4 Ways eCommerce Companies Can Increase Their Bottom Lines

By on September 17, 2019
eCommerce

The goal of every eCommerce business in existence is usually to make more profit and facilitate company expansion into new niches, product categories, and markets. Of course, all of that activity can be summarized into one main objective – increasing the bottom line. In fact, one could argue that the entire point of doing business is to become increasingly profitable. Approximately one-third of all eCommerce stores that make it past the first year are able to generate at least $1 million in revenue. Here are some tips you can use to become part of that winning group:

1. Use a Fulfillment Center

Having to ship out all of your products manually without any outside help can take a lot of time out of your day and open you up to the possibility of shipping errors that could result in bad reviews for your brand. You can eliminate the risk of such inefficiencies and mistakes by utilizing the services of a fulfillment center. If you’ve never heard of one of these before, you might be wondering “what is a fulfillment center?” In short, you send your inventory to a warehouse where the staff will take care of organizing and shipping out your products without any additional effort on your behalf. While you’ll pay a nominal fee on each shipping transaction, the time you’ll save by not having to do it yourself will be well worth it. 

2. Find Better Suppliers

Of course, the price you pay per item is one of the most important aspects to consider when calculating your profits. In most cases, you’re actually dealing with a middleman or broker and you only think you’ve found the cheapest source. Always be open to the idea of considering new suppliers. Use sites like Alibaba and Tradekey to request samples and quotes from suppliers on a regular basis. 

Save up to $300 on Open Box Products from Herman Miller, Steelcase, Haworth and more while supplies last! Plus Free Shipping

3. Refine Marketing Efforts

The efficacy of your marketing efforts will determine not only how many customers and clients you’re able to attract, but also how efficiently your advertising budget is being spent. Try to look for ways to optimize conversion rates and other crucial metrics that directly reflect how well your marketing efforts are playing out. You may want to take a course on this subject or invest in an in-depth consultation to get a more solid understanding of the specific steps you can take to maximize your advertising efficiency in your specific niche. 

4. Reduce Overhead and Expenditure

The more money you have to spend to keep the business going, the less profit you’ll make. It’s a simple equation, yet many business owners don’t look for ways to downsize when trying to come up with ways to become more profitable. 

Profitability Increases One Step at a Time

While there are sometimes major breakthroughs that can boost your company’s value by miles, most improvements in profitability happen in the form of small adjustments over time. Heed the tips above and create a daily schedule around these practices to proactively pursue a higher bottom line for your eCommerce business.

 

About Living Better

Leave a Reply

Your email address will not be published. Required fields are marked *

4 Ways eCommerce Companies Can Increase Their Bottom Lines