The giants of ecommerce are effectively beating the competition in 1 of the 3 golden triangle: traffic, conversion and basket value. The sales generated on any ecommerce site are the multiplication of these 3 core elements. Consequently, improving one element will result in an increase in sales, even if the remaining two elements are static. Increasing traffic to the site. Allowing upselling options to increase basket size at checkout. And ensuring as few customers leave the site before purchasing with solid Ecommerce Conversion Rate techniques. Take this example:
Traffic: 1,000 users per day, Conversion rate of visitor to buyer: 1% & Average Basket Size: $50 = Daily Sales are $500
But increase conversion rate on same traffic to 2% and see what happens?
Traffic: 1,000 users per day, Conversion rate of visitor to buyer: 2% & Average Basket Size: $50 = Daily Sales are $1,000
Quite often we find that ecommerce clients are focused purely on traffic, pumping more and more spend into Google & Facebook Ads. Whilst this strategy works when the site is converting at its maximum, it is akin to filling a leaky bucket if the site converts badly. Tweaking the site to increase the likelihood of a customer staying on the site and progressing through to purchase, will be a much better area of focus BEFORE traffic generation techniques are employed.
At Nuvem9 we have spoken previously about the impact marginal gains can bring to your ecommerce site. Optimising sites for conversion is a perfect example of such marginal gains and will keep your business steps ahead of the competition. Whilst we could list all of the techniques recommended, we have instead linked to this example infographic from Websitebuilder.org; they have prepared a list of no less than 46 ECommerce Conversion Rate Optimisation hacks. We highly recommend reviewing this list and finding areas where your site could start converting better today. The techniques are simple and easily implemented, and can generated massive impacts on your revenues.
You can also speak with Nuvem9 about drilling into your ecommerce finances and understanding the key revenue and cost drivers. We take standard financial information a step ahead and provide not only a summary of results but a clear synopsis of how revenues are being generated, what it is costing, what margins are being delivered and how growth can be achieved. If this sounds like something that can help your ecommerce business then set up a free consultation today.