4 Reasons Your E-Commerce Store Isn't Making A Profit
Do you have an online store, do you do online advertising on your own or in collaboration with a digital agency, but you do not see the development you want or are you generally not satisfied with your overall profitability?
Growth and continuous development are very important factors for any business. Because without growth, profitability cannot come and without profitability, no business is viable.
In most cases when an analysis is performed, the conclusion is that there is no clear strategy for the development of the e-shop and profitability. Issues such as the development of profitability, the brand, the regular customers, but also the recurring ones, as well as the increase of the sales, require a long-term planning.
Let's see below 4 reasons why your eshop is not profitable.
1. Problems with prices
So there can be a price problem, so let's talk about the case where the company is out of competition in terms of prices and even if they can not be reduced, there are other ways to overcome this problem.
One solution, for example, would be to create certain product packages (the so-called bundles) and through special offers, gifts or some product combination to overcome the price problem.
2. Problems with competition
Also, in terms of the variety of products and their availability, competition plays a very important role. That is: Does the agency with which the entrepreneur cooperates know the actions of the competitors? Are they watching him? Do they make suggestions based on the analysis they make?
For example, competitors may offer discounts on similar categories, the entrepreneur may not do so and no one can understand the real reason that the campaigns are not going well.
3. Problems with the e-shop
What does it really mean to have a good e-shop overall? In the digital marketing ecosystem, this is evaluated with the following characteristics:
- To have a good design
- Be fast
- Be mobile friendly
- The user can easily complete his purchase
- Properly present the competitive advantages
- The About page inspires confidence
- Payment methods should be clear
- Have good photos
- Have unique product descriptions
- It can be seen how many sales are lost at checkout and the exact basket abandonment rate
4. The correct marketing mix is not followed
What needs to be clarified is that not everything fits everyone. When we talk about a mix of advertising actions, we mean the exploitation of the channels that are suitable for the respective business.
Is money being wasted on channels that do not fit into the business category? And if that happens, does the agency he works with know about it?
It happens in many cases to start a campaign on a customer, with Google Ads or Facebook Ads and within a short time to find out that this option does not suit the specific customer and the largest percentage of the budget should be transferred to another channel.
It is also worth knowing that today's users have a multi-channel communication with brands. This means that the average user will interact with many different channels.
If the entrepreneur does not have the right mix and if he does not appear where the users are, at the right time and with the right message, he will not get the maximum result.
It is the agency's job to design the right mix of actions, combining the channels that will offer maximum performance.