Understanding the Most Important Ecommerce Expenses
aim of this section is to focus on costs related to Ecommerce. Cost structures are a very important part of a business. They are key to crafting the best pricing strategy, effective financial planning, and ultimately maximizing growth and profits. So, let’s get started and look at each category.
How Can Online Businesses Effectively Deal with Product Returns?
As a result, consumers returned products worth $428 billion in 2020, with an estimated average return rate of 15% to 20%.
While returning items can be a hassle for customers, it is also expensive and time-consuming for companies. Let’s see the main reasons customers return items, the consequences for businesses, and what can be done to reduce item return rates.
The Rise of B2B Ecommerce
ost people don’t know that B2B Ecommerce is much larger than the B2C Ecommerce market. In fact, the B2B Ecommerce market is valued at close to $15 Trillions, five times the B2C market. Forrester also estimates that online sales will grow to 17% of all B2B sales in the U.S. by 2023, from 9% before the pandemic.
Let’s see why B2B Ecommerce is growing so fast and what companies need to do to be successful in B2B Ecommerce.
Good-Better-Best Pricing Strategies
As the name implies, a G-B-B strategy aims to offer the customer multiple tiers of features for the same product or service at various price points. For example, if you book a flight, you can get the basic economy seat with five inches of legroom and guaranteed back pain after landing. Or, for an extra hundred dollars, you can get economy-premium seats with more legroom and a slightly better seat. Or if you’re feeling fancy and have money to spend, you can fly business class and have the best seats.
Pricing Strategies for the Ecommerce Entrepreneur
We previously talked about low-cost pricing and premium pricing strategies. But pricing is more complex than that, and getting the price right is one of the most important things in maximizing sales and profits. Different businesses have different products, customers, and competitive environments, so they need the best strategy for their business
How to Find New Products Ideas
I have met many aspiring entrepreneurs over the years. While some were quick to start their first business, most were struggling to […]
The Ansoff Matrix in the Age of Ecommerce
Starting a business is always an exciting adventure. But after some time, entrepreneurs will begin to wonder, “What’s next?”. The Ansoff Matrix […]
What are Online Marketplaces?
The article below is an extract from my book Ecommerce 101. As the title implies, this is a book for people with […]
The Worst Product you Can Sell Online
You probably know that commodities are products like steel, sand, or oil. But if you think about it, many products sold to online consumers are close to being commodities. And being a commodity seller isn’t where you want to be as an ecommerce entrepreneur. Let’s see why.