Margin Hacks for Cash-Strapped Ecom Stores

Many e -commerce businesses are struggling. Profit margins are thin. Cash is low.

As a host of “e -commerce conversation”, I usually interview businessmen and executives. But I will leave for this event, for more than a decade, my company, sharing lessons from running a beer brand.

Then I have the points of adding margins to the e -commerce business. The whole audio story has been embedded below. The copy has been edited for condenses and clarification.

Explain the goals

I believe in the bootstream business, prefer more freedom over money. My decisions are different from the wallet maker from Sean Frank, which aims to create a billion dollar company. My goal is to create a lifestyle that allows me to customize.

Having a clear goal facilitates attention. Chasing a billion dollars of business means thinking of a wider market, but focusing on niche can result in a high margin, a low stress company that is lean and manageable, even on only one or two million annual revenue.

Think about your products and how you interact with consumers and possibilities. Are you talking to a particular value suggestion or in a wide common sense? 90 % of the overall margin – the revenue of the goods is low cost – allowing flexibility to offer waivers or bundles. Creative abilities are from starting with a high margin, which is very high with struggling with products.

Improve tasks

Shipping costs are important. If you are not comparing the annual rates from FedEx, UPS, and DHL, you are leaving money on the table. If you use a third -party completion provider, ask what they are doing to reduce shipping costs. As a steward of your business, your job is not to serve the shopkeepers. This is to ensure the best prices and prices for your customers.

Think about what is unnecessary in your business. For example, in the beard brand, we sell directly to consumers (not in physical stores), which means we can use the least packaging for low cost.

Compression – Reducing the size or quality of an item – is another option. There is one reason that the brands have used it for decades. For example, Montana knife company can reduce the length of the blade slightly and fit two more knives in a steel sheet.

Consider Improving Manufacturing. Dealing directly with the manufacturer can be a savings offer, as can be manufactured at home. Quality cage Josh Paulson has built a cage in the house, which he benefits competitively and keeps the costs low when he produces demand.

Manufacturing abroad may show that improved shopkeepers can be ignored.

Upgraded marketing

Many businesses make a website, run some advertisements, and call it one day. But you have more. In a beard brand, we help men love the person in the mirror. To support this, we have consulted style, where consumers send photos, and we suggest hairstyles and products. Offering more skills can lead to loyalty and literal references from the mouth.

Adding thanks to small notes or sending birthday cards encourage re -sale. We use Postlot to send birthday cards to our top 1,000 users, often including Yeti Mug with our logo. The gift of $ 20 for someone who has spent thousands has a long journey to maintain relationships.

Limited edition drops can produce loyalty to top users. Hosting special programs promotes community and enthusiasm around your brand. Instead of spending $ 5,000 on ads, offer a memorable event and get much higher than contacts and energy.

Raise the brand

The design and appearance of the e -commerce site’s impact conversion. Raise your brand by upgrading photography, layout, color and fonts. These details are important. Consider that if the work of hot or bright light works best for your product, and ensures everything-from view and feeling to the human model-align with its brand and target audience.

Premium brands sometimes refrain from publishing studies, rather than focusing on their products and services. This is a bold move, but it raises their image.

High content can also help, especially in the fields where consumers will pay the best price.

Improve the checkout

Offer a premium return experience. For example, you can add the “white gloves” option to checkout, which is like a premium shipping choice. For example, while helping Retronologist, users and brands automatically, the return process automatically. Other options include a $ 1 or $ 2 Offers offer to return or preferred without any questions.

In addition, consider the offer of high margin accessories at the checkout. In a beard brand, we add a quality vessel to $ 10, costing US $ 1. This strategy is imitating grocery stores that have small, high margin items near the Point of Cell station.