ecommerce

E-Commerce Transaction Rates

When operating an ecommerce venture most people concentrate on Search Engine Optimization, Search Engine Marketing, Conversion rates, Traffic and other things. Granted, these are aspects of a business that must be closely looked at. But there is one other thing that is often overlooked and that is E-Commerce Transaction Rates.

Basically this refers to how much you spend to make a sale and how much of a profit you make thereafter. Using a marketing tool which costs $10 to get a customer and selling a product for $15 gives you a profit of only $5. When you factor in your fixed costs you might find that you are actually making a loss. So the first thing to do is to find a marketing tool that is cost effective and the second thing to do is employ some simple techniques, like the ones listed below, to increase your profit margins.

1. Up-selling – Do this without being too intrusive or obvious. The best place to put this method in action is at the point of checkout. For example if your customer bought a DSLR camera, you can offer them UV filters, Camera bags, Photography books, etc so that you stand a chance of making a sale from another area which the customer might not have considered.

2. Packaged offers – Sticking with the Camera example, offer the Camera with a couple of lenses and throw in a Camera bag as well. The whole package will look more appealing and feel like more of a deal for the customer. The end result – you end up selling more items.

3. Minimum amount – Specify a minimum amount to customers which will entitle them to free shipping. This will entice them to make a few more purchases just so that they can qualify. You will be surprised how well the word “free” works in marketing.