Especially in times of stagnant e-commerce and ongoing high inflation, online store owners are looking for ways to reduce operating costs and increase their profits. The very choice of an e-shop solution can reduce them from tens of thousands to units per month. One of the important factors for increasing turnover is automated e-mails, which can contribute up to 20 percent. At the same time, the purchase of an existing customer will cost the e-shop 10 times cheaper than acquiring a new one. According to the analysis of the leading supplier of e-shop solutions, the company Upgates, the electronic commerce market could see a recovery already in this quarter.
Czech e-commerce is probably experiencing the biggest test in recent years. In light of economic uncertainty, e-shoppers are looking for ways to cope with the situation. There is no universal recipe for Internet success, but several tips can be applied, thanks to which entrepreneurs will consolidate their position in the market and withstand the crisis.
Don’t overpay for basic features
The amount of most costs is understandably not easy to influence, however entrepreneurs should pay extra attention to secondary costs. These include money for running the e-shop itself. “It is worth checking whether the entrepreneur is not paying more than necessary to the e-shop platform. A popular practice is mainly surcharges for functions that could be considered the basic equipment of a full-fledged e-shop,” points out Martin Pech, commercial director of Upgates. At the same time, standard functions can be functions such as product evaluation, product comparison, connection to social networks, payment gateways, 2+1 actions and the like. At the same time, changing the e-shop solution can mean savings in the order of tens of thousands per month, and the owner of the online store can reduce operating expenses by thousands.
An inseparable part of a modern e-shop are also other expanding tools, whether marketing, analytical or accounting. Their benefits should outweigh the costs. “Also, it will not be out of place to look at the amounts you pay today to the payment gateway and carriers. It is quite possible that you will get a better offer from another company,” adds Pech.
Alice Vránová from the Beavia company from the ilovekimchi.cz e-shop also points to opportunities to save costs: “We were not forced to reduce costs, however we are still revising areas where this can be done, for example pallets or crates. We carefully monitor monthly costs and include them in regular monitoring in the area of receivables. In recent months, unfortunately, even the big players on the market have been paying overdue.”
Stand out from the competition
The Czech e-commerce market is at least one of the most competitive in the Central European region. Success wishes to those who stand out from their competitors and are able to impress their customers. Most of them decide to buy based on the appearance of the e-shop, ease of purchase or optimization for mobile devices. “Many Czech e-shops use templates that can only be customized to a very limited extent. When e-shops look the same as each other, the chance of attracting a discerning customer decreases. E-shoppers should look for a solution that frees their hands in this regard and does not limit their business in growth or in other aspects,” recommends Martin Pech.
Email automation accounts for a fifth of turnover
The battle for the Internet customer is currently even more intense than before. Many of them expect to get something extra from the seller. It can be a discount for the first purchase, a discounted set of products, a gift and the like. Alice Vránová also shares her experience with discounts: “We most often use percentage discounts on the total purchase, while we have observed that discounts above 20% make sense, customers don’t hear much about discounts anymore. We also include promotions for free shipping. This is very popular with customers especially popular after the increase in transport prices since the beginning of the year, when we were forced by the market situation to increase the price for the end customer.”
At the same time, Martin Pech advises that right now is the time to give the tactics of interesting offers a chance. “It’s better to start on a smaller scale, which will allow you to measure the success and profitability of these campaigns. Email automation tools can ensure up to 20 percent of turnover, because they very effectively encourage repeat purchases,” advises Martin Pech.
With a suitable tool, it is possible to send exactly those products to a specific customer at the right moment, for which there is the greatest chance for a repeat purchase. As a typical example, Pech cites a situation where a customer buys a coffee machine for which it is recommended to replace the filter after six months. After five and a half months, they will receive an e-mail with an offer of filters exactly for their coffee machine. At the same time, activities supporting the repeat purchase of an existing customer can be up to 10x cheaper when compared to the cost of acquiring a new one.
Run towards the revival of e-commerce
According to a recent analysis of the Internet comparator Heureka.cz, the year-on-year turnover of Czech e-shops fell by 13% in the first quarter of this year. However, the upcoming summer season should revive the market more. “People are used to online shopping due to the overall convenience. They will return to it perhaps even sooner than it might seem now. The situation will gradually improve and growth will pick up momentum again,” adds Martin Pech to his forecast. According to him, further recovery can be expected for typically seasonal goods, which are related to the onset of warmer weather. Whether it’s grills, garden accessories, supplies for outdoor sports and the like. Later, swimwear, pool equipment and holiday-related products.
Source: Tyden.cz by www.tyden.cz.
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