There are three success factors which might affect e-commerce:
- Low customer Procurement cost
- High repurchase rate
- Healthy margins
Above mentioned factors are not for a new businessman. In reality, they are bit more complicated then it appears. So to get success in e-commerce one should have a firm grip on subject factors.
- Low customer procurement cost
The largest portion of this cost in order to get a new client is the marketing expense. If you are not spending money on advertisement, still new customer has a cost. If your business got established, you will be needed to appoint experts and staff to do the marketing for your company. Two of the primary factors behind low customer cost are brand and marketing.
After researching the most effective tactics concerning e-commerce marketing are two low or zero cost approaches to increase sales and they are mentioned below as:
- a) Try to focus on all activities related to marketing that cost cheap like email and retargeting. The total amount of sales will be limited from such activities as these are also low scale activities.
- b) You need to do things in your own way.
- High repurchase rate
The most successful stores are built on repeat orders. A researcher revealed that the top e-commerce companies are generating more than half of their total revenue through repeat customers after a period of 20 months. And then it helps in contributing to more revenue than new customers afterward. This factor is considered great for profits as it will increase the span for your e-commerce customers. The loyalty of a customer is something that is taken as the sum of a bunch of important parts. If consist of product selection, customer experience, brand, pricing, and marketing. Apart from this marketing using automated email campaigns can also increase your interaction with the customer but all this is dependent on the first time purchase experience of the customer. In case the customer was not satisfied then all of your efforts will go useless.
- Healthy restrictions
Healthy gross limitations will make your e-commerce business easier to run. The gross margins ranging between 22% and 38% are considered as a benchmark. It gives you the opportunity to invest money and provide more possibilities in order to gain customers. This important factor has two sub factors namely revenue and cost. Other costs that are involved include shipping charges, product cost, and other relevant expenses.
In start keeping cost lower as much possible should be the priority for the business on. Even if your margins are lower, the total profit one single order will be more than the first product. A number of orders place will definitely enhance your profit margin even if your cost price is a little bit lower.
One probably doesn’t have the scope to explore the purchase, maintenance, and prosperity all at the same time. If one is starting out with low-cost customer acquiring strategy he will definitely have the best impact. Right after once you have started receiving better sales, you can switch toward reducing customer defection. After that, it will be suitable time to explore the cost and revenue and to modify each element. For more information visit https://www.farahatco.net .