Ten Ways to Increase Profitability in Your eCommerce Business by 2022

Ten Ways to Increase Profitability in Your eCommerce Business by 2022

The past two years have shown us one thing: Nothing is certain.

While eCommerce merchants might be facing 2022 with uncertainty, one thing remains certain. Both business owners and consumers have shown remarkable resilience. Store owners need to be aware of the current eCommerce landscape and prepare for the unexpected.

We have compiled a list with 10 strategies and tips that will help you grow your eCommerce business in 2022.

Are you prepared for what 2022 may bring? Wix’s online stores are built to provide industry-recognized speed and performance as well as reliability.

01. Create a community

Lush UK announced two years ago that they would be leaving Facebook, Twitter and Instagram. Lush UK’s goal was to redirect their customer base to their online shop. They spoke directly with customers via live chat, email, and phone.

They posted to Twitter:

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A brand community encourages customer loyalty as well as connection. This goes beyond branding and fosters a relationship with customers.

It all comes down to the conversations and interactions you have with customers. This happens a lot on social commerce platforms such as Instagram, Facebook, and Twitter. Lush UK and other brands are increasingly bringing their communities back into their digital storesfronts.

Sephora, a beauty and personal care retailer, hosts a range of community-oriented features, including conversations (Q&As between brands), groups, customer images and videos, as well as a hub for events.

 

Sephora’s community Hub can be found on Sephora.com. Customers can share and post content but it also pulls in images from Instagram and other social media platforms such as Instagram.

Harvard Business Review noted that brand communities are valuable in many ways. For example, they help to resolve issues and reduce support requests.

These can increase visibility in search results, and generate buzz about an event, product or initiative.

A forum is a great way to build a community around your company. Forums allow you to have lively conversations and build customer advocacy in an engaging and active manner. Forums are a great way for customers to give feedback. You’ll be able see the most passionate customers talking about your products or services.

Are you already a Wix user Wix Forum lets you add powerful forum features to any existing store in just one click. The forum can be completely customized to match your brand and is mobile-friendly right out of the box.

02. Think like a brand marketer

Small retailers are struggling to make an impact due to the proliferation of eCommerce sellers, including traditional retailers like Walmart and digital giants like Amazon.

It takes a lot of branding work to differentiate your brand from the rest in this competitive market. For eCommerce businesses, it is especially important to build brand recognition and loyalty.

Nearly 80% of consumers buy items because of the brand’s name. Investors also love a strong brand, with more than 80 percent prioritizing brand recognition.

Online store owners must think like marketers in 2022. This means creating a community (see the above), using social media to create and deliver high-quality content and leveraging tools such as product subscriptions.

3. Discover new sales channels

Brands cannot rely on Google Ads or Facebook paid ads to generate demand. An eCommerce business can only be built by a diverse marketing strategy. This is especially true when you consider the many channels that consumers use throughout their buying journey.

Amazon is a great example. Recent data shows that over 70% of U.S. customers start their product search on Amazon’s website.

Your 2022 eCommerce strategy must include an understanding of how Amazon sells (and a plan for selling on the platform).

It is also a good idea to explore other channels than Amazon.

  • Ebay – There are 187 millions of users worldwide on eBay, and the site offers 101,000 hours per month.
  • Google Shopping – Google offers many ways for eCommerce businesses, including Search and Shopping Ads.
  • Bing Shopping – Yes, Bing still exists for 2022. With 60 million U.S. users, a high-value audience, and less competition from other advertisers, this is another option to consider.

04. Offer eCommerce Gift cards

Digital gift cards are a great way to increase brand awareness, drive sales and instill customer loyalty. Due to several pandemic trends, the use of digital gift cards has risen dramatically over the past year.

These include the increased demand for advanced payment options and widespread use of mobile shopping (specifically smartphone usage). This sector is experiencing rapid growth. In 2020, the global digital gift card industry generated $258.34 trillion. This figure is expected to rise to $1,101.03 by 2030.

Your online store can benefit in many ways eCommerce gifts cards. These cards can be used to attract shoppers last minute during holidays, increase your search engine rankings by creating dedicated landing pages for “gift card” landing page, and also help you attract new customers.

Gift cards can also increase revenue beyond the card’s cost. Research has shown that card recipients are more likely to spend the card amount than the card itself, with an average of $60.

These are also great ways to reward loyal customers who do repeat business.

05. Live stream shoppable events

Both online shop owners and customers are adopting live stream shopping as a digital trend. Live streaming shopping is when a business or person uses streaming video to offer products and services to a live audience.

Delivery methods vary, but they can include social media platforms such as Instagram and TikTok, eCommerce websites and dedicated video platforms such as YouTube.

Live streaming shopping events could be one-to many events where a host broadcasts directly to a customer (e.g. QVC style).

Gen Z and Millennial shoppers are extremely fond of live streaming shopping. around 60% said they feel comfortable buying from a brand’s streamed event. The functionality of platforms and providers is improving as live stream shopping becomes more popular. TikTok, for example, recently introduced a shoppable feature which allows users to add popups to live shopping events. To add an item to your shopping cart, viewers can tap on the product popup within TikTok.

This type of live streaming video functionality is available across all social media platforms and promises to be a new exciting tactic for eCommerce businesses in 2019.

06. Nudge zero-party data collection

Zero-party data refers to information that customers share directly with businesses. It is different from first-party data because it does not include CRM, website analytics, social media profiles and any other data that customers share indirectly.

Zero-party data has become more important due to privacy regulations such as the GDPR in Europe and California’s CCPA that limit third-party collection and sharing without consent.

Zero-party data facilitates eCommerce personalization–enabling you to customize content like product recommendations, offers, and deals to your customers as they shop online. This strategy is cost-effective as you probably already have customer data. Additionally, consumers will give their information to companies if there’s a clear benefit.

Asking customers to sign up on your app is the best way to collect zero party data. This is a great way to get more than contact information. You can ask questions about color preferences and sizing, or any other information relevant to your product (e.g. preferred operating system, topics, etc.). By using Wix CRM services, you can create email campaigns and add polls on your website.

07. Create a customer advisory programme

Businesses want to know what motivates, excites and drives their customers. However, it can be difficult to get this information through simple polls or customer feedback forms.

A customer advisory program is a great way to better understand your customers. Advisory programs can be great for creating community, and they don’t need to cost a lot. As an incentive, you can give your customers gift certificates or free merchandise.

A customer advisory program that is effective uses different outreach methods (e.g. focus groups, surveys and beta tests). To get high-quality feedback from customers about your products and services.

Online merchants have the ability to test different messaging and gain an understanding of which products customers like. You can also use advisory feedback to help create intuitive and conversion-oriented user experience, gain insight into preferred payments, as well as uncover nuances such as whether customers prefer options for buying products internationally.

08. Create a product detail page model that is story-driven

It is not easy to create effective and conversion-oriented product detail pages. To get customers to buy, it is important that all elements are in sync.

Customers abandon product pages because of lack of information, clear pictures, poorly-visualized calls-to-action and trust elements (e.g. accreditation badges, return policies link, etc.). ).

Merchants can make the buying experience more enjoyable by telling a story on every product page. This is done through detailed product descriptions, compelling visuals (including video elements), and social proof such as badges and customer reviews/ratings. Also, you should clearly communicate product availability and urgency (e.g. low stock, shipping cutoffs during holidays, etc. ).

Product pages that tell a story contain concise, informative product descriptions, accompanied with important information (e.g. the model’s measurements, and what size they are wearing). The product page should be written to appeal directly to your target audience. It should clearly communicate the product’s benefits and features while conveying emotion (e.g. cozy, comfortable and festive). ).

09. Invest in content

eCommerce merchants can educate, inform, engage and motivate customers with the right content. Your product detail pages, home pages, and category pages are the minimum content you need for your online store.

You must link your content strategy and your commerce strategy to sell online. This will ensure that messaging is consistent across all touchpoints with customers.

Plan your content to meet the needs of your customers when creating an eCommerce marketing strategy for 2022. You should ensure that people are able to find information about your products via social media, and that they can access it via their mobile devices.

Every channel in which your content will be published should be considered when developing a content strategy. It is important that content be easily accessible and properly documented in order to be retrieved and reused.

An excellent way to start planning content for next year is to audit your content, including outdated and missing content, as well as creating a wishlist (e.g. live stream video events or long-form blog posts, updated product photos, etc.). This will allow you to determine the best time and resources required to create and distribute content consistently throughout the year.

10. Explore new markets

The internet is a global marketplace that allows people to sell and buy locally. Globally, the buying power of people is increasing. Globally, there were 1.4 billion people in 2020. 85 percent of them lived in Asia Pacific countries.

It’s easy to say that there has never been a better moment to explore new eCommerce markets. International eCommerce offers a great opportunity for digital store owners looking to expand into new markets.

Our data shows that Wix online store owners selling across borders generate almost 700% more sales than those who do not.

It is important to research and understand the laws and regulations in each market before you start testing them. You should also localize your store (e.g. adding native languages and making sure content is culturally appropriate.

source https://www.wix.com/blog/ecommerce/2021/12/grow-ecommerce-business

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