7 Ways to Grow Your E-Commerce Business and Increase Sales

The e-commerce industry is predicted to grow by 16% this year. B2B e-commerce is set to grow by 12% this year.

Industry growth doesn’t automatically mean that your e-commerce business is growing by 16%, too. Increased competition in the B2C and B2B space means it’s going to get harder to stand out and make a sale.

You can’t cruise along like you’re the only option for consumers. You’re far from it.

It doesn’t mean that you should give up on running a small e-commerce business. It’s possible to create an e-commerce empire if you master the basics of marketing and sales.

Keep reading to learn seven ways to give your e-commerce shop an edge above the competition.

1. Gather a Few Basic Metrics

Where does your e-commerce business stand now? There are key performance indicators to know to find out the answer.

The first one is the average order value. This tells you the average amount of money customers spend on each order.

It can provide clues and opportunities to make improvements to your bottom line. Your average order might only be $20. You can raise that number by offering similar products to customers.

Imagine what an extra $10 per order can do for your business.

The other metric to get is the lifetime value of a customer. You’ll learn how much a customer spends during the entire relationship they have with your business.

It’s a measure of customer loyalty as well because you know how many times a customer spends money with your business.

2. Expand Into New Markets

New business markets are excellent ways to grow your business. The primary methods to expand into new markets are to reach a new target market or add sales channels.

An e-commerce business that targets young mothers can expand into an older demographic. If your main customer base is American, you can expand into Canada and other countries.

Adding sales channels means you have more chances to sell your products. If your e-commerce shop is your website, you can sell products on Etsy, Amazon, or Wal-Mart.

Do your research into your target market before deciding where to sell your products. A shotgun approach doesn’t work.

You’ll lose money and time creating accounts and product listings on sites that aren’t a great fit for your business.

3. Enhance Your Operations

Your business could be losing money because of inefficiencies. Out-of-stock items mean you’re losing out on sales.

Quality control issues lead to customers leaving bad reviews. They won’t order from your business again. You’ll have to work harder to get new customers.

Examine every part of your operations, from order fulfillment to customer service. You’ll learn where there are problems. Address them one at a time, and you’ll see your business improve.

Your sales will increase because you’re providing better service. Not only that, you’re spending less on marketing and operations.

That combination creates a highly profitable business.

4. Leverage Affiliate Marketing

Affiliate marketing is a method that Amazon used to become the behemoth that it is today. Remember, the company started out as a bookseller.

Today, there are small businesses built on affiliate marketing. They don’t create products. They sell other people’s products for a commission.

It’s the type of win-win relationship that you want to create in your e-commerce business.

Affiliate marketing is when you have a network of affiliates who send referral traffic to your site. If someone makes a purchase because they were referred to your site, that affiliate gets a commission on the sale.

To take full advantage of affiliate marketing, partner with affiliates who share the same target audience, but don’t directly compete with your e-commerce business.

5. Use the Right Marketing Tactics

An e-commerce site needs traffic. Not only that, you need to get traffic that will convert into sales. The right marketing tactics will help you do that.

Keep the customer journey in mind when you create your marketing tactics. You want to have marketing tactics that take buyers from awareness to becoming customers.

If you sell on other channels like Amazon, you’ll need to invest in SEO. Amazon is a search engine. Your product listing has to use the right keywords and have a detailed listing to attract sales.

Like all search engines, Amazon’s search engine relies on an algorithm that changes often. These Amazon SEO tips tell you how to get your listings ready.

6. Create a Memorable Brand

How can you make your e-commerce site stand out? It starts with a brand, not your logo. A brand is the promise that your e-commerce shop delivers, summed up in just a few words.

Those words form the connection between you and your customers. The easiest way to create a brand is to ask yourself what you want your business to be known for.

A few examples are safety, security, excellent service, and convenience. What you come up with forms the basis of your marketing messages.

7. Follow Up With Customers

Do you take your customers for granted? You do if you look at your revenue reports and see how many sales you got for the day.

Customers want to feel valued by companies. It doesn’t take much to do that. Ask customers to fill out a survey about their experience. You’ll get insights as to how your business operates.

Follow up with customers and get reviews and references from them.

Make sure your customer service is impeccable. You’ll improve customer retention, brand loyalty, and the revenue of your e-commerce business.

Get Ready to Grow Your E-commerce Business

It’s hard to keep up with the growth of the e-commerce industry. Despite increasing competition, you can grow your e-commerce business.

These seven tips give you concrete ways to get more traffic and customers to your e-commerce shop. You’ll get more revenue and increase your profits.

For more helpful business insights, check out the other articles on the blog.