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Rebekah has been working as a professional blogger, copywriter, and journalist for over 6 years. Her content experience runs the gamut from SEO-focused strategical posts to news reports, interviews, and thought leadership blogs. She has worked with press releases, email marketing strategies, and extensive promotion strategies, including social media. During her time as a content specialist, Rebekah has helped countless brands to grow their presence online, through tailor-made content creation and marketing strategies. She’s a long-term writer for numerous high-quality publications and has gained extensive experience in her specialist sectors of technology and branding over the years.

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At BeProfit, our team of experienced writers and editors provides you with expert articles with insights to turn your e-commerce business into a profitable one. Professionals fact-check our content to ensure relevance and accuracy. We only source content from reputable sites and research institutions. Our content is rigorously reviewed before publication and upon considerable updates. 

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How to Perform a Profitability Analysis for Your E-Commerce Store

Of all the metrics you need to calculate, profitability analysis insights can offer some of the most valuable guidance for your online store. With a profitability analysis, you can determine which products, consumers, and efforts in your company are the most “profitable.” Measuring the profitability of different factors for your online store shows you which strategies you should be investing more of your budget into and which you should be avoiding. Let’s look at the basics of performing a profitability analysis to enhance different profit margins in your store. Benefits of a Profitability Analysis for E-Commerce In an e-commerce store, customer profitability is measured in the difference between the costs of acquiring a customer and the lifetime value of that client. Different types of profitability measures can also look at the value of marketing campaigns, products, and other strategies. E-commerce revenue analysis tools can help you to determine customer profitability in a range of environments and outline which factors are influencing your e-commerce profit margins. Having a strong indicator of profitability can also help you to focus on the customers most likely to generate the most income, leading to better productivity across the organization and a good profit margin for your e-commerce store. Steps to a Successful Profitability Analysis Conducting a successful profitability analysis could be easier than you’d think. 1. Find the Right Technology For most companies, the first step in a successful customer or product profitability analysis is accessing the right technology. Tools for tracking valuable information like net sales and profit can help you avoid profit calculating mistakes. Tools like BeProfit make it easy to streamline the process of tracking business expenses and determining profit at a glance. 2. Determine Your Outgoing Costs Use your technology to determine the outgoing costs of creating your products, acquiring customers, or running the campaigns you want to measure profit for. These costs can include everything from paying for technology to labor and marketing costs. 3. Calculate the Revenue Determine how much revenue you’ve created as a result of the product, customer group, or campaign you want to track. For instance, if you’re checking the profitability of a group of customers, you can add up all the revenue from the customers in this group. If you’re checking the profitability of a product, you can add up all the sales of the product. 4. Determine Your Profit To determine the profit from a campaign, product, or customer, subtract the cost of the initiative from the overall revenue. For instance, to calculate product profitability, you would subtract the cost of making and advertising the product from the money it earned you. 5. Implement Steps to Improve Profitability If your profitability is low, you can take steps to improve the situation. With a profitability analysis, you can more quickly eliminate any customers, campaigns, or products costing you money. For instance, if you discover the net sales of a certain group of customers is lower than the cost of acquiring them, you can stop focusing on that group. Remember, continuing to collect the right data over time will help you to see instantly if your profitability for a campaign or initiative drops over time. Tips for a Successful Profitability Analysis While there’s no one-size-fits-all roadmap for a successful profitability analysis, there are certain steps that can improve your chances of earning the right insights. For instance: Look at the Past as Well as the Present Remember to go back and look at your profit levels from previous years and quarters. This will give you the insights you need to determine whether your profit levels are successfully growing with time. If they’re not, this could be a sign the customer base or product you’re looking at is losing its value. Consider Industry Benchmarks Every business is different, but looking at the benchmarks achieved by other companies will give you a good insight into whether you’re on the right track. Using industry benchmarks is often useful if you don’t have any prior quarters or years of profit to look back on in your own company. Find Time for Deeper Analytics Where possible, take advantage of your tools and technology to dive deeper into your profitability analysis. If it seems as though your profit levels are dropping with a particular product or customer base, try and establish why this might be before you simply write them off as unprofitable. Remember, you should be checking your profitability levels on a regular basis to ensure your current metrics are up-to-date. Set Yourself Up for Better Long-Term Profits Ultimately, the only way to make sure you’re spending your budget on strategies that will generate a positive return on investment is with the right analytics. Learning how to calculate profitability analysis metrics successfully will help you to make better decisions for the future of your company. While you might need to dedicate some extra time to tracking all of your net sales and exploring the factors behind a good gross profit margin, the work will eventually pay off.

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How to Promote Your Amazon Products for Better Sales

Amazon is easily one of the most valuable marketplaces globally, capable of generating incredible sales for today’s business leaders. In January 2022 alone, the site boasted more than 2.7 billion visits. With an Amazon seller account, you can reach a huge audience of customers ready and willing to buy from your organization. However, like any tool, Amazon will give you the best results when you learn how to use it properly—which means knowing the best ways to promote your Amazon products. Types of Promotions for Your Amazon Products Running a successful Amazon business takes a lot of work, and you'll need to do the following things to ensure that you do: Learn about calculating COGS for AmazonFind out what an acceptable return on ad spending is for your businessMake sure you always have access to the best possible suppliersKeep track of your inventory at all timesLearn how to promote your Amazon products on both an internal and external basis For most online stores, promotion is mainly external and involves ads posted on Google, social media, and other similar strategies. With Amazon, you need to ensure your presence is just as significant within the Amazon marketplace as it is within the broader e-commerce landscape. External promotion for Amazon involves promoting your products through channels like social media (Facebook and Instagram ads), organic content creation, and search engine optimization. You can also use this guide to effective e-commerce ads to create PPC campaigns. Internal promotion on Amazon involves leveraging the services Amazon offers to make your products stand out from other competing items. For instance, you can use Amazon search optimization to increase your rankings in the search results. Importance of Organically Listing Your Amazon Products Although it’s helpful to ensure your Amazon products are ranking well on search engines like Google, it’s worth remembering that Amazon also utilizes a search engine of its own with specific ranking factors. Amazon determines where organic product listings should appear by calculating how much money each product can potentially make its company. The higher your product is on the search results for Amazon, the more likely it is to capture your audience’s attention before they’re distracted by a competitor. You can improve your chances of a high organic listing with the following methods: A strong title Your title needs to immediately tell your audience what the item is and explain why it’s compatible with their needs. Keep the title concise and mention the brand name of the product.Images Photos are valuable to any Amazon listing. A high-quality image improves your credibility, while multiple pictures give your customers a better insight into what they might be getting. Showing the back of a box with any ingredients or instructions is helpful too.Bullet points Bullet points essentially include all of the key facts customers need to know about the product. The bullet points should include the top benefits of your product.Product descriptions Don’t underestimate the product description. Repeat the key selling points and include any supporting facts that might help customers decide. Ensure your title, description, and other elements of your page are optimized for search engines but don’t stuff them too full of keywords as you run the risk of making your pages sound clunky and disingenuous. Running Sponsored Product Ads There are two ways to run sponsored ads for your Amazon products. The first option is to promote your ads internally by paying for a sponsored position within the Amazon marketplace. Paying for a sponsored ad position will place your listing higher on the search results, and you only pay for the placement when shoppers actually click on your ads. Alternatively, you can drive external traffic to your products through Google Ads. Google Ads is a fantastic way to promote your Amazon products and get the attention of people who might not be browsing Amazon currently. Google Ads allow you to reach millions of users with targeted campaigns. However, you’ll need to make sure you’re using the right keywords to get the best results. Ensure the ads you target in your Google Ads are the same as the terms in your SEO-based product title. If you plan to utilize this method, then make sure you understand how to track the performance of e-commerce ads. Share Listings on Social Media Outside of Google Ads and internal Amazon promotion, one of the best ways to drive more attention to your Amazon pages is with social media techniques like Facebook's campaign budget optimization. You can share your Amazon listings on all the channels where you’re trying to build a following for your brand. Rather than just spamming your social followers with links to your products, make sure you’re delivering genuine value in your content. You might even publish a social media promo code from time to time so your followers can get a special discount on their purchases. You can also host contests and giveaways to get people excited and talking about your brand. Ask people to share pictures or reviews of them using your product on Amazon for a chance to win, and you’ll improve your Amazon reputation at the same time! If you need help with social media ads, consider taking a look at our guide to Snapchat ads or guide to TikTok ads. How Can You Ensure Your Prices Are Competitive? Finally, remember that you’ll struggle to grow rapidly on Amazon if your pricing isn’t competitive. Conducting a competitor analysis to see what other people are selling similar products for will ensure you’re not charging over the odds for your item. Research your competitors by looking for products that share the same characteristics as yours on Amazon, or look at the “other sellers” page on the Amazon listing. Remember to consider the quality of your item when determining its sale price, and use one of the best profit calculators for Amazon to ensure that they are still generating enough revenue.

One-Click Upselling to Boost WooCommerce Sales

Learning how to create an upsell strategy in WooCommerce means you can instantly encourage your customers to purchase more items from your store. It’s a great way to increase revenue by tempting your customers before they convert or just after they’ve made a purchase. With upselling, you offer a related product or service alongside the main product the customer has purchased from your store. Since the item is already related to what your customer is buying, they’re more likely to consider purchasing it. How One-Click Upselling Works One-click upselling is a common strategy for any business looking to boost sales for WooCommerce. Through WooCommerce, the easiest way to implement an upselling strategy is to simply use a plugin to offer your customers something through a pop-up or recommendation on the cart page. You can also provide additional post-purchase offers on the thank-you page. When your customer goes through the checkout, they’re offered something else to accompany the items in their basket by your plugin. This item will be related to the existing products your customer is already buying to ensure they’re more likely to buy. With “one-click” upsells, your customer can simply press one button to add the item to their basket without having to go back through multiple pages on your website. Upselling is considered to be an easy tactic for Shopify or WooCommerce sellers because it takes advantage of the fact your customer is already in the latest stages of their buying journey. How to Create an Upsell Strategy in WooCommerce Creating an upselling strategy in WooCommerce is simpler than it seems, thanks to the wide range of plugins available to help you. Simply search for an “upsell” plugin in the WooCommerce app store and install the one you want to use, then follow these steps: Create a funnel Decide whether you’re going to offer your upsell before or after the purchase and what the offer is going to look like in order to design your WooCommerce sales funnel. In some cases, you can even provide a series of different offers with the same app, but be careful not to overwhelm your customer.Add your upsell offer Link in your upsell offer. For instance, you might suggest specific products to go with certain items in your product catalog or certain items from a list of items commonly bought together. To help you decide, learn about the best products to sell online.Test and evaluate Constantly test the performance of your upsell offer, and determine whether you might need to make changes. A/B testing different offers and strategies can improve your profit levels significantly. Within three simple steps, you’ll have everything you need to start upselling to your audience. Why Should You Use a One-Click Upsell Strategy? An upselling strategy is a valuable tool to increase your website orders and boost the value of your online store. There are many reasons why you might choose to embrace the one-click upsell, but some of the most common include: Higher average order value Upsells can help you increase the average order value for every customer who checks out through your website. You can check your WooCommerce sales report plugins to see just how much each average order increases in size.Increased revenue The more your customers purchase, the higher your revenue will be. With one-click upsell strategies, you don’t need to constantly worry as much about finding new customers. Customer satisfaction With the right upsell strategy, you can provide access to additional products and deals your customer wouldn’t want to miss out on. You can even offer bundle deals to make your customer feel like they’re getting a better offer. Plus, adding upsells to your store is straightforward, and often a lot easier than investing in extra sales and marketing tactics to increase your sales. Benefits of Post Purchase vs. Pre Purchase Upselling One of the biggest challenges of implementing upsells into your WooCommerce store is figuring out when to offer your customer an additional product. Timing is everything with this sales strategy, and the two most prominent options are “pre-sale” or “post-sale”. Pre-purchase With a pre-purchase upsell, you offer your customer the extra product, deal, or bundle while they’re still on the checkout page. This means they can simply add the item to their cart before finishing their purchase, without having to worry about going through the checkout again. The key to success here is ensuring you offer the right products and don’t overwhelm your customers with too many suggestions. If you’re too pushy, you could drive your customer away. Post-purchase The post-purchase upsell allows you to offer something to your customer after they’ve finished their purchase and left your WooCommerce payment gateway. You can still allow your customer to take advantage of the same checkout form they’ve just completed, so they don’t have to pay for additional shipping costs or enter details again. The benefit of this strategy is your customer has already made a purchase, so you don’t risk losing out on anything. However, your customers may not pay as much attention to offers after the purchase is completed. You can check analytics on WooCommerce profit analysis plugins, or other WooCommerce analytics, to see which methods work best for your brand.

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Essentials of Profit & Loss Statements: A Beginner's Guide for E-Commerce

Business leaders need to track the money going into and out of their organization to ensure it remains viable, particularly in a competitive and unpredictable economy. There are various documents an entrepreneur or CEO can create to assess the financial standing of their venture, from gross profit and gross margin statements to revenue analytics. One of the most valuable tools for the e-commerce financial team is the profit and loss (P&L) statement. What Is a P&L Statement? A profit and loss statement is a report designed to highlight the revenue and expenses of a company over a specific period. It can help to determine whether you're increasing profit margin in e-commerce and whether your operational expenses are rising to unmanageable levels. Why Is a P&L Statement Important? A P&L statement is valuable for several reasons, but the primary benefits for e-commerce companies fall into three main categories: 1. Decision Making With your profit and loss statement, you can examine how your business has performed at certain times and determine situations that led to improved or reduced revenue growth, even highlighting things like the best products for big profit margins in 2022 and 2023. Conducting a profitability analysis for your e-commerce store can help you to make better decisions about what your business should do next. 2. Proof of Profitability A P&L statement also provides a chronological record of your company's increasing rate of success. These records provide clear information about a company's ability to generate different kinds of profit margins. This can help companies looking to attract the interest of investors or apply for business loans. It can also be helpful when you're gaining the trust of important clients who might not be sure whether to do business with you. 3. Tax Filing Updating your profit and loss statements regularly, alongside other financial documentation, will help to ensure you have all the information you need to complete your business tax returns. P&L Terminology Explained It's important to understand the terminology related to the components of a P&L statement. While the exact elements of a P&L statement may differ from one business to the next, the record will often include the following: Top line revenue Your P&L statement will start with a record of how much revenue you've collected within a specific time (known as the top line). Once you have your top line numbers, you can extract various costs to get your "bottom line" or net income. Expenses incurred A profit and loss statement will highlight all the costs of doing business, including operating expenses, interest, tax expenses, costs of goods sold, and any extraordinary one-time fees. Bottom line income Your bottom line income outlined in the profit and loss statement highlights the amount of money made by your business after all expenses have been removed from your revenue. Realized profits and losses The realized profits and losses on your P&L statement compares your total revenues to your total costs and expenses. This shows your company's ability to increase profit, either by reducing costs or increasing sales. A Simple P&L Analysis Method for E-Commerce The easiest way to create a profit and loss statement is using specialist accounting software. There are tools that can manage the entire process for you by continually analyzing incoming revenues and outgoing expenses. However, if you're not using accounting software, you can create your profit and loss statement by following these seven steps: Step 1: Calculate Revenue You'll need to collect all the information you have on the revenue received by your e-commerce business. You can obtain current account balances from account receivable balances and your general ledger. You'll need to include all the revenue from the time frame you're calculating your P&L statement for, even if you haven't received this revenue through collection yet. Step 2: Examine the Cost of Goods Sold Calculating the costs of goods sold is crucial to a profit and loss statement for any e-commerce business model. For instance, if you're selling clothing online, you'll need to add up the materials and supplies used to make those garments. If you're selling services, you'll need to consider the cost of the time spent by your employees when providing the service. Step 3: Subtract Your Costs From Your Revenue Subtract the cost of goods sold from your revenue. This will give you your gross profit. Step 4: Track Operating Expenses Calculate your operating expenses for keeping your business running, such as rent, travel, equipment, and payroll. These will all count as "losses" in your business which you'll need to subtract from your revenue. Step 5: Subtract Your Operating Expenses From Your Gross Profit Take the price of your operating costs away from your gross profit to gain your "operating profit" amount. Step 6: Add Any Additional Income to Your Operating Profit If you have other income not included in your current revenue, such as interest, dividends from investments, or other sources of money, you can include them here. This will give you your EBITDA (earnings before interest, taxes, depreciation, and amortization). Step 7: Calculate Interest, Depreciation, and Taxes Calculate any interest, taxes, and depreciation costs, and subtract them from your EBITDA to gain your "net income" or net profit. This will serve as your bottom line for your P&L report. P&L Statements: A Golden Opportunity for E-Commerce These seven steps are simple to follow, but are also essential for the key insights generated by a P&L statement. Keeping a close eye on your profit and loss statements as an e-commerce business can give you excellent insight into your business growth and improve your chances of attracting investors. It can even offer insight into opportunities, like boosting profit through the localization of e-commerce websites or increasing revenue with trending products.

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Is Dropshipping Still Profitable in 2022 or Will You Lose Money?

Dropshipping has emerged as one of the most popular business models for e-commerce store owners in the digital age. With a dropshipping strategy, business leaders list products from manufacturing partners on their websites. Whenever an order is placed, it’s automatically transferred to the dropshipping vendor, who deals with fulfilling the order. Dropshipping allows entrepreneurs to enter the e-commerce landscape without the common expenses and challenges associated with holding and shipping inventory. However, while dropshipping is great for improving the e-commerce order fulfillment process, it has its challenges too. As dropshipping apps and tools become more popular in 2022, it’s worth asking whether this model is still a profitable strategy for your business. Read on to find the answer to this and the challenges faced by potential dropshippers in 2022. The Challenges Faced by Dropshippers in 2022 Disrupted Supply Chains One of the most significant issues this year has been the disruption in supply chains and logistics around the world. A disruption in the dropshipping supply chain could leave customers waiting weeks or months for an order, which damages a brand’s reputation. Rising Customer Expectations Post-pandemic customers are less likely to settle for slow delivery times and unpredictable product quality. This means companies in the dropshipping industry need to work harder to find suppliers who can deliver products fast and provide consistently great items. Rising Competition Another major issue dropshippers have faced in 2022 is the struggle to differentiate themselves from other merchants. With various forms of Shopify, Wix, and Amazon dropshipping for beginners now available, the barrier to entry for this mode of selling is lower than ever. This means competition is rising, making it much harder for companies to find unique products to set themselves apart from the crowd. Additionally, you'll also have to compete with different shipping costs, product qualities, and e-commerce ads. Profitability of Dropshipping in 2022 Though dropshipping professionals have seen a number of challenges during 2022, this doesn’t mean the potential of the market has diminished. According to some studies, the dropshipping market is set to reach a value of over $621 million by 2028, growing at a rate of 20.7% CAGR. Since the pandemic, more customers have begun shopping almost exclusively online. By the end of 2022, e-commerce is set to account for around 20.4% of all global sales. Even as the impact of the pandemic damages the logistics and supply chain landscape, the opportunity for e-commerce sellers is growing astronomically. This means dropshipping professionals have plenty of chances to profit. Can Dropshippers Cope With the Challenges? Indeed, dropshipping companies may even be more suited to withstanding the complications of the problematic logistics environment than most. After all, with the best Shopify dropshipping apps and similar tools, business leaders can quickly and easily find new suppliers if their chosen vendor isn’t able to deliver the products they need. Interest in dropshipping is growing too. The number of people searching the word “dropshipping” has increased exponentially over the last couple of years. Plus, virtually every e-commerce site-building tool now comes with integrations and apps to make dropshipping easier. Despite the challenges, dropshipping companies aren’t just surviving in 2022; they’re thriving. Today, dropshipping and e-commerce sales are accelerating towards a value of $5.49 trillion, and they’re growing at a consistent rate of around 10.98% per year. Evolution of Dropshipping Best Practices Though it’s clear that dropshipping still has significant potential in 2022, companies do need to make sure they’re approaching this landscape carefully. The challenges of the evolving e-commerce environment have led to the adoption of new best practices, such as: Leveraging the right dropshipping tools Companies are investing extra time and effort into ensuring they have the right tools in place for dropshipping. This could include comparing Wix vs Shopify for dropshipping or exploring different apps in each e-commerce ecosystem to ensure you’re getting access to the right suppliers. Putting the customer first As customer expectations continue to rise, companies in the dropshipping environment need to make sure they’re prioritizing “CX”. This means implementing new strategies to deliver products faster and making sure the right policies are in place to respond to queries at scale.Increasing vendor relationships In an unpredictable logistics environment, it’s often a good idea to have multiple relationships with different vendors. Drosphippers are beginning to form connections with a wider selection of suppliers, so they can rest assured they’ll always have access to the inventory they need.Leveraging analytics To differentiate and stay one step ahead of the competition in the dropshipping world, companies need to keep a close eye on business insights. Brands are now using more tools to keep track of their most popular products and boost customer experiences.Brand marketing There are many different ways to market your brand, from advertising on Snapchat and Facebook, to using influencer marketing, and much more. Dropshipping Isn’t Dead Although dropshippers, like all e-commerce business leaders, have experienced some challenges in recent years, there’s still exceptional potential for growth in this environment. Companies capable of leveraging the dropshipping environment correctly can still make a fantastic profit in the years to come.

The Best Apps for Shopify Cohort Analysis

Analytics is one of the most valuable tools for anyone starting a Shopify store. The right reports and data insights can provide a behind-the-scenes look into the success of your omnichannel strategies for marketing and sales, or tell you which of your products are achieving the most sales. One of the most important forms of analysis from a marketing and sales perspective is cohort analysis. This is a form of behavioral analytics that takes data from an e-commerce platform and breaks it down into specific segments. Cohort analysis provides you with a comprehensive view of how well your website is performing and which of your customers have the highest lifetime value or engagement levels. Google Analytics for Cohort Analysis One of the easiest ways to conduct a cohort analysis is to connect your Google Analytics account to your Shopify store in the admin center. Simply go into the “Settings” page, then “Apps and Sales” channel, and click on “Online store”. In the “Google Analytics” section, you can paste your code from your Google Analytics account to make the connection. Once connected, you’ll be able to access a range of reports to help improve your Shopify conversion rate, discover your best sources of traffic, and develop opportunities to increase customer loyalty. Google Analytics has its own dedicated “Cohort Analysis” report, available to anyone using the Universal Analytics service. Simply sign into Google Analytics, select “Audience” and then “Cohort Analysis”. The report will show the behaviors of various user groups on your website, offering insights to help you increase organic traffic and increase profit margins. Shopify Apps for Cohort Analysis While Google Analytics is one of the most popular tools for conducting a cohort analysis in Shopify, it’s not the only option. In the Shopify App store, you can find a range of other valuable tools for conducting a customer profitability analysis, or evaluating customer lifetime value. Some of the top-rated options include: 1. Lifetimely Lifetimely is an analytics and reporting app that allows Shopify users to track profits and losses in real-time. This includes a custom dashboard for tracking your preferred KPIs and marketing metrics. Lifetimely has precise cohort analysis tools to help you discover your most profitable segments. The lifetime value model is even powered by AI to help you accurately project the potential lifetime value for each cohort. Plus, benchmarking tools show you how your metrics compare with competing brands. There’s a 14-day trial available for beginners, after which paid pricing starts at $19 per month for the basic package. 2. Customer Intelligence The Customer Intelligence app by RetentionX ensures Shopify users can collect valuable information about their customers and segment them based on their value or behaviors. The all-in-one platform offers deep insights into the key customer segments responsible for driving business profits, and tips for how to identify your ideal market. The tool can help pinpoint customers at risk of churn, so you can reconnect with them. It can also show your most valuable products, so you can upgrade your sales strategies. Customer Intelligence integrates with a range of other apps, so you can link it to your loyalty program for Shopify and your Facebook Ads. What’s more, you can use this app for up to 250 active users without paying anything. The advanced package for more than 250 customers starts at $10 per month. » Find out how you can use cohort analysis tools for your Shopify store 3. BeProfit BeProfit is an all-in-one analytics application for Shopify that specializes in offering real-time profit calculations with an intuitive and customizable dashboard. You can automate reports, or access insights on-demand into order metrics, shipping, inventory, and marketing costs. The service makes it easy to analyze the profitability of different customer groups and track customer lifetime value for your most crucial segments. You can also create custom reports based on your most important metrics, and export them in a range of different formats. BeProfit offers a 7-day trial to beginners, followed by premium packages starting at $25 per month. The basic plan includes a comprehensive profit and expense dashboard, unlimited ad integrations, order and product metrics, and daily data updates. Provides a complete business and financial overview.Access to real-time data and custom reports.Link multiple platforms and shops for an aggregated view. Leveraging Shopify Cohort Analysis Cohort analysis allows e-commerce store owners to understand their target audience, and which customers deliver the most value for their business. Not only can you more accurately distribute your marketing budget with these insights, but you can also improve your chances of retention by finding out exactly what each customer needs from your brand to enjoy a fantastic experience.

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3 Best Wix Inventory Management Apps

Inventory management tools are crucial for modern businesses as they help to minimize the stress associated with keeping on top of changing levels of supply and demand. There are countless Shopify apps and Wix tools designed specifically for inventory management. An inventory app gives you an instant overview of how many products you have left in each category and will help you understand which products are the most popular among your customers and which you might need to purchase more often. If your Wix profit calculators indicate you’re missing out on sales, an inventory app could help. 3 Best Wix Apps for Managing Your Inventory Whether you’re dropshipping on Wix or managing your own warehouse, having clear insight into your inventory levels at all times is crucial. Running out of stock because you’ve failed to monitor your inventory disrupts your entire order fulfillment process and could result in lost sales and customers. The following Wix apps are designed to help you keep on top of your inventory. 1. Low Inventory Alert The Low Inventory Alert app sends you instant notifications the moment inventory levels reach a specific point. You can set your own notification parameters and even get full reports on which of your products are selling the fastest. Low Inventory Alert is therefore highly customizable and allows you to filter through inventory based on a specific product, a collection, or products sold under a specific brand name. What’s more, the app only costs $3.99 per month for unlimited use. 2. SKU IQ Inventory Sync Ideal for companies who run both online and offline stores, SKU IQ Inventory Sync helps you to keep track of orders and inventories across multiple environments. You can scan SKU IQ information into the system, and access omnichannel strategies of your point-of-sale (POS) and e-commerce sales in real-time. This ensures you never run out of stock online or offline. The platform easily integrates with a host of POS systems like Clover, Lightspeed, and Square. You'll receive a free set-up consultation with an expert when you add the service to your site. Prices start at $35 per month for up to 400 orders per month. 3. Multi-Store Inventory Sync Created by the Presto-Changeo company, Multi-Store Inventory Sync helps companies monitor their inventory across multiple stores at once. You can sync your entire inventory in one place and keep track of all product sales. If running out of stock is one of your top reasons for cart abandonment, this could be a great tool for you. The app is extremely easy to use. Simply upload your products’ SKUs, and any time a product is purchased, your inventory level will update across all stores. The app comes with a 7-day free trial and costs $6.99 per month for unlimited access to as many stores as you like. Let's Explore Wix Inventory Management Some More Wix does have some built-in inventory management options for beginners. However, the features can be a little limited, which is why some people turn to apps and add-ons for extra help. What Inventory Management Methods Does Wix Have to Offer? Wix Stores allow users to manage their inventory in two ways: Firstly, you can simply track your inventory by entering the number of items you have in stock for each product, and Wix will automatically update your records whenever you make a sale. Secondly, Wix allows you to manually assign products as “in stock” or “out of stock” when your inventory levels change. How Do You Keep Track of Your Inventory on Wix? To control your inventory management of each item, you’ll need to go to the “Store Products” tab on your Wix dashboard. Scroll down to the relevant product or add a new item. Scroll to the “Inventory and Shipping” section, then click on “Track Inventory”. The pop-up tab will allow you to enter the stock amount of the product and its shipping weight for postage. It’s also possible to enter SKUs by using the Wix Owner app to scan barcodes for your items. You can turn off inventory tracking by clicking the “Track Inventory” toggle again. From the status drop-down, you can then change the status of the item to either “In stock” or “Out of Stock”. How Do You Manage Pricing and Inventory on Wix? This is a relatively straightforward process, because you can also set a specific price for your item in the “Store Products” tab. Conclusion While Wix does offer some basic built-in inventory management tools, most companies find it easier to use dedicated apps and software to help them track their inventory across multiple stores and platforms. With the right app, you can improve your chances of sales, boost customer satisfaction, and increase average order value, which will contribute to an increased profit margin.

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How to Optimize ROAS & Lower Break-Even Point: 7 Techniques for Dropshippers

Learning how to optimize Return on Ad Spend (ROAS) is crucial for any business owner. Understanding this metric allows e-commerce site owners and dropshippers to lower their break-even points, thereby generating higher profits from every marketing campaign. This is crucial at a time when digital ad spend is set to reach around $735 billion worldwide by 2026. Achieving a good e-commerce ROAS means knowing how to measure the effectiveness of each ad campaign and using what you learn in future strategies. The more you optimize ROAS, the less you’ll pay to acquire new customers as a store owner or dropshipper. So, how do you get the best returns from your ads? 1. Increase CTR on Your Landing Pages Getting someone to click on your ads is just the first step for any dropshipper. You also need to ensure your customers will engage with your content, and act when they reach your landing pages. Optimizing your landing pages can boost your chances of conversions and enhance the sales funnel. To increase click-through rate (CTR) on a landing page, dropshippers should: Focus on benefits: Highlight the benefits available to your customers as soon as they arrive on your landing page, reflecting the offers you included in your ad. Streamline the landing page: Remove any content that isn’t necessary and focus on guiding customers through the page with a combination of video, text, and imagery. Leverage social proof: Give customers evidence they should interact with your brand in the form of positive testimonials and reviews. 2. Compare Performance Across Channels Many dropshippers use a variety of different channels to attract and connect with clients, including email marketing, various social media platforms, and online content. However, not all of the channels you use will generate results. Comparing your ad performance across different channels and determining which strategies lead to the most conversions or acquisitions will ensure you’re using your budget as effectively as possible. Use analytical tools like Google Ads and social media insights to track where the majority of your customers are coming from. 3. Improve Your Targeting Customers want ads specifically tailored to their needs and expectations. If your targeting strategy isn’t effective, you’re wasting your ads on people who aren’t likely to convert. Getting to know your target audience better and adjusting your marketing campaigns to use the right language, images, and strategies will boost your ROAS and reduce your ad spend. Consider exploring the difference between remarketing vs retargeting to attract previous visitors to your website, so they have a second chance to purchase. 4. Maintain Consistent Messaging One of the most important things customers look for when deciding which dropshipping companies to buy from is credibility. Your audience wants to be able to trust your brand to deliver a consistent, meaningful experience. Ensuring consistent messaging across all channels can help to develop a greater level of trust and increase conversion rates. It also helps to reduce bounce rate from your landing pages. The points you make on any ads you produce should relate directly to the topics on your landing page, showing customers they’re in the right place. 5. Perform Keyword Audits Keywords are among the most valuable tools dropshipping and marketing companies use to connect with audiences. Keywords can be used across social media, search engines, and even guest posting campaigns. The keywords you choose can also have an impact on your ROAS. Bidding for certain keywords and terms across multiple channels can be costly. Knowing which terms actually connect with your target audience and which don’t deliver the right results means you can organize your budget accordingly. 6. Improve Your Ad Copy Ad copy is one of the most important factors that determine whether your customers will actually click on your ads and engage with your business. The right message needs to showcase your personality, highlight the benefits of your offer, and still adhere to search engine and Facebook advertising best practices. There are a number of ways to improve your ad copy, such as using AI in advertising to detect the common words and phrases your customers are most engaged by. It’s also worth A/B testing different messages to measure their emotional impact on your audience. 7. Capture Leads Wherever Possible Finally, there are a number of ways you can capture leads and engagement. If you’re only advertising on Facebook right now, you could be missing out on opportunities available from search engine marketing and email campaigns. Consider spreading your ad spend across multiple different channels and environments to see whether there are any new places where you might be able to capture new leads. Conclusion Producing effective e-commerce ads can take significant time and focus. However, measuring your ROAS break-even point can be a good way to determine whether you’re investing in the right strategies for your business. The more you optimize, the better your return on investment will be. » Looking to learn more? Find out how you can calculate your Amazon ROAS

How to Calculate WooCommerce COGS to Analyze Sales, Inventory & Gross Margins

As a WooCommerce store owner, there are a number of metrics you’ll need to track to ensure your business is successful. Learning to calculate Cost of Goods Sold (COGS) means you can understand how much you’re actually spending on doing business. You'll also be able to determine which products in your portfolio are the most or least profitable, so you can take steps to optimize your bottom line. Here’s what you need to know about calculating and using COGS. How to Calculate WooCommerce COGS There are various tools and plugins WooCommerce offers to enhance stores, such as sales report plugins and COGS plugins. Below are steps you can follow to calculate COGS yourself. 1. Identify Direct and Indirect Costs The costs involved in running a business can be both “direct” and “indirect”. Direct costs are those specifically associated with selling the product, such as the materials involved in making an item and the shipping fees. Indirect costs include overheads like sales and marketing strategies designed to bring people to your store. When calculating COGS, most companies will exclude indirect costs, as these are often associated with customer acquisition cost. 2. Determine the Beginning Inventory “Beginning inventory” for the year refers to the inventory left over from the previous period. You’ll need to calculate a total dollar value for all of the items you have in stock during the current accounting period, before adding on additional purchases. 3. Add Up Inventory Purchases The next step is adding up any inventory purchases which you may have made throughout the period of the calculation. For instance, you may have bought additional packaging utensils or more raw materials for high-selling products. Remember to consider the cost of shipping and manufacturing for each product as well. 4. Determine the Ending Inventory “Ending inventory” refers to the remaining sellable inventory at the end of a sales period. For instance, if you started the period with 200 products, and added another 100, then sold 200 of your products, your ending inventory would be 100 products. You would then calculate the dollar value of these products. 5. Plug the Values into the Equation With all of your values in place, you can calculate your WooCommerce COGS. The formula is as follows: COGS = Beginning Inventory + Purchases – Ending Inventory For instance, in a situation where you had a beginning inventory of 200 products equaling a value of $2,000, spent $500 on shipping and manufacturing throughout the period, and were left over with 50 products equaling a value of $1,500, your formula would look like this: ($2,000 + $500) – $1,500 = $1,000 » Struggling with high COGS? Learn how to reduce your COGS Value of COGS Calculation for Your WooCommerce Store COGS is an important metric on any company’s financial statement, as you’ll subtract it from your revenue to determine your “gross profit”. COGS also helps you to determine whether you’re using your budget effectively. The benefits of COGS calculations for your WooCommerce store include: Indicates Efficiency of Resource Management If you discover your COGS is higher at the end of a period than the amount you spent on labor and supplies, this is a sign you’re not using your existing inventory efficiently. You may find you can cut down on the supplies you use at a later stage to increase your profits. Serves Legislative and Tax Purposes COGS can be included when calculating the taxes for a given period. COGS is a business expense, which means it can be used to offset the amount of revenue you create during the tax season. Knowing how much you spent on goods reduces your tax burden. Supports Product Pricing COGS can help you determine when to make adjustments to your products' selling price. By analyzing your profit margin, you can see whether your COGS and selling price are in relation. For example, if any of your direct costs have increased, making it more expensive to manufacture your products, you can adjust your selling price in accordance with this to ensure you maintain a healthy profit margin. Streamlines Future Planning By analyzing your COGS, you can more easily identify shortcomings in your current strategy and opportunities for increased sales. For example, it can highlight which of your products are the most popular and which aren't performing as well as they should. You can adjust future strategies accordingly to capitalize on popular products and either discontinue unpopular products or utilize one-click upselling methods to boost sales. Conclusion Calculating COGS for Shopify, WooCommerce, or any other store is an important strategy to ensure your business is profitable, because it gives you in-depth insights into your store's sales, inventory, and gross margins. You can use the same strategies mentioned above to calculate and improve COGS for Amazon stores and marketplaces too.

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An Essential Guide to Shopify Sales Reports: Types, KPIs, & Analytics

When you start a Shopify store, it’s important to ensure you have the right strategies in place for analyzing your store’s revenue, growth, and profit potential. Shopify sales reports are one of the many reporting solutions offered by Shopify to give business leaders a behind-the-scenes insight into store performance. This includes information about your customer’s orders, based on criteria like time, product, or channel. Sales reports are available on the Shopify, Advanced Shopify, and Shopify Plus plans for Shopify vendors, so if you have another package, you may need to upgrade. Types of Sales Reports When you log into your Shopify store, you should see all of your analytics and report options on the left-hand menu of your admin user interface. There are reports available for tracking the success of your Shopify loyalty program, understanding POS transactions, and more. You can choose either to use the pre-made sales reports from Shopify to track store success, or you can create a custom report, depending on your Key Performance Indicators (KPIs). The pre-made reports include: Overall Sales Sales over time: All the sales you’ve completed within a specific period. Average order value over time: A record of how the average order value of your store has changed over a specific time period. Product Sales Sales by product: A breakdown of all the sales of a single product (without calculated shipping costs).Sales by product variant SKU: A breakdown of all the sales for a specific variant of a product.Sales by product vendor: All the sales provided by each of your vendors. Specific Criteria Sales Sales by discount: Insights into sales grouped by the name of a specific discount.Sales by traffic referrer: An overview of sales acquired when a visitor comes from a specific location, such as an online ad, google search, or another web page.Sales by billing location: All of your sales grouped by the region or country of the consumer.Sales by checkout currency: A breakdown of all your sales grouped by the currency your customer used on the checkout page. Sales by channel: A list of your sales grouped by channels, such as your online store, point of sale system, or Facebook.Sales by customer name: A rundown of all the sales connected to a specific customer over a set period of time. Essential Sales Report KPIs Diving deeper into your sales reports provides behind-the-scenes insights into your most valuable products, social commerce campaigns, and marketing strategies. You can view KPIs within your Shopify sales reports to gain precise information about business performance and customers, so you can make more strategic decisions on how to grow. Some important KPIs to consider include: Average Order Value (AOV) AOV calculates the average amount of money a customer spends in each transaction. If your AOV is increasing over time, this shows your customers are spending more money with your brand. Gross Sales Your gross sales number is the accumulated amount of all your registered sales within a specific time period. This can be a useful KPI for determining how many sales you’re actually making in a given time, and how much money you could make. Net Sales Your net sales number is the total amount of your registered sales, with any returns or discounts taken off. This will help to highlight how much you’re earning as well as your profit when combined with gross sales. Returning Customer Rate Repeat or returning customer rate shows you how many of your customers are repeat buyers on your store. This provides an excellent insight into whether you’re driving high customer satisfaction levels and loyalty. Customer Lifetime Value The customer lifetime value of your clients is how much they’re likely to spend over the full course of their relationship with your brand. Evaluating this number in relation to different campaigns can help show you which strategies are driving more loyal customers and increasing conversion rates, such as e-commerce influencer marketing. Customer Acquisition Cost (CAC) CAC is the price associated with turning a likely prospect into a loyal client. If your CAC costs are high, you may need to look for new ways to convert customers to keep profits from dropping. How to View and Export Your Sales Reports You can easily find your sales reports within the Analytics section of your Shopify admin dashboard. To find and export your sales reports: Log into your Shopify admin account Click on “Analytics” then “Reports”In the “Sales” section, click “View All”Choose the sales report you want to seeExport the sales report in CSV format Open your report in Excel After you’ve exported your report, you can start looking for useful insights. For instance, you can track your best-selling products by downloading sales reports for each of your top products and analyzing how much customers have spent on these items in a specific time. 3 Actionable Tips for Analyzing Your Sales Reports Reporting and analytics are two very different things, as anyone who has used Shopify sales funnels apps and reporting systems will know. Getting the most out of your reports means having a strategy in place to ensure you’re answering the right questions with your data. Start by: 1. Asking a Question Decide which question you want to answer with your sales report. For instance, if you want to know which of your products have sold the most, you can download your product sales reports for insights into the top-selling items. 2. Choosing a Specific Time Frame Using time frames is a good way to measure the progress of your sales. For instance, you can compare the sales of a product in the third quarter of the year to the second quarter to determine growth. 3. Using Benchmarks If you’re not sure what a good set of results might look like, it’s a good idea to have some benchmarks in place. For instance, if you want to know if you’re generating returns from a marketing campaign, you can compare the results of your new campaign to the results of an existing advertising strategy. Conclusion Making the most of your Shopify store requires you to understand exactly how to analyze and increase the success of your website. Using Shopify apps to generate sales and provide positive customer experiences, and a Shopify profit calculator to understand your earnings can supplement Shopify sales reports to provide you with rich information about your store.