When you’re trying to run an ecommerce business, you have to deal with a wealth of costs and fees that cut into your profits. From web hosting to merchant fees to pay-per-click advertising, you’re constantly cutting into your revenue just to stay afloat amid the competition. If it’s all starting to feel like too much, there may be some simple ways to cut those costs of doing business and boost your profits.
- Don’t Be Deceived by “Free” Ecommerce Platforms
In an attempt to save money, many budding ecommerce store owners opt for free and open-source ecommerce platforms and content management systems. On the surface, it sounds like a no-brainer. But because these services give you no-frills access to their platform, you usually have to spend far more on web development, payment processing, web hosting, and marketing. By investing a few dollars a month in a premium, all-inclusive platform like BigCommerce, Shopify, or Volusion, you actually get much more for far less.
- Start Remarketing
Remarketing, or retargeting, is when you target a portion of your online advertising to consumers who have already visited or taken some type of action on your website. If done properly, this approach can be enormously lucrative. Consider that the average click-through rate (CTR) for online advertising is .07 percent, but the average CTR for remarketing ads is closer to .7 percent. One study even found that retargeting is the single largest influencer of search behavior, increasing consumer activity by more than 1,000 percent.
- Use Third-Party Credit Card Processing
Credit card processing can have a major impact on your bottom line. Merchant fees are especially cost-prohibitive for smaller businesses without the means to negotiate, and many businesses are even forced to pay separately for merchant accounts and payment gateways. All of these hassles can be avoided with a reputable third-party credit card processor, which handles the entire transaction quickly and securely and eliminates the enormous burden of in-house payment processing.
- Keep the Lines of Communication Open
Research shows that a full 83% of online shoppers need support to complete a purchase. That’s a staggering number, and it means that if you don’t always have someone available to field questions, you’re losing out on tremendous profit potential. Even if you don’t have the resources to hire 24-hour phone staff, you can increase your profits by installing a live chat feature that sends notifications to your phone or the phones of select team members. This means wider availability, faster response times, more sales, and a larger bottom line.