6 Tips For Cutting Costs For Your E-commerce Store

by Amir Levi 19.Apr.2020 5 min read Views
Tips for Cutting Costs for Your Ecommerce Store
mm
Amir Levi
Contents

Owning and operating an e-commerce business during uncertain times is no easy feat. Even though the majority of e-commerce businesses have seen a significant increase in sales within the last 30 days, this doesn’t mean that they should only focus on sales as a means of measuring performance or ROI.

1. Reduce Product Returns

Perhaps the most fundamental rule of e-commerce is to keep products in customers’ hands. Whilst this means focusing on reducing product returns, it doesn’t mean ditching your return policy altogether as this will hurt customer relationships. By aligning the right products with the right customers and managing customers’ expectations about those products, you can reduce the number of returns. 

2. Reduce Inventory Costs

 As an established e-commerce business, you already know that your product inventory costs you money. Some products are likely to be more profitable than others. The key is to identify the products that are less profitable and consider removing them from your online store altogether.

3. Market To Returning Customers

 It’s a fact that it is more cost-effective to market to existing customers than to new customers. In fact, the average order purchased from a return customer is 30 percent higher than that of new customers. Not only does marketing to existing customers reduce costs, but it also increases the overall customer lifetime value (LTV). 

4. Automate Your E-commerce Business

If you have yet to explore the world of automation, then now just might be the time. Although many businesses love the idea of streamlining processes and operations, most aren’t sure of how to approach automation.
The first place to start is to identify any tedious, repetitive tasks. Then you can use automated tools to perform those tasks automatically, which reduces the amount of time spent performing these tasks manually. Not only does this cut costs, but it also helps grow and scale your business.

5. Spend Marketing Budgets Wisely

Most e-commerce businesses lack sufficient or accurate data to confidently calculate marketing return on investment (ROI). By using a robust AI-powered advertising tool, marketers and business owners can see which marketing channels are outperforming others and generating the most leads and sales, and adjust their marketing budgets accordingly. 

6. Leverage The Right Tools

E-commerce businesses are likely to already have a number of tools set up to help them manage sales, inventory, and fulfill orders. AdScale is an AI-powered advertising tool that allows e-commerce businesses to optimize and maximize ad spend across various channels, such as social media and Google Analytics. This strategy provides both granular details as well as high-level insights, allowing businesses to see what’s working and cut costs on what isn’t.

How AdScale Helps E-commerce Businesses Cut Costs

It’s more important than ever for e-commerce businesses to monitor ROI and keep costs as low as possible to maximize efficiency, ensure greater returns, and produce healthier margins. If cutting costs is one of your goals for 2020, then AdScale can help you get there. 

Try AdScale Now

Get Started for Free

Related posts

A Comprehensive Guide to Payment Options for Growing Businesses

High customer expectations have led to many developments in the industry and even tougher competition. Whether you’re a small, medium, or large business, there is tremendous pressure to stay on

19.May.2022 25 min read

20 Ways to Optimize Your E-commerce Conversions Fast

Increase E-commerce Conversions Ecommerce marketers and business owners develop and launch complex, multi-pronged marketing strategies just to bring potential customers to their websites. Unfortunately, the work doesn’t end there. It

12.May.2022 34 min read

E-commerce Analytics Software 2022: Top 20

In general, e-commerce analytics is the process of collecting information from all of the sources that influence your business. It can encompass a wide range of customer lifecycle KPIs, including

02.May.2022 31 min read