazon for beginners guide to learn more. Calculate Your Amazon FBA Fees Before you start your business and throughout your product's lifecycle, your very first step is to consider all your costs. There are four main categories of costs that you would need to look into on Amazon: Upfront costs You'll need samples, and you'll need to ship those samples.Variable costs This includes your FBA fees (15% of your product's price plus $3 to handle and ship your product), returns, and storage fees.Marketing costs You'll have to launch your products at some point and then promote them on an ongoing basis.Business costs This includes insurance, taxes, salaries, and wages. These costs largely depend on the product(s) you are selling. All these costs will impact your profits. To offer your customers a product that is value for money, you need to finetune your expenses and sharpen your calculations to find the perfect match between your profit margins and your customer's pocket. Additionally, you'll need an Amazon profit calculator. Struggling to optimize your spending? Read our guide to using Amazon advertising reports to help you do so. Is Amazon FBA Profitable? The short answer to this question is yes. The long answer to this question takes a couple of statistics into account. Firstly, did you know that Amazon’s revenue was $386 billion in 2020? That's quite a leap from $280 billion in 2019. Almost half (54%) of this revenue comes from third-party sellers! But that's not all. A total of 92% of those third-party sellers use Amazon FBA. The bottom line is that the demand for online shopping has increased significantly since the onset of COVID-19. People are feeling more comfortable with online shopping and are, therefore, exploring different online shopping avenues. To drive the point home, 62% of online shoppers start their search for the products they want to buy on Amazon. If that doesn't convince you, nothing will! And once you get started, be sure to take a look at our guide to promoting your Amazon products.
Ultimate Sales Funnel Metrics Guide for E-Commerce Sellers
Business metricsUltimate Sales Funnel Metrics Guide for E-Commerce SellersWhen it comes to e-commerce and multichannel retail businesses, the importance of analyzing sales funnel metrics can never be understated. It's an incredibly smart way to analyze the interactions your customers have with your site, from their first touchpoint through to conversion. What's more, the calculations aren't complicated, yet they can benefit your business immensely. » Can you use an app to analyze your sales funnel? Compare these top Shopify sales funnel apps Defining the Sales Funnel A "sales funnel" is marketing speak for your customers' journey from landing on your website to finalizing a sale. It's a relationship-focused framework that structures the timing of the build-up to achieving a conversion. The funnel is separated into various stages which usually align with your GA4 micro and macro sales funnel goals. Just remember that the micro and macro steps to achieving a conversion are unique to every business. 4 Stages of the E-Commerce Sales Funnel Even though some e-commerce companies have developed more comprehensive iterations, a typical sales funnel is divided into four stages: Stage 1: Awareness Your first step is to improve the visibility and presence of your brand and start collecting leads. It's an information-sharing stage where you need to use creativity to stand out from your competitors. How does the visitor get to this stage? You catch their attention with sponsored social media posts, guest podcasting, webinars, independent research, SEO—anything that builds awareness without being too pushy. Your visitor is gently nudged to stage 2 if they sign up for a marketing newsletter or watch a webinar. These actions must be defined clearly in your sales funnel. Stage 2: Interest Next, you need to change your visitors' awareness of your products or services into showing an interest in what you have to offer. Visitors get to this stage because they've had an interaction with your brand and now have an understanding of your products or services. To turn their interest into desire, you need to identify and use keywords to drive these visitors to your social media platforms and website. You can also develop blog posts that target these users as well as email campaigns and free trials. Stage 3: Desire The aim of this stage is to build a desire in the visitor to purchase a product or service. You also want to build trust so that the visitor starts to feel comfortable with your brand. Visitors have entered the third stage when they start researching your catalogs and different pricing models. They'll look for social proof by reading product reviews and testimonials. You can boost this by offering the visitor case studies, tutorials, demos, and product comparisons to help them along to the action stage. Stage 4: Action The final stage aims to convince the visitor to take action and finalize a conversion. To get the visitor to this stage you can offer them time-sensitive discounts and special bundle deals. It's critical in this stage to answer any questions the visitor poses quickly and professionally. You can further develop the relationship by sending out consistent email marketing that's hard to ignore. Also consider using retargeting strategies at this point. 9 Essential E-Commerce Sales Funnel Metrics You Should Be Tracking For tracking purposes, stages two and three of the sales funnel are combined to present the metrics according to three phases: the top, middle, and bottom of the funnel. Top of Sales Funnel When your visitors filter into the top of your sales funnel, they're in the process of becoming aware of your brand and discovering your offerings. The metrics that you should be tracking at this point include: 1. Traffic This is the general traffic on your site and on your product or service pages. It will help you understand visitor movement and interactions (why general traffic increases or decreases). If you monitor the dips and increases in traffic flow, you can see which of the changes you implemented on your site are attracting more traffic and which are switching visitors off your site. Use these insights to keep reworking your site until you achieve optimum results. 2. Entry Point This metric will tell you where the visitor entered your website (landing page), and which source led them to your site. This can be a specific social media platform or another website that backlinks to you. If you find that one particular source (or multiple) is bringing your site the most traffic, you can work on targeting that source and pulling in more visitors. 3. Bounce Rate Discover which page the visitor was on when they decided to leave your site. You must find out what caused the visitor to "bounce" before a conversion was finalized and address it. The average bounce rate for an e-commerce website ranges between 20% and 45%. If your bounce rate is lower than the average range, you're doing well. Middle of Sales Funnel This phase analyzes whether your visitors become interested in your products or services. Use the below metrics to calculate how well you're engaging the leads that have come through from the top of the sales funnel. 4. Customer Acquisition Cost (CAC) CAC is the total overall cost to acquire a customer. It includes the cost of producing, storing, and shipping the products your visitors have purchased as well as any marketing costs. Use this formula to track your CAC: CAC = Amount Spent on Marketing / Number of New Customers Each industry has its own average CAC to use as a benchmark. Make sure to look up yours as a simple guide. » Still unclear about CAC? Learn which expenses influence e-commerce CAC 5. Sales Funnel Velocity This sales pipeline metric measures how quickly your visitors move through your sales funnel and therefore how quickly your website is generating new revenue. Use this formula to calculate your sales funnel velocity: Sales Funnel Velocity = (Number of Opportunities) x (Average Deal) x (Conversion Rate) / (Sales Cycle Length) "Number of opportunities" refers to how many leads entered the funnel, while "average deal" is a specific value e.g., your average selling price or customer lifetime value. "Sales cycle length" is your chosen sales period. We discuss "conversion rate" more below. Bottom of Sales Funnel This stage is your ultimate goal—to convert those leads you've generated into sales. The metrics you would use in this phase include: 6. Conversion Rate This metric measures how many of your leads convert into sales. Use the following formula: Sales Conversion Rate = Total Transactions / Total Visits x 100 If your sales conversion rate is between 2% to 3%, then you're hitting the mark. Anything higher than this range means you're doing better than the norm. » Is your conversion rate below average? Discover how to increase your conversion rate 7. Average Order Value (AOV) Use AOV to measure how much—on average—your visitors are spending per order. It will help you decide whether you should spend some time to formulate special deals, packages, and discounts to encourage users to spend more. Use this formula to measure your average order value: AOV = Total Revenue / Total Number of Orders AOV is an important metric because it influences other calculations and the overall health of your business. It can increase your customer lifetime value, decrease your CAC, and increase your overall revenue. 8. Cart Abandonment Rate This metric tells you how many of your leads are abandoning a sale before conversion. Just like your bounce rate, you must find out why visitors are abandoning sales and address it. The formula is as follows: Shopping Cart Abandonment Rate = (Number of Completed Purchases / Number of Shopping Carts Created) x 100 Cart abandonment rate depends on a number of factors like device used, industry, and time of day and year. The average cart abandonment rate can be as high as 70%. » Worried about your cart abandonment rate? Find out how to manage, prevent, and recover abandoned carts 9. Total Sales This is the total revenue of your e-commerce store. It's critical for calculating your profits and losses and gauging the "health" of your business. Use this formula to calculate total sales: Total Sales = Number of Items Sold x Sales Price Use total sales to determine a top and bottom line as well as your breakeven point. It's important to set goals for your business and track whether they are achieved. » How do you calculate profits and losses? Find the essentials of profit and loss statements here 5 Benefits of Sales Funnel Analysis for E-Commerce Significantly Enhances Productivity Your site becomes organic and dynamic, constantly improving because of the data you're analyzing. The result of constant analysis is constant improvement in productivity and therefore a better bottom line! Enables Predictability of Results You take the guessing game out of business because you can monitor and track literally all aspects of your e-commerce store. This makes results more predictable, giving you the opportunity to act proactively instead of reactively. Allows Better Use of Resources & Opportunities When your sales funnel is optimized, you'll be able to use your resources effectively. You'll also be able to make the most of the opportunities you get to take your business to new heights. Enables Management Optimization The more data you have, the more you can read into the finer details of your business. It will give you more control over the different stages of the sales funnel. You'll have your finger on the pulse! Drives Product Development Product development is crucial for innovating and staying ahead of your competitors. The sales funnel can help you with this too because you have a good understanding of what your customers want. Key Takeaway By understanding the journey your visitors take from becoming aware of your brand to becoming paying customers, you can optimize their experience, gain their trust, and turn them into lifelong partners. If you combine this comprehensive guide with the innovative solution offered by BeProfit, you'll learn how to build a successful sales funnel and ultimately improve your sales funnel's performance, while also tracking your data with ease and skill! » Want to connect with BeProfit? Sign up to BeProfit
Calculating Actual Cost in E-Commerce: Definition, Formula & Example
Profit calculationCalculating Actual Cost in E-Commerce: Definition, Formula & ExampleMany e-commerce store owners rely on trend monitoring and estimates to forecast their business costs. The unfortunate reality is that this won't give you a true indication of the actual costs involved when it comes to work that has been performed. Why? Because you need to see the bigger picture so that you don't lose out on important business insights. Actual Cost Your "Actual Cost" is the actual amount of money you spent to purchase an asset or assets. It's made up of the total of the supplier-invoiced expense, plus other direct and indirect costs. In other words, it's the cost of an asset when it's first recorded as a fixed asset on your financial statements. Some examples in the context of an e-commerce store include: The total amount you spent on the delivery.The total amount it cost to set up.The cost of testing the asset. Formula Actual Cost = (Direct Costs + Indirect Costs + Fixed Costs + Variable Costs + Sunk Costs) Components The following is an explanation of each component plus an e-commerce-related example: Direct Costs These are the costs included in directly manufacturing your product or service, or buying a wholesale product for reselling on your e-commerce store. Example: Let's say you resell shoes. The invoice you receive for the shoes you purchase from the wholesale outlet will be your direct costs. Indirect Costs Indirect costs extend beyond the expenses you incur when you "create" a product. In other words, the costs incurred for running and maintaining your e-commerce store. Example: You're still a shoe reseller. Your indirect costs would include computer technology, delivery costs, storage costs, packaging costs, etc. Fixed Costs This includes all your business expenses that don't change based on sales or no sales. They are set expenses that you have committed to. Example: As a shoe reseller, your fixed costs would be rent, Wi-Fi, security, salaries and wages, etc. Variable Costs These costs vary depending on your e-commerce store's income, i.e., the costs increase as you sell more and decrease during quiet times. Example: As a shoe reseller, you would pay more for fuel to deliver packages during high sales times. Sunk Costs These are costs you paid for and there is no potential for recovery. In other words, you've committed resources to these costs. Example: As a shoe reseller, you purchase packaging that gets damaged in transit. Since you've spent the money (or committed to honoring the invoice) and your employees are responsible for the damage, these costs would be sunk costs. Example Let's continue with the shoe reseller example. Actual Cost = Direct Costs: Your shipment of shoes that you received from your wholesaler amounted to $2,000.Indirect Costs: Your computer technology, delivery costs, storage costs, and packaging costs came to a total of $1,000.Fixed Costs: Your rent, Wi-Fi, security, and salaries and wages came to a total of $2,000.Variable Costs: Since you had a very successful Black Friday, selling out on the shoes you had on sale, your variable costs amounted to $1,000.Sunk Costs: In the mayhem of selling out your Black Friday stock, you ended up with sunk costs of $200 for packaging damaged by your employees in an unfortunate accident in your storage facility. The calculation would look as follows: Actual Cost = ($2000 + $1000 + $2000 + $1000 + $200) = $6200 As you can see, the formula is quite easy to use. The challenge lies in listing all your expenses to make sure you have included everything, then categorizing them to make sure each expense fits into the correct category for future use. Conclusion Knowing what your Actual Cost is in e-commerce will provide you with a bigger and more accurate view of your business, allowing you to conduct more in-depth analysis and take appropriate action. If you still feel like this formula and its related costs are too complex to compute, there is light at the end of the tunnel. BeProfit's profit calculator app can make calculating actual costs easy and uncomplicated by letting you customize your dashboard and tracking all the costs associated with actual cost. » Curious about BeProfit's app? Book a demo