April 1, 2020
The Secret To A Profitable eCommerce Business

The Secret To A Profitable eCommerce Business

– How do you actually make your
e-commerce store profitable is a question I get asked all the time. And I mean really profitable, not just getting revenue
and bidding on Facebook and on Google AdWords all the time. But how to actually make it profitable? I know for a fact that lots
of you struggle with that. Some of you get completely
addicted to Facebook Ads and bidding on Facebook, and, you know, finding winning products and then bidding a little bit more. And I know that some of
you might have an agency who does that for you, but lots of you actually do it yourself. And while it’s amazing that you’re learning
about these platforms, I can also see how it can
become addictive, right? And you start spending
a thousand, $2,000 a day and yet you’re still coming
short at the end of the day. So the big question is, how do you actually make
your store profitable, not just getting new
revenue in all the time, but how do you make it profitable? Now, the answer is very,
very simple as always. It’s repeat business. So basically what most of
you are doing right now is you kind of have established what we call a leaking bucket. You’re paying for new traffic, you’re paying for all
of those new customers that are coming in all the time, they are costing you huge amounts of money to buy, you know, one wallet or to buy, I don’t know, one bucket, or to buy one torch, or to buy one jacket. And the thing is that we need to look at all of our purchasers as people. Who are these people and
what are they actually after? What else do they want
or need in their life, and how can we offer it to them? So my challenge to you guys today is start looking at
your e-commerce business from a perspective of customers. What it is that my customers want? What else can I offer to
them and what are they after? So, the secret in e-commerce profitability is in repeat business because
that’s actually the customer that you are not having
to pay for to return, so that’s where the profit
really starts stacking up. So of course we’ll always have to be spending money on Facebook, we’ll always have to be
spending money on Google, but we don’t want to be
dependent on these platforms because the algorithms
change all the time, and we want to make sure
that if we pay 10, 20, 30, or sometimes even $40 for a
purchase for a new customer to come to our site, we want to make sure that we actually get in
touch with the customer again and we offer them something
that they’re after and we offer it to them
when they are after it. So the secret in profitability
of your e-commerce store is definitely repeat business. Make sure you get to understand
who your customers are, what they’re after, and
you want to make sure that you service them fully. When you’re a gift store,
when they need a gift, you want them to think of you. When you’re a fashion store,
and they need a new item, or they want a new item, you
want them to think of you. When you’re selling gadgets
and they’re after new gadgets, you want them to come to you. Of if you’re selling
accessories, or hiking stuff, or outdoor stuff, you
want them to think of you in the first place, so, you
want to know your customers, you want to service them fully, you want to make sure that you just don’t pay for the traffic the
first time on advertisement, but actually that you keep those customers and keep servicing them over and over. In other words, it also would
be called brand loyalty. So brand loyalty is extremely profitable and it is the thing that’s
going to actually tip over your e-commerce store from just, not just making revenue but actually becoming profitable and making money. This is Silvia Myers
talking about profitability of your e-commerce store. I hope this was helpful
for you, let me know in the comments below
what your thoughts are, and I wish you all the best
with your e-commerce business. Talk to you later, bye.

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