Your online business probably leverages digital marketing (or Sponsored ads) and its followers to ensure constant sales. No doubt, this alone can bring in millions of Naira in sales monthly. But if you only process orders on your social media page or WhatsApp, there is no difference between you and a physical shop (or boutique) owner.
The reason why you are selling your products on social media is that you know that almost everyone is now on social media. But you must understand that people primarily use social media to connect with friends and consume interesting content. Now you can see that they did not come on social media for you to sell to them. This is why people do not like seeing Ads.
Therefore, you can not just run Ads and expect everyone to buy from you the first time they come across your Ads even though they are interested in what you are selling.
They did not plan to buy anything when they were coming online.
They probably have never heard of your brand or product.
If you sell your product for N25,000, and you spend N7,500 to get 500 people to visit your Instagram page in a day, and you end up selling 5 pieces, your revenue will be N125,000 (which is not bad). The question is, what happens to the remaining 495 visitors that did not end up buying?
This means you will lose over 12 million Naira daily because, if the 495 visitors bought from you, you would have made an extra revenue of over 12 million Naira.
Okay! I agree! Not everyone will buy from you, but if only 10% of the remaining 495 bought from you, you would have made an extra revenue of over 1.2 million Naira. This means you are losing 1.2 million Naira daily.
Physical shop owners call this “window-shopping” – people visit your store and check out some items they like without buying immediately. Now, your online business is not different from a physical store (and it is a bad thing).
As an online store owner, maximizing your marketing budget should be a priority for you. Every penny spent should bring in revenue. Your target should be to make almost every visitor pay!
Keep reading; I will show you how top Instagram/Facebook sellers do it.
The5kshop, Jumia, buybtter.ng, wardrobemerchant, Konga, miskayboutique, dosclothingstore, emmykasbit, manlydotng, naturalhairavenue, naturalgirlwigs, Afrimash.
Most of the brands on this list process 500 – 1000 orders daily, and the rest process 5000 – 10,000 orders daily.
The last report released by Jumia shows that they process an average of 10,333 orders daily. Imagine if they process orders Only on Instagram or WhatsApp; how many customer service persons or sales reps would they have to hire to chat with each of their customers and try to persuade them to buy?
Oya, let us say that you are processing just 500 orders daily only on Instagram/Facebook or WhatsApp; how will you handle it? Remember, most of them are new customers; they probably have never heard about your brand or product.
Let us assume again that your product sells for N25,000, and you spend N7,500 to get 500 people to visit your e-commerce website in a day, and you end up selling 5 pieces; your revenue will be N125,000.
5 people bought your product out of 500 visitors, leaving you with 495 potential customers. Since they visited your e-commerce website, your e-commerce website tracked their activities.
Your e-commerce website will automatically cross-sell other products to those who have placed an order. For instance, if someone orders a makeup chair, your e-commerce website will automatically recommend a ring light to them at a discounted price. This way, instead of just paying N75,000 for the makeup chair, they will pay an extra N50,000 for the ring light, thereby increasing their order value to N125,000 instead of just N75,000.
Your e-commerce website will automatically down-sell other products to those who did not place an order. This happens when a customer can’t afford the product available. Your e-commerce website will suggest a cheaper product of the same kind. For example, if a customer visits your e-commerce website to buy a Mercedes Benz and his/her budget is N3.7 million. But, the ones available are 5 million Naira; your e-commerce website will suggest another lovely car (Lexus) within his/her budget. This helps to ensure that almost every visitor (potential customer) pays!
Creating Retargeting Ads with e-commerce website data: Most of your purchases wouldn’t come from their first visit. I told you, people are not on social media because they want to buy something. When people visit your website, it means they are interested in what you are selling.
Like the 500 visitors and the 5 purchases, 495 visitors did not purchase.
There are so many reasons why your e-commerce website visitor may not buy from you on the first visit. They may want to check other vendors and compare prices, quality, and other things. It may be that they are not yet convinced.
But, once they visit your e-commerce website, their data is captured, and you can create more persuasive ads, discount offer ads, testimonial ads, etc., and target those who visited but did not buy. This alone can bring in an extra 20% of your visitors who did not purchase initially.
In this case, 495 did not purchase. When you create retargeting Ads with the data from your e-commerce website, you can recover 20% of them (which is 99 orders). This will bring in extra revenue of N25,000 x 99 = 2,475,000 (over 2.4 million Naira extra).
A sales page is simply a page on your e-commerce website that does all the work your salesperson would have done to convince a new customer to buy. Every modern e-commerce websites leverage this.
It helps to talk about a particular product, its feature, and its benefits. The sales page persuades visitors to take action and purchase.
It will tell the customer why your brand is the best and show them testimonials of people talking about your brand and the product they are interested in.
The sales page also reduces the steps the customer takes before placing an order, making it easier for more people to place an order.
Your e-commerce website records every order and displays how many orders you have received, total revenue, profit, and graphical representation of your sales performance.
With this, your salesperson wouldn’t be able to cheat you or steal your money. It would be easier to balance your numbers at the end of the month.
Your e-commerce website will notify you when a product is almost out of stock and will display “out of stock” to your customers when it is out of stock.
You wouldn’t have to do this manually.
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