With the accelerated growth of e-commerce, making an e-commerce more profitable requires strategies that go beyond just increasing sales. Process optimization, efficient inventory management and strategic pricing are determining factors to ensure healthier margins and sustainable growth. Check five fundamental steps to improve the profitability of your e-commerce
- Strategic product management with the ABC Curve
The ABC Curve is an essential methodology for classifying products based on the revenue they generate for the business. She divides the items into three categories
- Category A:products responsible for the majority of revenue, that require special attention in inventory and marketing
- Category B:intermediate items, with growth potential that can be leveraged with specific strategies
- Category C:products with lower financial impact, but that help to diversify the mix of offerings
By focusing efforts on products in categories A and B, e-commerce improves inventory management and invests more efficiently, ensuring a significant increase in profitability
- Smart assortment to maximize revenue
Having a well-planned portfolio avoids waste with low-demand products and ensures that the most sought-after items are always available. Some fundamental actions include
- Sales data analysis:understand the performance of each item to optimize purchasing decisions
- Focus on profit margin:balance high-demand and fast-turnover products with higher-margin items
- Strategic promotions:campaigns that drive traffic and direct customers to more profitable products
Maintaining a product mix aligned with consumer trends and the needs of the target audience makes all the difference in ensuring sustainable growth
- Shipping optimization to reduce cart abandonment
The cost and delivery time are critical factors for the purchasing decision. An efficient shipping strategy can help reduce cart abandonment and improve the consumer experience. Some effective approaches include
- Partnerships with multiple carriers:broadens the options and optimizes shipping costs
- Strategic Free Shipping:offered for purchases above a certain amount, encouraging a higher average ticket
- Logistics automation:platforms that automatically calculate the best shipping options
Finding the balance between cost and benefit is essential to increase conversions without compromising profit margin
- Smart pricing with the elasticity curve
The pricing definition directly impacts the profitability of an e-commerce. The price elasticity curve helps to understand how small variations in the value of a product influence its demand. Products with high elasticity require strategic adjustments to ensure competitiveness, while low elasticity items can have higher margins without significantly affecting sales
Combining this analysis with an efficient checkout ensures a smooth shopping experience and improves financial results
- Increase in average ticket with order bump
One of the most effective strategies for increasing profitability is the use of “order bump”, which consists of offering complementary products at checkout, without interrupting the customer experience. Low-cost items with high added value have greater acceptance, making this approach a simple and efficient way to increase revenue
Among the benefits oforder bump, stand out:
- Increase in average ticket:incentive for the customer to add extra items to the order
- Ease of purchase:inclusion with just one click, without friction in the buying journey
- Improved consumer experience:personalized suggestions make the process more relevant and appealing
Maintaining recurring customers is essential for a sustainable e-commerce. Strategies such as loyalty programs, personalized offers and cashback help strengthen the relationship with the consumer and increase the volume of purchases over time. The implementation of these five strategies can make all the difference in the performance of your e-commerce. To enhance these results, count on aoptimized checkoutit is essential.
