5 Simple Ideas to Drive Revenue On Your E-Commerce Store
Promotions have long been a go-to option for retailers and e-tailers to increase sales. Promotions can help make you stand out and give casual shoppers a reason to turn into buyers.
There’s a lot that goes into creating a successful online promotion, especially if you want to strike a perfect balance of attractive offers AND profitability. For the best results, we’ve pulled together our top picks for easy, effective e-commerce promotions you can put to good use:
#1 – Offer Free Shipping
If you’re selling physical goods, you should know that shipping charges are one of the biggest reasons for shopping cart abandonment. Research shows that 44% of shoppers will ditch a purchase altogether because shipping fees are too expensive. 22% of shoppers admitted they didn’t purchase an item because the shipping fees were displayed too late during the checkout process.
While free shipping might not make financial sense on every item you sell, you can offer to cover this cost in a variety of different ways:
Free Shipping on Certain Categories or Items
Companies like Target are known for offering free shipping in rotating categories. For example, spending $50 on apparel will get you free shipping, but spending $50 on apparel and electronics combined might not.
This technique can be effective in increasing sales because it encourages shoppers to spend a little more in order to get a better deal.
Free Shipping Over a Certain Dollar Amount
If you don’t want to limit your shipping to certain categories (or don’t have enough diversity for it to make sense), consider offering free shipping on every purchase over a certain dollar amount.
We’ve seen this type of promotion from companies of all walks of life, with minimum purchases ranging from $25 up to $150 or more. There is no magic dollar amount that’s most effective, so experiment a little to find your shoppers’ sweet spots. If you’re not sure where to start, consider whatever your average order size is, then set your threshold for somewhere above that amount to increase revenue.
Keep in mind when considering to offer free shipping to ensure you’re not only covering that cost through increased sales, but also making enough of a profit to justify it. Some companies increase their base prices in order to offer free shipping, which might be a good option for you to maintain profitability.
#2 – BOGO Deals
The term BOGO (Buy One Get One) has been in the retail promotion’s playbook a long time. In essence, shoppers will buy one of something and get another at a discount (or free).
These deals are great opportunities to clear out excess inventory, move poor-selling product, and increase the average ticket. Popular variations include two-for-one deals and mix-and-match options so they can pick from a variety of items.
BOGO deals can be powerful in e-commerce promotions because buyers feel like they’re getting a better value, especially if it’s an item they use every day or were going to purchase again at a later date.
#3 – Quantity Deals
Another easy way to move more product in fewer orders is to offer volume pricing based on the number of an item your buyer purchases. Consider offering a discount per item when bought in bulk. For example, buying 10 of the same type of item might land them a 10% discount.
This is especially helpful if you sell to resellers or others who need to buy in bulk without them having to contact you for special bulk pricing. You can display multiple bulk pricing options on your website at once so they can calculate the best value for their purchase.
#4 – Discount for Email Signups
Pop-up prompts to encourage email enrollment is fairly typical for E-commerce websites. In exchange for giving you their email address, you can send your customer a coupon they can use on their order, such as a percentage off or free shipping.
This type of promotion helps you achieve a variety of goals:
For starters, it’s an easy way to grow your email list so you can continue marketing to them for as long as they’re opted in to receive your emails. This gives you a way to continue the relationship and let them know about special discounts, sales, new products, and other happenings on your website.
In addition, giving them a coupon to use immediately can help to increase the likelihood of completing the transaction. You’re giving them plenty of incentive to buy something on your website that day rather than going to your competitors.
#5 – Run a Contest
Offering one-time deals and discounts can be effective in increasing short-term revenue, but it doesn’t always do much for creating long-term relationships and repeat buyers.
One of the best ways to combat this, of course, is to increase your email list so you can nurture your buyers and stay top of mind. Running a contest is an easy way to build your list. Website visitors can enter their email address for a chance to win a prize, such as a shopping spree on your website or a large ticket item.
As a result, you have a simple way to increase engagement, fuel your email campaigns, and give people a reason to share your website with others. You might also consider offering each person who enters the contest a promo code they can use to shop on your website. It’s a win/win!
What Will Your Next Online Promotion Look Like?
The above list is just a sample of how you can drive revenue on your e-commerce website. If you need a little more inspiration or aren’t sure how to put these ideas into action, contact us today for a quick consultation and we’ll help you make the most of your e-commerce website capabilities.