Every business’s goal is to become an industry leader and household name, which requires expanding considerably and having a loyal customer base. However, you may be looking for more ways to increase your eCommerce business revenue without investing too much in attracting new customers, which often takes up a large part of the yearly budget.
While having more clients is crucial to a business’s growth, it’s not the only thing that can help you earn more income. By deploying a few creative strategies, you can cut your costs, increase savings, and enjoy more revenue without depending on the conversion of high-quality leads. Here are three tips to help you do that:
Lower the Cost of Sales
Your business takes its profits from the order value minus the cost of providing that product. The latter involves shipping and logistics costs, which tend to eat up your profit margin. If you’d like to enjoy more income out of your products, consider negotiating with your suppliers to reduce the product cost. If this sounds impossible, culling favour with them by increasing supplier orders or paying your invoices early will cause them to consider your proposal.
However, if they decline your request, you can choose to shop with their competitors, who may be more willing to pirate clients and offer much better deals. Meanwhile, shipping costs are unavoidable as an eCommerce business, but you can compare carriers to determine the one with the best rates to help you maximise your profit margin.
Reduce Overhead Costs
Another way to increase your revenue is to evaluate your overhead costs and find opportunities to reduce them, which will immediately expand your profit. Generally speaking, approach your overhead costs so that you spend money only if it gives you a higher return on profit. For example, suppose you purchased marketing software designed to help your team extract data and create strategies to promote your business better. In that case, it must significantly contribute so that it reaps you more profit, even by one dollar.
If you have difficulty finding areas to save money, you can work with an online accounting firm to analyse where your profits are going. Any opportunity to save money, whether it’s cutting your electricity bill by using solar panels or reducing your cleaning service to twice a month, should be considered as long as it can benefit your business in the long run.
Reach Out to Repeat Customers
Lastly, an excellent method of enjoying more revenue without drawing more customers to your website is by paying more attention to your existing clients. These individuals are more likely to share their positive experiences with you, especially if they frequently purchase your products and services. They can also make or break your business with their loyalty, so you may want to pivot your marketing strategies to focus on repeat customers to make sure they feel taken care of and appreciated. When potential or one-time customers see how well you treat them, they’ll feel more likely to purchase, especially if these repeat clients consistently sing praises about your services. By going this route, you wouldn’t have spent a cent on converting prospects into buyers since you’re tapping into your existing pool of willing customers!
The online marketplace has quickly become cutthroat now that many eCommerce businesses have established themselves in the space. However, you can gain an edge over your competitors by practising these three tips, which are sure to help you increase profit and find more opportunities to save.
The ECommerce Accountant is an eCommerce accounting firm made up of business advisors, accountants, and bookkeepers for online businesses in Australia. We help eCommerce entrepreneurs minimise tax and increase profit through our sophisticated, modern strategies geared towards success. Contact us today to book a free strategy session!