Getting involved in the eCommerce space is an idea that many people have. The studies confirm there are between 12 and 24 million eCommerce websites in the entire world. That fact proves two things - the eCommerce world is perspective yet competitive. People wonder "how much does eCommerce make" and try to figure out whether the risk will pay off.
The research done by Statista says that eCommerce stores made roughly 905 billion USD in 2022. Undoubtedly, the cash flow in this industry is insane. Yet, it is hard to say how much money eCommerce sites make on average. There are different factors influencing their profit, such as:
- The industry they work in,
- Type of products they sell,
- The platform they use, etc.
Some official information may give people a clear vision of how much they can make. For instance, the average revenue per customer of fashion eCommerce businesses is around $103. On the other hand, the average revenue per customer for customer services is around $109. Businesses using Shopify make, on average, $92 dollars of revenue, while the profit for WooCommerce users is $104 per customer on average.
6 Factors That Impact Ecommerce Sales
After you have gotten some answers to your question, "how much does eCommerce make" it is about time to talk about factors that can impact sales. There are six crucial ones that you need to have in mind. Let's find them out!
Indeed, the demand of people for a particular product is one of the factors you should consider before starting an eCommerce business. But, your product won't be seen as a solution if it does not feature the quality customers expect.
First, you must be an expert on the product you are selling. You must know the difference between the good and bad quality. Also, you have to understand precisely how your product is a solution to specific problems. Your knowledge and expertise determine how much money you can make from eCommerce.
Also, did you know that more than 80% of people would instead buy products that are manufactured in the USA? Outsourcing manufacturing procedures can leave a bad impression on people. They will see your intention to invest in an inexpensive production which, in their eyes, can be a sign of low quality. That's why you should tend to become a manufacturer and expert for the item you are selling.
In some cases, people are willing to spend more, which we will explain later. Yet, as a new eCommerce business, you must offer realistic prices.
First, you have to check the prices your direct competitors offer. You can use price comparison tools to simplify the entire process. After that, you need to determine if the price-per-value ratio you offer is fair and reasonable.
When we gave you answers to the question "how much does eCommerce make" the numbers probably impressed you, didn't they? But remember that some companies worked for many years to achieve those results. The path to success is long, and establishing a well-recognized brand when you can boost prizes takes work.
Quality of Packaging
Nearly ¾ of American consumers agree that packaging design influences their purchasing decision. Businesses must optimize their packages regularly to attract customers. Indeed, your competitors can serve as an inspiration. But don't forget that being unique and different from others is crucial for success.
Shipping Time and Expenses
No customer online would be happy to wait for an order too long. That's why you have to collaborate with reliable transportation companies. But, there is something that could make people more patient. Studies suggest people are willing to wait more if shipping is free, and it is an option you should consider.
Online and Offline Reputation
What do you think, how much money can you make from eCommerce if your reputation is terrible? Obviously, not a lot. Reputation is something you build for many years. Fortunately, the online world has made things much easier. You can share your background, true goals, and other stuff that people will appreciate. They will trust you more if they know your business (and you as an owner) have never been involved in scandals, frauds, etc.
Easy Return Policy
Everything around your return policy should be clear. If it does not exist, don't confuse people with complex explanations to hide that gap. It is always good to be honest. Yet, we recommend developing a refund policy, even for a short period. If the quality of the product is high, people will come back to you even if the rules you established aren't entirely fair.
6 Effective Strategies to Boost Ecommerce Sales
Knowing how much eCommerce make and who the biggest sharks in the industry are won't mean anything to you. While statistics explain certain things, they do not tell the whole story. You need to find a way to boost your sales. To be closer to your goal, you need to increase your web traffic and turn leads into loyal customers. Find out six methods that can help you do that.
Social media platforms such as Instagram, TikTok, Twitter and others can boost your company's reach. Thanks to their algorithms, you can set up a paid ad campaign and target a specific group. Also, these websites are a perfect place for A/B testing campaigns. You can try out different ads for the same target audience and analyze the insights you get.
Another thing you can do is connect with social media influencers. Don't focus on their number of likes and followers. Instead, check out which content they share and whether the messages they send match the core values of your business.
Search Engine Optimization
More than 50% of people find out about a brand or product via Google. It would be great to start a blog and publish posts optimized with keywords and backlinks there. Your task is to understand the search intent of your target audience. Outsource this service if Google's algorithm seems too confusing!
The average ROI of email marketing is 3600%. But you will have to collect those emails. One of the most effective options is to ask people to subscribe to your newsletters. You can even offer small discounts to every individual who does that. Thanks to email marketing, you will be in touch with everyone who purchased a product on your website. Ensuring a long-term connection with customers will potentially convince them to get back to you one day or more often.
Prioritize Customer Service
Your business's customer support must be professional, kind, and proactive. People will have an enormous number of questions about your products daily. You must train your staff to work effectively under pressure. You can also install a chatbot on your web store to make things easier for everyone. AI technology can be helpful!
Use Custom Sustainable Packaging
If you want to boost your reputation with sustainable packages, collaborating with Arka will be the right choice. We can help you customize different eco-friendly packaging options and boost your online sales with our high-quality custom shipping boxes. You will look unique and more professional than competitors that do not use such a service.
On the other hand, you will automatically boost the value of your products. Believe it or not, more than 80% of people in the US younger than 45 are willing to pay more if the product comes in an eco-friendly package. Imagine how excited they will be when you customize the type of package they are expecting to get!
Create a Memorable Unboxing Experience
The unboxing experience can either help or destroy your business. By customizing your packaging with Arka, we will ensure all buyers get a pleasant unboxing experience! They will remember the sense of happiness they got when opening the product they purchased. That memory will convince them to get back to you once again.
Also, they will share that experience on social media and give you free word-of-mouth marketing. Believe it or not, more than 40 unboxing videos on YouTube have ten million+ views. You may become viral online and boost your brand awareness thanks to the satisfaction of the customers.
You have gotten an answer to "how much does eCommerce make" and other frequently asked questions. As you can see, the profit directly depends on the value of your brand. You can improve that value by customizing eco-friendly packages and other strategies mentioned in this article. Each tip from our list is valuable, so we recommend you dedicate your time to each. Contact Arka if you need help with packaging: we also offer top-quality custom shipper boxes and custom mailer boxes that improve unboxing experience and help build trust. Start your journey in the best possible way!