PROFIT FROM E-Commerce Store: When aspiring online business owners inquire, “How much money can I make with an ecommerce store?” it is never easy to respond.
The simple explanation for this is because there is no cap on the amount of money you can make, even though there is no assurance that you will. It doesn’t matter if your goal is to make $10,000 or more per month or if all you’re attempting is to build up a small emergency fund. You may achieve whatever financial objectives you set for yourself as long as you’re managing your e-commerce business successfully.
With the help of several free tools that you can use to manage your finances, we’ve developed this post to show you how to start generating revenue for your online store. You’ll have plenty of ecommerce ideas at the conclusion of this post to monetize your own online store.
Let’s get going.
A Successful Ecommerce Store Must Produce Traffic
Traffic Generation for Websites
You must be able to generate a significant volume of visitors for your online store. When your e-commerce site receives a lot of traffic, a lot of potential customers are stopping by to look at your products. It won’t take long for your online store to start bringing in customers and making money if you have outstanding things available at reasonable prices.
Unfortunately, there is no assurance that you will immediately attract customers to your online store. It’s likely that you’ll need to use marketing strategies to increase customer traffic. It’s critical to understand how much traffic you’ll need to create to meet your revenue targets before choosing which marketing channels are appropriate for your e-commerce business.
Recognizing Your Need For Traffic
Depending on how much money you want to make, you’ll need to generate different amounts of traffic for your e-commerce store.
Use our Dropshipping Traffic Calculator to quickly determine how much traffic you’ll need to create. Entering the money you want to make and the number of days you want to earn it in is all that is required. The tool will break down how many customers you must bring to your online business as well as how many orders you must create.
Below is an illustration that shows you how the tool functions in general terms:
Calculator for drop shipping traffic
Note that the calculations based on this example presuppose that:
An online store’s conversion rate is about 2%. Accordingly, you can anticipate two customers to place an order for every 100 persons who visit your store.
For online retailers, the standard order value is $45.
There will be a 2x margin used. This implies that you will charge your consumers twice what you paid for the goods.
An average user costs $0.35 to acquire. Based on e-commerce companies using Facebook ads in the US, this statistic was generated.
You’ll need to consider how you’ll drive traffic to your online business once you know how much of it you’re going to need in order to meet your financial targets.
How to Drive Traffic Using Marketing Techniques
How to get more visitors
Marketing campaigns are the quickest approach to drive visitors to your online store. You can use a variety of marketing platforms to entice potential buyers to visit your e-commerce site. Every marketing strategy has its own advantages and is effective for companies with both single- and multi-product lines.
To assist you in choosing the best marketing strategy for your e-commerce firm, we’ve broken down the many channels available to you.
In PPC marketing, often known as pay-per-click advertising, companies pay for a greater opportunity to drive visitors to their online storefronts. PPC marketing is already in use if you’ve ever seen a Google search result with a green “Ad” logo next to it or a Facebook post with “Sponsored” at the top. PPC marketing campaigns are frequently active in successful e-commerce sites because they are a terrific strategy to increase sales.
PPC is a fantastic marketing technique for bringing in more customers, raising brand exposure, and eventually increasing revenue. Your campaigns will yield results quickly, and you’ll only be charged for marketing when someone clicks on your advertisement.
Google, Bing, and Facebook are the three primary PPC marketing platforms that you can utilize. Your ecommerce store’s adverts will be more effective if you use Google or Bing for your PPC marketing because you’ll be able to research the quantity of people who are searching for what you’re promoting. You won’t have precise information about your target audience, such as their age, gender, or interests, if you use Google and Bing.
You can learn about the age, gender, and interests of your audience if you use Facebook for PPC marketing, but you can’t predict how well-liked your ads will be.
Check out Neil Patel’s Google AdWords tutorial and Buffer’s Facebook Marketing guide if you’re interested in experimenting with PPC advertising.
Email is a platform that people are constantly hooked into and checking, but it is frequently disregarded as a crucial marketing tool. Additionally, compared to PPC, email marketing can generate a return on investment of up to $32 for every $1 invested.
Creating a successful email strategy can transform it into a sales channel that drives repeat visitors and new ones to your website. A campaign that offers free educational material, freebies, discounts or sales codes, refer a friend coupon codes, and invitations to preview new products before the general public would be a suitable example. To encourage website visitors to join their email list, Helm Boots offers a promotional discount.
Helm Signup Promotion
It’s critical to look after your subscribers if you want to eventually rely on them to drive more traffic to your website. In order to let your audience know when to anticipate your emails, this can entail sending out a biweekly email blast. Alternately, you may divide your audience into segments based on their demographics, psychographics, etc., and offer useful information about people’s interests, views, wants, or needs. Why will this result in more people visiting your website? By providing individualized content to your audience, you create social proof scenarios where your audience feels confident recommending your goods or services to their close-knit communities.
Use of social media
Without having to pay money or produce fresh content, social media may be a terrific marketing medium for promoting your company and driving visitors to your website. Sharing non-commercial information on social media such as blog posts, goods and services reviews, company news, and videos can help you build a community of ardent fans who will spread the word about your content and expand your customer base.
However, social media can also be a fantastic tool for customer service because it allows for marketing and messenger conversation. Through Facebook Messenger or WhatsApp, businesses like Chatchamp offer services that let you automate sales qualification, notify followers when new products are available, and remind clients about abandoned carts. There are several firms like this that offer similar support for various social media platforms, so it is wise to examine your online presence and invest time in improving communication on the profile that is most crucial to your company. This may result in higher website traffic as well as better sales for online shops.
No matter the size of the business, SEO, or search engine optimization, must be done. It is essential since it is the best technique to greatly increase website traffic without spending money on advertising. SEO is essentially the process of optimizing specific parts of your website so that when consumers search for a set of keywords, search engines will place your website as near the top of the results page as possible. It is best to invest time in on-page features like content optimization, meta-title optimization, and image optimization when a website is first launched. However, as the popularity of your website increases, off-page SEO techniques like link building and social media promotion can be a terrific method to improve your search engine ranks and enhance website traffic.
Search Engine Optimization for eCommerceLow-Cost Marketing Channels
You might benefit from low-cost marketing channels if the idea of spending money into your marketing efforts seems daunting. It will take longer to drive the necessary traffic to your online business using low-cost marketing channels than it will with PPC marketing, but if done well, they can provide a cost-effective method of doing so.
You can employ content marketing, a well-liked low-cost marketing method, to drive visitors to your online store. You can start a blog and post intelligent SEO material about your items to improve your brand authority and organic search rankings. To inform your audience about new products, flash specials, or news pertaining to your online store, use social media for your e-commerce firm.
Additionally, you may leverage discussion sites like Reddit to drive additional visitors to your online store. Reddit offers a wide range of specialized subreddits (sometimes referred to as “Subreddits”) where you can interact with other users who are considering buying your products.
If you have any resources for content marketing, you can publish them on Reddit as long as they are pertinent to a current conversation. It’s a terrific approach to get high-potential clients to your online store while promoting your brand, as you already know that these users are interested in your field.
Calculating Your Profits
It’s crucial that you can calculate how much of the money your e-commerce business will make once sales begin to flow. You may use our straightforward Monthly Profit Calculator on Google Sheets to determine how much profit your online store is making; all you need is a Google account to utilize it.
Simply copy the form we’ve developed and paste it into your own Google Sheet to fill in the parts marked in green with your own data. The Monthly Traffic Calculator will calculate your gross revenue, net income, and profit once you’ve entered your data into the parts shown in green. We’ve outlined the calculations for gross revenue, net revenue, and profit below because it’s crucial that you comprehend how they work:
Gross income: To get the gross income your online store generated, multiply the amount you were charging per item by the quantity of items you sold.
Net Revenue: To calculate net revenue, multiply the cost at which you purchased your products by the quantity of items your online business has sold. After you’ve calculated the total, simply deduct your result from the gross revenue to get the monthly revenue for your e-commerce business.
Profit: To calculate the profit your store made in a given month, simply deduct your marketing expenditure from your net sales.
Is affiliate advertising successful?
Time to Begin Making Money
E-commerce and dropshipping are definitely profitable. Now that you have the skills and knowledge necessary to achieve your financial objectives, it’s time to start working for a living. We just have one more piece of advice for you: test your marketing strategies and product prices. This will help your e-commerce business flourish. If your Adwords efforts are unsuccessful, you can try Facebook campaigns instead. You can also experiment with changing the prices of your goods; if you discover that your clients are willing to pay more, you’ll be able to invest more in marketing.