It is always hard to answer budding entrepreneurs in ecommerce when they ask ” How much can I make with an online store?”
This is because there is no guarantee that you will make money. However, there are no limits to how much money you can make. You don’t have to aim to make $10,000+ per month or save money for the future. You can achieve whatever financial goals that you set by running your ecommerce company effectively.
This article will show you how to make sales through your ecommerce store. We also provide some tools that you can use to manage your finances. This article will provide you with ecommerce tips to help you make money from your ecommerce store.
Let’s get started.
A successful Ecommerce store requires traffic.
It is crucial that your online store receives a lot of traffic. A high level of traffic means that your ecommerce store has many potential customers. It’s only a matter time before your ecommerce store starts generating revenue and traffic if you have great products at an affordable price.
It’s not possible to guarantee that your online store will generate traffic immediately. To draw customers to your online store, you’ll need to use marketing channels. It’s crucial that you understand the traffic you will need to reach your financial goals before you make a decision on which marketing channels to use.
Understanding how much traffic you need
You will need to generate traffic for your ecommerce site depending on how much you earn.
Our Dropshipping Traffic calculator will help you determine how much traffic you need. Simply enter the amount you wish to make and the time it will take you to do so. This tool will show you how many visitors you need to bring to your online shop and how many orders you need to generate.
Below is an example of how the tool works.
Take note that this example assumes the following:
- An average conversion rate for an online business is 2%. This means that you can expect two people to place an order for every 100 customers who visit your online store.
- Average order value for ecommerce shops is $45.
- This will result in a 2x margin. This means that your customers will be charged twice the price you paid for the product.
- It costs $0.35 to get a user. This stat is based upon ecommerce businesses that use Facebook ads in the US.
Once you know how much traffic you will need to achieve your financial goals, you can start to plan how to generate that traffic to your online shop.
Marketing Strategies to Increase Traffic
Marketing campaigns are the fastest way to drive traffic to your online shop. You have many marketing options to attract potential customers to your online store. Each channel offers unique advantages and can be used for multi-product and single-product businesses.
We have broken down the various marketing channels that you can use to make the best decision for your ecommerce company.
PPC marketing is also known as pay-per-click. This means that businesses pay to get more traffic to their online stores. PPC marketing is a form of advertising that involves paying for traffic to their online stores. If you have ever seen a Google search result with a green “Ad” logo beside it, or a Facebook post with the ‘Sponsored” at the top, you will know what PPC marketing looks like. PPC marketing is a great way for ecommerce shops to increase sales.
PPC is an excellent marketing strategy to generate traffic, increase awareness and ultimately increase sales. Your campaigns will deliver results quickly, and you only pay marketing fees when someone clicks on your ad.
PPC marketing can be done on three platforms: Google, Bing, or Facebook. You can use Google or Bing to conduct your PPC marketing research and find out how many people are searching for the content you post. This will make your ads more effective for ecommerce stores. Google and Bing have the disadvantage of not being able to pinpoint your target audience’s age, gender, and interests.
You can use Facebook to market your PPC advertising. However, you won’t know how much your ads will be liked if you don’t have access to their age, gender, or interests.
For more information on PPC advertising, check this Google AdWords Guide by Neil Patel or Buffer’s facebook Marketing guide.
Although email is often overlooked as a marketing channel, it is one that people log into regularly and check. Email marketing can generate a return of investment up to $32 for every $1 spent. This is a lot higher than PPC.
A great email strategy can be a sales channel that drives new and existing traffic to your site time and again. One example of an email campaign is one that offers free information, giveaways and discounts, or codes for refer-a-friend. It also invites you to view new products before everyone else. Helm Boots offers a discount on their website to get people to sign up for their email list.
To increase your traffic, it is crucial to nurture your subscribers. You could send out bi-weekly emails to let your subscribers know when you expect them. You could also segment your audience by demographics and psychographics to provide actionable information about people’s needs, interests, desires, or beliefs. This will drive more visitors to your website. You can create social proof cases by giving your audience personal content. This will allow your audience to feel comfortable sharing your products and services with their closest-knit friends.
Social Media Marketing
Social media is a great way to market your business and drive traffic to your website . You can share blog articles, products and services, positive reviews and company news on social media. This will help you build a network of loyal followers that will share your content to help you grow your business.
Social media is a great tool for customer service, as it allows you to communicate with customers via messenger and even marketing. Chatchamp offers services that allow you to automate sales qualification, send new products to your followers, remind customers about abandoned carts, and so on through Facebook Messenger and WhatsApp. Many services such as this cater to other social media platforms in a similar way. It is a good idea to review your social media presence and focus your efforts on optimizing communication on your most important profiles. This can not only increase website traffic, but also improve online store profits.
Search Engine Marketing
No matter the size of your company , SEO is a must. SEO is essential because it’s the best way to drive huge traffic to your website without spending a lot of money on advertising. SEO is the optimization of certain elements on your website in order to rank high in search engines when people search for specific keywords. It is important to optimize on-page elements such as content optimization, meta-title and image optimization when a website is new. As your website gains in popularity, you can also use off-page SEO such as link building and social media to increase your website traffic and improve your search engine rankings.
Low-Cost Marketing Channels
Low-cost marketing channels are an option if you don’t want to invest in marketing. Although low-cost marketing channels are slower to produce results than PPC marketing they can still be a cost-effective option to bring traffic to your ecommerce shop.
Content marketing can be a low-cost strategy that you can use to drive traffic to your online shop. To increase your brand authority and organic search ranking, you can create a blog. Social media can be used by your ecommerce company to inform your customers about flash sales, new products, and announcements that are relevant to your store.
You can also use discussion platforms like Reddit to increase traffic to your online store. Reddit offers a variety of niche-specific categories, known as “Subreddits”, that you can use for engaging with other users interested in your products.
Reddit allows you to share any content marketing resources you have created. As long as they are relevant to ongoing discussions, This is a great way for you to attract high-potential customers to an online store and to raise awareness about your brand.
Calculating Your Profits
It’s crucial that your ecommerce store starts making sales. You can calculate how much profit your business will make. You can use the Monthly Profit Calculator from Google Sheets to calculate how much profit your online store is making. All you need is a Google Account.
Simply copy and paste the form we have created into your Google Sheet. Then, you can enter your figures in the green sections. Once you have entered your numbers into the green sections, the Monthly Traffic Calculator will calculate your gross revenue, your net revenue, as well as your profit. We have broken down the calculations below for gross revenue, profit, and net revenue.
- Gross Revenue – You can calculate the gross revenue from your online store by multiplying your product’s price by the number you have sold.
- Net Revenue. To calculate the net revenue, multiply the price at which you purchased your products by the number sold in your online store. Once you have completed this sum, subtract the net revenue from it to get your monthly revenue for your ecommerce store.
- Profit Earned – To calculate the profit that your store earned in a given month, subtract your marketing budget and your net revenue.
It’s time to start earning money
Dropshipping and ecommerce are both profitable. Now you have the knowledge and tools to help you reach your financial goals. It’s time for you to make money. One last thing: Make sure you test your marketing campaigns, and your product prices. This will help you grow your ecommerce business. If your Adwords campaigns fail, you might try Facebook campaigns. If you discover that customers are willing and able to pay more, you can adjust the price of your products.