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eCommerce

eCommerce has been on a steady incline for more than a few years now. Get tips and advice for growing your eCommerce site.

Recurring Cost of an eCommerce Website

While the preceding eCommerce website cost breakdown article we posted might assist you in estimating the initial cost of the initial build of an eCommerce website, you must also consider the ongoing costs of owning one.

1. The Name of Your Website

yearly cost: $0.95 – $12

To build a successful eCommerce website, you need a memorable domain name. Your company’s online home is its domain name. You can’t develop a website without it because it’s a component of your complete brand.

You could find a domain name for as cheap as $5 per year if you look hard enough. To preserve possession of a domain, you can normally acquire it for up to ten years at a time.

However, if you want a short URL that ends in “.com,” you may have to pay a little more, perhaps $15 per year.
Domains or URLs can sell for hundreds of thousands of dollars in extremely uncommon circumstances. However, they usually sell for $0.95 to $12 per year.

It’s also crucial that your domain is set to renew automatically. Even if you’re using a credit card with an expiration date approaching, you’ll get an email notifying you that you need to re-up your purchase this way.

However, the mode of payment you select has no bearing on the price; it is only a matter of convenience.

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2. Hosting of the Website

yearly cost: $70-10,000

You’ll need someone to host your domain now that you’ve obtained one.

A host allows you to construct your website on their servers.

WordPress, Squarespace, and Go Daddy, for example, sell domain names and hosting as a bundle. However, most businesses that sell both frequently use templated websites, which make your site look just like everyone else’s.

3. Interactive Multimedia

The price ranges between $250 and $10,000

Multimedia offers excellent features to make your website more visually appealing.

Flash, in the proper hands, may transform your website into its most important component.

Flash, on the other hand, has one disadvantage: search engines are unable to comprehend the code included within it. If you’re going to use Flash, make sure you use it selectively rather than across the entire site.

Video and other forms of multimedia are also beneficial to your website. To help your buyers understand what an item accomplishes, you can utilize multimedia to supplement product listings, images, and descriptions.

When you use video to market your website, you may also use YouTube and other social media sites. When it comes to attracting new leads, this type of attention-grabbing strategy is invaluable.

4. Maintaining an eCommerce Website

Yearly cost range from $15,000 to $30,000

Your website, like roads, requires regular maintenance to be in top shape.

E-commerce website maintenance entails resolving any faults that arise, adding new pieces to certain areas of your site, and keeping your site up and running in general.

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Website maintenance may be more expensive than you want to spend, and you may not see the benefits right immediately, but it is crucial.
It’s vital to keep your website up to date.
It’s only a matter of time before your website starts to have problems if you don’t maintain it. This could be a checkout fault, a graphical error on your product images, or non-responsive pages.

Whatever happens, you’ll want to have someone on your side who can keep your site up and running day after day.
Boost your company’s revenue.

When you work with Pushleads, we’ll show you how to leverage the Internet to increase sales and attract new customers.
Consult a strategy expert.

11 Common Questions

Unfortunately, because every business is different, there is no way to estimate specific e-commerce website pricing. However, you’ll be able to identify a basic approximate range if you consider your organization, your goals, and what you want to accomplish.

Examine the items we described before once you’ve answered the following questions. Consider how each one can assist you in achieving your company’s goals.

Better better, calculate how much of each item your site will require as it grows.

Because your objective in eCommerce should be to expand above and beyond your competition, not just to succeed.

These are some of the most often asked questions by new eCommerce website owners.

There’s no need to panic if you don’t know the answers to these eCommerce website pricing issues right now; what matters is that you figure them out before you invest a lot of money on an eCommerce website.

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Answering these questions might assist you in estimating the ongoing cost of your eCommerce website.

1. Do I require hosting tech support?

If this is the case, choose a host with a reasonable fee.

If not, free hosting solutions should be considered.

2. What is the best course of action for my content management system (CMS)?

 

Choose the greatest in the business if you require a lot of versatility and functionality.

If you just need to add a product once in a while, keep it simple.

3. Do I want to give my users a lot of control?

Choose maximal functionality and database integration if you want to give a lot of control over customizing.

Only save usernames and passwords if you want to grant little control.

4. Do I require a specific type of web design?

Choose a world-class design if you want to stand out from the crowd.

Choose something more economical if all you want to do is sell and compete.

5. Do I have a set number of product pages?

Prepare to purchase a large number of pages if you require a lot.

Downgrade if you just require a few.

6. What is the approximate number of text-only pages that I will require?

You’ll need a lot of text-only pages if you want to target a lot of different niches with your consumer base.

You don’t need a lot of text-only pages if you’re solely targeting your present customers.

7. How many text-only pages should I have?

Your pages should have thousands of words if you want them to rank well in search engines.

Your pages can be substantially shorter if you want the page to deliver information quickly.

8. What SEO services do I require?

You’ll need a lot of SEO help if you want to outperform your competitors.

Basic SEO may be sufficient if you only want to compete.

9. Is it truly necessary for me to have Flash?

Flash is required if you want your website to include interactive or distinctive aspects.

Use no Flash if you want Google and other search engines to be able to read your site completely.

10. Is database integration required for the site?

Database integration is required if you wish to save any information about your clients.

Unfortunately, you don’t have much choice here; your eCommerce site will require some kind of connectivity.

11. Is website upkeep truly necessary?

Website upkeep is vital if you want to keep making money and giving your consumers a good experience.

It’s essentially a backup plan in case something goes wrong.

In Closing

Request a quote for your unique eCommerce web design.

We have a full staff of expert web designers and developers at PushLeads that have created some of the most beautiful websites on the internet.

If you enjoyed this post today, you may also like: Demand Generation for Content Marketing in the Coming Year

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How Much Does an eCommerce Website Cost?

Ecommerce websites are among the most profitable methods of earning money online. However, you’ll need to invest in eCommerce website design, web hosting, and other services to get one up and running.

So what is the total cost of an eCommerce site?

eCommerce website with 50 to 1000 products costs between $5000 and $55,000, including design, development, and additional upfront fees. For instance, an eCommerce website with 100 to 1000 products costs $15,000 to $30,000 per year to run.

But why do eCommerce website prices vary so much?

Simply put, all eCommerce websites aren’t created equal. 

Costs Breakdown of an eCommerce Website

What specifics determine the cost of an eCommerce site?

Let’s look at each eCommerce website pricing aspect in greater detail now that we’ve looked at the entire cost of building and maintaining an eCommerce website.

Your eCommerce website’s number of pages:

$1000-$5000 per ten pages

The amount of pages you desire on your website is the first key pricing element. That response is nearly always 50 or more for eCommerce websites.

That means if you have an elaborate website with many products, your page costs will be far greater than websites that produce business leads from just a few pages.

However, depending on the number of things you sell, each page will quickly pay for itself.

Keeping this in mind, having a separate page for each of your products on your eCommerce site is a good idea. 

To show off all of your products, you’ll need category pages as well. You might even want to offer customized profile pages for consumers that register.

An eCommerce website will have a lot of pages, regardless of which option you choose.

This requires a more significant initial investment and eCommerce website design costs, which means much bigger long-term earnings potential.

Web Design Costs for eCommerce

Expenses range from zero to one hundred thousand dollars.

Another significant cost of putting up an eCommerce website is its general design; however, great web design is a requirement for its overall success.

The first impression that new visitors have of your site is its design. Potential clients will assume that your organization is the same way if your design is untidy or out of date.

As a result, you’ll be losing customers in droves. To avoid this, you’ll need a web design style that complements your company’s identity.

Simple, Moderately Stylized, High End and World-Class are the four most common categories for web design styles.

Simple websites are easy to navigate and perform as expected. There aren’t many surprises, but it’s a good beginning for a website.

Sites with a moderately styled appearance take a few more liberties and make better use of the space they have. Additional graphics, a more vibrant color palette, or other design components could be included.

Professional and distinguished appearance are characteristics of high-end websites. They’re simple, with high-resolution photos and color schemes that suit the website’s target audience.

Finally, some websites are of exceptional quality. Interactive components, high-resolution photos, videos, and various intuitive features are all used to set these sites apart from the competition.
A top-notch website not only provides an excellent purchasing experience for its visitors but wins honors.

If you want to be the next Amazon, you’ll need a top-notch website. However, be prepared to pay more for eCommerce web design.

how-much-does-an-ecommerce-website-cost

You may opt for a simple or somewhat stylized website if all you want to do is serve your customer base.

Price per page: $50-$500

Any website, including eCommerce, need good copywriting.

Fortunately, unlike other websites, eCommerce sites don’t require many text-only pages.

However, terms and conditions, and privacy policies are the most important pages from a legal standpoint.

You can even develop pages to target specific segments of your market if you so desire. If you intended to increase visitors from Seattle, for example, you could develop a page titled “Buying [your items] in Seattle” or something similar.

The cost of copywriting is determined by the content you want on your pages and the amount of content you want to include.

Pages with 400 words and no photos will not set you back a fortune. However, a 3000-word page with interactive elements, subsections, JavaScript inserts, and special programming will cost more to create.

Shorter pages are better for presenting information in seconds, but lengthier pages are better for search engine optimization.

Your eCommerce site can gain a lot of new traffic — and new consumers — by strategically combining the two types of pages.

Search Engine Optimization for Ecommerce

The only way for you to stay in business is to have a consistent supply of new and repeat clients.

Ecommerce SEO, on the other hand, will necessitate a recurring financial commitment. So that your competitors don’t push you out of Google results, it takes a lot of constant work to rank effectively in search engines.

As a result, SEO isn’t a one-time project. You must do this on a regular basis. Continually improve your website to attract new clients.

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You’ll slip behind your competitors if you don’t. As a result, budget for the continuing costs of maintaining an eCommerce website.

The cost of designing a responsive eCommerce website:

The price ranges from $3000 to $25,000

Any eCommerce website today must have a responsive design. Shoppers will visit your site from mobile phones, tablets, and even watches, regardless of what you sell.

You must accommodate them, especially because they now account for about half of all Internet traffic.

The monthly fees range from $750 to $5000.

Increasing your website’s visibility in Google search results is known as eCommerce search engine optimization or ongoing SEO.

It’s also crucial to your eCommerce site’s long-term success. You need to be able to attract clients who utilize search engines if you want to increase your revenue.
This is accomplished through responsive design. Your eCommerce website will adapt to whichever device a customer is using to shop, thanks to responsive design.

So, if someone visits your site on a smartphone, they’ll enjoy a terrific buying experience with huge buttons, a well-designed layout, and complete functionality.

If someone visits your site on a laptop, they will have a fantastic purchasing experience that is tailored to their needs.

Responsive design is the win-win solution that the Internet — particularly e-commerce sites — has always needed.

A business risks losing a huge potential customer base if its website isn’t mobile-friendly.

That’s a significant loss for any business, and it makes it even more difficult to grow a website substantially, which is why responsive design is an eCommerce website development cost that cannot be avoided.

Pricing for eCommerce Database Integration

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Integration costs between $200 and $25,000

Database integration is usually an optional feature on a website, but it is required on eCommerce sites.

Database integration helps your business to centralize information about its products, workers, and customers.

Database connectivity is required if you want your entire firm to have access to a centralized hard drive containing corporate data.

Customers, on the other hand, will also require database integration. Customers may create accounts, set preferences, and have a more personalized experience on your site with the help of a database.

Database integration can also be used to save credit card numbers, so clients don’t have to enter them again.

You may even use it to store your clients’ usernames and passwords if you don’t want to bark up the wrong tree.

Database integration is another development cost to factor into your budget, whether you want to improve business communication or make your consumers’ buying experience easier.

Pricing for eCommerce Features

Expenses range from $2000 to $25,000.

You’ll need all of the features that come with an eCommerce site, of course.

Shopping carts, checkout processes, consumer identity protection, and personalization are just a few examples of the capabilities available.

You could also wish to include various photographs of the same product, as well as videos that illustrate how to utilize specific products. Specification documents, MSDS sheets, and other material may also be included with some items, which are required by law to be included with the product listing.

Getting professional guidance on a course of action for your individual website would be ideal.

However, it’s still good to consider these concepts in advance. Making an eCommerce site that is simple for your clients requires a significant amount of effort.

CMS Cost for eCommerce

Expenses range from $2,000 up to approximately $25,000

A content management system (CMS) is a user-friendly interface that allows you to make changes to a website without needing to modify the code directly.

Drupal or Magento, for example, are free CMS solutions. Others will set you back a small sum each year, and still, others will be very costly.

However, while the price is important, it should not be the only consideration you consider. The first important element to consider is the functionality that your eCommerce site will require.

You want all of your categories and product pages to look the same since you’re going to add new ones. This allows you to highlight your brand while giving your users a comfortable, familiar experience.

With that in mind, selecting a content management system (CMS) is a critical decision that should be carefully considered. Examine what each firm has to offer, think about your long-term goals, and choose the choice that best suits your needs – even if it costs a bit more.

In Closing

In closing, an eCommerce website is a significant financial investment with a huge potential for ROI (return on investment.) It’s not for everyone, and not in the budget for many small businesses, however if you have a product that you want to reach a broad customer base with, it’s essencial.

We’d love to help your business reach a broader customer base by becoming more visible across the Internet.

If you need an eCommerce website, we’d love to help!  

Thank you for stopping by today! Please take a moment to look at part two on this topic: Recurring Cost of an eCommerce Website

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Why is Product Photography Important in E-Commerce?

With so many options for similar goods, separating the wheat from the chaff and finding the best products to meet their needs can be difficult. It’s your responsibility as a business owner to make the best products and explain to customers why they want your brand, rather than your competitors.

Friendly and helpful salespeople who can build genuine connections with consumers, personalize the shopping experience, and compel sales are available in brick-and-mortar stores. You’re fighting an uphill battle in the virtual world. Shoppers are on their own, and they don’t even have the option of touching and attentively inspecting products.

This leaves you and your branding services firm with the awful chore of digitally persuading customers to buy, and you can’t do it without using photographs to present your products. What is the significance of product photography? Here are a few things that every e-commerce business should be aware of.

It is said that a picture is worth a thousand words. This has never been more true than in the world of online shopping.

A product image may provide consumers with a plethora of information right away. A snapshot can show not just how the object looks but also how it fits in the environment, how it functions, and what alternatives it has.

Even if you have a thousand words at your disposal, your product description will fall short of displaying the wealth of information that can be gained from a few seconds of gazing at a photo, and most buyers don’t want to waste time reading weak product descriptions anyhow. When it comes to sales, a fascinating photo is worth more than a thousand words.

The Online Shopping Experience

Online customers have short attention spans, and you need to attract them quickly, as your trusted Asheville branding and marketing team can tell you. This can be accomplished with the correct product photography, after which you can utilize your written description to briefly add vital facts like specs that are difficult to portray through photographs.

Make a virtual experience that looks and feels like the real thing. 
Customers cannot interact with products in a virtual space, which is a significant drawback. They can’t feel the cloth or draw a package closer to read the label. This means you’ll need to give details for people to have the same experience in digital format, and professional product photography can help with that.

 

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You must ensure that your photography shows the necessary details. This entails providing photographs that allow for viewing from different angles, including close-ups and even of the inside of a product when that’s appropriate.

Providing scale through placement, such as on a kitchen counter with a coffee pot or toaster, might be beneficial. 360-degree interactive views are also growing more popular, as they give customers more control over how they view things.

Be Clear

When it comes to the design of your product photos, keeping things simple is always a good idea. Remember that the product, not luxurious sets or gorgeous models, is what you and your Asheville branding and marketing partner want to showcase.

While many firms strive to market a lifestyle as well as a product, it’s important to remember that the product is what customers want. To put it another way, while organizing product photographs, aim for simple, appealing, eye-catching layouts to avoid confusing customers with clutter.

High-End Images

High-end images can be used to add value to a product.

Anyone can hang a sheet and arrange jewels or dress a mannequin and take a photograph. This DIY vibe pervades the entire Etsy community. You and your Asheville internet marketing partner need to do more as a firm establishing a professional image and a reputable brand.

Product photography that is well-done can help you stand out from the crowd. It not only puts your items in the greatest possible light (physically and figuratively), but it also creates a sense of worth for them. 

A product photo that outshines competitor photos of the exact same thing could, in theory, make your wares more appealing to online customers, resulting in increased sales.

If you need any help bringing your vision to life, don’t hesitate to contact the trained professionals at Pushleads today. 

If you want to know more about getting your brand out there, take a moment to read: What Is Influencer Marketing & Why Do You Need It?

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The percentage of eCommerce transactions that contribute to total retail sales has been on a steady incline for more than a few years now. A healthy market is always good news but it can also mean there is stiff competition in a particular market. This can cause it to become more difficult and expensive to attract customers to your business.

The tools available to ensure a successful digital marketing campaign are plentiful. The following six tips are an excellent place to start for business owners who need to drive more sales to an eCommerce website.

Google Shopping Ads

A Google Shopping campaign will allow you to prominently display your product advertisements atop search results precisely as prospective customers are searching for the products you sell. The ads you create should include images of your products, pricing information, customer reviews, and a button that allows customers to add their product selection to a virtual shopping cart.

The first step in the process is to upload a data sheet for your products to the Google Merchant Center. Next, your Google Merchant account and Google Ads account should be connected. Once this is completed, Google will automatically deliver your product ads to customers who use its search engine.

Remarketing

According to a report from Google Shopping, the average conversion rate for a Google Shopping advertisement is two percent. And while these numbers may be a bit disappointing to some business owners, it only means you have a bit more work to do before realizing the sales goals you have for your business.

When your advertising does not result in an immediate sale, customer interaction still took place. This makes it possible for you to remarket your information to prospective customers to increase eCommerce growth. Remarketing allows you to stay relevant in the minds of customers who are on the fence regarding the purchase of your products.

One specific eCommerce marketing method that successfully makes use of the remarketing technique is to target prospective buyers who interacted with your ad on Google with a second ad the next time they sign-in to Facebook.

Likes to Sales Conversions Through Instagram

Conventional wisdom among marketers has for years suggested that the main function of social marketing is to build social awareness while search marketing should be used to drive sales. Though both methods will accomplish the stated goals, absolute distinctions that were once made between the two eCommerce marketing strategies are quickly becoming obsolete.

A major reason for this change of outlook is the shopping that is now done on Instagram.

You will need to set up an Instagram business profile and upload your catalog of products to their parent company, Facebook. These steps will allow you to tag your products in the posts you make to your organic feed.

Users who find your product on Facebook will not be directed to a home or random page on your site where they will then have to navigate the site to locate the desired product. Instead, your prospective customer will be carried from Instagram directly to the page on your eCommerce site where the product in which they are interested is located.

This method of social shopping eliminates friction and allows for an effortless shopping experience.

Use Customer Reviews to Build Trust

It is one thing to use SEO and eCommerce marketing techniques to drive traffic to your website. It is another thing altogether to turn this traffic into sales conversions that will fuel the eCommerce growth of your company.

Savvy customers are cautious when it comes to parting with their hard-earned money. One thing that can prove persuasive when there is any type of buyer resistance is a thumbs up from a customer who has already spent their money on a product.

A rating and review section on each of your product pages is an eCommerce marketing technique that has proven its effectiveness over time.

Cross Sell With Pop-Ups

Pop-ups are another of the eCommerce marketing strategies that have stood the test of time. A pop-up is an additional window that will suddenly appear on the screen of a computer user to show an advertisement. Pop-ups are great to use when you want to offer a customer that is already shopping at your eCommerce website with a discount that can be used to offset the cost of additional purchases.

Gain Customers Through Referrals

A good referral program will provide customers with incentives to refer the people they know to your business offerings. The theory is that prospective customers will place trust in the recommendations they receive from friends and family members. This digital marketing tactic is not too different from gathering customer reviews. The major difference is that customer referral is made directly to an individual while customer reviews are posted online for all website visitors to see.

The Takeaway

Success in today’s highly competitive online business world will not be possible without a well thought out SEO and eCommerce marketing plan. The six strategies above should be enough for you to begin drawing customers to your eCommerce site. Great products and a consistent marketing effort will keep them coming back for more, again and again.

Seeking Alpha just came up with a fabulous article covering the explosive growth of eCommerce. 

E-commerce has become the primary way that consumers are now shopping due on the ongoing pandemic. About 16% of retail sales in the second quarter happened via online eCommerce. That’s an 44.5% increase from the Second Quarter of 2019.

The next wave of eCommerce growth will happen in groceries, health services and products, and vehicle/auto sales.

In the long term, newer technologies like virtual reality (VR) and agmented reality (AR) will will further narrow the gap
with traditional brick-and-mortar shopping.

More consumers are now confortable buying clothes online. From 2005 to 2020, the penetration rate has grown from 5% to 25%. People are becoming more comfortable buying shoes, clothing, and cosmetics via eCommerce.

Millennials and Gen X-ers now prefer to buy online vs via traditional brick and mortar. Now, these generations have a 49K to 65K annual income with and represent America’s largest generation.

Because of the pandemic, older generations have realized how easy it is to buy online and are doing so.

Using the Right Digital Marketing Strategy

If you want your ecommerce store to grow, then you must have an ecommerce digital marketing approach that truly makes sense. Traffic must flow to your site, be engaged to want to spend money on your site and ultimately leads must be converted into sales. If these key elements are working like they should, your ecommerce store should be booming with product and service-related sales. The following are some ecommerce marketing tips to help ensure that your approach is on target to boost sales and improve your brand.

Nailing Down Goals and Objectives

When it comes to executing an ecommerce digital marketing strategy, it is essential that you have all your goals and objectives nailed down to a science. The key metrics that you want to achieve must be spelled out in explicit terms, such as the objective of making a 15% increase in overall sales volume for the next quarter. It is only when you are absolutely certain what it is that you want to achieve that you can begin to build a roadmap to achieving that goal or objective. The more detailed and explicit you get when stating goals and objectives, the more focused your approach to reaching them will be.

Using The Best Ecommerce Digital Marketing Strategies to Grow Your Business

Leveraging SEO for Better Results

It does not matter how many websites and subpages your websites have, the key to having a website is to attract as much online traffic as can be had to as many active main and subpages as you have made active. It is counterproductive to go through all the trouble to make pages active that do not perform well, and staying current with SEO best practices is precisely how to achieve optimal traffic to all your pages, not just a few. Try to understand that every hit to any page is a potential sale. So, your SEO strategy should be seeking to optimize the right keywords to attract as many visitors to the pages you have functioning to increase the odds of your converting leads to sales.

Content Is King Is the Law

Nothing is more important than high quality content on every page you manage for your ecommerce store. If you are not yet aware, the major search engines are judging your sites on the quality of the content they contain. No matter how these search engines rework their algorithms, the one constant is always that high quality content is worth far more than low quality content. This means product pages must be rich with names, descriptions and details that are heavily SEO driven. Other content could involve a blog, newsletters, white papers and other additional tools that attract and educate users of your site in a meaningful way. Plus, you must be aware of how your site ranks as an authority site, not merely how it ranks in search engine rankings. Your content will determine how much authority your website exudes and that does matter as a factor in your ecommerce digital marketing efforts.

Online Reviews the Special Sauce That Converts Leads

It does zero good to attract millions of online visitors to your ecommerce store if you fail to convert leads to sales. Yet, one of the best kept secrets in the industry is that reviews are the bread and butter of ecommerce gurus who make consistent profits. Please understand that people trust what other people say when it comes to product reviews. It is as if someone saying that a product is great, is the same as giving the one reading that review permission to buy that product from you. So, if your ecommerce store is not hosting product reviews, then you are missing out on converting countless leads to bona fide sales in your ecommerce marketing strategy.

Email Marketing

While there are many areas of an ecommerce marketing strategy that can use extra attention, your email marketing strategy is one of the most powerful areas for turning leads into repeat sales. Think it through, the person who opts in to your email list is someone you have the ability to market to over-and-over again. You can offer these people discounts on existing products, ramp up interest in up and coming products and, get this, you can even share positive product review ads inside quality email content that drives sales even harder. When it comes to email marketing, this is how many ecommerce professionals take their business to the next profit level. This is also why many ecommerce businesses will offer incentives for anyone who opts into their email list too, because this is a sure-fire way to get repeat sales for years to come.

Using Email Marketing as a Digital Marketing Strategy to Grow Your eCommerce Store
Using Remarketing to Grow Your Ecommerce Business

Retargeting Customers

Nothing shows you care more than reaching out to a customer you have not heard much from in quite some time. Maybe they visited one of your website pages, or maybe they bought something from you six months ago. If you did your due diligence at collecting their contact information, grabbing an email or phone number, then it may be time to contact these individuals and let them know their business matters by offering them a great deal on some product. Or, better yet, let them know they were chosen to receive a free sample of some new product you are very excited about. In fact, you could rush it to them in the mail. If they do not mind, maybe they wouldn’t be opposed to writing a nice review for your site too? Nothing like fresh new reviews to spike interest in new products. The thing to walk away with is that some of the best ecommerce marketing strategies involve multiple elements that work in concert together.

What’s Your SEO Score?

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Retail Decline

At this point, Mid March 2020 is ancient history. Completely unexpected, coronavirus pandemic swept through the US economy by storm, causing shutdowns, closures, stay-at-home orders, and an overall decline in the demand of non-essential goods.

Things are continuing to look grim for retail.

Without a doubt, the public health crisis has impacted America’s purchasing behavior. At this point, we’re looking at a 10.% decline in total retail spend, with a 14.0% drop in brick-and-mortar.

 

eCommerce Growth

On the eCommerce side, things are looking a little more rosy. All of these shutdowns, stay at home orders, and limited retail has pushed digital to the forefront. Ecommerce is expected to grow 18% by this year, following a 14.9% gain in 2019.

The US Ecommerce 2020 Report

All of this data comes from the US Ecommerce 2020 Report. In this report, eMarketer explores the inpact of the public health crisis and explores new predictions.

Here’s some key points from the report:

  • A large result of eCommerce sales are driven by a surge of so called “click-and-collect;” when consumers make intimidate purchases with little human contact. US click-and-collect eCommerce sales are now expected to grow by $58.52 billion. This growth is up 60.4% from an initial forecast of 38.6% growth.
  • The 18% growth forecast for US ecommerce in 2020 is coming from both an increase in people buying things digital as well as an increase in the average spending per person. The pandemic is contining to have a huge impact on new buyers doing online shopping. We also saw a 12.2% growth in the 65+ age range.
  • In a post covid-19 economy, online shoppers are spending more money with trusted and reliable retailers. At this point, it looks like the top 10 ecommerce retail businesses will grow at 21.8%, above average. Amazon is poised to gain US ecommerce market share this year. Walmart’s ecommerce continues to accelerate, which will take it to #2 in online sales behind Amazon.
  • As the economy begins to reopen, the ecommerce sales will drop later this year. However,  certain behaviors like click-and-collect will continue down the road and create long-term ecommerce growth.

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