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8 Proven Ways To Grow Your E-commerce Business in 2024

How To Grow Your E-Commerce Business In 2024
8 Proven Ways To Grow Your E-commerce Business in 2024
Discover tips for success in e-commerce. Learn about inventory management, customer experience, digital marketing, SEO, and fulfillment strategies.
Posted in: Sales
How To Grow Your E-Commerce Business In 2024
8 Proven Ways To Grow Your E-commerce Business in 2024

Thinking about starting an online retail business? Or maybe you're already in the game but feeling a bit overwhelmed with all the new trends popping up? You're not alone. Starting something new is never easy just as it's never easy to keep up-to-date with all possibilities available. But the effort is worth it and here's why.

Let's put things into perspective with some numbers. The global e-commerce market is booming — we're talking about sales that are projected to reach 7.4 trillion dollars by 2025. So the potential is immense, indeed. Now, the question arises as to how you could make the most of it.

In this blog post, I am not going to guide you through starting an e-commerce business. There are many good guides online and there isn't much to add, in fact. 

Instead, I will provide some practical tips and solutions that you can employ to grow your e-commerce business in the coming year.

Why starting a E-commerce Business in 2024 will be a great time

Starting an e-commerce business in 2024 presents an opportune moment for aspiring entrepreneurs, particularly those seeking the advantages of being self-employed. 

The digital landscape has evolved rapidly, with technology and consumer behavior aligning to create a conducive environment for online commerce. One compelling reason to embark on this journey is the increasing prevalence of online shopping. With a global shift towards digital transactions and the convenience of purchasing goods and services online, entrepreneurs can tap into a vast market eager for efficient and accessible shopping experiences.

Moreover, the advancements in e-commerce technology offer entrepreneurs a range of tools and platforms to establish and grow their businesses. From user-friendly website builders to robust e-commerce platforms, the infrastructure required to set up an online store has become more accessible and affordable. This democratization of technology empowers individuals to transform their business ideas into reality without the need for extensive technical expertise, lowering entry barriers for self-employment.

The ongoing COVID-19 pandemic has accelerated the acceptance of e-commerce as a mainstream shopping channel. Consumer habits have adapted to the convenience and safety of online transactions, making it a prime time for entrepreneurs to leverage this behavioral shift. Whether selling niche products or offering specialized services, the potential for a unique and successful e-commerce venture is greater now than ever.

Being self-employed in the e-commerce sector also brings the benefits of flexibility and autonomy. Entrepreneurs can create their schedules, make decisions independently, and tailor their businesses to align with personal values and goals. This level of control over one's professional life is a significant motivator for those seeking fulfillment and a better work-life balance. 

In 2024, the confluence of technological advancements, changing consumer preferences, and the desire for self-employment makes starting an e-commerce business an exciting and potentially rewarding venture.  When transitioning to self-employment, ensure prompt invoicing by utilizing the self-employed invoice template is a good way to reduce time spent creating new invoices.

Working Strategies to Help Grow Your E-commerce Business

​Growing an e-commerce business requires a strategic approach that encompasses various aspects of online commerce. One effective strategy is to prioritize customer experience. 

Ensuring a seamless and user-friendly website, providing excellent customer support, and optimizing the checkout process can significantly enhance customer satisfaction and loyalty. 

Additionally, personalizing the shopping experience through targeted marketing and recommendations fosters a stronger connection between the customer and the brand, driving repeat business and referrals.

We will focus on th e following:

  • Product sourcing and inventory management
  • Customer experience
  • Digital marketing
  • Fulfillment and delivery

Product sourcing and inventory management

Product sourcing and inventory management​

​In e-commerce, product sourcing and inventory management differ significantly from the brick-and-mortar approach. When I made my first steps in online retail, I was puzzled by how to maintain optimal stock levels without physical viewing. Here are a few practices I can recommend now.

1.Anti-Inventory practices

​Essentially, it's a form of dropshipping, where you fulfill orders directly from the manufacturer to the customer. The best thing about it is that it eliminates the need for warehousing. I wouldn't say it's 100% suitable for everyone because you have less control over shipments and quality inspection.

2.ABC analysis

Here, you categorize your products based on value and volume. That is, high value but low quantity is categorized as Category A, and so on. This works well if you want to create tailored restocking (which is generally a good idea). If you use it, make sure that you revise the categories often enough.

3.Fulfillment centers

​The major benefit of these is that they allow you to reduce shipping costs due to proximity to customers. Plus, they often offer customized packaging for branding. To be on the safe side, it's best to stick with well-known fulfillment centers like ShipBob, Deliverr, or the like​​.

4.Just-in-Time (JIT) Inventory Management

​Many of you might be already aware of it. For those who aren't, the good thing about JIT is that it helps to minimize overstocking and waste because products are ordered only as they are sold. Use it carefully though. A few times in my practice, spikes in demand led to stock shortages and that was no good​​.

5.First In, First Out (FIFO) Method

When you use this method, you assume that the first products acquired are the first ones sold. I can recommend it because it does minimize inventories. Just keep in mind that it does not always accurately reflect the cost basis of an item​​.

Customer experience

Customer experience​

​Online, you've got the power of personalization and convenience, but you also have the challenge of building trust without face-to-face interaction. So here are a few considerations I'd keep in mind.

1.Predictive analytics

Customer data can reveal a lot about buying patterns and preferences. The most straightforward way to use it is to provide personalized product recommendations. In my practice, this always leads to increased sales.

2.AI-powered chatbots 

Chatbots offer the advantage of instant responses and, of course, customers appreciate that. But you should remember they can't replace the nuanced understanding of a human agent that is required for more complex issues. If I implement chatbots on my site, their function is normally to complement rather than replace human interaction.

3.Speedy website performance 

I probably don't need to tell you that website loading speed is critical. A lag of even a few seconds can deter potential buyers. So if you can optimize the website to load quickly, do so (especially for mobile devices!)!

4.Creative loyalty programs

Clients are used to loyalty programs today. This is why to be effective, these programs need to offer real value and surprise. A loyalty program that offers personalized rewards based on customer preferences and purchase history is good, of course. But you should think outside the box to stand out. Consider

  • points for various actions (these are a good way to stimulate desired behaviors like writing reviews)
  • tier-based rewards (Sephora's Beauty Insider Program is an excellent example)
  • gamification (contests and scratch-off games always work).

Digital marketing

Digital marketing

Compared to traditional marketing, digital marketing is more data-driven and also more flexible. Ideally, I'd need to write a separate blog post on it. But since our task today is a holistic overview, let's keep it compact. 

1.High-quality unique content

Content is king in e-commerce. The minimum requirements for it are that it's original and valuable. 

Forms may vary from blog posts and videos to infographics. In my experience, visuals work better than text but that depends on your audience, of course. All in all, the point is not just to create content but to create the right one.

When I plan content creation, I usually research keywords — the free keyword difficulty checker from SEO PowerSuite is of great help here — to identify what my target audience is searching for and what kind of content will rank best. Next, I craft content that addresses their specific interests and needs. 

2.Retargeting

It seems to me retargeting is often overlooked in digital marketing and in vain. It's a powerful tool to bring back visitors who didn't convert on their first visit. But you shouldn't overdo it either as this will only annoy potential customers.

3.Personalized emails 

Customers today receive tons of emails so you must be very creative and experimental if you want to grasp their attention. My three top practices are segmentation, behavior-triggered emails, and dynamic content (the one that changes based on the recipient's profile or past interactions with your site).

4.Strong social media presence

One thing my experience has taught me is that when it comes to social media, you need to be both a listener and a conversationalist. This means you must always strive to create content that encourages interaction. Ask questions, run polls, and actively respond to comments. Plus, user-generated content like reviews, photos, and stories is always a good idea. Working with a social media agency like Tactica can help amplify these efforts.

5.eCommerce SEO

SEO is a long-term strategy that requires patience. The minimum I always rely on are keyword optimization, backlink building, and mobile optimization. I've slightly touched upon keywords and optimization already. 

As to backlinks, the golden rule is, of course, to acquire backlinks from reputable sources. One more thing I can strongly recommend is to always check the quality of backlinks. The last thing you want is to get penalties from search engines because of toxic backlinks.

Fulfillment and delivery 

Fulfillment and delivery​

The lack of a physical store means that you depend on the efficiency, accuracy, and speed of your fulfillment and delivery processes. As my experience shows, little can help if clients are dissatisfied with the delivery. Below, I'll review a few practices which I find particularly useful for e-commerce.

1.Dedicated fulfillment team

Each member of your team must understand their role in the fulfillment process. For instance, the marketing team should align their promotions with inventory levels. Web designers must ensure that shipping options and policies are clearly visible. The fulfillment team must focus on accuracy and speed in processing orders. So, you get it — the core task is to ensure your teams don't work in silos.

2.Clear and friendly return policy

Always be honest with your customers. If you have a return policy (and as an online retailer you should have one), make it straightforward and hassle-free. Offer a longer return window or free return shipping if this is possible.

3.Same-day delivery

I know, same-day delivery is very challenging logistically. But if you manage to organize it, you've won! You do not necessarily have to offer it for all orders. A good and safe option may be to first offer it in select areas where you can ensure reliability.

4.Free shipping

Free shipping is a VERY powerful incentive. To make it a win-win situation, set a minimum order value that qualifies for free shipping. This can increase the average order value and cover shipping costs. I would also recommend periodically analyzing the impact of free shipping on your margins.   If the complexity or cost of rolling out free shipping is too much, you might consider working with third party logistics firms, or 3PL for short. These kinds of partnerships are increasingly popular in e-commerce, and are especially useful for sellers that want to scale their operations swiftly without hitting budgetary limits.

Wrapping up

So if your goal is to grow your e-commerce business, approach it holistically. That is,

  • Improve inventory management with anti-inventory and/or ABC analysis.
  • Try predictive analytics, AI-powered chatbots, and fast website performance for better customer experience.
  • If you have loyalty programs, try to make them as creative and surprising as possible.
  • High-quality unique content, retargeting, and personalized emails are all your good friends in digital marketing. Don't overlook them.
  • For better SEO, keyword optimization, backlink building, and mobile optimization may be of help
  • Fulfillment will benefit from a dedicated team, customer-friendly return policies, and same-day delivery.
  • Free shipping is good but approach it strategically (you must have a clear idea of how to cover shipping costs).

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Tuesday, 28 May 2024
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