How eCommerce Business Has Changed Our Shopping
eCommerce business has become an important accept of most online shopping. In the beginning, we do every business transaction offline.
Sometimes, we lose money because we bought from wrong companies.
Companies struggle to make ends meet because of the channel of buying is limited. We buy goods abroad in complicated manners.
Often, we complain and it takes months before a company can resolve our issues.
Today, electronic commerce has given us a fresh breath in shopping. Whether you are in Canada or South Korea, Ghana or Iceland, Germany or Togo, you can make your purchase anywhere in the world.
Thanks to the internet that has transformed our way of doing things.
If you have an eCommerce business that needs an online lift, you can make use of the following factors:
Cart Abandon Rate
Maybe, you have not heard about cart abandonment. In eCommerce world, the phrase is a vital key performance indicator that monitors eCommerce stores.
Cart abandon rate refers to the number of shoppers who put stuff in their basket or cart on a site.
But, these people abandon the cart without completing their transactions. Unlike conversion or bounce rates, this factor depends on factors that may have nothing to do with SEO or site quality.
The following may be the reason for their abandonment:
- Cost of shipping
- Cost of product(s)
- The company’s checkout requirements that may include type of payment method or signing up for an account.
- Complex checkout methods, like many steps or pages
- User error that may be caused by a wrong card number
When you monitor the cart abandon rate closely, issues that caused the abandonment are identified. This KPI is vital toward the completion of a company’s sales funnel. You may reduce the rates that are causing people to abandon your carts.
eCommerce Business Hacks To Use
Cost Per Conversion (CPC)
Cost per conversion is an eCommerce business KPI that monitors the conversion rate of a business. The KPI details the functionality of Google’s AdWords.
CPC determines the amount you pay to convert your visitor into a customer.
For the business owner who wants to make use of their Google Ads reports, CPC gives them a detailed analysis. The average of your CPC is very important.
You should consider the cost of shipping your products, time to set up your ad, time to create the product or service, etc.
With CPC, you make a better decision about the pricing of your products or services. You decide the perfect price for ads and the target audience to use.
Average Order Value
If you run an eCommerce business, the average order value (AOV) of your business is vital. Do you know why people want to understand their AOV? You can understand and tract your AOV when you do the following:
- Set a baseline for your company’s average order value
- Increase your budget for marketing and advertising
- Create smart strategies for improving your company’s AOV
- Analyze the success of the improvement of your average order value
How to Calculate Your eCommerce Business KPI
Average Order Value(AOV) = Income / Number of Orders
Take for instance, your company got a revenue of $2 million in its sales. It got this money through 1,000 orders. You would get $2,000 as your average order value.
Tactics to Increase Your Average Order Size
Upsell Your Current Customers
Do you have to offer subscription services? To upsell depends on the products and services you offer. You upsell your clients, do such when you offer products or services that adds value to your existing clients. If you do otherwise, you may destroy your company’s name.
Develop Products or Services Bundles
Create a product or service bundles for your customers. This process ensures that they come again because of the discount you offer.
You can do this eCommerce business with products or services coming with many accessories.
Provide Minimum Average Order Value Promotions/Discounts
If you want to get your average order value to arrive at a specific percentage, think of offering customers a minimum order value promotion or discount.
Offer a Customized Product Recommendation
Customize your product recommendations to your customers through appealing emails and shopping carts.
Develop products or services customized to certain color themes, lifestyles, and more for your eCommerce business.