What Is E-commerce at all?
Many people have being searching for “How To Increase Profitability of E-commerce business” that they run”. Let’s start from the start, E-commerce is a process of buying and selling of the goods on the internet. Previously, Goods those are sold in a brick and mortar store now being sold on the online shelf. Some sellers prefer to have only online stores exclusively but many use E-commerce as their broader sale strategy and use online and offline store. There are almost 2 billion transactions happened last year which includes 500 million which happened in India only. E-commerce proven to be very helpful for start-ups where they can start their activities cheap and fast.
Statistics Related to the E-commerce Businesses
Before get into how to increase e-commerce profitability , we must take a look at statistics related to e-commerce business. E-commerce business is growing rapidly, but its constant growth in India is exponential. If we look at a small statistic e-commerce growth in India. India’s E-commerce sector expected to reach 4416.6 billion Rupees in 2024(as per Forbes) and 2024 has not been ended yet.
Asia leads the ranking of biggest e-commerce markets worldwide. The total revenue of online retail in Asian countries added up to nearly 1.7 trillion U.S. dollars in 2023, that’s huge.
Let’s know what to do to increase profits from e-commerce.
Product Quality: In order to have a name in the market, your products should have best quality atleast better than better than your competitors. To ensure the quality of your product you should test the product before buying the lot from the supplier at the first place. It will also ensure the circulation of products with better quality in the market.
Supply Chain Inefficiency: today supply chain process plays a vital role in the success of a business. A poor supply chain management impacts a business adversely. Bad supply chain management can increase delays and diminishes the quality of products. Improvements in the communication with the supplier can also improve supply chain management. This includes setting clear expectations, providing regular feedback, and building strong relationships.
Competitive Pricing: Some people in expectation to make more Profits quickly put higher prices of their products. But when buyer compares the product with similar product on different seller he would go with that seller instead buying yours. Which in turn negatively impact your business.
Customer Relationship: In digital transactions customer relationship is difficult to maintain but there are lot of CRM software came in to existence to perform this task. Initially, maintaining a CRM system might be an expensive affair, but gradually you would end up saving money and time in the future. CRM helps to improve customer retention as well.
Up–selling: Up-selling is a sales technique where the seller encourages the customer to buy some more expensive products or upgrade already bought product which would enhance the sales. As per Gartner up-selling increases almost 50 per cent of total sales and also improve the customer satisfaction and loyalty.
Cross Selling: To cross-sell is to sell related or complementary products to a customer. Cross-selling is one of the most effective methods of marketing. Cross-selling to existing clients is one of the primary methods of generating new revenue for many businesses.
Media Spending: Today businesses have understood the benefit and power of the advertising industry. In last couple of years market for digital advertising has shoot up to the sky and businesses are taking more advantages of it than anywhere in the past. : Digital marketing demolishes geographical barriers. Through platforms like social media, search engines, and email marketing, businesses can reach a global audience with minimal costs.
Conclusion
Points that we have discussed in this blog are the most important points to increase the sales of a particular business. Growing an e-commerce business is not an easy task.
If you have an e-commerce business and struggling to get it on the track let us help you increase your sales and you enjoy your growth.