3 key phases for an effective and profitable ecommerce strategy
If you are here, you are probably interested in launching an ecommerce project, or maybe you already have one and are looking to improve sales and increase profitability through some ecommerce strategy.
That said, there is no better time to venture into the world of e-commerce, as this business model that had been growing steadily received a strong push courtesy of COVID-19 and the lockdown.
The industry had already been showing steady growth year after year, and in 2020 alone this figure reached 81%. According to AMVO, the industry is now estimated to be worth 5 trillion dollars worldwide.
These are the first stages of an effective ecommerce strategy
Based on my experience, you should know that every ecommerce strategy must include the following 3 stages:
- Definition of the ecommerce business model.
- Ecommerce acquisition channels.
- Customer loyalty and CRM in ecommerce.
Read on to learn all the details about each stage.
1. Define the business model in electronic commerce
One of the most important and often overlooked aspects of e-commerce is the business model, which basically answers the question: How are we going to make money?
Sometimes it is assumed that the best option is direct sales through your own store, however there are some other options that are worth considering.
However, you should know that the profit margin in this model is generally low.
Disadvantages of marketplaces:
- High commissions from marketplaces
- High level of competition with other similar products/brands
- Depersonalized brand experience
- Loss of control in the presentation of your product
Own Store:
This involves creating a store from scratch. This business model requires more work and investment at the start and more maintenance work, but the profit margins are wider. Its main value proposition is customer identification with the brand and low commissions.
Subscriptions : This e-commerce business model has been gaining strength in recent years with the appearance of ‘subscription boxes’, in which for a fixed monthly fee, you will receive a box with either previously established guatemala telemarketing products or surprise products.
2. Define the e-commerce acquisition strategy
With a well-defined business saas sales funnel: how to convert prospects into customers? model, it is now time to reach potential customers and start generating sales. There are several channels for this.
The two main ones are email leads database Facebook Ads (now Meta) and Google Ads, let’s go into detail.
Facebook Ads
The social network par excellence and where everyone has to be, if you are not on Facebook, you do not exist. Currently Facebook has 2,912 million active users each month.