Pete Elmgren, Chief Revenue Officer at CommerceHub shares seven must-know tips for profitable ecommerce growth.
As ecommerce continues to shift its post-pandemic trajectory and retailers and brands look for ways to address a challenging economic environment, companies across all market segments are focusing beyond how to grow their businesses and homing in on ways to grow their business profitably. Facing a dynamic and even at times volatile market, achieving profitable ecommerce growth can seem like an uphill task. But with the right strategy and approach, it is possible to achieve sustainable growth. Here are seven key steps to consider that can help successfully address the challenges facing ecommerce today and enable companies to grow thriving ecommerce businesses.
Prioritise customer experience
One of the most crucial factors for ecommerce growth is providing a seamless and delightful customer experience. With competition intensifying and consumer expectations rising, delivering a superior customer experience has become imperative. Make sure your website is user-friendly, easy to navigate, and visually appealing. Ensure that your checkout process is hassle-free and that your customer service makes people glad they chose you to do business with. Personalise your communication to customers to make them feel valued and offer them post-sales support to build a long-term relationship.
Optimise your online presence
In today’s battle for attention-spans, having a strong online presence is critical for success. Make sure your ecommerce site is optimised for search engines and is mobile-friendly. Use social media platforms to engage with your customers, build brand awareness, and drive traffic to your website. Leverage email marketing to keep your customers informed about new products, discounts, and promotions. Consider retail advertising to increase your visibility and reach new customers.
Retail Media and Digital Marketing Programs
Further expanding on optimising your online presence, a key strategy for achieving profitable growth in ecommerce is to leverage retail media and digital marketing programs. Retail media refers to advertising opportunities that are available on ecommerce platforms themselves, such as sponsored product listings or display ads. Digital marketing, including social media marketing, is another important digital marketing tactic for ecommerce businesses. By creating engaging content and building a strong social media presence, businesses can connect with customers and build brand awareness.
Streamline your operations
To grow your ecommerce business profitably, you need to streamline your operations and reduce costs. Automate repetitive tasks, such as order processing, inventory management, and shipping, to save time and improve efficiency. Use analytics tools to monitor your performance and identify areas for improvement. Optimise your pricing strategy to maximise revenue while remaining competitive.
Build a strong team
Building a strong team seems painfully obvious, but is a crucial, and all-too-often overlooked factor for ecommerce growth. Hire talented individuals who share your vision and are passionate about your business. Invest in training and development to ensure your employees have the skills and knowledge they need to excel in their roles. Foster a culture of collaboration, innovation, and continuous improvement to keep your team motivated and engaged.
Offer personalised experiences
Personalisation is becoming increasingly important in ecommerce. Use data analytics to gain insights into your customers’ preferences, behaviour, and buying habits. Use this information to tailor your marketing messages, product recommendations, and promotions to each individual customer. Offer personalised experiences, such as customised packaging, special offers, and loyalty programs, to build customer loyalty and increase repeat purchases.
Expand product assortment, curated for your customers
Extending the idea of personalisation, expanding your product offerings can help you attract new customers, retain existing ones, and increase revenue and profitability. By leveraging unowned inventory models like marketplaces and drop shipping, and the right ecommerce network, you can add more products that are tailored to your customers, without the upfront investment and hassle of purchasing inventory and managing warehousing. And with the right ecommerce partner, when particular products perform well in a 3P model, you can easily move them to 1P and increase your margins.
Growing your ecommerce business profitably in the current economic environment requires a combination of strategic planning, effective execution, and a relentless focus on customer experience. With these tips in mind, you can navigate the challenges of the current economic environment, achieve sustainable growth and profitability, and emerge as a leader in your industry.
About Pete Elmgren, Chief Revenue Officer, CommerceHub: In a career spanning 25 years, Pete has led sales and business development teams for leading cloud software and cybersecurity companies, and now heads up global go-to-market efforts for CommerceHub to drive the greatest value and success for customers. Previously, he served as CRO for Riskified and prior to that was SVP, Global Business Development at SAP. Pete also held executive leadership roles at Microsoft, Palo Alto Networks, Polycom and other leading technology companies.