How To Increase Profits and Cash Flows For eCommerce Businesses

Profit and Loss Infinity 22

Wondering how to increase profits in your ecommerce business? Running an online business is hard, you need to manage your cash flow wisely, keep your customers happy, and stay on top of your bookkeeping

Almost all online businesses are looking for new ways to increase profits for their ecommerce business. That’s why in this article, we’ll outline some simple strategies to improve your bottom line. 

Reduce the costs associated with operating your business

Rather than trying to gain more clients and customers for your business, an easier way to increase profits for ecommerce businesses is to simply reduce your overheads. 

The difficult part is assessing which expenses to cut, and which to keep. It’s a good idea to start by giving your business expenses a thorough audit. Which expenses are essential for day to day operations, and which are nice to have but perhaps not contributing to your overall revenue? 

Focus on service, not per-order-profit 

If you’re so focused on not losing money on each order, even if it results in unhappy customers, you’ll end up shooting yourself in the foot. 

It may sound counterintuitive, but increasing profits for ecommerce businesses is less about focusing on penny-pinching and more about delivering the best customer experience possible. 

Did your customer receive a broken product in the mail? Ship them a new one out at no extra cost. If a customer is unhappy with a product or service, go above and beyond to compensate for their disappointment. 

Mediocre service in online businesses today has become the norm, so when an ecommerce business goes out of their way to deliver a great customer experience, you’ll increase the lifetime value of every customer. Not to mention the power of good referrals from happy customers, the best free marketing every online business should be aiming for. 

Increase your average order value 

You know how every time you visit McDonalds and order a burger, the cashier will ask you if you want to make it a meal? The same premise applies in ecommerce. Increasing profits for ecommerce businesses is about increasing the average order value of each customer. 

How can you do this? There are a number of different ways. For example: 

  • Add extra product recommendations when a customer adds something to their cart or goes to checkout. 
  • Take advantage of upselling and cross selling – let’s say someone adds some leather shoes to their cart, you could then offer them a special leather polish to add to their order. 
  • Provide incentives for orders over a certain dollar value. For instance, it’s pretty commonplace to offer free shipping for orders over a certain amount. 

Talk to the team at Infinity22 about increasing profits in your ecommerce business

We can help you identify where you may be able to reduce expenses in your business as well as offer advice on how to increase cash flow. We also offer a number of other financial services to ecommerce businesses in Australia. 

To find out more, give our team a call on (61) 452 184 421.