The 6 Ways to Increase E-Commerce Revenues and Profits

e-commerce shopping cartMy e-commerce clients typically  ask me “How can you increase my e-commerce revenues?” My answer usually references what I have dubbed The E-Commerce Equation.  In its simplest form, monthly revenues = average number of new customers (C) per month X the average monthly revenue per customer (R/C)). So R = C x (R/C).  This simplest of equations doesn’t help us figure out how to increase the number of new customers per month or the amount that customers spend per month. To inform our strategies and tactics for increasing e-commerce revenues, we need to understand how these numbers are derived. Continue reading

Social Commerce: How and why its a big deal!

groupon2 Driving traffic to a site is much easier than converting that traffic into sales.  Average e-commerce conversion rates are pitifully low, ranging from 2-4%.  For an etailer who purchases media (e.g., keywords for paid search, banners on other sites),  96%-98% of their budget is wasted by driving traffic to their site without making a sale, resulting in horrifically negative ROIs (aka, spending much more than you make!).  We have already discussed the importance of multivariate testing of landing pages and better online merchandising to improving e-commerce conversion rates.  Two trends have emerged that are dramatically improving conversion rates: Social Commerce and Mobile Commerce.  Today, I will discuss the impact of social commerce and reserve my thoughts regarding mobile commerce for my next post. Continue reading