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  • Sohan Nanda

How to scale ecommerce sales effortlessly in just 90 days

Updated: Jan 25

Today we have more than 19000 e-commerce stores in India and millions of products are being listed there. An e-commerce business is a concept where you list your product on the internet through an online store and sending huge traffic to that landing page or product page where customers look at your product and you instantly get a response from the market whether people are liking your product or not by their action of actually pulling out their cards and making a purchase. So it's a very complex space to get into but once you figure out how the whole system works, you can scale it to the moon.


Gone are those days when you spend a huge amount of money on Google to bring traffic to your store and make people purchase your product to get a number that makes sense to your business so that you can cover up your traffic cost, fulfilment cost and other operation cost and remain with a number through which you can buy luxury goods for yourself.


Today what is required is a much more advanced system to turn that traffic into profit as huge companies like Amazon, Flipkart, eBay just entered into space and eradicated all their competitors. They are willing to acquire customers at a loss as they have a great grip in numbers with a huge payback period. For example, if they acquire a consumer at ₹180 and that consumer purchases a product of ₹100 at the front end and maybe that consumer might buy a product 2times or either 3times in a year from that store, then they are actually making money at the backend. But for the small and medium-sized businesses that are new to the market and start their e-commerce are being slaughtered as they don't have a good grip on numbers and neither they have a system in place which can convert their traffic into a profit for their business. Not only they are in a hard position because they operate in a particular niche maybe they are selling T-shirts or shoes as compared to big giants who have thousands of products listed in their store. For instance, a consumer googles "Black T-shirt" and jumps into your store where you have 20-30 black T-shirts listed there whereas there is another store having more than thousands of black T-shirts. Now the question is where is that consumer more likely to shop? the answer is clear, consumers will be buying from the store having more than a thousand products what that means is businesses having more products have a higher conversion rate. So these businesses can spend a lot in acquiring new consumers to purchase in their online store because the whole exercise is a lot more profitable but this concept can not be implemented in the small and medium-sized business.


For instance, you sell a black T-shirt worth ₹100 and let's say pay per click on the black t-shirt is ₹2. Considering 1% of conversion rate (which can either be higher or lower), you bring 100 consumers to your store and convert 1 consumer to buy your product. which means you spent ₹200 to sell a product worth ₹100 leading to a loss of ₹100 and that's not a scalable system. which is why the traditional system of doing e-commerce business is not profitable as you have huge companies in the market who come and acquire a larger space and there is no much space left for the small players to ever get going.


Now here is a six-step funnel that you must use to scale your business irrespective of what you sell in your e-commerce store. This funnel is something which not being used by most e-commerce businesses. This e-commerce funnel must be in place to scale your business wherein front end you are selling your product and you will be having a backend. Now, the backend essentially is having all the things in place as you can use in the image below. This is something very much similar to a situation where you got a mall to pick up a product and go to the billing counter for payment and in the way you find different varieties of items which makes you feel like buying.





Quantity Breaks

Once a visitor is ready to buy a product let say a T-shirt at ₹800. He entered his details and card details and was about to checkout. Before going to the final checkout page, show him an offer for instance you have bought a T-shirt for ₹800, if you buy 2 more, It will cost you ₹1800 in total which means ₹600 per T-shirt.


Upsells

Once the visitor has decided whether to go with the previous offer or not, show him your OTO(One Time Offer) or upsell. Here you can show him the products which he might need. For example, if he has bought a T-shirt, offer him a set of jackets or caps which might suit him. It is recommended to have at least 2 upsells. If the consumer purchase the first, show him the second one. If he doesn't buy the first one, still offer him the second one.


Shipping and Fulfilment

Here offer them the quality fulfilment facility. For instance, show the consumer we have lots of orders in the queue and if they want to get their order delivered in 2-3 days, go for express shipping charging some minimum charges.


E-book

Since they have purchased a product from your store, offer them an e-book at a minimal cost like if a consumer has purchased T-shirt. Offer them an e-book regarding "7 essential styles with T-shirts that separates you from the rest" at just ₹20.


Warranty

On average on every product, we have a warranty for 12 months. Here you can offer extra benefits let's say if it is an electronics machine, you can offer them an extra warranty of 24 months or 36 months at a particular price which will be pure profit.


Free Plus Shipping

After the whole purchase, offer them a product for free and ask for its shipping charges. Let's say "Thank you so much for your purchases, we would like to give you a watch for free, just help us with the shipping charges so that we can include this in your cart". The free product can be anything that has a value attached to the main product as well as cheap for you to purchase or manufacture.


This whole system helps you to increase your average cart value which can be a game-changer in your e-commerce business.


In e-commerce, 3 major KPIs are considered

  1. AOV (Average Order Value) The total value of the cart when a consumer reaches the end of the funnel.

  2. CPA(Cost Per Acquisition) How much you are spending to acquire a customer.

  3. LTV (Life Time Value) It means how many times a consumer has purchased from you. For example, if your AOV is ₹500 and a consumer would buy 4 times, it means your LTV becomes ₹2000.

For e-commerce to be successful, LTV and AOV have to be highest. If both are maximum then any business can spend money to drive traffic and acquire consumers as they will be making money in the backend.



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