Some restaurants require reservations several months in advance. Regularly, we go out and eat at a restaurant we like. But to eat at that restaurant, you had to book a long time earlier.
Why is that restaurant always full and not the others? What is missing from other restaurants? Is your store just like those other restaurants? Could your store be behind in its potential?
E-commerce is a very fragile industry, and mistakes can have devastating consequences. There are some significant factors in this industry, such as speed and Google ranking, and we cannot deny them. We assume you get enough traffic to your store but don’t make enough sales in this article.
Empathy is the Key
In e-commerce, everything is for the customer. The moment the customer arrives at the store door (i.e., your home page), they decide whether or not to enter. Put yourself in your customers’ shoes and go to the store door. Are you dying to go in and shop? Are the prices reasonable? Are the titles and descriptions of the products the right length? Are there items in the store that no one buys anymore?
Go back to your desk and think again. Consider it again, this time with your customers in mind. Evaluate all your products from this perspective. Never sell at a loss, except in some very unusual circumstances. Evaluate the entire cost of the product (including advertising costs) until it reaches the customer. Set an industry-standard profit margin. Push for competitive levels when needed.
Make sure you’re doing inventory management right. Do not create inventory costs by holding too much inventory. Do not lose potential sales due to insufficient stock. Make sure you have the correct number of items in your supply. Do not forget about special days when making sales forecasts.
Listen to Them
It’s a very classic phrase. Listen to your customers. You cannot think of everything. A product you think will sell very well may not be liked. Try to use all the channels through which you can communicate with your customers. Carefully read all feedback (even the worst) and respond to all if possible.
Define the parameters for your store first. What should be your store’s profit margin? How many days the product remains in inventory creates an inventory risk? How many days do you need to remove a product that has not sold from the store?
Then, check the parameters and take the required actions. You may need to update the price of products from time to time. You should note that some parameters need checking more often, such as those related to inventory status.
Or you can enter your store’s parameters into Smart Forecast. It does all of the calculations for you and suggests solutions. What leaves to you is to choose the most suitable options for your products.